The transformative shifts occurring today compel employees to recalibrate their thinking, embrace cutting-edge technologies, adapt behaviors, and operate in new environments. While these changes hold the promise of progress, they simultaneously introduce disruptions.
Effective change management is a critical factor for organizational success in this dynamic scenario. Change management relies on strategic leadership, as highlighted in the Certified Agile Strategy Execution course offered by The KPI Institute (TKI). This program emphasizes the importance of shaping a strategic vision and guiding employees through essential actions for its realization. It involves anticipating change, maintaining flexibility, and empowering others to drive strategic change when needed.
However, TKI’s State of Strategy Management Practice Global Report – 2023 reveals a stark reality in the business environment: 34% of professionals identify poor management of changes as a significant contributor to strategic failure. Meanwhile, on the employees’ side, the challenge of change fatigue emerges during transformation changes.
Change Fatigue
Even with the most adept strategic leadership, the continuous wave of changes can affect employees’ resilience, impacting their performance and engagement. As outlined in Capterra’s 2022 Change Fatigue Survey, the prevalent consequences of change fatigue on employees include loss of productivity, less trust in the employer, and losing enjoyment in the job (see Figure 1).
Figure 1. Most Common Effect of Change Fatigue Among Respondents Experiencing Change Fatigue | Source: Adapted from Capterra’s 2022 Change Fatigue Survey
Leadership, therefore, must prioritize addressing their employees’ readiness for change to mitigate resistance and prevent change fatigue.
Drawing from a study featured in the International Journal of Ethics and Systems, the influencers of this readiness are internal perceptions of competence, relatedness, and autonomy, as well as the knowledge-sharing models employed in the organization.
When employees feel competent and confident in their skills, the likelihood of adaptation to change significantly increases. Similarly, individuals who hold a sense of connection with their colleagues and the organization find themselves better equipped to weather change collectively. Employees who feel independent and in control of their work naturally take ownership of the change process. This autonomy empowers them with a sense of purpose.
Lastly, the seamless integration of structured documentation and dissemination of explicit knowledge with human-centric exchanges enhances information accessibility and fosters a collaborative and interconnected work environment.
A deep understanding of these factors enables leaders to implement interventions that foster a positive and adaptive organizational culture. This, in turn, strengthens teams against change resistance and fatigue. Examples of such measures are the following:
Prioritize skills development and invest in training programs to enhance employees’ confidence in their skills and ability to adapt to changes.
Foster a workplace culture that emphasizes collaboration and communication, reinforcing a sense of relatedness among employees.
Delegate responsibilities, involve employees in decision-making, and offer opportunities for autonomy within the context of change initiatives.
Establish a comprehensive knowledge-sharing environment to ensure that employees have access to information and resources essential for a seamless change.
According to TKI, when strategic initiatives are expected to extend beyond incremental adjustments—delving into changes that not only redefine the “what” but revolutionize the “how”—then an organization must implement a meticulously crafted approach to communication and engagement. It should be able to counteract its employees’ natural resistance to change and sustain productivity levels.
Leaders should use transparent and consistent communication to keep employees informed about upcoming changes, set up feedback mechanisms that allow employees to express their concerns and suggestions, and, finally, acknowledge and recognize employees for their resilience.
The complexities of change management require leaders to be proactive in addressing the concerns of their teams. To mitigate negative responses from employees during periods of change, leaders must prioritize equipping their workforce with the essential resources and knowledge necessary for adaptation. Furthermore, leaders must embody the change they seek, serving as models of adaptability.
Effective change management coupled with supportive leadership are the keys to sustaining optimal employee performance and satisfaction in the ever-evolving business environment.
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Editor’s Note: This article was originally published in Performance Magazine Issue No. 29, 2024 – Strategy Edition.
Successful strategy execution is the bridge between strategic goals and measurable results. An organization’s strategy outlines its goals, aspirations, and intended course of action. However, a strategy that remains confined to boardroom discussions holds limited value. It is the collective effort of employees that determines whether a strategy flourishes or falters.
