Do You Have the Right Talent to Execute Your Business Strategy?

Do You Have the Right Talent to Execute Your Business Strategy?
Companies that have a tight match between their strategy and the capabilities of their people outperform their peers.  Our organizational alignment research found that having the right talent to execute your business strategy accounts for 29% of the difference between high and low performing companies in terms of:

• Revenue growth
• Profitability
• Leadership effectiveness
• Customer loyalty
• Employee engagement

The symbiotic relationship between talent and strategy matters. Because your strategy must go through your talent to be successfully executed, it is no surprise that organizations must have the requisite capabilities and confidence to move strategies forward.  Crafting an amazing strategy that your people cannot execute is a waste of time.

Talent: The Catalyst of Strategy Execution
The success of every strategic initiative depends on the collective capability, competencies, and commitment of individuals within the organization. Talent, from leadership to the frontline, constitutes the bedrock of execution prowess.  Strategies that are misaligned with talent are asking for trouble.

How many strategic imperatives have you successfully implemented that did not fit with your employees’ motivations or talents?  Our strategic clarity research tells us very few.  While it seems like a no-brainer to not chase strategies that outpace or misalign with your capabilities, executives often get enamored with chasing audacious goals to drive growth.

Examples: Talent to Execute Your Business Strategy Challenges

• Sales Strategy Shift from Hardware to Software as a Service (SaaS)
  Consider the case of common strategy shift from selling hardware to selling a SaaS model. According to DevSquad, 80% of businesses plan to transition all of their systems to SaaS by 2025. Strategically it makes sense to companies because it provides a more predictable business model and makes it easier to plan for growth and raise capital. From a customer perspective, it can reduce infrastructure costs while improving scalability, flexibility, accessibility, and security.

  Selling a long-term service that must be supported and updated, however, takes very different solution selling skill set than selling hardware.  While the sales strategy makes sense, companies must have the sales skills, sales systems, and sales processes to enable the new strategy.

• Shift to a Digital Transformation
  Another common strategy shift is for an organization to undertake a digital transformation. The strategy enables companies to embed technologies across their businesses increase efficiency, improve agility, and unlock value. According to Gartner, 91% of businesses are involved in some type of digital initiative, and 89% of companies have adopted or plan to adopt a digital-first business strategy.

  While advanced technologies can certainly improve business practices and how value is delivered to customers, it requires a talent pool equipped with digital fluency, adaptability, and change management prowess.  According to Deloitte, only 44% of businesses are prepared for the imminent digital disruption that will occur.

The Imperative of Talent Alignment
Talent alignment is a key ingredient for successful strategy execution. We know from leadership simulation assessment data that strategically aligned talent entails the  purposeful harmonization of individual competencies, motivations, and aspirations with strategic imperatives.  High talent alignment fosters high performance, execution excellence, and high employee engagement.  Talent misalignment creates frustration, fragmentation, unfulfilled strategies, and employee disengagement.

10 Questions to Test If You Have the Talent to Execute Your Business Strategy
Having the right talent to execute your business strategy takes a purposeful talent management strategy with the discipline and rhythm to match the strategic direction.  Here are 10 questions to help test if you have the talent to execute your business strategy.  Any that do not rate as a strong “YES” should be shored up before moving forward.

1. My company hires employees that help achieve my company’s strategy.
2. My company retains the majority of its employees who are critical to our future success.
3. Employees in my company have the necessary skills and knowledge to be successful.
4. The quality of talent within my company gives us a competitive edge.
5. Employees in my company have access to the resources required to do their job.
6. People in my company make the extra effort in their jobs.
7. 75% or more of my company’s teams meet their performance goals.
8. My company consistently assesses employees against the desired skills, knowledge, and attitudes to execute our strategic plans.
9. My company’s employees respond positively to changes required to remain competitive.
10. My company promotes a growth mindset of experimentation, learning, reflection, and development.

The Bottom Line
Differentiated talent that is aligned with your strategy matters.  A solid strategy outlines a clear and compelling path towards meaningful. Yet, without the requisite talent to navigate the path, strategies risk veering off course and becoming another failed change initiative. You will know you are on the right path when your strategy and talent fortify each other in a symbiotic relationship.

To learn more about having the right talent to execute your business strategy, download The 3 Key Ingredients for Talent Management Success