As companies scrutinize performance in demanding market conditions, leaders are increasingly analyzing their abilities to execute on strategy. In the past, leaders were called upon to deliver the strategic vision, and managers were expected to handle the details that turn that vision into reality. Today, this is changing and changing for the better.
Execution is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals. Execution of your plan, ideas, strategy, or project is arguably as important, or even more important, than your strategy. Ruthless commitment to executing critical actions moves anything from words on a piece of paper to actions that drive business growth. Sadly, the majority of companies do a miserable job at execution. An article in Fortune some years ago highlighted that nine out of 10 organizations failed in the area of execution for the following reasons:
* 60 percent of organizations don't link strategy to budgeting.
* 75 percent of organizations don't link employee incentives to strategy.
* 86 percent of business owners and managers spend less than one hour per month discussing strategy.
* 95 percent of a typical workforce doesn't understand their organization's strategy.
A plan, any kind of plan, provides a leader with the roadmap it needs to pursue a specific strategic direction and set of performance goals, deliver customer value, and be successful. However, this is just a plan; it doesn't guarantee that the desired performance is reached any more than having a roadmap guarantees the traveler arrives at the desired destination.
One client of mine dedicates a whole room to execution, dubbed the war room. The room includes anything and everything about the company's strategy. On one wall is a timeline with sticky notes that display all the different goals and their deadlines. Another wall contains charts and graphs of the company's key performance indicators from the scorecard. And yet another wall contains space for brainstorming and contributing to key strategic issues at hand. The wall also contains an area for capturing items that are hard to measure such as innovative ideas, customer complaints and compliments, and employee training schedules. The room is updated monthly, and anyone in the organization can walk in and see what's happening with the business and key projects- keeping execution top of mind.
Here are four areas that will help you execute anything flawlessly:
No. 1: Getting set up for success
As a business owner, executive, or department manager, your job entails making sure you're set up for a successful execution. Before you start this process, evaluate your plan for action and how you may implement it by answering a few questions to keep yourself in check.
* Are there sufficient people who have a buy-in to drive the plan forward?
* How are you going to motivate your people?
* Have you identified internal processes that are key to driving the plan forward?
* Are you going to commit money, resources, and time to support the plan?
* What are the roadblocks to implementing and supporting the plan?
* How will you take available resources and achieve maximum results with them?
No. 2: Coach for performance
Think about your favorite Olympic athlete. Do you think the athlete's goal is foremost on their mind every day? You bet it is. That's why it's your job and your manager's job to act as a coach to get Olympic-level performances out of all your people. In addition to focusing on the goal, Olympic athletes are incredibly disciplined. Executing goals that were set months ago is no different. It requires that same level of commitment and discipline.
This is where you and your managers need to lead rather than fight fires and do detail work. By acting as a coach, use the plan as your framework to guide your team to high performance. What do coaches do?
Encourage: Everyone needs to feel like they're doing a good job and are appreciated for their hard work. Coaches say encouraging words to their team to keep them motivated and engaged.
Support: Without the right skills and resources for the job, no amount of prodding and pushing will get it done. Coaches support their teams by making sure they have the training, knowledge, and ability to complete the task.
Yell at the right time: Just like athletic coaches know when to yell, managers need to know when to push their team when they need it. A good coach knows when performance is lagging and when to turn on the pressure.
Bring out the best: Seeing the strengths and weaknesses of your team allows you to bring out the best in your staff. Coaches know how to make you the best you can be.
Monitor performance: Keeping track of how everyone is performing is another trait of a good coach. With the goals you set, you can assist your employee in creating an action plan if it isn't already established and keep them on the path toward achieving it. Meet with the employee regularly to discuss the status of goal accomplishment. Coach your team when there are setbacks or roadblocks. Coach your team for success by recognizing and rewarding employees for achievements.
No. 3: Commit to effective meetings
Regularly scheduled meetings specifically to report on plan or project status is critical to making the numbers and achieving company strategic goals. The meeting gives the company the ability to manage the activities that drive future results and to hold people accountable for making sure those activities happen. By using the key measurements, you can make key course corrections each month. So you're holding these meetings and they need to be effective, but how do you make your meetings more effective? Check out the following tips (by the way these can help any meeting):
* Schedule the periodic strategy meetings on the same day and at the same time each week or month.
* Invite individuals or heads of each department.
* Make the meeting mandatory no exceptions.
* The meeting should last no more than 30 minutes.
* Start and end on time and stay on task with an agenda.
Your meetings are designed for individuals to give a quick report on where they stand in regards to the status of the goals or actions they are assigned. Restrict the meeting to reporting on status and nothing else, so you can stay on task and remain within the 30-minute time limit. By following this process, everyone on the team knows exactly where the plan or project stands in terms of status. If problems arise, convene a separate task force team meeting immediately afterwards. The primary purpose of this meeting is to brainstorm ideas and give the appropriate staff some fresh thinking on how to approach the problem. Everyone puts their best ideas on the table and the manager in charge goes back and decides which ideas to implement.
No. 4: Hold everyone accountable - including yourself
Accountability is the third key to successful execution hands down. If you and your team don't have to report to anyone on your progress, the plan may find itself further and further down your to-do list or at the bottom of your stacks of paper. You don't need an elaborate accountability system, but you do need something. Don't forget to discuss the consequences for non-performance with your team. Just like rewards, consequences are critical in any action plan. Often, the consequences are removal from the team that's working on the goals. Peer pressure creates such an intense expectation of performance that it causes action, so holding periodic strategy meetings (see point No. 3 above) where everyone has to publicly report on their progress. If you had to give a report in front of your peers, you'd have your act together, right? Just the thought of humiliating yourself in front of the team for non-performance may make you sick to your stomach.
And of course, one of the most important pieces to successful execution is you. That means finding someone to hold you accountable a business coach, an executive group, a colleague, an outside consultant, or anyone else who's outside of your business who advises you.
You don't need to have perfected these, but just make sure that you've given all the areas equal consideration. You don't want to look back six months from now, and wish you had identified some big issues that are now threatening your success. If you've identified some red flags, assess if they're huge obstacles or small ones. If they're big, get them out of the way before you execute, even if it means pushing your timeline out for awhile.
Erica Olsen (Erica@m3planning.com) is a principal of M3 Planning in Reno. Her company runs MyStrategicPlan.com, a web-based strategic planning site for small and medium businesses. She is the author of "Strategic Planning For Dummies."
