STRATEGIC TRANSFORMATION...STRATEGIC TRANSFORMATION ff 2020 BRIGHTLINE INITIATIVE 8 What are the most common challenges in implementing strategy at your organization? Please choose

STRATEGICTRANSFORMATIONMastering Strategy Implementation in Transformative Times

INTERNAL TALENTAND TEAMS

VISIONARYLEADERSHIP

POWER OF FRAMEWORKS

TECHNOLOGY AS A CATALYST

APPENDIX

2STRATEGIC TRANSFORMATION | ©2020 BRIGHTLINE INITIATIVE

Which of the following C-level titles do you hold?

Which of the following best describes your position at your current organization?

This appendix is a complementary resource to “Strategic Transformation: Mastering Strategy Implementation in Transformative Times,” an executive report created by the Brightline Initiative, a Project Management Institute (PMI) initiative. The global survey polled 1,009 business leaders and interviewed 15 executives, many from organizations with annual global revenues of $750 million or more (59%).

Participants spanned North America, South America, Europe, the Middle East, Africa, Asia, Australia, and the Pacific Islands. Individuals in C-level positions constituted 28% of respondents, and organizations represented included for-profits (91%), government (8%), and non-profits (1%).

Appendix

Q2

Q3

28%

24%

48%

C-level Executive

Senior Management

Directors and Senior Managers

Chief Digital Officer

5%

Chief Security Officer

3%

Chief Human Resources Officer

2%

Chief Strategy Officer

1%

Chief Transformation Officer

1%

Other

1%

Chief Marketing Officer

>1%

6%

Chief Financial Officer

13%

Chief Operating Officer

20%

Chief Information Officer

48%

Chief Executive Officer


What industry do you work in?My job responsibilities include:

Q4 Q5

Both designing and implementing strategy

Implementing, but not designing strategy

Designing, but not implementing strategy

81%

15%

4%

18%Technology

9%Finance

8%Government or public sector

8%Retail

7%Manufacturing

6%Healthcare or medical services

5%Engineering, construction, or architecture

4%Automotive and transportation

4%Education

3%Business services

3%Insurance

3%Telecommunications

3%Energy, mining, or utilities

2%Other

2%Consumer goods

Industries represented below 2% included:

• Food and beverage

• Consulting or other professional services

• Travel and hospitality

• Advertising

• Human resources

• Logistics

• Industrial

• Fashion

• Non-profit

• Wholesale

• Arts and entertainment

• Life sciences, pharmaceuticals, or medical devices

• Real estate or property management

• Agriculture

• Media

• Luxury

• Law


How many employees work at your current organization? What is the annual revenue of your organization?

Q6 Q7

>1% 8%

500-999 employees $100M - $250M

>1%

100-499 employees

5%

Less than 100 million

24% 15%

5,000-9,999 employees $500M - $750M

40% 13%

1,000-4,999 employees $250M - $500M

13% 20%

10,000-19,999 employees $750M - $1B

23% 39%

20,000+ employees Greater than $1B


Where is your organization located?

Q8

9%13%10%

Europe

Middle East and Africa

Asia, Australia, and Pacific Islands

58%

10%

North America

South America


Approximately what percentage of your organization’s strategic initiatives are completed successfully?

What are the most critical metrics used to measure the success of strategic initiatives at your organization?

Q9 Q10

58%Revenue growth

43%Customer acquisition and retention

33%Operational efficiency

29%Brand recgonition

28%Employee engagement and satisfaction

24%Talent attraction and retention

22%Cost reduction

20%Meeting set deadlines

18%Strength of competitive positioning

15%Positive shareholder or board sentiment

10%Critical non-financial targets (ex: compliance)

28%

40-59%

11%

20-39%

1%

0-19%

39%

60-79%

21%

80-100%


Q10 RANKING OF TOP CRITICAL METRICS, 1 = MOST IMPORTANT

1

2

3

16% 40% 33% 33% 30% 25% 24% 23% 22% 19% 56%

40% 41% 25% 34% 31% 30% 39% 34% 32% 37% 29%

44% 19% 42% 33% 39% 45% 37% 43% 46% 44% 15%

100%100% 100%100%100% 100%100%100% 100%100%100%

Strength of competitive positioning

Customer acquisition and retention

Positive shareholder or board sentiment

Meeting set deadlines

Operational efficiency

Employee engagement and satisfaction

Cost reduction

Brand recognition

Talent attraction and retention

Critical non-financial targets

Revenue growth


What are the most common challenges in implementing strategy at your organization? Please choose your top 5 challenges.

