Category: Strategy

Categories
Strategy

5 Steps for Effective Strategy Implementation and Execution

5 Steps for Effective Strategy Implementation and Execution

Introduction

  • Do your strategies often fails?
  • Do you want to know how to implement a strategy successfully?

Organizations create strategies but due to a lack of proper knowledge of strategy implementation and execution process they are not able to execute them properly and as a result, their strategies fail.

In this article, we will discuss how to implement a strategy successfully through 5 simple steps of the strategy implementation process.

Step 1 – Unique, Clear and Distinct

It is the first step of the strategy implementation process.

For strategy Implementation and execution, you need to:

✅ Create a tough, bold, and distinct set of choices in your organization.

✅ Create such a unique and clear set of choices that it becomes easy to present your organization distinctly.

Step 2 – Strategic Positioning

The uniqueness of your organization should be positioned strategically. It is the second step of the strategy implementation process.

❌ Do not make a product that sells well in the market.

✅ Make a problem-solving product that solves the problem of your customer.

✅ Make a product after identifying the need of your customers.

As an entrepreneur or CEO, Step 1 and Step 2 are your responsibilities. So, you need to perform them on your own end effectively.

Step 3 – Incentivize the Behavior with Emotional Value and Financial Value

Even if you have made the strategy for positioning but your employees and management are not ready yet. So, you need to incentivize their behavior. It is the third step of the strategy implementation process.

You need to provide the following types of incentives to your employees and management:

Emotional Incentive

✅ Take emotional commitment from the employees for implementing the strategy.

✅ Tell employees how this strategy will be beneficial for them and the company.

Financial Incentive

✅ Provide financial incentives to the employees for the work they do to implement the strategy.

When you and your team come together, the execution will be easy.

Step 4 – Identify the Skill Deficit, Knowledge Deficit, and Execution Deficit

If employees want to help you in strategy implementation and execution but they do not have the required skills or they do not know what should they do and how to do, then it is impossible to execute your strategy.

In such a case, you need to:

  • Identify the different types of deficits of your employees like skill, knowledge, and execution.
  • Become the gap partner of your employees to help them to fill their deficits.
  • Train, inspire or engage your existing employees.
  • Bring new skilled manpower to implement the strategy.

Step 5 – Flexibility is the Solution for Frequent Barriers

✅ Make your frameworks and working style flexible.

The framework is necessary for execution. Without frameworks of strategy implementation and execution, you cannot be successful.

There are two types of frameworks –

  • Standard Framework
  • Creative framework

Once you know the standard frameworks, you are able to make your own framework, which will be customized according to the current situation or problem.

When CEOs or entrepreneurs start making their own customized frameworks, they provide these frameworks to their juniors and juniors just need to enforce the devised strategy implementation process to let your company start growing.

Categories
Strategy

Are You Failing to Implement Strategy Execution Process?

Are You Failing to Implement Strategy Execution Process?

Introduction

  • Do you want to know strategy implementation process?
  • Do you want to know what strategy execution framework is?

Many businesses fail in their initial years despite the excellent strategy execution process and years of experience. Do you know why?

It is because of the lack of appropriate strategy execution framework.

Many businesses fail because they fail to execute their strategy.

Strategy does not give big Success, Execution does.

The day you understand this, you will see your business growing.

Here is how you can execute your strategy through 4 important strategy execution frameworks.

If you adopt these 4 steps in any department, the efficiency of that department will increase.

It does not matter whether you are the first mover or the last mover. You will become a fast mover. Here, are those four steps:

Step #1: MEG (Most Essential Goal)

Among the most important tools of the strategy execution process is MEG (Most Essential Goal).

MEG is a goal for which you are ready to compromise everything else and focuses on it only is called Most Essential Goal (MEG).

Focus on What Matters the Most!

If you do everything but miss your most essential goal, you will fail.

If you miss everything else and focus on your MEG, you will get successful.

So, you need to identify the MEG of your department, division or organization that you want to execute.

Step #2: Effort Score and Result Score

Without matching your Effort Score with Result you cannot implement the strategy execution process effectively in your business.

If you want to achieve a goal, separate your Effort Score and Result Score.

While achieving any goal, determine what effort will it take and what result/outcome is expected.

Step #3: Scoreboard
Until you make a scoreboard, people will not feel excited and your strategy implementation process will fail drastically.

People play differently when they have a scoreboard.

Actually, people want to win and you should help them win by making a scoreboard.

