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From Strategy to Execution in Digital Transformation

Insights/ Digital Transformation / Execution & Implementation

09 Feb 2023 - 06 min read

From Strategy to Execution in Digital Transformation
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Why most strategies break at the handoff

The dirty secret of digital transformation is that most strategies do not fail in execution. They fail in translation. A board approves "we will become a customer-first digital company". A delivery team receives a backlog of features. What happens between those two, who turns one into the other, what gets dropped on the way, what becomes a decision and what stays an intention, is where most of the value of a transformation is either captured or quietly lost.

This article looks at that handoff. Not the strategy work itself, and not the delivery work itself, but the translation between them: what an executable strategy actually has to contain, who owns the translation, and how to know whether the strategy has survived contact with the team that has to ship something on Monday morning.

Strategy speaks in nouns, execution speaks in verbs

A strategy document is full of nouns: a vision, a north star, an operating model, a portfolio. Those nouns describe a state, what the organisation wants to be. Execution is full of verbs: ship, integrate, decommission, retrain, switch off, route, reconcile. Those verbs describe what someone has to do, by when, with what.

When the strategy is handed over without that translation already done, the delivery team has to invent it. They will, but the choices they make at that point are no longer strategic choices, they are operational ones, made by people who were not in the room when the trade-offs were originally argued. A "customer-first" strategy translated by a delivery team under pressure usually becomes "ship the new portal first because it is the most visible thing", which may or may not be the same as what the strategy actually meant. By the time the gap shows up, twelve months and a budget cycle have already gone.

What an executable strategy actually has to contain

The translation problem is much smaller when the strategy itself carries the right artefacts. Five of them, in practice, do most of the work.

The first is outcome statements rather than intent statements. "Improve the customer experience" is an intent. "Reduce the time to first response on a service request from 48 hours to 8 hours, on the same staffing budget" is an outcome. Outcomes are arguable in the strategy session, where they belong. Intents only become arguable in the delivery meeting, where they break things.

The second is decisions, not options. Strategy documents that say "the organisation could either consolidate platforms or run them in parallel" have not made a strategic decision; they have postponed it. The decision will get made anyway, by procurement, by IT, or by whichever team needs to move first. Better to make it in the strategy room.

The third is what we are explicitly not doing. Most transformation strategies are written as a list of what to add, not a list of what to stop. Without the second list, capacity is implicitly assumed to be infinite, which it never is. A strategy that does not name what gets de-prioritised will see those things continue, absorbing the capacity meant for the new work.

The fourth is a capacity envelope, a realistic statement of how much delivery capacity the organisation actually has, against how much the strategy needs. Most strategies overcommit by a factor of two or three because the gap is never named. Naming it is uncomfortable but it is the single highest-leverage input into making the strategy executable.

The fifth is kill criteria for each major initiative, the conditions under which a stream gets stopped or descoped, agreed up front. Without them, the only way to drop work later is to admit failure, which organisations resist, and so the stream limps on long after it should have been cut. The way these artefacts feed into a real timeline is covered in the roadmap article.

Who owns the translation

The translation between strategy and execution does not own itself. In organisations that get this right, there is a named person, usually the program lead, sometimes a senior product manager or transformation director, whose explicit job is to keep the strategy and the delivery work honest with each other. They are the person who notices when the backlog is no longer about the strategic outcome, and who has the standing to push back upwards when the strategy is making promises the capacity envelope cannot hold.

Where this role is missing, two failure patterns dominate. In the first, "the business" writes the strategy and "IT" writes the backlog, and the gap between them is never closed by anyone in particular. In the second, the strategy is owned by a small executive group and the delivery is owned by a large delivery group, and there is no one whose remit covers both, so the only forum where they can be reconciled is the steering committee, which meets monthly, which is far too slow to catch translation drift.

The translation owner does not need to be senior. They need to be trusted by the sponsor, credible with delivery, and explicitly mandated to flag mismatches between strategy and reality without losing political cover.

Execution is what tests the strategy

Execution does more than implement a strategy, it tests it. Strategies survive intact in the boardroom. They get amended by reality the moment they hit the field: a market moves, a vendor underdelivers, a regulation changes, a capability turns out to be weaker than assumed. The mark of a serious transformation is not that its strategy is never revised; it is that the strategy is revised quickly, with discipline, when execution surfaces information that should change it.

That requires two habits. The first is short, honest delivery feedback loops, actual usage data, actual cycle times, actual cost, not the version of those that survives three layers of reporting. The second is a willingness to treat changing the strategy as a sign of organisational health, not weakness. Programmes that cannot revise their own strategy end up executing a plan everyone already knows is wrong, which is the most expensive failure mode of all.

Final takeaway

Most digital transformations do not need a better strategy or a better delivery team. They need someone, with explicit authority, to keep the two in conversation, and a strategy expressed in a form that the delivery team can actually do something with. When those two are present, ordinary strategies become serious programmes. When they are missing, even good strategies turn into expensive activity that no one quite remembers commissioning.

The wider context, sequencing, governance, leadership, adoption, and how each of these stages reinforces or undermines the translation, is collected in the digital transformation insights cluster. And when the question is no longer "do we have a strategy" but "we have a strategy and a delivery plan that no longer match, how do we close the gap before another quarter is lost", that is exactly what my digital transformation advisory practice is built around.

- Haja Faniry

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