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Maybe this sounds familiar:After months (or even years) of meetings upon meetings, a CEO and her team finalize an ambitious strategy. They sell the vision to the board and roll out the details to employees with excitement, generating much fanfare. They work in eager anticipation, watching for all of the moving parts to click into place.&nbsp;The months tick by. Then, as data on the results begin to roll in, the team discovers that those results are lackluster at best. The plan never came to fruition. Energy wanes, leadership loses traction with employees, and everyone loses confidence. It’s hard to muster fresh hope for the next round of strategic planning.If that hits close to home, know you’re not alone.&nbsp;<ul><li>Faltering strategy execution is the&nbsp;<a href="https://www.amanet.org/articles/what-is-strategy-execution/">#1 concern</a> of CEOs and&nbsp;<a href="https://www2.deloitte.com/us/en/pages/finance/articles/cfo-insights-solving-for-execution-risk.html">#1 risk identified by CFOs</a>&nbsp;</li><li>Slow strategic execution is&nbsp;<a href="https://www.gartner.com/smarterwithgartner/the-five-pillars-of-strategy-execution" target="_blank" rel="noopener noreferrer">a leading frustration</a> for executives year after year</li><li><a href="https://www.gartner.com/smarterwithgartner/3-ways-keep-managers-aligned-corporate-strategy" target="_blank" rel="noopener noreferrer">70%</a> of strategists are concerned they’re not&nbsp;able to close the strategy execution gap, despite believing that execution is more important now than it was pre-pandemic</li></ul>The gap between strategy and execution looks more like a black hole when you take a broader view. A&nbsp;<a href="https://www.strategyand.pwc.com/gx/en/unique-solutions/cds/the-strategy-crisis.pdf" target="_blank" rel="noopener noreferrer">survey of 6,000 executives</a> from companies of varying sizes, locations, and industries revealed:&nbsp;<ul><li>Only 1 in 3 leaders agree their company has a “well-defined” strategy</li><li>Only 1 in 3 believe their strategy will be ultimately successful</li><li>Less than 1 in 3 believe their organization has the capabilities to execute its strategy</li><li>20% admit their company doesn't document strategic priorities</li><li>40% of companies are classified as “adrift”&nbsp;in terms of strategy and execution</li></ul>Are these business leaders — who for the most part do&nbsp;not see a bright future for their organization — just overly cautious? More afraid than the average executive?Unfortunately, the answer is no.A study published in the Journal of Management and Organization reveals these executives’ fears are not unfounded. Just&nbsp;<a href="https://www.cambridge.org/core/journals/journal-of-management-and-organization/article/abs/strategy-implementation-what-is-the-failure-rate/6A048C7CC0D46D8CA22C6D4375CFC4BA" target="_blank" rel="noopener noreferrer">10%</a> of strategic plans are ever fully implemented. If you’re part of that 90% and feel like you can’t get stuff done — like you’re left wondering “Where exactly is the breakdown?”&nbsp;— then keep reading.Let’s start at the beginning. What will it take to start closing the gap?&nbsp;<hr>Don't have time to read the full article now? <a href="https://info.quantive.com/hubfs/Quantive_Guides/How_Top_Companies_Close_the_S%D0%95_Gap.pdf" target="_blank" rel="noopener noreferrer">Download the pdf</a> and save for later<figure class="image image_resized" style="width:50%;"><a href="https://info.quantive.com/hubfs/Quantive_Guides/How_Top_Companies_Close_the_S%D0%95_Gap.pdf" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1671870084/site-v5/close_SE_gap_aa7fcf0230.png" alt="How Top Companies Close the Strategy Execution Gap"></a></figure><hr>

Strategy execution is&nbsp;creating a plan for how to best accomplish an objective (the strategy), then putting that plan into action (the execution). It’s meeting organizational goals on time, on budget, and on target. Of course, this is&nbsp;much easier said than done.&nbsp;Execution may involve any or all of the following:<ul><li>Identifying and allocating the resources needed to meet the objective(s)</li><li>Translating the strategic plan into concrete steps for all levels in the organization</li><li>Assigning roles, responsibilities, and deadlines</li><li>Prioritizing and reprioritizing, then clearly communicating the changes</li><li>Determining how to best measure success</li><li>Tracking progress with data</li><li>Inevitably deviating from the original plan</li></ul><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601506/site-v5/stat_77_SE_5853209fb5.svg" alt="organizations with successful growth strategies increase profitability by 77%"></figure>But for those who don’t, well… what goes wrong in the first place?<hr>Learn more about <a href="https://quantive.com/resources/articles/strategy-execution" target="_blank" rel="noopener noreferrer">The 4 Stages of Successful Strategy Execution</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategy-execution" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/4_stages_of_successful_strategy_execution_1c658351c6.png" alt="4 stages of successful strategy execution.png"></a></figure><hr>

There's truth in the cliche, “failing to plan is planning to fail.”&nbsp;Research from the Harvard Business Review shows that the&nbsp;<a href="https://hbr.org/2015/12/5-ways-to-close-the-strategy-to-execution-gap" target="_blank" rel="noopener noreferrer">highest-performing executive teams invest 54% more time in setting initial direction</a>, crafting their vision, and transcribing it into clear, tangible objectives&nbsp;before moving to action.They then spend an additional 25% more time focusing on the&nbsp;practical and&nbsp;procedural&nbsp;aspects of the plan – things like establishing financial and operational metrics, correlating objectives with strategy, assigning resources, and reviewing key metrics.<blockquote>What does that tell us? Execution starts before anyone moves a muscle.&nbsp;</blockquote>Teams who fail to close the strategy execution gap often have some or all of the following blind spots:<ul><li>Failing to align the strategy with company vision and values</li><li>Poorly defining priorities, and/or having too many of them</li><li>Basing plans on faulty assumptions over facts (i.e. bad data or poor interpretation)</li><li>Neglecting to translate objectives into clear and actionable steps</li><li>Allocating insufficient resources (e.g. time, money, talent)</li><li>Failing to communicate consistently (leading to disengagement or misaligned targets)</li><li>Inadequately training, supporting, and resourcing managers&nbsp;</li><li>Creating a rigid plan that blocks employee ownership, ingenuity, and flexibility</li><li>Failing to assess along the way (e.g. checking benchmark data, employee sentiment, and customer satisfaction at key intervals)&nbsp;</li><li>Not adequately planning for necessary pivots</li><li>Ignoring employee sentiment and well-being (cynicism, disengagement, and change fatigue often arise from poorly-nurtured company culture)</li></ul>

As you can see, there are a lot of reasons why companies fail at strategy execution. But we're here to help you succeed. Let’s take the shortcomings and failures of strategy execution and reframe them as a must-do punch list.&nbsp;We’ll dig deeper into each of these as we go:<ul><li>Step 1: Align execution to strategy</li><li>Step 2: Share priorities widely</li><li>Step 3: Measure outcomes, not activities</li><li>Step 4: Make progress (or a lack thereof) visible</li><li>Step 5: Course correct quickly</li><li>Step 6: Embrace a growth mindset</li></ul>

