VIEWPOINT

DYNAMIC STRATEGY AND EXECUTION FOR TODAY’S ACCELERATING PACE OF CHANGE Strategic Planning In the advancements. As Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford Jr. observed: Digital Age “New technologies are fielded faster than ever before. For decades, and intelligence organizations Leaders at lower and lower levels utilize enabling have demonstrated that setting long-term strategic capabilities once reserved for the highest echelons of goals can be a powerful, deliberate way to lead command. Tactics, techniques, and procedures are themselves smartly into the future with finite adapted from one deployment cycle to the next. This resources. This is especially true when there are accelerated pace of change is inextricably linked to specific objectives to advance those goals, as well the speed of today. … The speed of war has as frequent measurement, analysis, and follow-up. changed, and the nature of these changes makes the Since Defense Secretary Robert McNamara global security environment even more unpredictable, introduced the Planning, Programming, and dangerous, and unforgiving.” 1 Budgeting System (PPBS) in the early 1960s, Perhaps even more disruptive is a pattern of organizations have employed strategic planning increasing turbulence and uncertainty within processes to assess their present state, ascertain government — reorganizations, mergers, critical challenges and opportunities, and decide downsizings, financial crises, and transformations upon a most desirable destination and how to get — driven largely by budgetary and political there. pressures. Government organizations are under Today, this ubiquitous tool has lost its relevancy near-continuous pressure to justify and refine — not because strategic are not needed, but themselves, cut costs, achieve better outcomes, and because they cannot keep pace in a volatile and realign to ever-shifting roles and responsibilities. dynamic world. Leaders increasingly question Traditional strategic plans — most of which are whether the time and resources spent on strategic updated only every two to four years — cannot plans is worth the effort. possibly keep up. Defense and intelligence leaders Traditional strategic planning evolved in the understandably view the resource-intensive strategic Industrial Age, deriving value from the information planning process warily and are hesitant to complete constraints in place at that time. Data and plans because significant events — such as budget technology was less accessible, requiring significant decisions, changes, or mission reviews time and resources to collect and analyze. This — are always pending. Once completed, today’s meant environmental assessments by organizations strategic plans will be rendered outdated quickly were necessarily less frequent and strategies enjoyed and overcome by new events, resulting in longer shelf lives than today. Moreover, the pace of organizations adopting a “wait and see” posture. environmental change was slower, and careful study Keeping a focus on strategy implementation in the of past events and trends could more easily predict face of ongoing change is another challenge. what was to come over the horizon. Considerable time and work may be dedicated to As we race into the Digital Age, this concept is building a , but once published, subsequent changing dramatically. The explosive proliferation of events impacting the organization may occur, information and communication channels is redirecting leadership focus away from plan rendering collected data obsolete and compressing execution. cause-and-effect cycles. Significant global and The result is that, while defense and intelligence national events are occurring frequently, often with organizations continue to draft strategic plans, little or no warning. Consider, for example, the increasingly few are effectively employing them as nature of recent significant events triggered by management tools to improve efficiency, weather, terrorism, or cyber threats. Likewise, performance, and, ultimately, relevancy. Many and operations are evolving faster instead resort to reactive modes of behavior because than ever, due largely to accelerating technological their strategic plans are unresponsive to real events.

2 Left unchanged, these trends expose agencies to by quickly addressing near-term needs and greater vulnerability by diminishing their ability to challenges and then iterates continually. As with deliberately add value and relevance in a changing strategy, execution is not comprehensive, but world. prioritized to focus on near-term steps that address urgent needs while considering long-term goals. This Some defense and intelligence leaders may be approach enables planners to achieve early tempted to view their predicament as a choice successes that will generate buy-in, participation, between two options: strategy or agility. Yet a and momentum. number of government organizations are already demonstrating that these are not mutually exclusive AGILITY. A dynamic strategy does not strive to be directions. Rather, leaders and planners are better perfect or comprehensive. It is incremental and served by re-imagining their current approaches to living, so it continuously improves and adjusts. This strategic planning to make them highly adaptive to allows planners to build and adapt strategy swiftly as environmental change and deeply integrated into the events dictate. Agility also means that strategy organization’s daily activities. execution is customizable to the needs of the organi- zation. Progress and outcomes are continuously monitored so adjustments can be made when needed to ensure the overall path leads most directly From Strategic Plans To Dynamic and efficiently toward the desired strategic goals. Being agile also requires that organizations strike an Strategic Plans appropriate frequency when adjusting strategy to Strategic planning must evolve beyond its current accommodate changing environments. constraints to remain relevant in an a rapidly CLEAR DIRECTION. Executing a dynamic strategy changing operational environment. A dynamic requires a cross-functional portfolio of action plans strategy and execution capability that anticipates and that are aligned to strategic goals and regularly quickly adapts to fast-changing environments and is evaluated and adjusted as part of normal operations. fully embedded into organizational operations and Leaders at all levels of the organization are assigned culture is required. ownership and responsibility for specific pieces of Dynamic strategy is decoupled from static plans and the process. Clear performance metrics associated reviewed on a frequent cadence appropriate to each with these plans ensure all organizational particular organization and its environment. This components understand their status and where they allows for external and internal environmental need to be. As with the strategy itself, action plans developments to be quickly incorporated into the must also be adaptable to changing circumstances. strategy’s assumptions and resulting objectives and CONTINUAL PROGRESS. Progress toward each milestones. Dynamic strategy execution is tightly agency objective is tracked, evaluated, and commu- woven into the fabric of the organization’s day-to-day nicated to stakeholders, using data-driven activity so that progress toward strategic goals and performance metrics. This continuous monitoring objectives is occurring continually and organically as and reporting of progress informs all stakeholders part of normal business. how their activities are moving the organization A dynamic strategy and execution capability is toward its goals, enhancing their personal stake in characterized by four elements: rapidity, agility, clear the effort. Moreover, this tracking and communi- direction and continual progress. cating of metrics is done through existing web-based tools, such as SharePoint, RAPIDITY. In today’s environment, leaders have Huddle, Confluence, or Box. days, not months, to define and execute plans. Dynamic strategy does not set out to develop and These features are mutually reinforcing. For example, implement 100-percent solutions at the first pass. being rapid and agile in setting and refining strategy Because speed is critical, a dynamic strategy starts does little good if the organization lacks an ongoing

