In a previous blog, we talked about why strategic initiatives are important. We also covered the 3 pillars that help you get the most out of your strategic initiatives.
In this blog, we will deep dive into one of the pillars, skill development - with a specific focus on power skills.
Power skills development
In no particular order, the 10 power skills that are essential for successful definition, implementation and benefit realisation of strategic initiatives are:
1 - Strategic thinking
Strategic thinking is the process of looking at the context, analysing the situation, data and processes to make informed decisions that align with the long-term objectives of an organisation. It involves thinking beyond the short-term goals and considering all possible options and outcomes to create a well-rounded plan. Strategic thinking is crucial for organisations, as it allows them to adapt to the evolving market landscape and stay ahead of the competition.
For example, an IT company that embraces strategic thinking might decide to invest in cutting-edge technology that will enable them to develop an innovative AI based solution to meet the future needs of their clients. Meanwhile, a manufacturing firm that engages in strategic thinking might develop a supply chain strategy that ensures consistent, high-quality output while minimising costs and improving efficiencies. In both cases, strategic thinking is key to achieving growth, profitability, and a sustainable competitive advantage.
2 - Planning
Planning is a critical process that involves creating a comprehensive and well-structured framework to guide the design, implementation and measurement of strategic initiatives. It involves breaking down high-level strategic initiatives into specific and actionable projects (and subsequently steps), setting clear timelines, defining resource requirements, and identifying potential risks and contingencies.
For example, an IT company looking to invest in cutting-edge technology for an AI-based solution, detailed planning would include analysing market trends, assessing technological capabilities, allocating resources for research and development, setting milestones for prototype development and testing, and determining a marketing and launch strategy. Similarly, in a manufacturing firm aiming to develop a new supply chain strategy, detailed planning would involve analysing current processes, optimising inventory management, evaluating supplier relationships, implementing quality control procedures, and streamlining production schedules.
3 - Communication
Effective communication is essential for organisations as it facilitates the exchange of information, builds relationships, and ensures alignment towards the strategic initiatives. Without clear communication, each department would work towards its own goals, leaving the strategic initiatives by the wayside. Strong communication practices foster collaboration, promote transparency, and ultimately lead to successful implementation and achievement of strategic initiatives.
For example, in an IT company looking to invest in cutting-edge technology for an AI-based solution, the research and development team needs to communicate breakthroughs in AI technology to the software development team, enabling them to incorporate those advancements into the solution. Externally, effective communication is crucial in conveying the value proposition of the AI-based solution to potential clients.
Similarly, in a manufacturing firm developing a new supply chain strategy, internal communication across departments ensures everyone understands the objectives and collaborates effectively. Externally, communication ensures coordination with suppliers, enabling them to align their operations with the manufacturing firm's quality and cost standards, resulting in a well-optimised supply chain.
4 - Project management
Project management is the discipline of planning, organising, and controlling resources to achieve specific goals within a defined timeframe and budget. It involves the application of processes, techniques, and tools to successfully execute complex projects. Multiple such projects would combine to contribute towards the delivery of a single strategic initiative.
For example, In an IT company investing in cutting-edge technology for an AI-based solution, project management includes tasks such as defining project requirements, creating a detailed project plan, allocating resources and budget, managing risks, and coordinating the efforts of different teams. Similarly, in a manufacturing firm developing a new supply chain strategy, project management involves activities like identifying key milestones, assigning responsibilities, establishing performance metrics, monitoring progress, and adapting the strategy as needed.
5 - Decision making
Decision making is the process of selecting the best course of action among multiple alternatives. It plays a crucial role in the success of organisations as it determines the direction and outcomes of various initiatives. Throughout any project, the team is constantly making decisions that impact the outcome of the project and hence the outcome of the strategic initiative.
For example, an IT company investing in cutting-edge technology for an AI-based solution must decide which AI technologies to adopt, whether to build or buy the required software components, and how to allocate resources for research and development. Similarly, a manufacturing firm developing a new supply chain strategy must decide on the optimal supplier relationships, inventory management systems, and production processes to ensure consistent high-quality output, minimise costs, and improve efficiencies.