It’s tempting to think that a great plan naturally leads to clear action steps. But that’s not a given.&nbsp;<ul><li><a href="https://www.strategyand.pwc.com/gx/en/unique-solutions/cds/the-strategy-crisis.pdf" target="_blank" rel="noopener noreferrer">74% of executives</a> admit their strategies are not well-translated into concrete actions</li><li><a href="https://www.gartner.com/smarterwithgartner/the-five-pillars-of-strategy-execution" target="_blank" rel="noopener noreferrer">67% of integral functions</a> in most organizations&nbsp;aren’t aligned with corporate strategy (wasted labor)</li><li><a href="https://www.strategyand.pwc.com/gx/en/unique-solutions/cds/the-strategy-crisis.pdf" target="_blank" rel="noopener noreferrer">74%</a> of executives say their organization’s strategy asks employees to focus on too many priorities</li><li><a href="https://www.strategyand.pwc.com/gx/en/unique-solutions/capabilities-driven-strategy/approach/research-on-strategy.html" target="_blank" rel="noopener noreferrer">79%</a> of executives are concerned their organization doesn’t allocate sufficient resources to implement their strategy</li></ul>The bottom line? Even the best employees will miss the mark if their leaders aim them at the wrong targets.<blockquote>Alignment is what happens when everyone in the organization — from top to bottom — understands the plan of execution and knows what to aim for.&nbsp;</blockquote>It means you can release your team of talented, intrinsically-motivated workers to do what they do best. So, assuming you’ve got a first-rate strategy already in hand, how do you translate it into action that stays true to your goals? It starts with a plan.&nbsp;<figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601507/site-v5/Align_execution_to_strategy_fbabd59f96.svg" alt="Align execution to strategy 7-step chart"></figure><h3>1. Clearly define priorities&nbsp;&nbsp;&nbsp;</h3>If&nbsp;everything is a priority, then&nbsp;nothing is a priority. Make it clear to everyone involved what is&nbsp;most important. Your goal is to focus&nbsp;your employees’ energy into a concentrated stream.&nbsp;Check, and continually re-check, that the priorities are moving your organization toward its vision.&nbsp;<h3>2. Make those priorities actionable &amp; measurable&nbsp;&nbsp;&nbsp;</h3>You see it everywhere because it’s true — what gets&nbsp;measured gets&nbsp;managed. Providing numerical, time-bound&nbsp;reference points is the only way to know if you’re on track.&nbsp;Adopt a framework for defining what success looks like in the end (like <a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">OKRs</a>), then another one for measuring it as you go (like key performance indicators or <a href="https://quantive.com/resources/articles/okrs-vs-kpis" target="_blank" rel="noopener noreferrer">KPIs</a>).&nbsp;<h3>3. Identify the resources, infrastructure, and support required&nbsp;&nbsp;&nbsp;</h3>You can’t just execute out of thin air. Many great plans have been brought down by a failure to wisely allocate resources. So align your&nbsp;spending with your&nbsp;strategy.&nbsp;A few critical questions asked early on can help: What will it take to see these objectives become reality? New technology? Additional training? More people? Increased funding for a particular geographical region or department?&nbsp;<h3>4. Develop a communication plan that spans the strategy’s life cycle&nbsp;&nbsp;&nbsp;</h3>Do the right people have the right information at the right time? From rollout to review, alignment depends in large part on communication. We’ll be taking a closer look at this in a moment.&nbsp;<h3>5. Invest in people and culture&nbsp;&nbsp;&nbsp;</h3>Your execution plan is only as strong as your people are talented. As you develop the action steps of your strategy, consider what has historically motivated and connected your employees. Leveraging cultural capital helps ensure your strategy makes it all the way through to execution.<h3>6. Adapt or die&nbsp;&nbsp;&nbsp;</h3>Have you planned for pivots based on continuously gathered data and feedback? Remaining aligned during execution means embracing inevitable change. So create the necessary structures for tracking progress and adjusting&nbsp;before getting started.<h3>7. Evaluate and reward success&nbsp;&nbsp;&nbsp;</h3>This is where strategy comes full circle. In order to stay aligned in execution, you must keep those clearly-defined priorities front and center. But what will you do once you get there?&nbsp;Buy-in for the next strategic plan will be conditioned on how well you care for (and recognize) employees in the execution of this one.<blockquote>The most successful senior teams are agile in course-correcting when the needs of the business change, and are more easily prepared to shift organizational resources to ensure&nbsp;that the strategy is executed.&nbsp;-&nbsp; <a href="https://hbr.org/2017/11/how-the-most-successful-teams-bridge-the-strategy-execution-gap" target="_blank" rel="noopener noreferrer">Harvard Business Review</a></blockquote>

It’s hard for employees to feel invested in what they don’t know or don’t understand.&nbsp;<figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601506/site-v5/stat_2_SE_4557c6dd04.svg" alt="67% of employees don't know how strategy connects to work, 95% of employees don't understand strategy at all, 4 in 5 executives recognize this gap"></figure>That’s why executives who are at the top of their performance game spend <a href="https://hbr.org/2017/11/how-the-most-successful-teams-bridge-the-strategy-execution-gap" target="_blank" rel="noopener noreferrer">12% more time</a> creating alignment through frequent communication. They break strategy into pieces, then push messages of clear, practical steps downward throughout the entire organization. The power of clear communication just can’t be oversold.<h3>Here are some things to think about as you develop your communication plan:</h3><h4>Why communicate</h4>If the vast majority of organizational members don’t understand what the strategy is or how it impacts them, they won’t be able to execute it.&nbsp;This first step in strategy execution is being transparent about what your organizational objectives are, why they’re important, and how you plan to achieve them. It also builds trust between company leaders and team members.<h4>What to communicate</h4>The answer is&nbsp;everything you can. Err on the side of sharing&nbsp;more rather than&nbsp;less. A few things you'll want to communicate:&nbsp;<ul><li>Company vision</li><li>Targets</li><li>Roles and responsibilities</li><li>Leadership structures</li><li>Timelines</li><li>Process maps</li><li>Opportunities for reward</li></ul>While this is not an exhaustive list, it's a great starting point.<h4>With whom to communicate</h4>Start with managers, leaders, and influencers. Cast your vision, share the strategy, check for understanding, invite buy-in, and release them to steer others.&nbsp;The goal is to equip leaders with all the details they may need to empower teams.<h4>How to communicate</h4>The more outlets you use, the more people will likely receive the message. Use everything from all-hands meetings, 1-on-1s with managers, emails, and Slack to make sure things are communicated clearly.&nbsp;Hone your language to a fine point. It should be exceptionally clear, concise, and empowering.&nbsp;<h4>When to communicate</h4>Through&nbsp;all stages of the plan, from pre-rollout through the recap. Your communication plan for every phase should be established before you ever say a word to employees about what’s coming.<h4>How often to communicate</h4>Repetition is key. Communicate more often than you think you need to.

