The Balance Between Operation and Change
Alongside the fundamental principles for closing the strategy implementation gap, we must examine the balance between day-to-day operations (“Run the Business”) and the necessary change initiatives (“Change the Business”).
How this balance is achieved and maintained is crucial for the successful implementation of corporate strategy. Companies must conduct their day-to-day operations smoothly while also having the ability to evolve through strategic initiatives. The balance between “Run the Business” (RtB) and “Change the Business” (CtB) is essential for sustainable performance and long-term growth.
Understanding and Managing Duality
“Run the Business” includes all activities necessary to maintain and continuously improve the current business model. It focuses on efficiency, stability, clearly defined processes and hierarchies, and concrete results.
“Change the Business,” on the other hand, represents change and innovation, realizing new ideas, products, processes, or business models. Initiatives in this area are usually carried out as projects. It’s about flexibility and adaptability.
Prioritization and Balance
Sensibly prioritize strategic initiatives (CtB) and manage them effectively alongside day-to-day operations (RtB). This requires a clear understanding of strategic goals and a conscious allocation of resources. Select change initiatives carefully and align them strategically with the company portfolio to avoid overload and create synergies.
Performance Indicators
Design different performance indicators to individually reflect success in both RtB and CtB. Do not use the same KPIs for both areas. Ensure that success measurements do not favor RtB at the expense of CtB, and vice versa. Only a balanced assessment leads to healthy corporate development.
Culture of Continuous Improvement
Promote a culture that sees CtB as an equal part of the work. Encourage employees to continuously develop and contribute to both operational goals (RtB) and change initiatives (CtB). Training and development programs should be designed to give employees the flexibility to engage and grow in both areas. Assign responsibility to your employees and take their feedback on strategy and implementation.
Transparent Communication
Ensure clear and regular communication across both streams. Employees need to know how their work contributes to the bigger picture and how CtB affects RtB. All employees should have insight into ongoing and planned change initiatives to create a common understanding and facilitate active participation.
