S. Prakash, Founder and CEO, SEE CHANGE Consulting, 0
Turning a visionary strategy into a reality is one of the biggest challenges faced by CEOs, particularly in mid-cap companies where resources may be limited, and market dynamics can be unpredictable. While setting a clear strategy is vital, the real test lies in execution. In the Indian mid-cap landscape, several companies have successfully navigated this gap between strategy and execution. Let us explore how CEOs can do the same by focusing on three key areas: aligning strategy with clear objectives, building a culture of accountability and ownership, and fostering agility and adaptation.
1. Aligning Strategy with Clear Objectives
Defining Vision and Goals: In any company, a great strategy begins with a clear vision. However, if that vision is not translated into specific, actionable goals, it risks remaining just that—a vision. CEOs must break down their strategy into measurable objectives that each department and team can understand and contribute to. Without this clarity, teams may not be sure of their roles in the bigger picture.
Case Study: Havells India, a leading mid-cap electrical goods company, has excelled in aligning its strategy with specific goals. When it decided to enter the consumer electronics market, Havells had a clear vision to diversify its product range. The leadership broke this strategy down into measurable milestones, such as product development timelines, distribution expansion, and marketing efforts. Each department—from R&D to sales—had clear objectives that aligned with the company’s broader goals. This alignment ensured that the strategy was executed effectively, contributing to the company’s sustained growth.
Setting Measurable Milestones: A critical part of closing the strategy-execution gap is breaking the long-term vision into short-term, measurable steps. CEOs should establish key performance indicators (KPIs) for every milestone, which helps keep everyone on track and accountable. For instance, if a company is focusing on regional expansion, it should set quarterly milestones for opening stores, gaining market share, and improving customer outreach.
Havells India’s success came from setting clear, measurable goals, such as achieving a certain percentage of market share in consumer electronics within a specified timeframe. This approach helped the company track its progress and adjust tactics where needed.
2. Building a Culture of Accountability and Ownership
Empowering Leadership Teams: While the CEO sets the vision, execution depends on middle management and teams taking ownership. A culture of accountability ensures that teams understand their responsibilities and feel empowered to make decisions. It is essential to delegate effectively and ensure that each team is aligned with the overall strategic goals.
Case Study: Page Industries, the exclusive licensee of Jockey in India, provides a great example of building a culture of accountability. When the company faced challenges in maintaining its market leadership, CEO Sunder Genomal empowered his leadership team to take ownership of individual parts of the strategy. Each division, from supply chain to marketing, had clear accountability for specific results, such as inventory management and market penetration.
Genomal emphasized frequent communication and regular reviews of progress against objectives. This culture of accountability ensured that Page Industries remained competitive, with the leadership team taking ownership for driving results.
Communication and Transparency: Open communication is critical to fostering accountability. CEOs must create a transparent environment where progress is regularly reviewed, and challenges are openly discussed. This not only prevents misunderstandings but also ensures that any roadblocks to execution are quickly identified and addressed.
At Page Industries, the leadership team maintained clear communication channels, both vertically and horizontally. This transparency allowed for quick feedback, agile responses, and cohesive teamwork, all of which contributed to effective execution.
3. Bridging Gaps through Agility and Adaptation
Adapting to Change: In today’s fast-paced business environment, no strategy is immune to change. Whether it’s evolving market conditions, technological disruptions, or competitive pressures, CEOs must remain flexible. The key is to have a strategy that can adapt in real-time without derailing execution.
Case Study: Jyothy Labs Jyothy Labs, known for its popular detergent brand Ujala, provides a case study in agility. Facing stiff competition from established players, the company shifted its focus to niche products and rural markets, adapting its original strategy. The leadership was quick to realign its marketing efforts, focusing on regional outreach while expanding product lines in new categories like home care and personal care.
This flexibility allowed Jyothy Labs to grow rapidly, even in a highly competitive market. The company regularly reviewed its milestones and adapted its strategy based on market feedback. This agile approach helped close the gap between strategy and execution, resulting in continued growth and profitability.
