works
THE FOUR
CORNERSTONES
OF STRATEGIC
EXECUTION
advisory.works
CONTENTS
CULTURE
STRATEGIC INTENT
DISCIPLINED EXECUTION
HIGH-PERFORMANCE LEADERSHIP
2
advisory.works
INTRODUCTION
T
he execution of strategy is the biggest challenge business leaders face today. How do you move
out of business-as-usual mode and push your company forward?
At Advisory Works weve been fortunate to work with hundreds of companies over the last twenty
years, to help execute strategy and win in a changing market. Weve seen it all, and we understand the vital
role strategy plays in success. Strategy is all about exclusion saying no when needed - so you can focus
your resources on areas where you can win in the marketplace.
Business advisory is more than just financial numbers with some commentary or the latest piece of
standalone technology. As leaders and disruptors in the business advisory space, we partner with
companies to help them execute strategy and were at the forefront of research into this field. Our
framework the four cornerstones of strategic execution contains four key components that work
synergistically to bring strategy to life:
Strategic Intent: Understanding what youre setting out to achieve, and building a plan to achieve it.
Disciplined Execution: The best plan in the world will fail without a way of achieving it. Without
disciplined execution, nothing actually happens.
In this guide, we outline our research framework for successful strategic execution and show you how the
four cornerstones work together to bring your strategy to life.
3
advisory.works
CULTURE
C
ulture permeates every aspect of a company, from Ask yourself what needs to happen in order to create the
whom and how you hire, to how you structure culture you want in the future? When it comes to aligning
work, to how decisions are made, wins are culture to your strategic plan, you need to be asking the
celebrated, setbacks overcome, and changes navigated. tough questions, challenging the current culture without
Because of this, culture is the first of our four cornerstones offending others, and parking your ego.
and is vital to a successful business.
CULTURE INCORPORATES EXTREME
VALUES FEED CULTURE CUSTOMER FOCUS
If your culture is the heartbeat of your company, then your In our framework, culture also encompasses the way your
values and purpose are the arteries that deliver life-giving company engages with and celebrates customers. Your
blood through the business. company probably has a mission statement and a set of
core values to back that statement up. But few companies
We often ask a Senior Team, What is your culture? Every
base those core values on customer feedback and
business has a culture, although they may or may not be
engagement. The best businesses seek to own the voice
able to articulate it. The important first step is to figure out
of the customer because as John Spence states, Whoever
the culture you have, and then use your values to align the
owns the voice of the customer, owns the marketplace.
company with the culture you want.
4
advisory.works
When working on changing company culture to align with they give you their discretionary effort they go the extra
strategy and values, we prioritise customer feedback and mile for the business. Higher engagement means you get
research and build engagement and value from there. greater productivity, improved customer satisfaction and
increased profitability.
By encouraging employees to align their behaviour and
decisions to those customer-focused values, and rewarding
CULTURE SETS YOU APART
those who live the brand, you create a culture focused on
attracting and retaining customers. We often say to clients, People can steal your products
and services, but the WAY you deliver those products and
THE NEW GENERATION OF LEADERS services no one can take that.
People create and sustain your culture. Therefore, your Thats your culture. When talented people come together
culture is an alignment of your hopes, values, and dreams in an environment where they feel supported, they can
with theirs. The new generation of leaders understand the achieve remarkable things. By keeping culture firmly at the
power of people. To them, leadership is about bringing heart of strategic execution, we believe that your company
together talented people to collaborate and innovate. will achieve more than you ever imagined.
Command and control leadership doesnt work in this
Additionally, A players (those that live a businesss core
environment it can feel oppressive.
values and go the extra mile to get results) could get a job
However, a collaborative culture can be pushed too far. If anywhere. These type of people choose where they want
things become too free-form and every decision needs to to work and the decision they make is significantly based
be made by committee, then progress grinds to a halt. on your culture. They are attracted to great workplaces.
Basically they want their job to have meaning, the ability
As a leader, you need to strike a balance between making
to achieve mastery, to be respected for their skills. They
good, clear decisions, and involving everybody to create
want to be empowered and have a level of autonomy, get
that collaborative culture.
feedback, and enjoy the people they work with.
An excellent article about culture on Kissmetrics talks about do you have a culture that sets you apart and
the limits of employee freedom. What some people want is attracts A Players?
to just go to work, take orders, do the job, and wait for the
clock to hit 5PM.
But this is not what the best employees want. They want
to have a voice and a meaningful impact on the company
and its direction. They know that anyone can win a debate
with the most senior person at a company. They also know
they can create tools for the company without the need for
management approval.
