Strategy execution: business teams don’t align by themselves

Strategy execution will fail when resources are misaligned and when teams start to perform below expectations because of it. Such failure is already built in the execution planning right from the start. Almost by default. Why is it that business leaders are allowed to stick to their functional silos? Regardless whether they are in R&D, Product Development, Sales or Supply Chain? Why is it that companies stick to their functional metrics, and allow operational silos to drift apart and everyone knows it?

A leading European publishing house – very functionally orientated – wanted to introduce new enhanced products, more focused on customer needs. Management also wanted to create more sales efficiency. They had the impression all business functions understood what kind of mutual cooperation was needed to implement these changes. However, sales and product marketing representatives were in different business entities. The teams were in different buildings. They did not join sales meetings. Product Marketing reps were not talking to clients; only account and sales managers were ‘allowed’ to.

Leverage
It is not rocket science: no horizontal process metrics existed to show the product (introduction) performance of the entire value chain. Nor was this process capability actively managed by senior leadership. No wonder there was no exchange of information and no leverage of functional capabilities. Operating rules and priorities were not aligned. Structured performance reviews and communication lacked, as well as any incentive to work together on this.

Data based learning
Don’t leave yourself at the mercy of chance and implement ‘horizontal’ metrics that are tied into your customer needs and into how your customers view performance. Create review and action structures that evaluate your performance. Make your performance an X-functional team effort that no function can escape. Lead towards disciplined data-based learning of what needs improvement, and the operating rules will come, priorities get more and more aligned and resources are working more synchronized. Too easy to be true? If you still believe your functional silo will solve itself, then may be it is.

Aart Willem de Wolf is managing partner at R&G Global Consultants.