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The Chief Strategy Officer Playbook How to Transform Strategies Into Great Results the Chief Strategy Officer Playbook

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The Chief Strategy Officer Playbook How to Transform Strategies Into Great Results the Chief Strategy Officer Playbook THE CHIEF STRATEGY OFFICER PLAYBOOK HOW TO TRANSFORM STRATEGIES INTO GREAT RESULTS THE CHIEF STRATEGY OFFICER PLAYBOOK THE CHIEF STRATEGY THE VERY BEST THINKING AND INSIGHTS IN THE FIELD OF STRATEGY AND BEYOND ABOUT ABOUT THINKERS50 THE BRIGHTLINE INITIATIVE Thinkers50 (thinkers50.com) identifies, ranks The Brightline Initiative is a coalition led by and shares the greatest management ideas the Project Management Institute together of our times. Its definitive global ranking with leading global organizations dedicated of management thinkers is published every to helping executives bridge the expensive two years. and unproductive gap between strategy design and strategy delivery. Since its launch in 2001, the ranking has been topped by Peter Drucker, Michael Brightline Coalition: Project Management Porter, CK Prahalad, Clayton Christensen Institute, The Boston Consulting Group, and Roger Martin. The Thinkers50 Bristol Myers Squibb, Saudi Telecom Company, Distinguished Achievement Awards have Lee Hecht Harrison and Agile Alliance. been described by the Financial Times Academic and Research Collaboration: as ‘the Oscars of management thinking’. MIT Consortium for Engineering Program Thinkers50 has ten established criteria by which Excellence, Technical University of Denmark, thinkers are evaluated – relevance; rigour; University of Tokyo Global Teamwork Lab and reach; resilience; influence; media coverage; Blockchain Research Institute. presence; affiliations; communications skills; Brightline conducts thought leadership research and tools and techniques. and promotes best practices designed to Thinkers50 champions the latest management improve an organization’s ability to deliver ideas worldwide. Thinkers50 Europe is a on strategic intent. partnership between Thinkers50 and the The Brightline Initiative Thinkers50 Distinguished City of Odense, Denmark. It hosts the annual Achievement Award is given every two years to Thinkers50 European Business Forum. someone who has contributed significantly to Thinkers50 China is based in Qingdao how strategy is understood and put into practice. and is a partnership with the Haier Group. It is home to the Thinkers50 Hall of Fame. THE CHIEF STRATEGY OFFICER PLAYBOOK How to transform strategies into great results www.brightline.org www.thinkers50.com Thinkers50 Limited The Studio, Highfield Lane, Wargrave RG10 8PZ United Kingdom First published in Great Britain 2018 Copyright Notice The Chief Strategy Officer Playbook is copyrighted material of and owned by the Project Management Institute, Inc. (PMI). © Copyright 2018. Trademark Notice “PMI”, the PMI logo, and “Brightline,” are marks or registered marks of the Project Management Institute, Inc. in the United States and other nations. All other marks that appear in this publication are the property of their respective owners. Design by www.jebensdesign.co.uk All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the Publishers. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the publishers. ISBN: PDF Edition 9781999873486 ePub Edition 9781999873493 Kindle Edition 9781999315702 Print Edition 9781999873479 BRIGHTLINE INITIATIVE / THINKERS50 / THE CHIEF STRATEGY OFFICER PLAYBOOK 1 THE CHIEF STRATEGY OFFICER PLAYBOOK Contents 4 Preface Ricardo Viana Vargas 6 Foreword Joseph Cahilll 10 How strategy got here Stuart Crainer & Des Dearlove 19 Why implementing strategy is like flying a kite Rita Gunther McGrath 27 Engineer strategy as a system Eric Rebentisch & George Roth 34 Ten questions to help you turn strategy into reality Ricardo Viana Vargas & Edivandro Conforto 39 Your change needs a strategy Martin Reeves, Simon Levin, Jack Fuller & Fabien Hassan 48 Five traps to avoid in strategy execution Anil K. Gupta & Haiyan Wang 53 Leading change in turbulent times Perry Keenan, Jeanne Kwong Bickford, Michelle Russell, Greg Meyding, Tapio Schrey & Connor Currier 60 Why executives struggle to execute strategy Ron Carucci 65 The CSO in a diversified conglomerate Nirmalya Kumar 70 People are your strategy Claudio Garcia 77 Creating the future, together Philippa Hardman & Chris Nichols 83 Agile planning Alessandro Di Fiore 87 Dear CSO Julian Birkinshaw & Jonas Ridderstråle 2 THE CHIEF STRATEGY OFFICER PLAYBOOK / CONTENTS 91 Embracing the future Margaret Heffernan 94 Difficult truths Deborah Rowland 99 Medium-Term Inc. Dominic Houlder & Nandu Nandkishore 104 The How tool for strategy implementation Vlatka Hlupic 110 Insights from NASA