Outcomes are evidence. Activities — those day-to-day tasks being executed by individuals in your organization — do matter; but they will&nbsp;never, on their own, indicate how close you are to meeting your goals.This is where <a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">a framework like OKRs</a> comes in. In addition to defining the end goal (or objective), you also define the evidence (the key results) that indicates whether or not that goal has been met.&nbsp;Then, and only then, is it time to draw the line between Point A (the objective) and Point B (the key results) and decide which activities will help you get there.<h3>An example of OKRs in action&nbsp;</h3>Let’s say the executive team’s strategy includes global expansion. They create a clear, actionable objective that will move their organization in that direction:<ul><li>Objective:&nbsp;“We will have an established presence in the Australian market.”&nbsp;</li></ul>Next, they offer numerical waypoints tied to a time frame:<ul><li>Key result 1: Host X number of events with prospective customers by December 2023</li><li>Key result 2: Hire X number of employees to support operations by July 2023</li><li>Key result 3: Complete X number of transactions in our Australian branch by July 2023</li></ul>Things like the type of events, who will be on the guest list, what defines the best new employee, and how transactions will be processed are all things you'll figure out. For now, what matters is that the ultimate end result (the objective) has been set, and the evidence of success (the key results) has been determined.From there, managers develop sub-objectives with their teams:&nbsp;“Our team will secure a location and initial staff in Sydney by October of 2022.”&nbsp;Managers then meet with individual reports to collaboratively set personal goals and establish metrics of success.&nbsp;“Employee X will hire 12 tellers and two managers by Q3 2023.”&nbsp;That employee is then empowered with trust, freedom, and resources to control the&nbsp;way&nbsp;the work happens. Your manager checks in at least weekly through a 1-on-1 meeting to offer support, coaching, and progress checks.<blockquote>“Good ideas with great execution are how you make magic. And that’s where OKRs come in… OKRs have helped lead us to 10x growth, many times over…They’ve kept me and the rest of the company on time and on track when it mattered the most.”&nbsp;- <a href="https://www.cnbc.com/2018/08/14/this-goal-setting-method-is-used-by-bill-gates-larry-page-and-bono.html" target="_blank" rel="noopener noreferrer">Larry Page</a>, Co-Founder of Google</blockquote>

Ongoing reporting empowers faster, smarter pivoting with less waste of time and resources. That’s why high-performing teams spend&nbsp;<a href="https://hbr.org/2017/11/how-the-most-successful-teams-bridge-the-strategy-execution-gap" target="_blank" rel="noopener noreferrer">14% more time</a> measuring progress against strategic goals by checking key metrics, then adjusting resources in response.Ask the right data and feedback questions during strategy execution planning:<ul><li>What data do we need to track progress toward OKRs?&nbsp;</li><li>What do we&nbsp;not need?</li><li>Who will gather, interpret, and share these numbers? How often?</li><li>How will we share progress with everyone involved?</li></ul>For example,&nbsp;<a href="https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/performance-management-in-agile-organizations" target="_blank" rel="noopener noreferrer">at Google</a>, all OKRs (including executives) are completely visible to every employee. This kind of <a href="https://quantive.com/resources/articles/okrs-in-business" target="_blank" rel="noopener noreferrer">transparency in OKRs has several benefits:</a><ul><li>Creates a collaborative mindset</li><li>Highlights interconnectedness among teams and departments</li><li>Fuels urgency</li><li>Keeps the big picture front and center</li></ul>Make progress data and objectives as widely visible as you can, then lean into employee and customer feedback. That’s what keeps strategy execution tied to reality and makes adaptation possible.<blockquote>“When team members are armed with clean, accurate, relevant, actionable data, presented in an easily consumable format, they’re equipped to make daily decisions that advance the organization towards its objectives — present and future.”&nbsp;- Nick Kelly, strategy consultant&nbsp;</blockquote>

Achieving strategy execution without expecting the unexpected is impossible. Economies, markets, and customer preferences change rapidly. Projects get complicated and then delayed. A key employee leaves for another opportunity.&nbsp;Seeing strategy through the execution phase demands agility.&nbsp;But how do you build it? McKinsey identified&nbsp;<a href="https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/performance-management-in-agile-organizations" target="_blank" rel="noopener noreferrer">5 characteristics of nimble organizations</a>:&nbsp;<ol style="list-style-type:decimal;"><li>A North Star vision communicated throughout the organization&nbsp;</li><li>Empowered, autonomous-yet-connected teams&nbsp;</li><li>Fast cycles of decision-making, learning, &amp; adapting</li><li>A people model that capitalizes on passion</li><li>Systems, technology/tools, and training that make work workable</li></ol><h3>A North Star vision communicated throughout the organization</h3>Leadership defines what the mission is. That mission is narrow enough to give direction and inspire, but broad enough to allow teams to define their own objectives.<h3>Empowered, autonomous-yet-connected teams&nbsp;</h3>Think of a large fleet of small ships, rather than a small fleet of large ships. You need a system of distributed decision making that’s carried out by capable people you can trust.There’s just no time to run every move by senior leadership. Empower teams to act within their areas of expertise.<h3>Fast cycles of decision-making, learning, &amp; adapting&nbsp;</h3>Who are the key players in making that work? Managers.&nbsp;The kind of performance management that leads to strong strategic execution centers around:<ul><li>Continual feedback and development conversations</li><li>Frequent input gathering</li><li>Savvy coaching, which includes<ul style="list-style-type:circle;"><li>Roadblock removal (technical, situational, or otherwise)</li><li>Skill-building</li><li>Collaborative goal-setting</li></ul></li></ul><h3>A people model that capitalizes on passion</h3>Managers build strategic alignment by tying employee actions to priorities, keeping objectives front and center in conversations, and acknowledging (and rewarding) effort and achievement.&nbsp;<h3>Systems, technology/tools, and training that make work workable</h3>Your strategy’s execution depends on strong performance management to power impact. Supply your managers with the systems, training, and data they need to keep their teams on track all the way to the finish.

The strategy you set today will likely not work for you five years from now. Successful strategy execution requires an environment that actively promotes&nbsp;risk-taking, failing forward, and adapting fast. In short, it requires a mindset of constant learning and growth.Made famous by&nbsp;<a href="https://www.youtube.com/watch?v=hiiEeMN7vbQ" target="_blank" rel="noopener noreferrer">Carol Dweck, the growth mindset</a> sees setbacks as a normal part of growth and meets them with curiosity.&nbsp;<blockquote>It says,&nbsp;“I’m learning, so of course I’m going to make mistakes along the way. That’s exactly what learning is.” Compare that perspective with the “fixed mindset,” which says,&nbsp;“I made a mistake. I can’t do it. I might as well give up.”&nbsp;</blockquote>The growth mindset:<ul><li>Embraces challenges rather than avoids them</li><li>Accepts constructive feedback as help rather than dismissing it</li><li>Works to find creative solutions (trying several if needed)</li><li>Finds inspiration and instruction in others’ success rather than feeling threatened</li><li>Sees continued effort as the path forward rather than giving in to feelings of futility</li><li>Is future-oriented which is key for achieving goals</li></ul> How do you integrate a growth mindset into your company culture? Teach it, reinforce it with rewards, then measure it with surveys.&nbsp;<ul><li>Teach it by integrating growth mindset training into your employee onboarding program.&nbsp;</li><li>Reinforce it by offering recognition and rewards to employees who model a growth mindset. (This is where it pays to notice&nbsp;activities over&nbsp;outcomes.)&nbsp;</li><li>Measure it by collecting employee feedback about how safe they feel making mistakes and offering new, out-of-the-box ideas, rather than feeling punished for making mistakes or ignored for being innovative.</li></ul>