5
advisory.works
CULTURE
IS A LACK OF
COMMUNICATION HINDERING
YOUR STRATEGIC PLAN?
W
e all know that executing your strategy is the If you want to be an effective leader and a disruptor, then
most difficult part of the process. Its made you first have to be a communicator. You need to push the
even more difficult when you dont have buy-in message through all layers of the organisation, and ensure
from the rest of your organisation. If your team cannot see it reaches the key people in a format they can understand
the forest from the trees when it comes to future strategy, and get excited about.
then they wont have the drive to implement the required
changes. At that point, you might as well have had no DELIVER KEY MESSAGES ACROSS
strategy at all. MULTIPLE CHANNELS
At Advisory Works, were often called in to assess why a Kaplan and Norton identify that Effective strategic execution
companys particular strategic execution isnt working. As happens when employees are personally committed to
we dig deep into the causes behind poor implementation, helping their business achieving the strategic objectives.
one common theme occurs again and again: Communicating vision, values and strategy is the first step
communication. The management team doesnt have an in creating motivation in employees. It tells them what you
effective way to disseminate strategic direction throughout want to do, how you intend to do it, and their part in it.
the organisation. As a result, theres no one stepping up to
take ownership for strategic initiatives, and the plan quickly
stagnates back to the status quo.
6
advisory.works
only disseminating information, but you play a key role in information. Leaders unleash enormous internal creativity
the change management of the company. Its your job to and energy when they can appeal to their employees
ensure that not only what youre communicating, but how desire to make a positive contribution to the world.
youre communicating it, enables the whole team to engage Employees want to take pride in the organisation in
and air concerns. which they spend most of their waking lives. When
The message thats delivered should be concise, goal- communicating about strategy concepts that go to
focused, and ultimately positive. The wider team doesnt the heart of who your organisation is and what it does
need to know every facet of every avenue of the strategy. you are seeking to connect the team to a new direction
what the goals and risks are, and how this change will be This can be hard when you meet resistance to change. The
executed on a macro scale is much more effective. key is to create an environment where people experience
Different people and groups of people engage in unique no fear, despite incoming changes. Where change is
ways. The key here is cascading communication ensuring exciting, and where your current and future leaders can
the message rolls down from the top like a waterfall, make a positive contribution to the process and own their
reaching every corner of the organisation. Use different place in bringing strategy to life.
7
advisory.works
STRATEGIC INTENT
O
n the rugby field, nothing matters but the game.
DRILL DOWN INTO YOUR STRATEGY
Who you are, what youve done before, none of
that matters. All that is important is that youre at From your audacious strategic intent statement, you
the front of the pack, the ball in your hands. Youve trained can begin to drill down further, setting your goals and
hard, you know exactly what you have to do, and nothing is milestones for the mid-term (3-5 years). Then, you will
going to stop you. formulate a plan for the short-term, establishing where
you want to be in one year and then setting 90-day goals
The marketplace is that playing field, and if you want to
to propel the strategy forward. With your overall strategic
play to win, you need to start with strategic intent. Strategic
intent at the front of your mind, being able to set out these
intent is determining your winning aspiration at the start
steps will be simple youll see a clear path from A to B to
of the season. It is a high-level statement on how you will
C right through to victory.
create your desired future. You then determine which level
of competition you are going to compete in and how you HOW WILL YOU PLAY TO WIN?
plan to win. It is then the rigorous training of your business
Many businesses started out with a novel idea, or a belief
model, the framing of your strategy into a solid game plan.
that they could do something different or better. As part
And it is a powerful tool for businesses.
of your strategic intent, every business needs to have a
IT ALL BEGINS WITH STRATEGIC INTENT thorough understanding of how they compete against the
others in the game. You cant be everything to everybody,
Intent is the visualisation of your goal. For the rugby player,
as this leads to exhausted mediocrity. Everyone in your
thats getting the ball over the line and hoisting a sought-
business should understand your brands position in the
after trophy into the air. What does that goal look like for
market and be able to state that clearly in 8 words or less.
your company? Set the intent of where youre going over
What is it that makes you truly different? What is your
the next 10+ years. Where will your business be?
competitive advantage that you can sustain? What do you
Setting intent requires excellent industry analysis, in the same promise your customers and all of your staff know they are
way a rugby team or coach will drill every day, and study delivering on?
their competition. Conducting this analysis allows you to see
How will your business play to win? Have you set
potential future opportunities, as well as potential pitfalls. Youll
your strategic intent, and do you have disciplined
be able to create a compelling statement outlining your intent.
execution required to carry it out?