3 capacity to execute via detailed action plans. If an A Proven Process for Creating a execution mechanism must be built from scratch to metabolize each iteration to strategy, needed Dynamic Strategy and Execution momentum and urgency are lost, and execution Capability becomes effectively disconnected from strategy. Without the capability to track, evaluate and Dynamic strategy and execution allows for flexibility communicate progress on a real-time basis, to assess and respond to the changing environment. accountability is lost and progress quickly stalls. It incorporates internal and external changes to adjust strategy, continuously monitors and Moving toward a dynamic strategic planning and measures against performance objectives, and execution process yields significant overall benefits refines the strategy to ensure capabilities align to to the organization. In effect, the strategic planning mission priorities. The stages of this process are process ceases to become a highly resource- captured in the Figure 1. intensive exercise that is layered on top of the organization’s everyday activities. Instead, it occurs DEFINE. Analyze the organization and its organically as part of the organization’s daily routine, environment to define the organization’s strategic making it far easier to execute and more relevant to direction and activities. This involves applying the organization. Assessing the environment, research and analyzing environmental trends and adjusting strategic assumptions, and refining challenges relative to current strategic goals and strategic goals and derivative action plans is an priorities; aligning the organization’s strategy with intrinsic piece of organizational activity at all levels. higher-level strategic guidance; engaging Leaders recognize the strategic plan is not a finished stakeholders to identify opportunities that will document that sits on a shelf while the organization “move the needle” to quickly realize objectives; and is distracted by unanticipated events. Instead, the defining agency strategic activities aligned to the strategic planning process is ongoing and tracks organization’s vision, mission and strategic continuously with environmental twists and turns to objectives. The result is a set of strategic activities ensure the organization’s focus on the future is aligned with mission and strategic priorities that always current and calibrated. As strategy execution factor into the organization’s current state is inextricably linked to an agile planning process environment. and embedded in the organization’s day-to-day DEVELOP. Build an agile road map to set strategic activities, it becomes the primary means of metabo- milestones that will guide progress. Component- lizing environmental change for the organization. A level units and the organization as a whole conduct dynamic strategy and execution capability effectively planning workshops to validate established goals shifts the organizational engagement profile from and create objectives to advance those goals. Those being periodic to continuous. objectives are prioritized based on their ability to By using a dynamic strategy and execution impact goals. Stakeholders identify targeted approach, organizations become more strategy- implementation teams and team champions to centric and forward-focused, and consequently advance key goal areas as well as success metrics to retain greater control over their futures. Rather than manage and execute strategic activities. The result is being focused on keeping up with a shifting an adaptable roadmap that outlines the landscape, organizations maintain constant focus on organization’s strategic framework, goals/objectives/ adding value to be better positioned for the future. actions, timeline, targeted implementation teams, In today’s environment of rapid technological and success metrics. Implementation teams advancement, staff downsizing, and fiscal constraint, leverage existing web-based management tools to this evolution is increasingly critical to survival for build, manage, and communicate a centralized organizations. integrated master schedule (IMS) that provides organization-wide transparency into all aspects of strategy execution.