Strategy execution is a complex journey. It takes a well-thought-out plan, an executive team that communicates clearly and consistently, and (perhaps most of all) a workforce that stays aligned through the process. That’s how the magic happens. And it’s absolutely possible.<hr>Learn how <a href="https://quantive.com/resources/articles/strategy-execution-platform" target="_blank" rel="noopener noreferrer">the right platform </a>can help you close the strategy execution gap<figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategy-execution-platform" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/what_is_a_strategy_execution_platform_7ff56a27a1.png" alt="what is a strategy execution platform.png"></a></figure><hr>Quantive is your bridge between strategy and execution. Founded on the objectives and key results (OKR) methodology, <a href="https://quantive.com/products" target="_blank" rel="noopener noreferrer">our Strategy Execution Platform</a> is where businesses plan successful strategy, focus and align teams to it, and stay on the leading edge of progress.As your company looks to achieve the best possible results, you need a modern approach to <a href="https://quantive.com/products/results" target="_blank" rel="noopener noreferrer">run your business</a> and <a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer">change your business.</a><a href="https://quantive.com/modern-operating-model" target="_blank" rel="noopener noreferrer"> The Modern Operating Model </a>brings strategy, teams, and data together to help make decisions faster, optimize operations, and drive better business outcomes.Whether you’re a large enterprise facing competitive disruption or a small business leading the innovative charge, Quantive helps get you where you want to go.Ready to achieve the best possible? Start using <a href="https://quantive.com/products/results/pricing" target="_blank" rel="noopener noreferrer">Quantive for free.</a>

How Top Companies Close the Strategy Execution Gap

Strategy execution is a complex undertaking for any organization. Between the foundational definition of strategy to its never-ending adaptation, organizations are stuck on “how” exactly to master strategy execution.&nbsp;<blockquote>Maybe this is your organization — you know the answer to this challenge is far more nuanced than “create a better strategy” or “execute better.” But where do you start?</blockquote>This is where a great strategy execution platform can be a game changer for your organization. It’s the missing solution businesses worldwide use to create a mission-driven strategy, engage teams, and deliver better strategic outcomes at scale.&nbsp;A strategy execution platform gives your organization a seamless approach to plan, align, execute, and assess strategy across your business.This article shows you how the right strategy execution platform will help your teams develop a proactive, outcome-driven approach.&nbsp;

Before we get into platforms, let's do a refresh on the basics. Strategy execution is how decision-making and team inputs align with the strategic priorities of an organization. &nbsp;&nbsp;In other words:&nbsp;<blockquote>“Strategy is a living, breathing entity, not an A-to-Z journey, meaning the process doesn’t end just because it’s been executed. Strategy must be optimized, which informs a refreshed cycle of definition, deployment, and execution.” &nbsp;</blockquote>It’s about meeting goals on time, on target, and on budget — no component of strategy execution can be neglected.<hr>Learn more about the <a href="https://quantive.com/resources/articles/strategy-execution" target="_blank" rel="noopener noreferrer">strategy execution process</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategy-execution" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/4_stages_of_successful_strategy_execution_1c658351c6.png" alt="4 stages of successful strategy execution.png"></a></figure><hr>

While strategies differ from company to company, there are four key components in creating a successful strategy execution process:&nbsp;<ul><li><a href="https://quantive.com/products/results/plan" target="_blank" rel="noopener noreferrer">Plan:</a> Create an informed, outcome-driven strategy</li><li><a href="https://quantive.com/products/results/align-and-activate" target="_blank" rel="noopener noreferrer">Align &amp; Activate:</a> Connected decision-making with clear definitions of success</li><li><a href="https://quantive.com/products/results/execute" target="_blank" rel="noopener noreferrer">Execute:</a> Enable seamless, mission-focused collaboration</li><li><a href="https://quantive.com/products/results/assess-and-adapt" target="_blank" rel="noopener noreferrer">Assess &amp; Adapt:</a> Know what works, what doesn’t, and make changes quickly</li></ul>Planning the strategy is about determining your organization’s direction, while alignment and activation are the tactical setups for bridging strategy to execution. Executing, assessing, and adapting strategy maintains a connection between teams and decision-makers, continuously improving each level of strategy. &nbsp;<hr>See how top companies close the <a href="https://quantive.com/resources/articles/strategy-execution-gap" target="_blank" rel="noopener noreferrer">strategy execution gap</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategy-execution-gap" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/close_strategy_execution_gap_8de6ba8e73.png" alt="close strategy execution gap.png"></a></figure><hr>

<a href="https://quantive.com/products/results" target="_blank" rel="noopener noreferrer">A strategy execution platform</a> enables your organization to focus on the right goals while giving your teams the freedom to execute.As a leader, you know strategy doesn’t just fall into place. There are too many moving parts, like:<ul><li>Resource allocation</li><li>Corporate, business, and functional tasks</li><li>Assigning roles, responsibilities, and deadlines</li><li>Establishing priorities</li><li>Managing changes, challenges, problems, and solutions</li><li>Measuring success</li><li>Tracking progress</li><li>Using data to inform decision making</li></ul>Your challenges aren't single-minded — neither is the right platform when it comes to its capabilities. You must be able to manage all the moving parts of strategy execution.&nbsp;<blockquote>By incorporating the power of your data and promoting transparency, a strategy execution platform taps into the full potential of your organization.</blockquote>

Between the four strategy execution components — plan, align and activate, execute, assess and adapt — there are grey areas that can lead to strategic disconnection.&nbsp;<blockquote>A strategy execution platform reduces friction and fills in the strategic gaps to prevent this disconnect. &nbsp;</blockquote>Anyone can plan a strategy, but creating a strategy aligned with your organization’s priorities requires visibility and transparency. Leaders can cascade a strategy down to teams, but without a platform engaging employees through a shared purpose, the strategy will lack impact.Finally, let’s not forget data, the buzzword everyone likes to talk about. A strategy execution platform doesn’t just collect data — it transforms it into actionable insights without the hassle and inaccuracy of manual inputs.&nbsp;Even when strategy is executed, the world is in constant flux. The right platform helps you watch internal and external signals and act on them.<hr>Learn more about the <a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer">growing capabilities of business monitoring</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1669896737/site-v5/visual_BO_detail_5ef78bf976.png" alt="Quantive Signals and Business Observability product demonstration screenshot"></a></figure><hr>

The right strategy execution platform should deliver on all components of strategy execution.&nbsp;<h3><a href="https://quantive.com/products/results/plan" target="_blank" rel="noopener noreferrer">Plan</a></h3>Break down silos in the strategy creation process and plan openly with a strategy execution platform.&nbsp;<blockquote>With the strategy visible to the entire organization, it can be critiqued and validated before it’s deployed, saving your organization from resource waste.&nbsp;</blockquote>A platform also incorporates your data into your planning, infusing your strategy with rich insights for an informed and impactful approach.<h3><a href="https://quantive.com/products/results/align-and-activate" target="_blank" rel="noopener noreferrer">Align and activate</a></h3>A platform lets you consolidate your data and access it at any time.&nbsp;<blockquote>Through a data-first approach, you can coordinate teams on metrics and develop outcome-focused contributions.&nbsp;</blockquote>When everyone is aligned on outcomes through your strategy execution platform, you can create connections between teams and ensure measurements of success are clear.&nbsp;<h3><a href="https://quantive.com/products/results/execute" target="_blank" rel="noopener noreferrer">Execute</a></h3>Because strategy execution platforms focus and align teams on desired outcomes, transparency and trust pave the way to value adds from every team member.&nbsp;<blockquote>Beyond enhancing team culture, a platform bolsters decision making through data-driven feedback.&nbsp;</blockquote>Bring clarity on what’s creating true impact and ensure consistency in execution through a platform.&nbsp;<h3><a href="https://quantive.com/products/results/assess-and-adapt" target="_blank" rel="noopener noreferrer">Assess and adapt</a></h3>With a strategy execution platform, feedback loops are compressed through real-time key results and KPIs.&nbsp;<blockquote>Supported by your data, a strategy execution platform helps you monitor progress and shift resources to the tactics driving the right outcomes.&nbsp;</blockquote>You can pivot when you need to, focus on what’s working, and do it faster all through the convenience of a platform.&nbsp;