8
advisory.works
STRATEGIC INTENT
W
hen looking at your companys strategic intent, If you dont have anyone in this position, or previous
the Senior Leadership Team will take stock of strategic initiatives led by your advisors have focused
the companys position based on the research too much on compliance, you need to talk to a strategic
conducted during strategic analysis, determine your partner like Advisory Works to assist you through the
mission and intent, and build out the strategic plan. process. The outcome of having others involved enables
them to take ownership of the plan and help communicate
When constructing your strategy for consistency
and execute it into the business.
and ensuring youre playing to win, its important to
remember the success of your strategic intent hinges on
2: YOUR STRATEGIC GOALS
four key factors:
Your strategic goals are a set of broad, long-term
1: YOUR STRATEGIC TEAM statements addressing your company strategy across all
areas of the organisation. When planning your goals, look
Determining who will be part of the Strategic Planning
at how you will build you people and culture, how you will
Team should be easy. You want to pull in the key decision
develop and implement key systems and processes for
makers across the breadth of the company. You want to
scale, how you will build your brand, and how you can be
keep the group small less than 15 people. Remember,
competitive in the market while winning.
those who build the plan dont fight the plan. Your Chief
Strategy Officer or Advisor should be leading the process,
focusing not just on compliance but on the overall direction
of the company.
9
advisory.works
10
advisory.works
DISCIPLINED EXECUTION
D
isciplined execution is the relentless focus on
THE 90-DAY PLAN
executing the plan. Disciplined execution is the
practical application of disrupting business as usual; The aim of the 90-day plan is to break down major strategic
to work on the business; to make the important stuff happen. goals into smaller, achievable chunks. This helps everyone
in the organisation to understand departmental strategy
After the process of strategic planning has been
at a micro level and to see what goals need to be reached
completed, the process for your organisation becomes one
now in order to produce results in a years time.
of disciplined execution keeping the momentum going
throughout the year while so many other things are coming The 90-day plan is a living document that forms the
at you and your people. basis for reporting lines, team projects and leadership
initiatives over each quarter. At the end of the quarter this
Distractions abound, and it can be easy to veer off-track.
document should be reviewed and revised. New goals
Part of our job is to help companies disrupt their business
might be added, or strategy might be refocused to pivot
as usual mentality, and actually put their strategy into
to create forward momentum toward those longer-term
practice over the following year. For this, we have a specific
strategic goals.
process. This process enables you to continue to execute
strategy while also giving you the space to pivot if required.
11
advisory.works
12
advisory.works
DISCIPLINED EXECUTION
S
trategy doesnt start and finish in the boardroom
THE GOLDEN RATIO
it has to be implemented at every level of the
business and rolled into the core values of the Here at Advisory Works, we like to talk about the Golden
company and the product. At Advisory Works, we call this Ratio in disciplined strategic execution. That ratio is 70:20:10.
disciplined execution how a company can play to win. 70% of your time should be spent on business as usual/
You need to have the cadence to ensure you maintain core business. 20% of your time should be spent on
momentum and accountability while focusing on bringing reflection, review, learning and innovation, and 10% on
your strategy to life. implementing strategic actions and projects.
ACCOUNTABILITY IS KEY As you can see, the core business remains at the heart of
our strategy. We dont believe any company should make
A strategy document can very easily be forgotten amongst
sacrifices in their core business in order to see strategic
the everyday hubbub of running the business. This is
success and you cant afford to take your eye of the ball. Just
why its vital to have a management team dedicated
the opposite strategy relies on your core competencies
to executing and implementing strategy and taking
and value chain in order to succeed. What we do advocate
responsibility for their own particular department.
is ensuring that strategy plays a vital role in driving decisions
and progress across the business, at every level.
THE IMPORTANT VERSUS THE URGENT
As a business, how and when you execute strategy
In business, things can sometimes seem to be caught up in
matters even more than what that strategy actually
a whirlwind. We often get so bogged down in urgent tasks
is. Do you have the cadence required to build a
we feel as though were flitting from one thing to the next.
steady rhythm of execution?
But just because something is urgent, doesnt mean its
important. Managing priorities can help you stay on track
with strategic objectives.
