“Strategy development and strategy execution should not be treated as silos” - Avinash Bhandari
The strategy development and strategy execution are highly interdependent. However, in the real world, the two are treated as separate silos. While formulation effects execution, the execution also in turn affects the changes to the strategy formulation process over time.
Best results are achieved when the execution team is also part of the strategy development process. Greater the interaction between the “thinkers” ( the strategy developers ) and the “doers” ( the strategy executors ), the better are the chances of strategic success.
Superior strategic results can be accomplished when managers take into consideration the challenges in execution while formulating the strategy. Obviously, all execution challenges can not be considered upfront. However, anticipating the execution challenges as much as possible (during the formulation process), will certainly improve the chances of successful strategy execution.
The execution of strategy takes much longer than the formulation. External factors could change during this long period impacting the strategy execution. For example, interest rates, competition behavior, customer needs or even key company professionals could change. The effect of these external changes need to be reflected in the strategy quickly if the events are significant. Only a very close synergizing between strategy development and execution will make this possible. This is of even greater significance in small and mid sized organizations where the strategy formulation is typically done by the promoters while the execution is left to the middle managers.