4 Figure 1

EXECUTE. Targeted teams within the organization execution plans. If needed, refinements are made to implement a framework that effectively makes strategic goals and objectives, action plans, the strategic activity a part of day-to-day operations. performance management framework, the structure Leaders and key stakeholders establish a governance of implementation teams, and other aspects of the structure that guides the activities of strategy and execution framework. implementation teams, such as meeting cadence, procedures for reporting on success metrics, and These stages repeat on a cycle and timeframe the re-evaluation of strategic goals in the face of appropriate to the organization’s mission and environmental changes. Documented project environmental situation. This process is highly charters drive accountability for designated project customizable to accommodate for varying leaders. A concerted communications campaign organizational characteristics. brands the roadmap as central to the organization’s A successful dynamic strategy and execution strategic transformation. Implementation teams are practice also incorporates the a set of best practices. activity-based, goal-focused, and operate with clear The best practices start with clear communication to leadership ownership and accountability. Regular all stakeholders early and often. For example, and frequent meetings measure and report communicating the agile framework up-front execution progress. The result is a highly focused ensures that leadership is prepared for faster operational discourse that is inexorably linked to the outcomes that are not perfect but adaptable over advancement of organizational strategic goals. time through refinement. Communication ensures REFINE. Regularly assess the organization’s stakeholders are aware of where they and the entire changing environmental challenges, stakeholder organization stand in meeting their goals and requirements, and results of existing strategic and objectives.

5 A focus on the bottom-up assessment process is BOOZ ALLEN: Your Essential essential. Including a majority of the organization’s Partner In Sustaining members as active participants in the Develop stage requires a bit more time, but generates early and Strategic Results widespread buy-in and ensures strong momentum for the strategy’s execution. For many stakeholders, “Decision space has collapsed and so our processes playing a strong role in the development of strategic must adapt to keep pace with the speed of war. goals and activities generates a sense of ownership Keeping pace with the speed of war means changing and personal investment in achieving a successful the way we approach challenges, build strategy, outcome. make decisions, and develop leaders.” 2 Effecting change management across the Leaders increasingly recognize that their planning organization and incorporating dynamic strategy and approaches must become more agile and adaptable execution into the culture is key to a successful to remain useful in the future. Booz Allen’s proven outcome. This includes ensuring stakeholders are expertise enables the realization of strategic engaged early, given ownership of specific pieces of objectives by making strategy execution part of the the process, and held accountable. For example, natural course of business and creating agile leaders using the organization’s existing web-based focused on innovating for the future. management tools to communicate (via dashboards) the status of each piece of the plan STRATEGY AND CHANGE MANAGEMENT provides a clear sense of how stakeholders fit in and EXPERTISE. In partnership with a wide range of binds them to the broader outcome. Additionally, defense and intelligence organizations, we help to having a governance structure that defines specific formulate strategies and organizational concepts of authorities for middle managers can empower them operation to meet mission and goals while also to provide input, set goals, and take ownership of managing risks. With extensive expertise and action plans. By managing the strategy and its certifications in strategy development, organizational execution as their own, they become invested in its change management, project management, Lean success. and Agile methodologies, and Design Thinking, our staff are able to align organizational functions, Of course, maintaining senior leadership support people, processes/methodologies, technology, and and involvement is also essential to success. Senior organization structures to plan, measure, monitor, leadership participation should be clearly seen so all and drive performance. stakeholders across the organization experience consistent messaging from top to bottom. DOMAIN EXPERTISE. We understand that each service branch and intelligence organization has Committing to a strong rhythm helps drive unique mission requirements. Our tailored approach success. Leveraging the organization’s existing combines deep understanding of these mission management tools to achieve and embed strategy portfolios and the environments in which they execution as part of the organization’s daily routine operate to ensure a comprehensive view of issues will help drive the battle rhythm. The day-to-day and solution development. Our experience activity of the organization is driven by the integrating planning and execution activities adds centralized IMS and the organization’s web-based accountability throughout the project lifecycle to management tool, which connects and engages staff ensure mission objectives, cost, budget, and key at all levels by providing situational awareness, stakeholder requirements align throughout the progress tracking, communications, and a platform process. for day-to-day project collaboration. Complementary frequent senior leadership meetings — and Booz Allen Hamilton’s Dynamic Strategy and implementation team meetings led by senior leaders Execution capability enables organizations to rapidly — keep the organization on track. adjust to environmental changes while driving and sustaining strategic results.

6 OUR EXPERTS

For more information please contact our experts:

Frank Lee Jenevieve Creary Charles Miller Vice President Principal Principal [email protected] [email protected] [email protected]

Laura Cronin David Lee Senior Associate Senior Associate [email protected] [email protected]

NOTES

1. “The Pace of Change” by Gen. Joseph Dunford, Jr., Joint Force Quarterly, Jan. 26, 2017.

2. Ibid.

7 About Booz Allen For more than 100 years, business, government, and military leaders have turned to Booz Allen Hamilton to solve their most complex problems. They trust us to bring together the right minds: those who devote themselves to the challenge at hand, who speak with relentless candor, and who act with courage and character. They expect original solutions where there are no roadmaps. They rely on us because they know that — together — we will find the answers and change the world. To learn more, visit BoozAllen.com.

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