In a world that shifts daily, the ability to pivot strategy without friction is a distinct competitive advantage. A strategy execution platform <a href="https://quantive.com/products/results/integrations" target="_blank" rel="noopener noreferrer">integrates your data</a> seamlessly applies it to your decision making and drives an outcome focus for your organization.&nbsp;<blockquote>Your strategy execution process must adapt to the modern era, or it will fail.</blockquote>With these capabilities, you can ensure your strategy execution process isn’t operating in the past. By reducing friction, inefficiency, and disharmony, a strategy execution platform is a conscious choice to help your organization achieve the best possible.&nbsp;<hr>Check out our “Read Next” article to learn <a href="https://quantive.com/resources/articles/why-strategy-execution-platform" target="_blank" rel="noopener noreferrer">why it’s time for your company</a> to have a platform for strategy execution<figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/why-strategy-execution-platform" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/why_you_need_a_Strategy_Execution_Platform_9b52b7e54f.png" alt="why you need a Strategy Execution Platform.png"></a></figure><hr>Quantive is your bridge between strategy and execution. Founded on the objectives and key results (OKR) methodology, <a href="https://quantive.com/products" target="_blank" rel="noopener noreferrer">our Strategy Execution Platform</a> is where businesses plan successful strategy, focus and align teams to it, and stay on the leading edge of progress.As your company looks to achieve the best possible results, you need a modern approach to <a href="https://quantive.com/products/results" target="_blank" rel="noopener noreferrer">run your business</a> and <a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer">change your business.</a><a href="https://quantive.com/modern-operating-model" target="_blank" rel="noopener noreferrer"> The Modern Operating Model </a>brings strategy, teams, and data together to help make decisions faster, optimize operations, and drive better business outcomes.Whether you’re a large enterprise facing competitive disruption or a small business leading the innovative charge, Quantive helps get you where you want to go.Ready to achieve the best possible? Start using <a href="https://quantive.com/products/results/pricing" target="_blank" rel="noopener noreferrer">Quantive for free.</a>

Why Your Company Needs a Strategy Execution Platform

What is a Strategy Execution Platform?

The traditional approach to strategy execution is failing modern organizations.Across every industry, leaders are struggling to:<ul><li>Create strategic plans connected to a mission</li><li>Align teams with strategy</li><li>Execute the strategy with certainty</li><li>Adapt strategy without friction</li></ul>If any of these challenges sound like what your organization is going through, this article is for you. It’s time to understand why committing to a platform is the key to mastering strategy execution.&nbsp;

Based on your organization’s unique challenges, a strategy execution platform fulfills various needs. But before we get there, let's establish a clear definition of what a strategy execution platform is to understand its impact on your workplace.&nbsp;A strategy execution platform coordinates a seamless approach to strategy in your organization through four components: plan, align and activate, execute, and assess and adapt.<figure class="image image_resized" style="width:75%;"><a href="https://quantive.com/products/results" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601550/site-v5/Strategy_Execution_65c948d364.svg" alt="Plan, Align &amp; Activate, Execute, Assess &amp; Adapt"></a></figure>Plan: Create a strategy that connects your teams and your data in one place.Align and Activate: Connect decision making and create clear definitions of success. &nbsp;Execute: Collaborate with certainty, transparency, and trust to accomplish the mission.Assess and Adapt: Clarify what works, what doesn’t, and make changes quickly.Through alignment with the different strategy execution components, a platform connects your teams to the clearly-defined, transparent goals of the organization. Whether you’re overhauling strategy or refining the one you’ve got, a strategy execution platform enables focus and decision-making autonomy where you need it most.<hr>Learn more about the full capabilities of <a href="https://quantive.com/resources/articles/strategy-execution-platform" target="_blank" rel="noopener noreferrer">strategy execution platforms</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategy-execution-platform" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611665/site-v5/what_is_a_strategy_execution_platform_7ff56a27a1.png" alt="what is a strategy execution platform.png"></a></figure><hr>

The gap between strategy and execution is one of the biggest vulnerabilities businesses face. In this gap, teams lose alignment, disengage with each other, and silo into disconnected work chains with little impact.Most organizations are stuck in a traditional, industrial approach to strategy execution. Plagued by a top-down, hierarchical model, employees are stuck in disempowered, unfocused, and uncoordinated silos of execution.&nbsp;By shifting your organization to a culture of outcomes, a strategy execution platform is your stepping stone into <a href="https://quantive.com/resources/articles/what-is-the-modern-operating-model" target="_blank" rel="noopener noreferrer">how a modern business should operate.</a><blockquote>Democratizing decision making. Breaking down the barriers to collaboration. Aligning teams with strategic objectives.</blockquote>This reality is no longer wishful thinking or a lofty ambition with the power of a strategy execution platform. Further supported by <a href="https://quantive.com/resources/articles/okrs-vs-kpis" target="_blank" rel="noopener noreferrer">OKRs and KPIs</a>, your organization can be guided by measurable results, not uncertainty.Features and benefits are great, but focus and structure are what today’s workplace needs the most. So, which platform capabilities are critical for guiding your organization to successful strategy execution?&nbsp;

Strategy planning is about building a gameplan to support your organization’s vision. The right strategy execution platform can help you define a strategy in line with high-level aspirations of the business.&nbsp;<blockquote>Planning a strategy that inspires teams is foundational to achieving the best possible outcomes — a strategy execution platform brings much-needed visibility to corporate and business strategy.&nbsp;</blockquote>By clarifying where the organization is trying to go, the time and resources needed to deploy a strategy aren’t wasted. Motivated by strategic purpose, a strategy execution platform furthers your team’s dedication by incorporating mission-critical data into the planning process.&nbsp;With everyone receiving the same information, a culture of transparency and trust is built from the beginning. Data helps validate strategy and prove direction, improving the collective buy-in between teams and leaders.&nbsp;With a strategy execution platform, teams are no longer inhibited by disconnection. They know what to focus on, why they should focus there, and how each person on the team is contributing to the collective focus.&nbsp;How Quantive helps you plan: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<ul><li>Monitor key insights on current progress and Confidence Level changes</li><li>Leverage KPIs and Key Results to make decisions on where to go next</li><li>Create an unconstrained safe space for ideas in Whiteboards</li></ul><hr>Learn more about Quantive's <a href="https://quantive.com/products/results/plan" target="_blank" rel="noopener noreferrer">plan </a>capabilities<figure class="image"><a href="https://quantive.com/products/results/plan" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1669632159/site-v5/visual_mini_SE_Plan_Dark_BG_4d07b0c24c.svg" alt="mini strategy execution plan diagram"></a></figure><hr>