Q11

44%Skills gap within internal talent

41%Lack of resources

40%Insufficient technology

37%Lack of efficient processes guiding strategy

35%Inability to recruit the necessary external talent

33%Competition from similar organizations

31%Employee mindset and behavior

30%Handoffs between different teams

29%

29%Government regulations

Poor communication and collaboration across teams

27%Resistance to change

27%KPIs don’t measure the impact of strategy

19%Internal company politics

18%Executive teams have differing priorities

17%Risk of failure prevents innovation

17%Failure to sufficiently understand and manage complexity

15%Unnecessarily siloed organizational structures

10%Necessary stakeholders are not engaged

1%Other


Q11 RANKING OF COMMON IMPLEMENTATION CHALLENGES, 1 = MOST DIFFICULT CHALLENGESiloed org. structure

Skills gap within internal talent

Risk of failure prevents innovation

Resistance to change

Poor communication and collaboration

Other

Stakeholders not engaged

Inaccurate metrics, KPIs

Lack of resources

Lack of processes

Internal company politics

Insufficient technology

Inability to recruit external talent

Handoffs between teams

Government regulations

Failure to manage complexity

Executive Teams with different priorities

Employee mindset, behavior

1

2

3

4

5

12% 17% 8% 16% 14% 14% 12% 16% 46% 16% 9% 26% 18% 30% 20% 11% 18% 17% 22%

22% 26% 14% 18% 19% 14% 11% 15% 19% 22% 18% 29% 22% 26% 20% 11% 17% 17% 14%

18% 24% 19% 16% 26% 0% 20% 21% 12% 24% 20% 20% 24% 20% 15% 18% 21% 16% 23%

18% 20% 28% 18% 25% 15% 26% 27% 13% 21% 19% 15% 21% 14% 20% 15% 26% 26% 19%

30% 13% 31% 32% 16% 57% 31% 21% 10% 17% 34% 10% 15% 10% 25% 45% 18% 24% 22%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%


47%Sufficient resources

45%Existing talent with the right skillset

44%Access to cutting edge technology

42%Effective talent acquisition

36%Efficient processes designed to guide strategy

35%Effective communication and collaboration across teams

30%Adapting to change


30%Efficient handoffs between teams

29%Metrics and KPIs that accurately measure the impact of strategy

23%Executive teams are aligned on priorities

21%Government support

18%Encouraged experimentation spurs innovation

18%Lack of competition from similar organizations

16%Necessary stakeholders are engaged


12%Complexity is sufficiently understood and managed

11%Matrixed organizational structure

What are the most common factors that result in successfully implementing strategy at your organization? Please choose your top 5.

Q12

Competition


Q12 RANKING OF IMPLEMENTATION SUCCESS FACTORS, 1 = MOST SUCCESSFULSufficient resources

Access to cutting edge technology

Efficient handoffs between teams

Executive Teams aligned on priorities

Existing talent with right skillset

Lack of competition

Stakeholders engaged


Effective communication, collaboration

Adapting to change

Accurate metrics, KPIs

Effective talent acquisition

Efficient processes

Government support

Experimentation spurs innovation

Complexity understood and managed

Matrixed organizational structure

Company politics

1

2

3

4

5

44% 29% 28% 24% 19% 17% 16% 16% 16% 15% 15% 15% 14% 14% 13% 13% 8% 6%

23% 26% 28% 15% 21% 15% 14% 15% 20% 15% 22% 22% 24% 18% 17% 10% 11% 14%

13% 20% 17% 16% 26% 18% 10% 19% 23% 20% 19% 26% 25% 19% 20% 19% 19% 18%

12% 16% 16% 22% 22% 22% 21% 22% 21% 22% 23% 20% 21% 19% 22% 23% 22% 28%

8% 9% 11% 23% 12% 28% 39% 28% 20% 28% 21% 17% 16% 30% 28% 35% 40% 34%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%


What are the most common factors that result in successfully designing strategy at your organization? Please choose your top 5.

