Summary of the article
“The eight S’s of successful strategy execution”
by J. M. Higgins (2005)
Executing strategy is just as important, if not more important, than formulating strategy
Performance will suffer if not enough time is spend on executing strategy
Frequent changes in the environment result in frequent strategy changes and the
alignment process is harder than ever
Executives must align the following cross functional organizational factors with each new
strategy that arises
- Structure
- Systems and processes
- Leadership style
- Staff
- Resources
- Shared values
All of these factors are integrated in a practical model for successfully executing strategy
called Eight S’s of Strategy Execution = way of thinking about how to execute strategy and
implement change across an organization (based on McKinsey Seven S’s)
Figure 1 below: The eight S’s as its application should appear in organizations
Figure 2 below: The eight S’s as its application as it actually appears in most organizations
The 8 S’s model differs from the original 7 S’s model in 2 ways
1. Resources has replaced skills, because the original 7 S’s model didn’t contain an S
devoted to resources other than Staff
2. An 8th S: Strategic Performance, has been added to provide focus and closure
The 8 S’s include:
1. Strategy and purposes
a. Strategies are formulated to achieve organizational purposes
b. Changes in purposes lead to changes in strategy
c. Purposes: strategic intent, vision, focus, mission, goals and strategic
objectives
d. 4 types of strategies:
i. Corporate = defines what business/ businesses the firm is in or should
be in and how the firm will conduct that business in a fundamental
way
ii. Business = defines how a business will compete in a particular
business: how do you get sustained competitive advantage. 2 most
frequently suggested business strategies are relative differentiation
and relative low cost
iii. Functional = support the business strategy by defining strategy per
functional area (e.g. marketing, R&D, finance, operations etc.)
“The eight S’s of successful strategy execution”
by J. M. Higgins (2005)
Executing strategy is just as important, if not more important, than formulating strategy
Performance will suffer if not enough time is spend on executing strategy
Frequent changes in the environment result in frequent strategy changes and the
alignment process is harder than ever
Executives must align the following cross functional organizational factors with each new
strategy that arises
- Structure
- Systems and processes
- Leadership style
- Staff
- Resources
- Shared values
All of these factors are integrated in a practical model for successfully executing strategy
called Eight S’s of Strategy Execution = way of thinking about how to execute strategy and
implement change across an organization (based on McKinsey Seven S’s)
Figure 1 below: The eight S’s as its application should appear in organizations
Figure 2 below: The eight S’s as its application as it actually appears in most organizations
The 8 S’s model differs from the original 7 S’s model in 2 ways
1. Resources has replaced skills, because the original 7 S’s model didn’t contain an S
devoted to resources other than Staff
2. An 8th S: Strategic Performance, has been added to provide focus and closure
The 8 S’s include:
1. Strategy and purposes
a. Strategies are formulated to achieve organizational purposes
b. Changes in purposes lead to changes in strategy
c. Purposes: strategic intent, vision, focus, mission, goals and strategic
objectives
d. 4 types of strategies:
i. Corporate = defines what business/ businesses the firm is in or should
be in and how the firm will conduct that business in a fundamental
way
ii. Business = defines how a business will compete in a particular
business: how do you get sustained competitive advantage. 2 most
frequently suggested business strategies are relative differentiation
and relative low cost
iii. Functional = support the business strategy by defining strategy per
functional area (e.g. marketing, R&D, finance, operations etc.)
