Advanced Development Programme

NETWORK LEADERSHIP: INNOVATION & ACHIEVEMENT – MORE EFFECTIVELY IMPLEMENTING STRATEGY & CHANGE

DEBORAH EXELL & TONY WILLIAMS LONDON 11TH JANUARY 2016

Agenda

• Brief Introductions to Deborah & Tony• A question for you to think about. • Why do we need to (more effectively) implement strategy & change? • Our experience of good and less effective examples • So why do large transformations go wrong?• And what should we do about it? • A model of Integrated Business Transformation• Feedback & discussion • Refreshments

Over 40 years of implementing strategy & change…..

For now - think of a significant strategic change in your organisation and whether it went well or otherwise…...we will come back to it at the end.

Why do we need to more effectively implement strategy & change – five stats.1. Between 2/3 and 3/4 of CEO’s claim they fail to get the intended

results from their strategies.2. Somewhere between 50% and 90% of M&A’s fail. 3. An increasing number of CEO’s are sacked because they ‘fail to

execute’ & 2/5 CEOs fail in the first 18 months in their job. 4. 1/5 new product launches don’t survive 4 years, most don’t

achieve predicted sales. 5. 17% of large IT projects go so badly wrong, they threaten the very

existence of the business; on average large IT projects go 45% over budget, 7% over time and deliver 56% less value than predicted.

6. 60% of 125,000 staff in over 1000 companies rated their firms as ‘weak at execution.

And some of our own examples…...

• The wrong acquisition.• Building out a business when neither the Board nor the business

leadership are aligned.• The need to agree what the outcomes expected by the Board and

ensure they align with what the business leadership is expecting to deliver.• Not spending enough time on quantifying the risks and thinking

through scenarios in the power supply sector.• A new CEO not sure why his directs are not behaving as he wishes.

So WHY do the large transformations fail?

And what do you need to ensure they don’t?

One model• Everyone is aware of what they are responsible for• Information flows quickly• Decisions are final• Customer facing staff have the info they need• Managers up the line get involved in operational decisions• Conflicting messages are rarely sent to the market• Performance management [still] differentiates between

the good and the bad• Cultures are based more on persuade &cajole than

command & control• Corporate staff only exist to support the business units not

audit them• Promotions include lateral moves AND high performers

need to move often• Middle managers have more than 5 direct reports• Reward divisional performance even if overall firm has not• Remember its not all about pay, many other things

motivate staff to do well. Source: HBR June 2008 The Secrets to Successful Strategy Execution

Our Business Transformation ModelWe have built an integrated but modular approach to transformation, designed to ensure that any long term change programme is successful.

© Copyright 2016 WE Consulting LLP T/A Will Exell

Feedback & discussion…..tonywilliams@willexell.comdeborahexell@willexell.com