Q13

49%Existing talent with the right skillset

46%Sufficient resources

46%Access to cutting edge technology

42%Efficient processes designed to guide strategy

38%Effective talent acquisition

35%Effective communication and collaboration across teams

32%Efficient handoffs between teams

27%Metrics and KPIs that accurately measure the impact of strategy


23%Adapting to change

23%Encouraged experimentation spurs innovation

20%Executive teams are aligned on priorities

19%Lack of competition from similar organizations

18%Necessary stakeholders are engaged

18%Government support

14%Complexity is sufficiently understood and managed


11%Matrixed organizational structure


Q13 RANKING OF DESIGN SUCCESS FACTORS, 1 = MOST SUCCESSFULSufficient resources

Efficient handoffs between teams

Access to cutting edge technology

Executive Teams aligned on priorities

Existing talent with right skillset

Stakeholders engaged

Adapting to change

Efficient processes

Effective talent acquisition

Accurate metrics, KPIs

Effective communication, collaboration

Experimentation spurs innovation

Lack of competition

Government support


Matrixed organizational structure

Company politics

Complexity understood and managed

1

2

3

4

5

42% 30% 29% 25% 22% 21% 18% 15% 14% 14% 13% 13% 13% 12% 11% 10% 9% 9%

24% 25% 23% 13% 26% 15% 17% 21% 22% 18% 19% 15% 18% 13% 21% 12% 15% 13%

15% 18% 25% 17% 24% 16% 16% 21% 25% 20% 24% 14% 22% 21% 18% 17% 17% 16%

11% 16% 14% 19% 19% 16% 20% 26% 22% 24% 24% 29% 22% 23% 22% 18% 22% 23%

8% 11% 9% 26% 9% 32% 29% 17% 17% 24% 20% 29% 25% 31% 28% 43% 37% 39%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%


How would you rate your organization’s ability to quickly adapt and course correct in the face of unforeseen strategic challenges?

How effective are your organization’s current strategy implementation frameworks and tools, in meeting the needs of your organization’s strategic initiatives and goals?

Which of the following statements best describes the frameworks and tools used to implement strategic initiatives in your organizations?

Q14

Q16

Q15

29%Consistently adaptable

51%Effective

41%Often adaptable

28%Very effective

23%Sometimes adaptable

13%Neither effective nor ineffective

5%Not usually adaptable

6%Ineffective

2%Rarely or never adaptable

2%Very ineffective

100%

80%

60%

40%

20%NOT WELL FORMALIZED OR STANDARDIZED PROCESSES

VERY WELL FORMALIZED OR STANDARDIZED PROCESSES

16%

84%


Which of the following frameworks or techniques does your organization use most often to implement strategic initiatives? Select all that apply.

Q17

Program Management

50%

Internally developed framework

43%

Agile, iterative, or incremental project management frameworks (e.g. Scrum)

42%

Objectives and Key Results (OKRs)

37%

Portfolio Management

35%

Waterfall, linear, or sequential PM frameworks (e.g. phase-gates)

34%

Balanced Scorecard (BSC)

32%

Design thinking

32%

Business Canvas (visual tools and techniques)

28%

No set frameworks in place

6%

Other

0%

Which of the following is most representative of your current organizational structure?

Q19

Is your organization more focused on developing internal talent, or hiring the necessary talent externally to address new or growing strategic needs?

Q18

6%My organization is more focused on hiring external talent

50%

My organization is both hiring and developing talent - but developing internal talent is the higher priority

16%

My organization is both hiring and developing talent - but hiring external talent is the higher priority

28%My organization is more focused on developing internal talent

>1%I don’t know

5%Project-oriented

10%Hybrid

12%Matrixed

15%Organic or simple

20%Functional (centralized)

38%Multidivisional


What characteristics and attributes are most necessary for your organization’s teams to successfully implement strategic initiatives? Please choose the top 3 team attributes.