However, effective strategy execution requires more than just outlining goals and directives. It involves aligning the workforce with the strategic vision, fostering a culture of ownership, and providing the necessary resources and tools.
Case in Practice: Al Saedan Real Estate Company
Al Saedan Real Estate Company, a leading real estate developer in Saudi Arabia, is a notable example of integrating strategy execution and employee performance. In 2021, the company initiated its internal project “STEP” (Strategy Transformation Project) and formulated a task force (Transformation Leaders) comprising members from various departments and organizational levels to execute and transform its new vision. Below, we delve into the various aspects of this strategy implementation.
1. Strategic Alignment, Clear Communication, and Cascading Goals
By implementing a transparent communication system, Al Saedan’s leadership ensured that each team member understood how their work contributed to the company’s ambitious goals. This approach not only boosted motivation but also streamlined efforts toward strategy execution.
2. Setting SMART Goals
Al Saedan implemented a goal-setting process that aligned individual employee goals with the company’s strategic objectives. Each employee had SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals that directly supported the strategic initiatives.
3. Performance Metrics and Feedback Loops
The company introduced a data-driven performance management system.
Cross-functional teams were formed to encourage collaboration and innovation.
Teams had access to real-time dashboards showing key performance metrics related to the strategy.
Regular one-on-one feedback sessions discussed progress, challenges, and development opportunities.
4. Empowerment and Autonomy
The teams had the autonomy to make decisions and experiment with new ideas, fostering a culture of ownership and creativity.
By tracking and sharing progress through visually appealing charts, employees were empowered to take ownership of their contributions.
This transparency fueled innovation and collaboration across departments, propelling the company toward its objectives.
5. Recognition and Rewards
Al Saedan Real Estate Company’s recognition and rewards program is designed to ignite motivation and inspire employees to excel in their respective roles while actively contributing to the attainment of the organization’s strategic goals. The program encompasses a variety of gestures, including personalized plaques and trophies for individual achievements, an extra day of paid vacation to express appreciation for hard work, performance-based bonuses tied directly to specific targets and milestones, and celebrations of team excellence marked by team lunches, certificates of achievement, and extensive company-wide recognition.
Furthermore, the company values long-term commitment and consistently outstanding results, providing opportunities for career advancement and growth, including promotions and salary increases. The spirit of innovation is also nurtured and acknowledged through the company’s “Innovation Awards” and innovation certificates. An annual awards ceremony serves as the grand culmination of the program, highlighting the best talents across the company’s different functions.
As a direct outcome of our strategic execution, we have recently launched numerous real estate projects. These ventures span across residential, commercial, and hospitality sectors and have been made possible through strategic alliances and partnerships we have forged along the way.
Engaged employees who fully grasp the company’s mission play a pivotal role in achieving our objectives. Moreover, our commitment to SMART goals has become the foundation of our strategic progress, ensuring that our objectives are not mere aspirations but actionable plans.
Our success is also a direct outcome of our dedication to data-driven approaches. Lastly, we have observed that our company’s culture, which champions employee empowerment, directly correlates with increased ownership, enhanced collaboration, and a continuous drive for improvement.
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About the Guest Expert: Rami Al Tawil, Organizational Excellence Director at Al Saedan Real Estate Company, holds a master’s degree in industrial engineering from Jordan University of Science and Technology. With 19 years of expertise spanning Strategy Planning, Performance Management, Business Improvement, and more, he excels in aligning employees with strategic visions for consistent performance improvement.
Editor’s Note: This article was originally published in Performance Magazine Issue No. 28, 2024 – Employee Performance Edition.
Planning and strategy are often confused with one another. They are even combined in the term “strategic planning.” But a strategy is something very different than a plan. When the distinctions are blurred, problems arise—as evidenced by the consistently high failure rates in strategy.
The confusion about what strategy is stems largely from the widespread and inaccurate use of the word itself. People tend to use “strategy” to distinguish a concept from something ordinary, like in “strategic HR” and “strategic marketing.” They also use it in their day-to-day language to reflect their ideas about how to achieve some goal. For example, “My strategy to lose weight is to eat 10% less than usual every day.”
