The Rhythm of Strategy Execution

The Flow from Board to Shop Floor

In the fast-paced world of medical diagnostics and medical devices, strategy execution is the heartbeat of success. 

I’ve worked in companies that are Excellent at Strategy but cant execute. A beautiful 100 slide deck to explain where they’re going but never able to execute against it. The “Day to Day” just seems to get in the way sucking your time and leaving you with little to show for it. Now as a consultant at Egress Australasia, I've observed that companies often struggle to connect their long-term vision with day-to-day operations. This disconnect can lead to missed opportunities and inefficient resource allocation. Today, I'm excited to share Five  key processes that create a rhythm in strategy execution, linking the boardroom to the shop floor.

1. Statement of Strategic Intent: Setting the North Star

The journey begins with the Board of Directors crafting a Statement of Strategic Intent. This document outlines the company's 10-year ambition, serving as a guiding light for the entire organization. 

Who: Board of Directors

Timeframe: 10-year ambition

Frequency: Reviewed annually, updated as needed 

This statement is crucial for medical technology companies, where long-term research and development cycles are common. It provides a stable framework for innovation while allowing flexibility to adapt to technological advancements and regulatory changes. The CEO uses this statement to guide the C-suite and executive management, ensuring all strategic decisions align with the company's long-term vision. For instance, a medical device company might set an intent to "revolutionize minimally invasive surgery through AI-powered robotics," providing clear direction for future product development and market positioning.

2. Strategic Plan: Charting the Course

With the destination set, the CEO and executive team develop a Strategic Plan, often referred to as a Business Plan. This 3-5 year roadmap details how the company will achieve its strategic intent. 

Who: CEO and Executive Team

Timeframe: 3-5 year plan

Frequency: Updated every 18-24 months

In the medical diagnostics field, where regulatory approval processes can span several years, a well-crafted Strategic Plan is essential. It aligns the executive team on long-term goals and guides resource allocation. This plan might include milestones for clinical trials, regulatory submissions, or market expansion strategies. The Strategic Plan serves as a critical input for the budgeting process and forces executives to analyze market trends, technological advancements, and competitive landscapes. For a medical device company, this might involve assessing emerging technologies like 3D printing or exploring new markets in developing countries.

3. Business Plan / Budget: Allocating Resources

The CFO and executive team translate the Strategic Plan into actionable yearly targets through the Business Plan and Budget. 

Who: CFO and Executive Team

Timeframe: 1-year plan

Frequency: Updated annually, typically in Q3 or Q4 

This process sets financial and operational targets for the year, allocating resources to achieve the Strategic Plan's objectives. In the medical technology sector, where capital investments in research and manufacturing can be substantial, this step is crucial for balancing innovation with financial stability. The Business Plan often links to Short Term Incentive plans, aligning employee performance with company goals. For example, a diagnostics company might set targets for launching new test kits or improving manufacturing efficiency to reduce costs.

4. Quarterly Big Rock Review: Focusing on Key Priorities

To maintain momentum and adapt to changing circumstances, the executive and management team conduct Quarterly Big Rock Reviews. 

Who: Executive and Management Team

Timeframe: Sets 12-16 week targets

Frequency: 3 times per year 

These reviews, inspired by Vern Harnish's "Scaling Up" methodology , focus on 2-3 major priorities or "rocks" for the quarter. In the medical device industry, a "rock" might be completing a critical phase of a clinical trial or launching a new product in a key market. This process is vital for driving understanding and buy-in from management to the shop floor. It translates high-level strategies into tangible projects and sprint plans, ensuring everyone understands their role in achieving company goals.

5. Rock Sprints: Driving Daily Progress

To translate quarterly priorities into daily action, we implement Rock Sprints, also known as project updates. 

Who: Project Management Office (Project Manager)

Timeframe: 2-3 steering committee meetings per quarter

Frequency: Weekly project meetings, monthly steering committee meetings, and daily or twice-daily huddles 

Rock Sprints are the engine that powers the execution of your most critical projects. In the medical technology sector, where precision and timeliness are paramount, this process ensures that progress is continual and visible. For instance, if a medical diagnostics company has a "Big Rock" of launching a new rapid test kit, the Rock Sprint might involve daily huddles to track production line setup, weekly meetings to review regulatory documentation progress, and monthly steering committee meetings to address any high-level challenges or resource needs. The Project Management Office plays a crucial role here, allocating resources and tasks to keep the project moving forward. These sprints provide daily, weekly, and monthly feedback loops, allowing for quick adjustments and ensuring that the most important initiatives for the company stay on track. By focusing intensely on these "Big Rocks," companies drive progress on their most critical goals. In the fast-paced world of medical devices and diagnostics, this level of focus can be the difference between being first-to-market with a groundbreaking product or falling behind the competition. The Rock Sprint process also fosters a culture of accountability and continuous improvement. Team members at all levels can see how their daily work contributes to the company's top priorities, enhancing engagement and alignment throughout the organization.

Adapting the Rhythm for Different Organizations

While these processes provide a solid framework, they can and should be adapted to fit different organizational structures and company cultures. Smaller medical startups might combine the Strategic Plan and Business Plan into a single document, updated more frequently to reflect rapid changes in their market. Larger corporations might add additional layers, such as divisional strategic plans that feed into the corporate-level strategy. The key is maintaining clear communication channels and ensuring each level of the organization understands how their work contributes to the overall strategy.

Conclusion: Orchestrating Success

By implementing these five processes, medical diagnostics and device companies can create a powerful rhythm that aligns every level of the organization with its long-term goals. This alignment is crucial in an industry where innovation, regulatory compliance, and market dynamics are constantly evolving. At Egress Australasia, we specialize in helping companies implement and optimize these strategic processes. To learn more about how we can help your organization improve its strategy execution, visit our website at www.egressaustralasia.com. We've created an infographic that visualizes these processes, providing a clear roadmap for linking your long-term vision to daily operations. 

Remember, strategy execution is not a one-time event but a continuous process. By establishing this rhythm in your organization, you'll be better equipped to navigate the challenges and seize the opportunities in the dynamic world of medical technology.

P.S. This is a great book that has helped me find Rhythm in my organisation alignment.  

Harnish, V. (2014). Scaling Up: How a Few Companies Make It...and Why the Rest Don't. Gazelles, Inc.