Strategy work in future-fit companies

In this insight, we have put together which success factors are crucial for effective strategy work, what is important for successful implementation and what advantages the OKR approach offers for strategic management.

He who wants to build high towers must dwell with the fundament for a long time

(Anton Bruckner)

A strong narrative

The basis for effective strategy work in an organization begins with a coherent explanation of why it exists and what goal it pursues. This requires a strong narrative that starts with the ambition, vision and purpose. A strategy is therefore a story that provides orientation for managers and employees.

Intelligent integration of key persons

Another success factor for modern strategy work is the intelligent integration of key persons. This requires both strategy experts inside and outside the organization, in addition to employees as true experts.

As a result, the strategy process benefits from insider knowledge, as well as a high level of identification and engagement – in all phases of strategy work. When developing a strategy, the more diverse perspectives considered, the more consistent the result and feasibility. Dialogue-oriented work formats are needed, such as focus groups, story co-creations, idea workshops, as well as pilots and speedboats*, in order to make strategy work a joint task.

If non-experts are to contribute to strategy work, strategic relationships must be presented clearly and simply.

Personal responsibility and enabling everyone involved

The goal of the strategy process is to empower all engaged individuals within the company to work more efficiently, becoming more focused and effective in their daily activities. Achieving this requires increased personal responsibility and enabling everyone involved. Honest dialogue and management training initiatives are essential to this effort. Top management plays a crucial role in acting as a guiding force and setting a positive example. As a result, the strategy process evolves into a cultural and organizational development initiative.

“It is not the strongest species that survives, nor the most intelligent, but the one that responds best to change“ (Charles Robert Darwin).

Action competence

Another success factor lies in the shift of perspective: away from numbers, KPIs and forecasts towards more action competence. The focus on the “small signs” of change within an organization and its environment, as well as quick, professional action, become competitive advantages. This particularly includes being able to formulate the desired result state in the team and directly addressing potential levers through concrete actions, actions and steps.

The desired outcome is ideally based on a profound knowledge of customer needs and expectations. It should be focused on solving customer problems and providing real added value.

Iterative approach in scenarios

Ultimately, the strategy process over the course of the year should be an iterative approach in scenarios. A strategy is not static planning but needs to be reviewed and updated regularly to ensure it meets volatile conditions. Companies should therefore have a flexible and adaptive approach to their strategy work to be able to quickly adapt to changes.

Focusing on the right goals and implementing them together within the organization is a difficult challenge for many companies. There is often a lack of good, simple methods for goal management, and enough freedom to involve employees in strategic decisions.

A proven system for this is the OKR framework (Objectives and Key Results). It consists of several elements and – appropriately interpreted and applied – offers a variety of suitable solutions for dynamic and complex times that are now part of the new normal.

The starting point of the OKR framework is the vision and purpose as a fixed long-term orientation for employees and customers. A medium-term strategic framework is also needed for the next 1 to 3 years. Within this, the definition of OKRs takes place in the OKR teams. If appropriate, OKR teams can also formulate medium-term strategic team goals as a link between the entire company and their strategic team contribution.

What does this mean specifically for practical application and what advantages are presented?

OKRs are clear and comprehensible. They help managers and teams transform strategic challenges into clearly defined and understandable 3-month goals, that are comprehensible for them and others in the organization. This promotes the implementation of the strategy and ensures a common focus on what contribution needs to be made to achieve the strategic goals.
OKRs promote alignment towards common goals and results. In doing so, they help ensure that all employees can work towards the vision. A regular alignment of goals improves collaboration and communication between departments and teams in the company, reduces silo mentality and improves the use of resources.

OKRs promote personal responsibility and the ability of employees to reflect. By defining clear and measurable goals, they can self-monitor their performance. This way you can decide which ones are currently relevant and thus continuously improve them.
OKRs encourage employee entrepreneurship and engagement, because they can clearly see how their contribution contributes to achieving goals, and how their progress develops over time
OKRs are flexible and can be quickly adapted to changing conditions. This enables companies to quickly reorient themselves and adapt their strategy accordingly.

The appropriate introduction to an OKR system is a manageable pilot operation with one to three strategic challenges. The OKR teams should not only consist of one department but also of interdisciplinary teams that do not normally work together.

To summarize, OKRs support future-fit companies to achieve their goals more effectively and implement their strategies, promote personal responsibility and agile work culture and increase employee motivation and flexibility.

Berater/in

Veronika Meszarits

Managing Partner

Ute Preisitz

Managing Partner