When you encourage people, they will take scoreboard as a game and will try to win. As a result, their speed will increase.

Increasing the speed of the department will help you control the numbers, figures, and targets.

Now, you can engage people easily.

Let’s move on to Step 4!

Step #4: Weekly Review Meeting

Conduct weekly review meetings with your team so as to improve their performance, and implement the strategy execution process efficiently.

When people with a shared vision sit together to discuss areas of mutual concerns, it sparks creativity and helps them achieve the Most Essential Goal.

Categories
Strategy

10 Tips on How to Create Monopoly in Business

??Introduction

  • Do you have an entry barrier in your business?
  • Do you know how to create monopoly in business?

Replicating a successful business idea of others is an old-fashioned way of doing business, which may not every time give you expected results. A business should be so unique and powerful that no one dares to enter into it. 

You should create a monopoly in the market create an entry barrier for competitors entering into it. 

Now let’s understand how to create monopoly in business with given 10 tips-

Intellectual Property Protection

You can create a trade secret of your business that no one knows in the market except you.
 

For Example:
?

1. Coca Cola created a trade secret of their beverage that no one could copy in the market so far. Coca Cola didn’t reveal the method of preparing their beverage, which prevented others from producing it.  

2. KFC also created similar trade secret with their recipe for making a chicken burger, which created an entry barrier for others and scaled up their business across the world.

Patent and Licensing

Patenting and Licensing gives you special right that prevents your competitors from making a similar product.

For Example: ?

In the pharmaceutical sector, two types of medicines are produced- Generic and Molecule. Generic medicines can be made by anyone without any patent rights.

Whereas, molecule medicines are those specific medicine made by a company through their research and development. 

It gives you a monopoly over pricing as it is produced by you only while barring others from entering into the market.

Distribution Network

A strong distribution network gives you an upper hand over your competitors in monopolizing the market.

For Example:
?

Though Nokia’s had a huge distribution network across the country, it didn’t build good relations with retailers, as it gave them very less margin which made their survival difficult. 

When retailers were unsatisfied with Nokia, Chinese manufacturers Oppo and Vevo made a remarkable entry in the Indian market and snatched the tag of the largest distribution network from Nokia. 

Retailers became loyal to Oppo and Vivo as they gave them the highest margin in the market, which automatically became an entry barrier for competitors.

Exclusive Rights

Getting exclusive rights to sell an international product automatically creates a monopoly in the market by creating an entry barrier for others. 

Flipkart and Amazon have exclusive rights to selling products of some of the biggest international brands in India, which disrupts the business of others.

For Example:
?

Flipkart has 70% exclusive rights of selling international products, while Amazon possesses 30% exclusive rights of such products. Only they get exclusive rights of special sales and deals in India.

Economies of Scale

Another powerful method to monopolize the market is increasing your sales so high that it automatically finishes the competition in the market. 

Although it reduces your margin, it increases overall profitability massively on the sale of products.

For Example:
?

Walmart, DMart and Big Bazaar work on this model, where they purchase a huge amount of inventory on heavy discounts, and sell it at very lower prices, without decreasing their profitability. This method gives them an advantage over others, who don’t work on economies of scale.

High Capital Investment

This technique is used by conglomerates to monopolize the market through massive investment in innovative products.

For Example:
?

Reliance Jio used this technique by investing 2.5 lakh crore on new technology which incumbents didn’t have. It left competitors working on old technology out of business.

Jio monopolized the mobile networking market so extensively, that, it led many companies to merge with each other’s to save their existence, reducing the total number of mobile networking companies from 13 to only 3.

Proprietary Technology

The problem-solving technology that only you have in the market, without significant efforts make you only in the market.

For Example:
?

With a 90% gross margin, Bill Gates’s Microsoft Windows has 90% market share in the world.  Nobody could make windows that could compete with Microsoft for decades.

Excellent Customer Service

Domino’s Pizza, with more than 60% market share in the organized industry, has emerged as an excellent customer service provider through its ’30 minute or free’ offer in India. 

This excellent experience by Domino’s created an entry barrier as no Pizza company could compete it so far. 

Brand Equity

Synonymous branding is a unique way of registering your product’s image into the customer’s mind that it comes up first when they talk about that particular product.

For Example:
?

M-Seal, although its product’s name is epoxy compound, became massively popular among customers as M-Seal, through ad campaigns that its name became synonymous to product type.

Loyalty Beyond Logic

In some particular region or community, loyalty beyond logic can be created by providing the products and services that connect with their belief system.

