The best-selling authors Bossidy and Ram Charan have explained that Strategy Execution has become a fast-growing alert on the radar screens of top executives and that simply appearing on that radar is not enough to make it happen. Also, according to a research published in The Harvard Business Review, 'Companies realize only 40-60 percent of their strategies' potential value' and a powerful strategy execution is more critical to gain competitive edge.
It is a well established fact proven by numerous management researches undertaken by human behaviourists and management authors that documenting a holistic or near to perfect strategy is not the only biggest leadership challenge faced by organisations big or small. Eventually, what matter is how well the strategy is known and understood by the team and how they collectively effort to get there. It is a process of strong visioning that gets stretched till that common purpose is met, and this is the work of excellent execution.
Strategy execution as is a natural process that follows a strategy formulation, processes streamlined, deliverables planned and teams are aligned, the leader has to guide and mentor till the end post. This seems easy but let us not forget there will be storms, thunders and the vulnerability that the ship may wreck before reaching the shores, so the leader and the team has the responsibility to wade it through the rough weathers and waters and also make sure it reaches the post well before any other ship may be able to do.
In 1992, Kaplan and David P. Norton introduced the concept of Balanced Scorecard, a performance measurement system in their book The Execution Premium: Linking Strategy to Operations for Competitive Advantage that aimed to make strategy a continual process integration it with operations or tactics.
Often in a typical work environment, Management remains short sighted and only get to focus on day to day operations, fire fighting and fixing minor hassles then the real issues go unnoticed from those pair of very strategic eyes. There are also times when Management fails to recognise that to handle bigger issues they may need committed resources and dedicated time efforts. The idea of integrating strategy and operations often go amiss.
It is extremely significant for companies to know what Strategy execution is not, the fallacies in understanding the basics of successful execution must not be ignored:
Like Strategy Execution can be copied: Strategy of similar companies in an industry to appear common is quite possible, what makes it unique is its implementation. Commitment to execution cannot be ignored. Average wisdom and intelligent quotient of similar competition, strategies with sharp insightful and combative approach can be developed which may apparently seem copied or replication of already established strategies. A strategic advantage between different competitive companies cannot be remarkably disparate. Hence, a renewed focus on execution as competitive advantage must be emphasised and determined.
Alignment is not so important: play by the ear: What is expected out of execution has to be clearly understood. The expected output and its impact on the customers have to be unambiguously comprehended. Therefore alignment is a key prerequisite before execution. A detailed plan that is worked out in sync with the bigger picture of organisation's overall objectives and resource allocation is only achieved when there are few conflicts and collisions. Time and energies are saved on tasks when the team is moving in one direction and know the significance of their role and performance indicators. Alignment is not a backward integration exercise that moves with the rationale of execution. For the sake of excellent execution, alignment becomes the purpose yet alignment is also not the only aspect of execution. Peter Drucker's research on strategic alignment in early 1950's revealed a lot about how management thinks about specific or numbered goals, measurable and funds to achieve them but despite all of the basic tenets companies struggle to get their strategies executed.
Communicate well and rest will be taken care of: Communication is very critical but it has to be understood by those who have to execute it. Monitoring and reviewing the milestones and growth patterns enable an organisation to iron out tactical pain points at the right intervals of time rather than waiting for trivial digression to turn into larger obstacles. It is important to ascertain what is explained as the end outcome of strategy - execution exercise is also retained well and on the most appropriate path to achieving success. There is a huge amount of time and resources spent in communicating execution priorities, it is important some more time and efforts is spent to figure out if the previous was a worthy investment. In absence of proper understanding and relatedness to the expected outcome companies may not be able to go too far.
Do not keep pushing the envelope; it's like breathing on the neck: The biggest misnomer is that execution is often considered as the sole responsibility of the top management. Execution is a result of passion driven teams or individuals who lead execution. The linkage of what they are doing to company mission and vision. While it is extremely important for companies to address delayed action, lacklustre performance, under -inconsistent or poor performance rewards or robust performance culture may also not always be the panacea or the Holy Grail. There is absolutely not one single factor that dominates the process of successful implementation. While a culture that supports execution must recognize and reward performance, teamwork, agility, experimentation, candid discussions, identifying novel opportunities, ability to change as per demands of the environment also are some of the abstract aspects that need to be noticed and appreciated. While there is always the fear of the consequences of failure that hinders a freewheeling mind to evolve company processes or norms, but attempting new things or risk taking may not always result in setbacks and may lead to success in the longer run, having worked through, against all odds. Companies need to foster the coordination essential for flawless execution.
Execution needs consistent deep diving, dirtying the hands following system and focusing on the smallest thing. It needs taking care of the finest details and not jumping over them.
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