Your organization can plan the greatest strategy in the world, but it's useless without the ability to connect it to your teams.&nbsp;According to Kaplan and Norton in The Balanced Scorecard, ~90% of businesses fail at strategy execution — alignment and activation is an overlooked step in the strategy execution process.Everything concerning your strategy has one home in a strategy execution platform. This makes your data and all the decisions connected to it transparent, anywhere and anytime.&nbsp;<blockquote>Teams aren’t just unified and aligned on outcome(s) — a platform enables an organizational, cultural shift to focus on the metrics that matter and initiatives that move the needle.</blockquote>When teams have frictionless connection and alignment on desired outcomes, the stage is set for open collaboration. A strategy execution platform enables co-ownership of responsibilities, creating accountability and results for your most imperative initiatives.A strategy execution platform is the remedy for every employee’s “check the box” syndrome. With proper alignment and activation, there’s no more “cog in the machine” or busy-work sentiment in your culture — just purpose-filled, engaged teams.&nbsp;How Quantive helps you align and activate: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<ul><li>Start with the Alignment View and home dashboard to organize seamlessly</li><li>Use Cascading Key Results to align multiple teams/individuals to a single key result, enabling collaboration on a shared outcome</li><li>Link OKRs with projects, tasks, and other OKRs to show key dependencies in reaching goals</li></ul><hr>Learn more about Quantive's <a href="https://quantive.com/products/results/align-and-activate" target="_blank" rel="noopener noreferrer">align and activate</a> capabilities<figure class="image"><a href="https://quantive.com/products/results/align-and-activate" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1669632157/site-v5/visual_mini_SE_Align_Dark_BG_2ddbe75feb.svg" alt="alignment strategy execution diagram"></a></figure><hr>

Uncertainty is the greatest inhibitor to effective, agile strategy execution.Confident decision making is a core value of strategy execution platforms and the counter to uncertainty. Teams have the clarity to execute with excellence through clear value-add pathways, easily accessible data, and channels for collaboration.&nbsp;<blockquote>The right platform shows you what’s happening in real time, enabling rapid feedback and performance check-ins for more effective execution.</blockquote>The transparency of a platform shows teams how progress is being made and why. Goal certainty strengthens the collaboration of teams, supported by clearly defined outcomes and data-driven decision-making.A strategy execution platform shifts human attention to where it’s needed most — collaboration and alignment — and away from where it’s ineffective — data inputs and manual processes. By reducing the risk around your data and lifting the burden of tracking insights, your teams are primed to focus on what matters most.How Quantive helps you execute: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<ul><li>Link everyday tools and reduce manual data collection with 170+ <a href="https://quantive.com/products/results/integrations" target="_blank" rel="noopener noreferrer">integrations</a></li><li>Build a transparent, data-first culture with automation of Dynamic Key Results, KPIs, and Insights</li><li>Stay alert to progress changes with OKR update reminders and aggregated OKR progress</li></ul><hr>Learn more about Quantive's <a href="https://quantive.com/products/results/execute" target="_blank" rel="noopener noreferrer">execute</a> capabilities<figure class="image"><a href="https://quantive.com/products/results/execute" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1669632157/site-v5/visual_mini_SE_Execute_Dark_BG_99a8b4907e.svg" alt="strategy execution mini diagram"></a></figure><hr>

Strategy is an ever-changing process. Assessing what did or didn’t work, then making changes based on this insight, is how you transform a stagnating strategy into a resilient one.Feedback loops are ineffective for most organizations because they’re too slow.&nbsp;<blockquote>An OKR-centered strategy execution platform compresses the feedback loop with key results and KPIs informing your strategy along the way. You receive faster feedback, which leads to better optimization, and progress monitoring allows you to shift resources to initiatives driving the right outcomes.</blockquote>In traditional strategy assessments, critical insights are cascaded through levels of bureaucracy and the message is lost in translation. A strategy execution platform gives you performance insights in real-time, allowing your teams to pivot focus without a lag.Traditional business is plagued by slow adaptation — with a strategy execution platform, you can modernize your operations. Gain complete visibility on progress, full insights on which actions to take based on a data-backed “why” it should be taken, and how to do it quickly at scale.&nbsp;How Quantive helps you execute:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<ul><li>Analyze and pivot with executive dashboards through Insightboards&nbsp;&nbsp;&nbsp;</li><li>Assign resources proactively through Process Automation and Task Management</li><li>Access voting in Whiteboards and reflect new initiatives and focus with OKR States</li></ul><hr>Learn more about Quantive's <a href="https://quantive.com/products/results/assess-and-adapt" target="_blank" rel="noopener noreferrer">assess and adapt</a> capabilities<figure class="image"><a href="https://quantive.com/products/results/assess-and-adapt" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1669632157/site-v5/visual_mini_SE_Adapt_Dark_BG_f443ca8ecf.svg" alt="mini diagram for assessing and adapting strategy execution"></a></figure><hr>

Strategy execution will always be complex, but it doesn’t have to be complicated. A strategy execution platform is your solution to creating a mission-driven strategy, engaging teams, and delivering a proactive, outcome-driven approach to execution.<hr>Take the next step with Quantive's <a href="https://quantive.com/products/results" target="_blank" rel="noopener noreferrer">strategy execution platform</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/products/results" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1669937683/site-v5/key_results_updates_b705d6579d.png" alt="key results updates"></a></figure><hr>Quantive is your bridge between strategy and execution. Founded on the objectives and key results (OKR) methodology, <a href="https://quantive.com/products" target="_blank" rel="noopener noreferrer">our Strategy Execution Platform</a> is where businesses plan successful strategy, focus and align teams to it, and stay on the leading edge of progress.As your company looks to achieve the best possible results, you need a modern approach to <a href="https://quantive.com/products/results" target="_blank" rel="noopener noreferrer">run your business</a> and <a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer">change your business.</a><a href="https://quantive.com/modern-operating-model" target="_blank" rel="noopener noreferrer"> The Modern Operating Model </a>brings strategy, teams, and data together to help make decisions faster, optimize operations, and drive better business outcomes.Whether you’re a large enterprise facing competitive disruption or a small business leading the innovative charge, Quantive helps get you where you want to go.Ready to achieve the best possible? Start using <a href="https://quantive.com/products/results/pricing" target="_blank" rel="noopener noreferrer">Quantive for free.</a>

Unleash the power of a strategy execution platform for your business

Why Your Company Needs a Strategy Execution Platform 

An operating model drives value creation and strategy execution across an organization. It represents the guiding principles of operations: how different parts of a business should work together to deliver value to&nbsp;customers and stakeholders. It also encompasses how an organization functions to meet core business objectives such as efficiency, growth, and adaptability. Organization structure, culture, processes, technology and decision-making procedures are key parts of an operating model.&nbsp;&nbsp;In the modern era, several factors are converging that impact&nbsp;how we think about conventional operating models:&nbsp;<ul><li>The lingering strategy execution gap &nbsp;</li><li>A fast-changing world across all dimensions of life &nbsp;</li><li>The fourth industrial revolution, the wealth of data and its application&nbsp;</li></ul>Considering these factors, an&nbsp;updated, modern operating model is needed to solve the lingering strategy execution gap and unlock the opportunities of an evolving world. In this article, we’re going to outline what that new model looks like. For detailed information on the context, challenges solved, and the opportunities of The Modern Operating Model, we will be releasing a second part to this article.

