Three Reasons Why Good Strategies Fail: Execution, Execution…

Wharton had an interesting article entitled “Three Reasons Why Good Strategies Fail: Execution, Execution…” I found the following pointers useful….

The Pitfalls of Poor Synchronization – While execution can go wrong for a variety of reasons, one of the most basic may be allowing the focus of the strategy to shift over time……execution is mostly a matter of synchronization — getting the right product to the right customer at the right time…………At other times, plans fail simply because they don’t get communicated to all the people involved………Strategies also flop because individuals resist the change…………Cultural factors can also hinder execution. Companies sometimes try to apply a tried-and-true strategy without realizing that they are operating in markets that require a different approach………Internal cultural factors may also present problems…………Yet the biggest factor of all may be executive inattention. Once a plan is decided upon, there is often surprisingly little follow-through to ensure that it is executed……frequent communication is essential if plans are to be executed well.

People versus Process – two schools of thought about the best way to improve execution…..One school emphasizes people:Just put the right people in place and the right things will get done…….Some experts insist that the right people are hired, not made……Others within the people camp think that the key is to improve executive performance through training, and improve the average employee’s performance through the creation of a culture of accountability……..A second school emphasizes process rather than people…..Larry Bossidy, the CEO of Honeywell and co-author of Execution: The Discipline of Getting Things Done, is one of the leading proponents of this school……..Marakon’s research suggests that companies that have delivered the best results to shareholders combine both approaches.

Five Keys to Getting the Job Done – Experts at Wharton and Marakon agree that, like everything else in business management, improving execution is an ongoing process. However, they say there are steps any company can take that should provide some incremental gains. For example:

• Develop a model for execution.
• Choose the right metrics. – While sales and market share are always going to be the dominant metrics of business, Mankins says that more and more of the best companies are choosing metrics that help them evaluate not only their financial performance, but whether a plan is succeeding.
• Don’t forget the plan. – to keep the plan on center stage is to separate executive meetings about operations from those focused on strategy……strategy only succeeds when it is integrated into operations.
• Assess performance frequently. – By shortening the performance monitoring cycle — from quarter-by-quarter to month-by-month or week-by-week — top management can get more “real-time” feedback on the quality of execution down the line.
• Communicate. – companies often go wrong by creating a cultural distinction between the executives who design a strategy and people lower down in the corporate hierarchy who carry it out. Asking ongoing questions about the status of a plan is a good way to ensure that it will continue to be a priority.

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