6 - Tech mindset
A tech mindset refers to the ability to embrace and leverage technology as a tool to drive innovation, efficiency, and growth. It involves a proactive and open attitude towards new technologies and their potential applications. A strong tech mindset enables organisations to stay ahead of the curve, adapt to changing trends, and leverage technology to drive competitive advantage.
For example, in an IT company aiming to develop an AI-based solution, a tech mindset is crucial, it entails continuously researching and exploring cutting-edge technologies, fostering a culture of experimentation and learning, and encouraging collaboration between different teams to harness the full potential of technology. Similarly, in a manufacturing firm developing a new supply chain strategy, a tech mindset involves using technology to optimise processes, ensure consistent quality, minimise costs, and improve efficiencies. This may include adopting advanced inventory management software, implementing automation in production lines, and leveraging analytics to identify improvement areas.
7 - Collaboration
Collaboration is the process of working together towards a common goal, leveraging the diverse skills, knowledge, and perspectives of individuals or teams. It is vital for organisations working towards strategic initiatives as it promotes synergy, fosters innovation, and improves overall productivity.
For example, in an IT company investing in cutting-edge technology, software developers collaborate with data scientists and AI specialists to understand the requirements and capabilities of the technology, ensuring the development of a robust and effective solution. Similarly, in a manufacturing firm developing a new supply chain strategy, different departments collaborate to identify improvement opportunities, share insights, and align their efforts to achieve the common goals of the strategic initiative.
8 - Agility
Agility refers to the ability of an organisation to respond quickly and adapt to changing circumstances and market demands. It involves embracing flexibility, creativity, and a willingness to reassess and adjust strategies as needed. This reassessment or review could be as frequent as every quarter or as infrequent as every year.
For example, an IT company investing in cutting-edge technology, agility must be able to quickly pivot their development plans in response to emerging technologies, market trends, or shifts in client demands. They need to adapt their AI-based solution to meet the evolving needs of their clients and ensure it remains innovative and competitive, while being secure. Similarly, a manufacturing firm developing a new supply chain strategy, must be able to swiftly adjust production processes, sourcing strategies, and distribution plans to respond to changes in demand or disruptions in the supply chain.
9 - Process improvement
Process improvement refers to the systematic approach of identifying inefficiencies and improving processes to optimise performance and deliver better outcomes. It is crucial for organisations as it helps in minimising waste, improving productivity, increasing profitability, and enhancing customer satisfaction. A lot of process improvement can be implemented after the effective implementation of automation.
For example, an IT company investing in cutting-edge technology needs to evaluate their software development processes frequently and identify areas that can be streamlined or automated to improve efficiency and reduce time-to-market. Similarly, a manufacturing firm developing a new supply chain strategy should assess current processes and identify areas that can be optimised, such as reducing lead times, optimising inventory levels, or improving transportation efficiency.
10 - Change management
Change management refers to the structured approach of preparing, equipping, and supporting individuals and teams to successfully navigate organisational changes. It involves understanding the impact of change, communicating effectively, and managing resistance to ensure a smooth transition. Change management is essential for organisations as it helps minimise disruptions, increase adoption, and maximise the benefits of strategic initiatives.
For example, an IT company investing in cutting-edge technology needs to conduct thorough assessments of the impact on employees, provide training and support to ensure a smooth transition to the new technology, and address any resistance or concerns. Likewise, in a manufacturing firm developing a new supply chain strategy, change management involves engaging employees, communicating the rationale for change, providing training on new processes or tools, and creating a culture of continuous improvement.
After all, the Economist reported that only 41% of respondents say their companies provide sufficiently skilled personnel to implement high priority strategic initiatives.
Bringing the 3 pillars together
The connectedness between the 3 pillars helps create a coordinated effort when designing and implementing strategic initiatives. Skill development helps the organisation evaluate and prepare for the new way of working. Process improvement carefully designs the new way of working. Technology adoption, in turn, leverages improvements in the new way of working.
Together the 3 pillars help an organisation prepare itself for growth while ensuring operational excellence. When any one (or even two) of these is missing, the organisation can be assured of sub-standard success in strategic initiatives. It is thus essential that those in leadership positions carefully allocate budget and resources to each of the 3 pillars to set their organisation up for success.
Looking for help in power skill development?