There are five core components that make up the modern operating model, each with different parts within.&nbsp;<img src="https://res.cloudinary.com/gtmhub/image/upload/v1669894628/site-v5/visual_mom_detailed_5ca196388d.svg" alt="Modern Operating Model diagram"><h4>&nbsp;1) Define the destination&nbsp;</h4>Your mission, cultural values, vision, and strategy work together to act as a north star for your organization. This sets the destination and goals that your organization needs to align towards.&nbsp;<h4>2) Change the business&nbsp;</h4>Strategic objectives, <a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">OKRs</a>, and planning the work quantify and make reaching your destination a tangible proposition. They create alignment, structure, and focus to maximize efficiency, speed, and productive power toward your goals.&nbsp;<h4>3) Run the business &nbsp;</h4>Observability of KPI’s through a connected technology stack in addition to OKR reporting gives you powerful insights into what’s happening inside the business, in addition to progress toward goals. &nbsp;<h4>4) Do the work&nbsp;</h4>With the organization aligned, the plan is executed through daily work. Proper alignment through organization architecture, culture, and a clear line of sight between strategy and execution empowers your employees to do their best work.&nbsp;<h4>5) Assess &amp; adapt &nbsp;</h4>Through continuous monitoring, data-driven decisions are made to incrementally optimize, navigate threats, and seize opportunities. Strong top-down alignment liberates your organization to adapt quickly and move as one.&nbsp;Although there’s a chronological logic to the model, all components work together in a feedback loop and need to be engaged simultaneously as an ongoing discipline. Let’s now dive into the different components and their corresponding parts in more detail.&nbsp;

Correctly defining the destination impacts alignment. At the highest level, defining your destination is about where you want to go, why you want to go there, what needs to be done, and how you will do it. If there’s a disconnect between how your team sees the bigger picture, conflict, erosion of trust, and misaligned execution may emerge.&nbsp;&nbsp;<h5>Defining the destination can be broken down into three core parts:&nbsp;</h5><ol><li>Mission and cultural values&nbsp;</li><li>Vision&nbsp;</li><li>Strategy&nbsp;</li></ol><h3>Mission and cultural values&nbsp;</h3>Mission and cultural values play a role in alignment as everyone in your organization needs to approach their work from the same perspective. Otherwise, there will be a disconnect at the execution layer of the organization. For instance, having a common philosophy that prioritizes customer satisfaction over short term revenue will lead to different behaviors and decisions from your team.&nbsp;&nbsp;Mission and cultural values also affect engagement, especially in the context of a new generation of workers. Generation Z and Millennial workers aspire to work at organizations that have a greater purpose and more conscious culture. Failure to align your mission and culture with these changing attitudes means you may reduce employee engagement – another key part of effective strategy execution. As these generations value company loyalty less, you may also risk losing key personnel which leads to other execution challenges.&nbsp;<h3>Vision&nbsp;</h3>Like with mission and cultural values, your vision is important for alignment. Your whole team needs to see the future in the same way to maximize engagement and work in synchronization. Vision also has an impact on priorities and strategic focus. A clear idea of your destination means you can make better decisions about the relevant work that needs to be done, take advantage of the right opportunities, and importantly, not become side tracked along the way.&nbsp;&nbsp;<h3>Strategy&nbsp;</h3>Your strategy is the first tangible link between defining your destination and generating the momentum to get there. Your strategy represents why, what, and how your company will navigate at the highest level and informs how you set strategic objectives and OKRs, which play key roles in the next component of the model.&nbsp;&nbsp;

The next component of the model is changing and aligning the business. Changing the business is about deciding on the initiatives and goals you want to focus on to reach your destination. Alignment is about getting the whole organization in sync and moving in the same direction.&nbsp;<h5>Proper organizational alignment improves strategy execution through:&nbsp;</h5><ul><li>Greater efficiency: working on the right things means less waste in the form of time and resources&nbsp;</li><li>Higher engagement: having a clear line of sight between strategic objectives and daily execution means employees can see how their work impacts the organization</li><li>Prioritization and focus: alignment means the whole team focuses on the objectives and activities that are mission critical</li></ul>Alignment plays an important role in organization adaptability. If there are any big changes or shocks to the business, your organization needs to be able to move together as one unit. If parts of your organization are misaligned, they may lag behind if your destination changes which can lead to operational roadblocks. In addition, the megatrends of <a href="https://quantive.com/resources/articles/hybrid-work">remote and flexible work</a> mean getting alignment right has become more difficult due to a more distributed, asynchronous, and multi-cultural workforce.&nbsp;&nbsp;Alignment starts with clear top-down communication about the destination and what needs to be done to get there. This is achieved through setting strategic objectives and OKRs, in addition to careful planning of how your team will execute the work.&nbsp;<h3>Strategic objectives and OKRs&nbsp;&nbsp;</h3>The first part of aligning the business is setting and communicating strategic objectives and OKRs. In many cases, the communication of strategy can get lost as it filters through the multiple layers of the organization. This is made worse due to strategy being more abstract and high-level, with language that may not be easily understood by the execution layer of the organization.&nbsp;&nbsp;Strategy without objectives is meaningless — it needs to be clarified, quantified, and plotted against a timeline. This is what strategic objectives enable — they break down your strategy into tangible goals that can be easily communicated and worked toward as a team. &nbsp;With strategic objectives set and communicated, your organization can then set OKRs (<a href="https://quantive.com/resources/articles/okr-meaning">objectives and key results</a>). These break down your strategic objectives even further by quantifying the specific outcomes different parts of the organization need to achieve. These also need to be communicated across the organization to ensure alignment. Where strategic objectives work on a yearly or multi-year timeline, tactical OKRs function on a quarterly or yearly basis. &nbsp;<h5>Strategic objectives and OKRs impact strategy execution by:&nbsp;</h5><ul><li>Plotting ambitious yet achievable goals to stretch the team’s capabilities while preserving morale.&nbsp;</li><li>Creating vertical alignment so everybody is working toward strategic objectives.&nbsp;</li><li>Enabling horizontal alignment so interdependencies between departments can be mapped out, increasing collaboration.&nbsp;</li><li>Boosting efficiency, engagement, prioritization, and focus through bottom-up involvement in goal setting.&nbsp;</li><li>Creating an outcome focused organization as opposed to activity which doesn’t generate results.&nbsp;</li></ul><hr>Learn more about <a href="/resources/articles/okrs-in-business" target="_blank" rel="noopener noreferrer">the benefits of OKRs for businesses</a><figure class="image image_resized" style="width:50%;"><a href="/resources/articles/okrs-in-business" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670703147/site-v5/OK_Rs_for_business_656a5f0108.png" alt="OKRs for business.png"></a></figure><hr><h3>Planning the work&nbsp;</h3>With strategic objectives and OKRs set and communicated, planning the governance and execution of work is next.&nbsp;<h5>A few things to consider during this phase are:&nbsp;</h5><ul><li>Culture design: Your operational culture must be transparent, continuously learning, and braced for constant transformation. This enables effective use of the OKR method and continuous adaptations. At the leadership level, there must be a shift from control and compliance to trust and transparency.&nbsp;</li><li>Organization architecture: Your organization structure needs to be adaptable to account for asynchronous, remote, and flexible ways of working.&nbsp;&nbsp;</li><li>Policies and procedures: Decision making should be made at the edge of the network: closer to the source of data and point of execution, as opposed to centrally. In the modern era, there’s no longer time to go up and down the chain of command to make decisions. Greater communication and transparency efforts need to be pushed to eliminate information silos and shadow organizations.&nbsp;&nbsp;</li><li>Playbooks and processes: Mapping out the strategies and tactics of the work to be done.&nbsp;</li><li>People: Deciding who will be doing what.&nbsp;&nbsp;</li><li>Tools: Choosing the right software tools to enable work. With the model, special emphasis is placed on connecting all your data sources for better observability and assessment.&nbsp;&nbsp;</li><li>Resource allocation: Setting budgets appropriately to meet different OKRs.&nbsp;&nbsp;</li><li>Programs and initiatives: Organizing work at a high level in conjunction with strategic objectives and OKRs. &nbsp;</li><li>Approaches to work: Deciding on how work will be carried out with task management, workflows, projects, sprints, etc.&nbsp;&nbsp;</li></ul>Effective work planning increases the efficiency of your strategy execution. Conducting work in the right manner means time and resources are saved through error reduction, in addition to faster and better work outputs.&nbsp;&nbsp;