In business, or organizations more generally, strategy means something else. It must be because otherwise, every plan, approach, and process can be called a strategy, which brings us nowhere. This is how a strategy and a plan are different (see Figure 1).
Figure 1. The Differences Between Strategy and Planning
A strategy is a logic that describes how an organization creates and captures value. It is the starting point from which goals can be derived.
A plan is a process that describes the steps an organization intends to take in order to achieve its goals and thereby realize its strategy.
Since plans and planning are widely known, it is important to zoom in on the strategy part of this comparison. A strategy lays out the logic according to which an organization creates and captures value. As described in my recent book, “The One-Hour Strategy,” this covers six elements that comprise the 6M Framework:
Magic: The products and services the entity offers and what they do for customers
Market: The customers whose needs the business serves and the alternatives it competes against
Means: The assets and capabilities that a company and its partners can bring to the table
Money: The way and amount of revenue generated versus existing costs and risks
Meaning: The things that the company finds most important and to which it most aspires
Momentum: The factors outside one’s control that help or hinder them in what they do
This is not just a list. There is a logic reflected in the image. The heart of a strategy is the company’s Magic (the value it creates). It is a link between the Means (how one does this) and the Market (where and for whom one does it).
It is also the link between Money (how value is captured) and Meaning (the why). And around that, there is Momentum (the environment), which either works for a company or against it.
Finally, as reflected by the other arrows, a good strategy is an integrated set of choices that all align so that all 6 Ms fit together as one coherent whole.
Seen as such, there is no need to confuse a strategy and a plan. The two are simply very different.
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About the Guest Expert:Jeroen Kraaijenbrink is an accomplished strategy educator, mentor, author, and consultant with over two decades of academic and industry experience. He has a PhD in industrial management and has helped improve the strategic planning and implementation of numerous organizations across a variety of industries.
Editor’s Note: This was originally published in Performance Magazine Issue No. 29, 2024 – Strategy Management Edition.
Digital economy is an expanding umbrella term that describes all economic activities done through digital technologies. Alongside the exponential advancement of information and communication technologies (ICT) since the 1990s, the internet economy has been similarly expanding to construct at least half of the total market value of produced goods and services around the globe. With this expansion comes an opportunity for economic growth, and one of the countries leading the charge is Estonia.
Ranking first under the Digitalization Dimension of The KPI Institute’s Government Services Index (GSI) 2023, the small Baltic nation has a story of remarkable transformation. Inhabited by 1.3 million citizens, the country has seen its gross domestic product (GDP) grow almost tenfold since 1995, reaching $38.1 billion in 2022. The country, which had once been agriculturally limited, experienced a renaissance after gaining independence from the Soviet Union in 1991 and is now a prominent pioneer in digital innovation.
Digitally Born
With the rebirth of the nation coinciding with the birth of the internet, Estonia recognized the rocketing invention as a vehicle for its economic development—a significance that it still recognizes today. Estonia’s 2030 Digital Agenda clearly states that “digital solutions are the engine of the entire economy” as a main strategic objective.
The first Estonian strategy for IT development was formulated in 1994, resulting in a country-wide IT infrastructure development program dubbed the Tiger Leap Initiative. The project focused on schools, providing access to computers and the internet, digitally upskilling teachers, and preparing the next generations to live in a digital world.
The initiative served as fertile soil that cultivated the chain of digital governmental services that were soon to be launched in the following years. The backbone of these launches was X-Road, established in 2001. It is an open-source software that establishes a unified digital ecosystem, providing integration for safe and efficient data exchange between organizations, whether public or private.
X-Road supported the advancement of Estonia’s e-banking and e-taxing systems—launched in 1996 and 2001, respectively, and still standing solid to this day. The initiative also allowed for a smooth establishment of citizens’ digital ID (e-ID) and digital signature systems.
More e-services have since been launched year after year, from electronic voting to online medical prescriptions and much more. Confident in what it offers, the Estonian government opened the door for non-residents to benefit from its digital ecosystem through the e-Residency program, which is designed for entrepreneurs to open their businesses in the country without having to visit the land.