Q20

Defined roles and responsibilities

49%

Alignment on goals

46%

Increased communication

45%

Desire and ability to collaborate

32%

Skill sets that complement each other

31%

Ability to make quick decisions

28%

Compatible personalities

27%

Breaking down reporting structures

20%

Diversity of team members

15%

Engage an effective executive sponsor

6%

How do your organization’s teams successfully adapt and course correct when strategy is not being implemented correctly? Please choose your top 3 methods.

Q21

41%Reviewing lessons learned from previous failures

37%Speaking with customers or end users

34%Collecting actionable feedback

32%Reevaluating milestones and timelines

29%Analyzing talent and resourcing

25%Simplifying or modifying delivery processes

21%Increasing collaboration across teams

20%Increasing presence and involvement of senior leaders

18%Redefining goals

15%Building transparency

12%Seeking out new technologies to guide the implementation process

10%Increased cadence of reporting

5%Engaging external partners or consultants


What kinds of technologies are most significantly improving your organization’s ability to successfully implement strategic initiatives?

Q22

37%Artificial intelligence

20%Mobile devices and apps

21%Cybersecurity

34%Internet of Things

35%Automation

37%Cloud computing

19%Virtual reality

19%Advanced predictive data analytics

18%Digital workspaces

13%Augmented reality

11%Merged reality

10%5G

9%Machine learning

8%Blockchain

6%Virtual assistants

4%Voice assistants

1%Other

In your opinion, what is the most significant competitive advantage an organization can have, in order to successfully implement strategic initiatives?

Q23

Cutting edge technology

19%

Positive organizational culture

16%

Effective executive leadership

16%

High caliber talent

14%

Efficient organizational structure

9%

Broad organizational engagement

8%

Teams that are highly adaptable

8%

Rigorous processes, completed with near flawless execution

5%

KPIs that accurately measure impact and progress

5%


How effective are your organization’s transformation initiatives so far, related to the areas you highlighted in the previous question?

What are the top 3 areas of your organization where it is critical to transform in order to successfully implement strategic initiatives?

Q24 Q25

46%Leadership

18%Ways of working

29%Team structure

32%New product development processes and operations

36%Organizational culture and behavior

40%Adoption of new technologies

15%Management approach and frameworks

14%Decision making process

10%Talent development

10%Organization structure (roles and responsibilities)

9%Performance metrics and tools

9%Governance

9%Employee recognition

7%Operations

5%Employee outreach and engagement

4%Business model

5%Customer outreach and engagement

3%Hiring process

No transformation initiatives

1%

Extremely ineffective

5%

Ineffective

8%

Neither effective nor ineffective

12%

Effective

46%

Extremely effective

28%


Who is directly responsible for the transformation initiatives at your organization?

Q26

34%Chief Executive Officer

21%Chief Operating Officer

15%Chief Information Officer

6%Chief Strategy Officer

6%Chief Transformation Officer

3%I don’t know

3%Chief Financial Officer

3%Chief Digital Officer

2%Other

2%Chief Marketing Officer

2%Chief Human Resources Officer

2%Chief Security Officer

1%Chief Risk Officer

In your opinion, what are the most important characteristics of an executive leading an organization’s transformation function? Select the 3 most important.

Q27

57%Has clear vision and tangible goals

22%Is looking forward and able to anticipate changes

31%Has industry experience and deep understanding of organization

33%Is authentic in their communication and intentions

35%Visibly commited to the organization’s transformation goals

36%Sets a positive example

17%Takes ownership of missteps that hinder initiatives

15%Is respected and has credibility among employees

15%Empowers others within the organization

13%Listens to employees and considers feedback

10%Is open to new ideas from employees

7%Can prioritize to steer organization in a positive direction

6%Communicates with transformation teams

3%Effectively works with cross-functional teams


Compared to your competitors, what is the pace at which you are able to transform your organizations?

How would you describe your organization’s ability to run its core business while simultaneously implementing transformational efforts?

Q29Q28

I don’t know

1%

Very incapable

8%

Much slower

4%Incapable

6%

Somewhat slower

11%Somewhat capable

20%About the same pace

22%

Capable

37%Somewhat faster

34%

Much faster

28%

Very capable

29%

21STRATEGIC TRANSFORMATION | ©2020 BRIGHTLINE INITIATIVE brightline.org

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