Once the strategy is finalized, the next phase is execution. Agile strategy execution refers to the phase of translating strategies into responsible, aligned, and responsive reality. Alignment, responsiveness, and accountability are the inevitable requirements of the execution process. The themes that make up this approach are the following:

• Align finances with strategy.
• Forecast based on continuous synchronization.
• Clarify operational catalysts for strategic objectives.
• Alignment and improvement of strategy processes.
• Transform the organization of projects to products.

David Norton said: “Strategic initiatives should be viewed as a portfolio, so that the ultimate collective impact closes the value gap.” A critical aspect of progress monitoring is providing an updated portfolio approach for Executive Leaders. A portfolio perspective ensures that the organization takes a company-wide perspective, not just financial.

The annual objectives must be contemplated in the budget, based on the strategic objectives, which are based on what is possible, not the most probable. The time horizons, the risk threshold and innovation play a preponderant role here, it is necessary to consider that the longest horizon no longer exists (H3), it should be seen at the level of disruptive innovation, which may be creating the day of today.

One of the main processes to manage finances in the organization is based on a continuous forecast, 4Q and / 6Q, remember that the broader the time frontier there is greater uncertainty, this forecast should be based on a synchronization and constant processing, updated to the reality of today.

The connection of strategy and operations is made through the objectives within the perspective of the internal process of a Balanced Scorecard system. It is important to avoid that a process of linking the strategy and operations does not become a mass of vain measures, by relating the KPIs with operational objectives of the separate areas.

When identifying the key operational processes that contribute to the objectives within the strategy through the use of drivers, it is important to ask ourselves where we must excel to achieve an objective, thus, once identified, it is important to relate them to measures and make them visible on an operational board, to be shared with everyone involved.

In the traditional world a Balanced Scorecard System is generally “owned” by the Office of Strategy (or Office of Strategy Management – OSM), while initiative management is “owned” by the PMO.

It is important from the point of view of agile strategy to have a transversal view, which offers the strategy and the execution integrated in the same process, therefore it is necessary to merge the OSM and the PMO, define who does what in the transversal process of management of Strategic initiatives, where a good PMO guarantees efficiency and effectiveness, an OSM is regularly required to make the link with the strategy, a lean portfolio management approach and a value management approach would be willing to integrate into this cross-cutting process.

Consider the shift from a project-managed organization to a product-managed organization, where this connection is clear through the management of strategic initiative portfolios, from this perspective, strategic management is a cross-cutting skill of an agile team in strategy, in charge of funding investments, portfolio operations and agile governance.

Thanks a lot.

Miguel A. Martínez H., Wednesday, March 23, 2021.

References:

1. Ismail, I., Palao, F., y Michelle, L. (2019). Transformación Exponencial. México D.F.: Bubok Publishing SL.
2. Lyngso, S. (2014). Agile strategy management: Techniques for continuous alignment and improvement. Boca Raton: CRC Press.
3. Fernando, R. (2019). Agile strategy: How to create a strategy ready for anything. Harlow, England: Pearson.
4. Lambert, D. (2020). Practical Guide to Agile Strategy Execution: Design, Architect, Prioritize, and Deliver your Corporate Future Successfully. CA: Independently published.
5. Wiraeus, D., y Creelman, J. (2019). Agile strategy management in the digital age: How dynamic balanced scorecards transform decision making, speed and effectiveness. Cham, Switzerland: Palgrave Macmillan.
6. Porter, D. T., y Porter, M. E. (2015). Estrategia competitiva: Técnicas para el análisis de los sectores industriales y de la competencia. México D.F.: Grupo Editorial Patria.