Loizos Heracleous, Steven Gonzalez & Douglas Terrier 117 Execution is a people problem, not a strategy problem Peter Bregman 123 Successful implementation begins with trust Deepa Prahalad 128 Four key points for successful strategy execution Mohammed A. Alabbadi 132 Managing complexity: Have we reached the tipping point? Richard Straub 140 Four types of strategy work: Choosing the right implementation approach Josef Oehmen, Diana Velasco, & Pelle Willumsen 148 Building bridges rather than burning them: The new strategy of collaboration and growth Mark Esposito & Terence Tse 153 Strategy implementation: The Chinese way Mark Greeven & Antonio Nieto-Rodriguez 158 How to use small wins to build trust Andrew Shipilov 162 Leading agility Tina Moe 168 Platform strategy: Creating a position of leadership in your industry ecosystem Sangeet Paul Choudary BRIGHTLINE INITIATIVE / THINKERS50 / THE CHIEF STRATEGY OFFICER PLAYBOOK 3 THE CHIEF STRATEGY OFFICER PLAYBOOK Preface he book you have in your hand is part of something bigger. Much bigger. It is Tpart of a global effort to tackle one of the greatest issues facing global organizations: the persistent failure to turn great ideas, brilliant plans and wonderfully ornate strategies into reality. Our work at the Brightline Initiative is focused. First, we create and nurture thought and practice leadership by providing cutting-edge research and solutions. We facilitate the sharing and advancement of ideas through networking and capability building. And, through doing so, we help organizations enhance their ability to successfully manage strategic change. Our work has spawned agenda-setting research – along with the Economist Intelligence Unit, Harvard Business Review Analytic Services, Quartz Creative, MIT-CEPE, Technical University of Denmark and University of Tokyo. It has involved us in events with TED, the World Economic Forum, Singularity University, the Thinkers50 European Business Forum, the Web Summit, the Global Peter Drucker Forum and many others. We have also launched a Massive Online Open Course in partnership with Coursera called “Turning ideas into results – bridging the gap between strategy design and delivery”. This unique course combines insights into the Brightline Initiative’s ten guiding principles with practical examples and experience from global leaders and experts. The CSO Playbook is produced in collaboration with our long-term partners Thinkers50. It is a truly collaborative work, one which brings together a thought- provoking smorgasbord of great ideas about strategy and execution. To create the book we invited some of the world’s leading business thinkers to contribute and share their experiences, research and insights. We think the end result is as unique as it is compelling. The CSO Playbook is part of our continuing journey. We invite you to join us! Ricardo Viana Vargas Executive Director The Brightline Initiative 4 ‘My choice in everything is to say nothing and go do it.’ LOUIS V. GERSTNER, JR BRIGHTLINE INITIATIVE / THINKERS50 / THE CHIEF STRATEGY OFFICER PLAYBOOK 5 FOREWORD Taking action to turn ideas into reality espite all the progress made in the last few decades in strategy management, Dorganizations are still failing to get things done. Many different studies prove it. According to the Economist Intelligence Unit survey conducted in partnership with the Brightline Initiative, 90 percent of the senior executives admitted they fail to meet all of their organization’s strategic objectives. On average, organizations fail to meet 20 percent of their strategic objectives. Fifty nine percent of the respondents acknowledge there is a gap between strategy design and strategy delivery. And the needle has barely moved, because a similar survey in 2013 found that 61 percent of the respondents recognized the strategy implementation gap. As the world’s leading not-for-profit association for the project management profession, delivering value for more than three million professionals working to deliver strategic initiatives in nearly every country in the world, we know that ideas become reality through projects. It is a tough job. We have found that the main challenges related to strategy implementation are twofold: First, organizations don’t recognize that strategy is delivered through projects; and, second, the essential importance of project management as the driver of an organization’s strategy isn’t fully realized. These two factors have a profound impact on the organization’s performance and competitive advantage. It is not only the waste of resources that is a major concern, but the negative effects on society and the economy, because this gap also affects NGOs and government institutions. The Project Management Institute Pulse of
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