In the business world, every CEO is expected to develop a solid strategy for business and drive its execution. Still, the need to do both simultaneously has never been so urgent. As people emerge from the Covid-19 crisis, companies need to derive some short-term outcomes while also recreating strategies to handle the seismic shifts in the market trends. It is not strategy vs. execution; CEOs must work on creating the right balance between strategy and execution timeframes.
Although well-established leaders can easily handle this scenario, it may appear little challenging for newly appointed CEOs. However, it is essential to address and diagnose current challenges in the business industry while laying a solid foundation for a sustainable future. It is common to see several next-gen leaders competent enough for strategy crafting. They are tech-savvy professionals who rose to significant roles based on their knowledge. But many lack operational experience and fail to understand that boards require them to run the business first instead of focusing on future questions. When new CEOs are more concerned about strategy and vision, the boards demand CEOs who can work on short-term goals and consider execution a vital priority.
The article below may be helpful if you are also looking for reliable ways to create a balance between strategy building and execution. Here we have listed some tips and tricks from experts at Global Investment Strategies on balancing strategy and execution with the help of transition.
Phase 1: Core Defending
During the first 90 days, CEOs need to focus on the core business strategies and responsibilities. Strategy management means resetting priorities over core units and helping the board go ahead with some short-term goals. However, on the execution side, they must stop teams from doing non-value-added activities, managing cash flows, maximizing short-term profits with early wins, and implementing a robust model for operations. This phase brings the right opportunity for the CEOs to display good behaviors, understand the company culture, and find alternatives for growth and change.
Phase 2: Core Extension
During the next 90 days, the CEOs of the companies need to shift their focus to strategy and execution priorities. They must identify ways to extend core business while expanding their portfolio and breaking into adjacent markets. In terms of strategy, it requires replacing and refining the corporate mission, vision, strategic priorities, and goals. On the execution side, it requires leaders to work on an effective deployment plan that can drive favorable outcomes.
Phase 3: Transcend the Core
For the remaining six months of the year, CEOs need to set up the ground for the sustainable growth of the business by transcending the core operations. Regarding strategy, it requires them to adopt the best methodologies, including pilot programs, research projects, and minority stakes. However, on the execution side, it focuses on stimulating innovation and high performance in organizations with some key initiatives.