Successful strategy execution
25-Feb-2010
A brilliant strategy may put you on the competitive map, but only solid execution will keep you there.
Research published in HBR shows that most companies struggle with execution, because they over-rely on re-organizing their people and company structures. They cut costs, create new incentives, eliminate management layers, decentralize, then centralize again – but usually end up with similar results to what they started with.
They neglect 2 powerful drivers of effectiveness: decision rights, and information flow
Here is our take on these 2 drivers:
Clarify decision rights
- Who should provide input into the decision making process?
- Who makes the final decision?
- Who is accountable for executing each of the component Action Priorities?
- What operational decisions can people make without needing approval from the business leaders?
Ensure information flows to where it is needed
- Important information must quickly flow up to the business leaders so they can identify patterns and share best practices throughout the company (e.g. market intelligence, customer feedback, employee feedback, what is working / what isn’t)
- Make it easy for people to communicate across your organization to share ideas
- Make sure everyone sees the Key Performance Indicators (KPI) regularly and understands how their day to day activities impact them.
- Make performance visible - so everyone can see how everyone else is performing (or not performing)
This is all well and good. Better decisions get made, and information flows. The next step to achieving effective business execution is to hold each person accountable for making progress on their Action Priorities and Key Performance Indicators – every week.
How effective are you at holding your people accountable for making progress?
Stephen Lynch
Chief Operating Officer - Global Operations
RESULTS.com
Comment