Digitally Proud
Today, the ambitious country proudly declares that the only governmental service that its citizens need to leave their homes for is getting divorced. This complete access to government provisions via the internet constitutes what is called e-Estonia, the digital parallel existence of the Balkan nation.
A North Star for e-governments and digital economies around the world, e-Estonia has transformed into a global standard in digitized public services. The remarkable digital ecosystem drives the country’s economic growth by promoting efficiency, inclusivity, and attractiveness in every sector. As the world continues to embrace the digital revolution, Estonia stands as a beacon that lights the path toward a brighter and more prosperous future.
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Editor’s Note: This was originally published in Performance Magazine Issue No. 30, 2024 – Government Edition.
The complexity of the world today is affecting many layers of society, from global governments to companies to professional and personal pursuits. What this means for organizations is their decisions and actions are influenced by the new intricacies brought about by technological advancements, globalization, cultural diversity, and consumers’ increasing sophistication. Strategizing for success in such an environment has become more complex due to the varied interests, goals, and expectations of stakeholders.
The challenge for organizations is to recognize and reconcile these diverse interests while aligning them with the overall mission and objectives of the enterprise.
Therefore, organizations should address and enhance stakeholder engagement and incorporate their feedback during strategy execution to minimize any negative impacts and increase the likelihood of successful plan implementation. A proactive approach is required to meet these challenges, starting with the early identification of stakeholders and the analysis of their expectations and interests. After identification, it is essential to group stakeholders according to specific criteria. This ensures a certain degree of consistency in the approach and organizational messaging and helps address their expectations uniformly.
The National Aeronautics and Space Administration (NASA) is an example of an organization that manages the involvement of its stakeholders. NASA provides some examples of stakeholders identified using a Life Cycle Stage approach. Considering the planetary impact of its missions—”NASA explores the unknown in air and space, innovates for the benefit of humanity, and inspires the world through discovery”—a broad spectrum of stakeholders is involved, from internal staff to the planetary environment and the public (see Figure 1).
Figure 1. NASA Stakeholder Identification throughout the Life Cycle | Adapted from the NASA website
NASA has an extensive approach to stakeholder identification and their expectations. The organization links them with the strategic objectives that the mission is meant to achieve. Understanding the mission objectives ensures that the project team collectively works toward a shared vision.
NASA also acknowledges the importance of involving stakeholders in all phases of a project. According to the organization, this involvement should be incorporated as an intrinsic “self-correcting feedback loop,” significantly improving the likelihood of mission success.
Capturing this comprehensive feedback is crucial as it avoids unexpected features emerging later in the life cycle. For example, space asset protection may call for certain design modifications, which could be costly to incorporate into a system that has already been developed. Reaching an understanding between the technical team and stakeholders about what is expected or intended for the system/product is crucial in the operational execution of the mission.
The organization ensures that the technical team comprehensively grasps the expectations and how they can be fulfilled by the product. Furthermore, it ensures that the stakeholders have reached a consensus on this understanding. In situations where it is determined that there are gaps or unclear statements, this procedure could lead to further improvement of the first set of stakeholder expectations.
Figure 2. NASA Information Flow for Stakeholder Identification | Adapted from the NASA website
One reason for strategy execution failure often stems from neglecting stakeholders who wield a significant influence over implementation. Early engagement ensures that diverse perspectives are considered during the strategy development phase, leading to a more comprehensive and well-informed plan. Continually engaging stakeholders fosters a culture of transparency, trust, and accountability throughout execution.
Effective stakeholder management requires two things throughout the process: communication and active collaboration. As the organization advances through strategy execution, ongoing communication and collaboration with stakeholders help in addressing challenges, obtaining valuable feedback, and making necessary adjustments in real-time.
Therefore, an inclusive and continuous approach to stakeholder involvement at all stages of strategy execution is a key driver for success, ensuring that the strategy remains adaptable, responsive, and aligned with the overarching goals of the organization.
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Editor’s Note: This was originally published in Performance Magazine Issue No. 29, 2024 – Strategy Management Edition.