For Example:
?

The health care company Hamdard became so famous among practitioners of Islam in Hyderabad, that they never used products of other companies, even when they sold at discounted rates. 

Once when Hamdard stopped making products due to strike, although they began using products of Baidyanath, returned to Hamdard as soon as it restarted manufacturing products due to their loyalty beyond logic.

Implementing the above given 10 significant tips on how to create monopoly in business will certainly help you become king of the market by creating an entry barrier for competitors.

Categories
Strategy

Do you know why strategy execution fails in business?

Introduction

  • Do you know why strategy execution fails in business?
  • Are you focused on Strategy or Executing the Strategy?
  • Do you want to execute your Strategies effectively?

There is a myth prevailing across the business community that if strategies are good, an organization will definitely work.

They solely rely upon ‘ideas and innovation’ to run their business and undermine the importance of strategy Execution.

Big corporates make many strategies, work on various innovative ideas by pumping billions of dollars.

Still, their failure to execute those ideas actually lead them to an unexpected demise.

Thousands of organizations are failing due to the improper execution of their business strategy.

Let us understand why strategy execution fails even after making world-class business strategies.

Corporates’ Failure to Execute Ideas

Even after being the first entrant into mobile phones, Research in Motion, the makers of Blackberry, and Nokia lost 85% market share to new entrants due to lack of efficient execution.

Even after having a powerful business strategy, ideas, and innovation they failed dramatically in execution. This led others to grab the market from them.

Ideas and Innovations are not Sufficient

Sole dependence upon the ideas is the prime reason why strategy execution fails even after pumping millions of dollars on innovation.

In present market conditions, it is utterly a myth that with an “idea” one can become “Crorepati” (millionaire).

An Idea is just a seed, but it needs Sun, Air, Water, Fertilizer, and Pesticide to become a big tree -which is called Execution.

Why is Execution so Important?
Such is the importance of strategy execution in an organization that accomplishing a plan without it is merely a myth.
Normally, an organization doesn’t figure out money-making models and fail to make efforts score, results score, and scoreboard.
Plans and policies can be made in a board room, but the execution is not a child’s play. It is a systematic way of turning cognitive ideas into reality.

Seamless execution on your inspiration can become even bigger than innovations.
Strategies and innovations are important, but without excellent execution, they are completely irrelevant.
Innovation can be purchased, strategists can be hired, but the execution has to be done by you only.

Be Fast Mover, Not First Mover

This is not the world of first movers but fast movers. Although Bollywood started making movies inspired by Hollywood, now, its revenue has surpassed that of Hollywood.

OYO Rooms launched an online hotel booking service in India by adopting a model of AIRBNB from abroad, but now, it has become so big that AIRBNB cannot even compete with it in India.

In the same manner, OLA Cabs began its operation after many years of the launch of Uber in India, and now, it has become larger than Uber in the country.

Get Inspired by Others

Xerox’s computer was not as bad as it now appears to be, but it lacked execution.

The emergence of Steve Jobs’s Apple and Bill Gates’s Microsoft in the world of the operating system did not leave the space for Xerox to breathe anymore.

There were many mobile operating systems like -Blackberry, Symbian, MeeGo, Palm OS, and Windows.

But, they left an inch of space in the market!

Seeing the space, Google launched the Android killing all competitors in one go. It created a single point ecosystem and open platform for mobile and software manufacturers, which no one could think of.

Failure to Execute

Thanks to their ability to undermine the importance of strategy execution, Nokia, Siemens, Blackberry, Motorola and Sony are no more a household name as they used to be.

Once, market leaders, they lost the race with the entry of Oppo, Vivo, Xiaomi.

Though strategies and innovations are very important for an organization, but “ideation without execution is only illusion and delusion.

The entry of Baba Ramdev’s Patanjali has driven centuries-old organizations like P&G (Procter and Gamble), Dabur, Hamdard, and Unilever out of business.

The story is no different for Search engines. Web crawler and Lykos were launched in 1994, AltaVista and Excite in 1995, Yahoo and Dogpile in 1996, and Ask Jeeves and MSN in 1998. But they could not sustain the market to inexperienced Google, which was launched in 1998.

All these corporate failures are examples of failed execution even after having good ideas, strategies, and innovation.

Today is the time of not only innovation and ideas but taking inspiration from surroundings to execute business and scale it up.

Hence, why strategy execution fails could be well understood with the explanation as given in the article.