13
advisory.works
HIGH-PERFORMANCE LEADERSHIP
Y
ou cant grow your business, only your people
THE LEADERSHIP MENTALITY
can. As Maxwell stated, If you want your business
to grow create followers, if you want to multiply High performance is about continually trying improve the
create more leaders. Great leaders transform their people 1% margins. Similarly, good leaders continue to strive to
and businesses by creating trust and inspiring their people get better. Leadership is a journey, and theres always
through vision and values. They set stretch goals, and create something new to learn. Whether that means a continued
a collaborative team environment that enables innovation commitment to professional development, implementing
while coaching, building and empowering their people. strategies learned from other leaders, or putting into
practice lessons obtained through mistakes or diversions.
When people feel empowered, they can achieve greatness.
Empowerment comes from knowing their voice is In her article on creating a successful leadership mentality,
heard and their expertise respected. As a leader, youre communication expert Anna-Maria Yritys writes,
responsible for cultivating an environment that stimulates No matter what you may have been through in your life,
this empowerment. How do you do it? By adopting a in your career, you must realize that everything has served
leadership mentality not just for yourself, but for your a purpose. Leaders are constantly seeking to learn and
14
advisory.works
15
advisory.works
HIGH-PERFORMANCE LEADERSHIP
A
s leaders in our organisations, we have so much disrupted the status quo, and as a result, have had an
we want to do and achieve. There are always incredible impact on the world.
initiatives to drive the company forward and
Vision is simple. Its purpose distilled down into a simple
achieve our vision. We know what we want to achieve all it
statement of purpose. Great leaders dont just have this
takes is putting the plan in place. Then why are we so often
vision, but they are able to find a way to communicate that
putting things off and making excuses?
vision to others in a way that captivates imagination and
If youre falling behind with the big picture, and your focus inspires innovation. You alone dont have all the pieces
and vision are wavering, how can you get back on track? required to bring that vision to life, but what you do have is
When youre confronted with a crisis or a change moment, the ability to bring in others who can embrace that vision
such as the loss of a key staff member, losing a high-profile and help you make it happen.
client, or a colleague committing fraud, it can be very hard
to retain that vision. Youre too busy trying to put the fires VISION REQUIRES PERSISTENCE
out to worry about the future. If you want to live out your vision for success, you need to
But without that vision to drive us forward, were going be able to continue to strive for it even when things arent
to end up static sitting in the same place we always going your way. Persistence is the key trait that separates
have. That position may feel safe were not taking risks those at the top from those who have given up on their
or stepping outside our comfort zone but its actually vision, who have lost focus on the endgame.
incredibly precarious. All around us, the world is constantly Arnold Schwarzenegger once said of quitting, I learned
changing, the market adapting, the technology improving. helplessness is the giving-up reaction, the quitting
Disruptors are winning the market. response that follows from the belief that whatever you do
As Albert Einstein once famously didnt say (this does not doesnt matter. If youre wavering on your focus, think on
diminish the truth of the maxim), The definition of insanity this are you not pushing because you suspect youd be
is doing the same thing over and over again and expecting pushing in the wrong direction? It takes discipline to step
a different result. back and reflect upon whats going on, to ask yourself what
youve achieved and if it aligns with your ultimate vision.
Are you guilty of letting your vision waver? Do you need to
break away from the daily grind and work toward achieving Is it time to adapt the game plan? Is your lack of persistence
your leadership and strategic vision? revealing the flaw in your vision? Then its time to go back to
strategy and refine that vision until it sings, until it is what
COMMUNICATE YOUR VISION drives you forward through any change or adversity.
Henry Ford wanted to create a vehicle that every family Leaders with great vision achieve remarkable things, but
would be able to afford. John F Kennedy dreamed of only if they have the ability to engage and excite others with
putting a man on the moon. Steve Jobs wanted to create the possibilities of that vision, and the persistence to drive
a computer that anyone could use to produce their own forward no matter what stands in their way.
creative visions. All these visions are simple, yet all have
Be this leader in your organisation.
16
HOW IS YOUR COMPANY
APPLYING THE
FOUR CORNERSTONES?
Business strategy is all about focusing your resources on areas where you
can out-manoeuvre your competitors and stay ahead of the game.
We will support, teach and motivate you to put in place the tools, processes
and systems that you and your business need to maximise future
performance. Our goal is to get you out of business as usual and into the
strategically important priorities that will really drive your business forward.
Auckland Christchurch
09 361 0090 03 353 4490
Level 15, Telco Building, Ground Floor, Advisory.Works House,
16 Kingston Street, 226 Antigua Street,
Auckland, New Zealand Christchurch, New Zealand