As work is conducted, there needs to be continuous monitoring of both data and information. In a Modern Operating Model, monitoring incorporates and goes beyond traditional management check-ins and annual and quarterly performance reviews. KPIs are gathered from all parts of the business in addition to the application of the OKR method. Working in conjunction, <a href="https://quantive.com/resources/articles/okrs-vs-kpis">OKRs and KPIs</a> create a more powerful picture of what’s happening in the business and how it affects progress toward strategic goals.&nbsp;&nbsp;As part of the internal monitoring aspect of the model, KPIs are pulled from a connected technology stack to provide <a href="https://quantive.com/products/signals">business observability</a>. With the right tools, you can sync your KPIs to continuously update alongside your OKRs, in addition to gaining insight about potential risks and opportunities. To add to this, OKRs provide quantitative data in the form of key results and confidence assessments toward meeting objectives. They also provide qualitative information in the form of weekly OKR reviews and quarterly retrospectives.&nbsp;&nbsp;<hr>Learn more about <a href="https://quantive.com/resources/articles/okr-cycle" target="_blank" rel="noopener noreferrer">OKR reviews and retrospectives</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okr-cycle" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/The_OKR_Cycle_999afeea92.png" alt="The OKR Cycle.png"></a></figure><hr>External monitoring is also a necessary part of the model. This involves constant surveillance of your business environment to identify changes, threats, and opportunities. This could be in the form of <a href="/resources/articles/modern-operating-model-manifesto#new-trends-impacting-the-strategy-execution-gap" target="_blank" rel="noopener noreferrer">understanding megatrends</a> such as the next wave digitization or keeping tabs on startups that could potentially disrupt your space.&nbsp;Together, internal and external monitoring are used to compress learning feedback loops and boost business observability, which can then be used to make more accurate decisions about changes and adaptations to your strategy execution.&nbsp;

The next component of the model is doing the work. At the surface level, this involves the basics of completing tasks, inputs, transformations, and outputs. But under a Modern Operating Model, the essence of how the work is done is different.&nbsp;<h5>When applied correctly, the ideal state of work should look like this:&nbsp;</h5><ul><li>Fully engaged employees who expend discretionary effort to improve their craft and solve problems.&nbsp;</li><li>Collaboration and communication between teams to work toward common objectives.&nbsp;</li><li>Continuous learning and feedback based on regular OKR reviews and KPI observability.&nbsp;</li><li>Greater ownership and accountability of work through transparency.&nbsp;</li><li>Decisions made locally in a data-driven way.&nbsp;</li><li>Greater focus on outcomes, as opposed to tasks and activities.&nbsp;&nbsp;</li><li>More experimentation and embracing failure.&nbsp;</li><li>Recognition and reward based on merit and adherence to company values.&nbsp;&nbsp;</li></ul>Although this ideal state of work doesn’t happen overnight, the components of a Modern Operating Model are designed to optimize your strategy execution over time, bringing this ideal closer to reality over time.&nbsp;<hr>Learn about the intersection between <a href="https://quantive.com/resources/articles/okr-and-agile" target="_blank" rel="noopener noreferrer">OKRs and agile methodologies</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/okr-and-agile" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670611666/site-v5/OK_Rs_and_Agile_3dd7e4cb90.png" alt="OKRs &amp; Agile.png"></a></figure><hr>

With the right data and information through business monitoring, assessments can be made to adapt strategy execution to help you stay the course. The process of assessing and adapting involves looking at the data and information you have collected, extracting the insights and narrative, and turning them into knowledge which can be used for decision making.&nbsp;&nbsp;At the macro level, the purpose of this component is to help you navigate the threats and opportunities of a fast-changing world. This means you may need to make changes to your destination and how to get there at a strategic level. In addition to the points mentioned above, these could include navigating changing economic, political and social conditions, adapting to innovation, and ESG (environment, social, and governance) concerns.&nbsp;&nbsp;At the micro level, you want to assess and adjust your strategy execution for:&nbsp;<ul><li>Overall effectiveness: Optimizing the different components of the model such as how work is done.&nbsp;</li><li>Progress towards OKRs: Looking at key results metrics for each objective and uncovering the reasons for possible underperformance. Deciding whether the OKRs set are still relevant in terms of achievability and being critical to current strategic objectives.&nbsp;</li><li>Internal warning signs: Gaining insight and foresight, as opposed to hindsight, about operational problems through AI and KPI data. This could be technical issues such as servers going down or business challenges such as a high churn rate among a customer demographic.&nbsp;&nbsp;</li><li>Internal opportunities: Spotting patterns and trends to map out new opportunities. For instance, looking at customer support data to identify unmet or emerging customer needs.&nbsp;</li></ul>As adaptability is central to the model, you will continuously adjust different components of your strategy execution based on the data and information you collect. You may only need to make small changes to a work tactic, for instance, or realize there is one threat or opportunity you need to focus on. But as time progresses and the business environment changes, you may need to adjust at the strategic level. Full adaptiveness of strategy execution at both the macro and micro level is the promise of The Modern Operating Model.&nbsp;

Optimizing your strategy execution is relevant to every company regardless of size, stage, or industry. Working together, all components of a Modern Operating Model boost alignment, focus, adaptability, and efficiency in your strategy execution.&nbsp;Through adopting The Modern Operating Model, you can better navigate the threats and opportunities of a fast-changing world, in addition to achieving your strategic goals faster. To learn more about the broader context, challenges solved, and opportunities of using a Modern Operating Model, we will be releasing a second part to this article.<hr>Quantive is your bridge between strategy and execution. Founded on the objectives and key results (OKR) methodology, <a href="https://quantive.com/products" target="_blank" rel="noopener noreferrer">our Strategy Execution Platform</a> is where businesses plan successful strategy, focus and align teams to it, and stay on the leading edge of progress.As your company looks to achieve the best possible results, you need a modern approach to <a href="https://quantive.com/products/results" target="_blank" rel="noopener noreferrer">run your business</a> and <a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer">change your business</a>. <a href="https://quantive.com/modern-operating-model" target="_blank" rel="noopener noreferrer">The Modern Operating Model</a> brings strategy, teams, and data together to help make decisions faster, optimize operations, and drive better business outcomes.Whether you’re a large enterprise facing competitive disruption or a small business leading the innovative charge, Quantive helps gets you where you want to go.Ready to achieve the best possible? Start using <a href="https://quantive.com/products/results/pricing" target="_blank" rel="noopener noreferrer">Quantive for free</a>.

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