Using Technology for Execution: Excellence Technology plays a pivotal role in streamlining execution. Whether it's using data analytics for decision-making or collaboration tools to improve communication, technology can enhance the transparency and efficiency of execution.
At Jyothy Labs, digital tools were implemented to track sales performance in rural areas, helping the company adjust its strategy in real-time. This technological support enabled quicker decisions and better resource allocation, improving execution significantly.
Summary:
For CEOs, closing the gap between strategy and execution is critical to driving growth and ensuring long-term success. As the case studies of Havells India, Page Industries, and Jyothy Labs illustrate, mid-cap companies in India can achieve execution excellence by focusing on three core areas: aligning strategy with clear objectives, building a culture of accountability and ownership, and fostering agility and adaptation.
By defining clear, measurable goals and ensuring that every team understands their role in the strategy, CEOs can create a unified effort toward execution. Building a culture of accountability empowers leaders to take ownership and ensures that everyone is aligned toward common objectives. Finally, being agile and ready to adapt the strategy as necessary helps keep execution on track, even in the face of challenges.
Closing the strategy-execution gap is not easy, but with the right approach, Indian mid-cap companies can turn visionary strategies into successful outcomes. CEOs who master this art will not only achieve their organizational goals but also ensure sustainable, long-term growth.
Communication and Transparency: Open communication is critical to fostering accountability. CEOs must create a transparent environment where progress is regularly reviewed, and challenges are openly discussed. This not only prevents misunderstandings but also ensures that any roadblocks to execution are quickly identified and addressed.
At Page Industries, the leadership team maintained clear communication channels, both vertically and horizontally. This transparency allowed for quick feedback, agile responses, and cohesive teamwork, all of which contributed to effective execution.
A culture of accountability ensures that teams understand their responsibilities and feel empowered to make decisions. It is essential to delegate effectively and ensure that each team is aligned with the overall strategic goals.
3. Bridging Gaps through Agility and Adaptation
Adapting to Change: In today’s fast-paced business environment, no strategy is immune to change. Whether it’s evolving market conditions, technological disruptions, or competitive pressures, CEOs must remain flexible. The key is to have a strategy that can adapt in real-time without derailing execution.
Case Study: Jyothy Labs Jyothy Labs, known for its popular detergent brand Ujala, provides a case study in agility. Facing stiff competition from established players, the company shifted its focus to niche products and rural markets, adapting its original strategy. The leadership was quick to realign its marketing efforts, focusing on regional outreach while expanding product lines in new categories like home care and personal care.
This flexibility allowed Jyothy Labs to grow rapidly, even in a highly competitive market. The company regularly reviewed its milestones and adapted its strategy based on market feedback. This agile approach helped close the gap between strategy and execution, resulting in continued growth and profitability.
Using Technology for Execution: Excellence Technology plays a pivotal role in streamlining execution. Whether it's using data analytics for decision-making or collaboration tools to improve communication, technology can enhance the transparency and efficiency of execution.
At Jyothy Labs, digital tools were implemented to track sales performance in rural areas, helping the company adjust its strategy in real-time. This technological support enabled quicker decisions and better resource allocation, improving execution significantly.
Summary:
For CEOs, closing the gap between strategy and execution is critical to driving growth and ensuring long-term success. As the case studies of Havells India, Page Industries, and Jyothy Labs illustrate, mid-cap companies in India can achieve execution excellence by focusing on three core areas: aligning strategy with clear objectives, building a culture of accountability and ownership, and fostering agility and adaptation.
By defining clear, measurable goals and ensuring that every team understands their role in the strategy, CEOs can create a unified effort toward execution. Building a culture of accountability empowers leaders to take ownership and ensures that everyone is aligned toward common objectives. Finally, being agile and ready to adapt the strategy as necessary helps keep execution on track, even in the face of challenges.
Closing the strategy-execution gap is not easy, but with the right approach, Indian mid-cap companies can turn visionary strategies into successful outcomes. CEOs who master this art will not only achieve their organizational goals but also ensure sustainable, long-term growth.