STRAMA 5

Why execution fails?

-poor communication, lack of resources, resistance to change, no monitoring or feedback

The 7 Framework (Mckinsey)

When companies fail, it’s often not because the strategy was bad—but because all the parts of the organization weren’t aligned.

-helps us check if the ‘hardware’ (strategy, structure, systems) and the ‘software’ (skills, staff, style, shared values) are working together.

Strategy – The Plan

The choices a company makes to compete and grow

Example: Nike focusing on innovation + endorsements to differentiate

Structure – The Org Chart

How the company is organized (hierarchy, teams, reporting lines).

Example: A startup may have a flat structure (everyone reports to the founder), while a multinational like Unilever has divisions by product/geography.

Systems – The Processes

Daily activities, routines, procedures, and tools.

Example: HR recruitment process, supply chain systems, IT systems

Skills – What People Can Do

The capabilities and competencies of employees.

Example: Apple’s design skills, Toyota’s lean manufacturing skills.

️Staff – The People

The workforce—numbers, demographics, talent.

Example: Does the company have enough skilled engineers, or is it mostly sales staff?

Style – Leadership Approach & Culture

How leaders manage and how the organization behaves.

Example: Google has a collaborative, innovative style. Amazon is high-pressure and efficiency-driven.

Shared Values – The Core Beliefs

The company’s culture, mission, and “glue” that holds everything together.

Example: Starbucks values “creating a third place” beyond home and work. That guides staff behavior, store design, and strategy.

Kotter’s 8 Steps

John Kotter created an 8-step process that shows how to guide people from

resistance → acceptance → success.

Kotter’s 8 Steps

Create Urgency, Build a Coalition

Create Urgency

Convince people that change is needed now.

Example: Nokia failed because it didn’t convince its teams that smartphones were urgent. Leaders must show threats or opportunities

Build a Coalition

Gather a strong team of influencers who will support the change.

Example: A CEO alone can’t push transformation; managers, supervisors, and team leads must back it

Form a Vision

Create a clear and inspiring picture of the future.

Example: Tesla’s vision: “accelerating the world’s transition to sustainable energy.” Simple, bold, and motivating.

Communicate the Vision

Share the vision everywhere—meetings, posters, emails, actions

Example: Starbucks leaders keep reminding staff: “We’re not just selling coffee, we’re creating a third place.”

Remove Obstacles

Identify and eliminate barriers (old systems, resistant managers, lack of training)

Example: If employees fear using new software, provide training instead of just forcing adoption.

Generate Quick Wins

Show early, small successes to keep morale high.

Example: When McDonald’s adds healthier options, they highlight sales growth to prove the strategy is working.

Build Momentum (Sustain Change)

Don’t stop after quick wins. Keep improving, scaling, and rewarding success.

Example: Netflix didn’t stop after streaming—momentum pushed them into original content and global expansion.

Anchor in Culture

Make the change part of the organization’s DNA.

Example: Toyota anchored “Kaizen” (continuous improvement) into its culture so change becomes normal behavior.