Execution - The Discipline of getting things done
- 1. EXECUTION The discipline of getting things done By Larry Bossidy & Ram Charan
- 2. ‘Asystematic process of rigorously discussing the HOWs and WHATs, questioning, tenaciously following-through and ensuring accountability’
- 3. • 70% of strategic failures are due to poor execution of leadership • Fundamental problem: CEOs think of execution as the ‘tactical’ side of business and NOT as a discipline and part of the company’s strategy • What a company’s leader wants to achieve & the ability of their organization to achieve it
- 4. Execution is a Discipline Execution is the job of a business leader Execution has to be in the culture Execution requires constructive & persistent probing
- 5. - Execution doesn’t happen by chance, but through integrating and operating: • BLOCK ONE : Leaders 7 essential behaviours • BLOCK TWO : Creating Execution Culture • BLOCK THREE : The Job No Leader should delegate- Having the right people at the right place
- 6. •Know your people and business: - If leader loses touch with day-to-day realities of business, wont have a feel for where the action is/ Ask tough questions to get to the heart of the matter. - Employees will lose confidence, they will know more about the business than the leader - Get to know people and business involved ( micro level) • Insist on Realism: - Some talk about strengths eliminate weaknesses - Don’t filter out bad news- address it - Leaders who value realism will be just as interested in analysing what’s going wrong + what’s done right • Set clear goals and priorities: • Follow Through: - Good leaders make people feel accountable by monitoring - Employees become reflective of the work they do
- 7. • Reward the Doers: - Performance should be rewarded and respected by the organisation • Expand peoples capabilities via coaching: - Observe | Provide feedback | Ask questions – as 80% of the learning happens outside the classroom • Know yourself: - Ability to be honest to yourself | Acceptance of reality Authenticity: Who you are on the outside should be who you are on the inside. People spot fakers. Self-Awareness: Know yourself , be comfortable in your own skin Self-Mastery: When you know yourself you can master yourself, key to self-confidence. ( Ego in check, take responsibility for behaviour, embrace change etc.) Humility: Allows you to acknowledge mistakes, learn from them and over time create decision making process based on experience
- 8. •The Basic premise is simple: Culture change gets real when your aim is execution • You don’t need a lot of complex theory or employee surveys to use this approach. You just need to change peoples behaviour so that they produce results.
- 9. Tell People clearly the results you’re looking for Discuss how to get those results as a key area of the coaching process (Training) Reward everyone who gets specified results If they come up short, you provide additional coaching, withdraw rewards, give other jobs, or let them go. When you do these things consistently, you create a culture of getting things done.
- 10. WHY THE RIGHT PEOPLE ARENT IN THE RIGHT JOBS? - Because Leaders don’t pay attention to people, but are too busy thinking about how to make their companies bigger and better than competitors. •Lack of Knowledge- The leaders may not know enough about the leaders they’re appointing. •Lack of Courage- The leaders may not have the courage to discriminate strong and weak performers and take necessary actions. •The psychological comfort factor- The leaders may pick people with whom they’re comfortable (psychologically) rather than others who have better skills for the job.
- 11. - Ultimately, choosing the right people creates sustainable competitive advantage. - Dell out-competed Compaq, because Michael Dell took great pains to have the right people at the right jobs – People who understood how to execute the business model superbly. WHAT KIND OF PEOPLE ARE YOU LOOKING FOR? - The kind that energise people - They’re decisive on tough Issues - Get things done though others - They Follow through HOW TO GET RIGHT PEOPLE FOR THE RIGHT JOB? - Be persistent in checking references and getting to the heart of the matter
- 12. THE THREE CORE PROCESSES OF EXECUTION • The People Process: Making the Link with Strategy and Operations • The Strategy Process: Making the Link with People and Operations • How to Conduct a Strategy Review • The Operational Process: Making the Link with Strategy and People
- 14. • Key to success of the businessPeople • Evaluates talent • Develops leadership • Builds pipeline for succession Process • Links strategy and operations • Develops leadership pipeline • Deals with nonperformers • Links HR to Business Results Framework • Integrity/honesty • Common approach and language • Frequent and open dialogue Rules
- 15. Linking people to strategy and operations • Near, Medium and Long term plan • Right kind and number of people Developing the leadership pipeline through continuous improvement, succession depth and reducing retention risk • Leadership Assessment • Continuous improvement • Succession depth and Retention risk analysis Dealing with Non-Performers Linking HR to Business results
- 17. Strategic Plan Includes • Action Plan – the “Hows” • Critical Issues • Business Environment • Market Opportunities & Threats • Competitive Advantage(s) & Disadvantage(s) Questions • Assumptions • Alternatives • Organizational Capabilities • Resources • Adaptability
- 18. Building Blocks of a Strategy • Moving Production • Continually Redesign • New organizational Structure Who Builds the Plan?
- 19. Building the Strategic Plan • Clearly lays out “Where is it now and where it will be going in the future” • Cost of the Strategic results and risk Involved • Flexibility for new opportunities or the plan fails • Analyze the Strengths and weaknesses of competitors • Building blocks
- 20. Questions for a Strategic Plan • Assessment of the external environment • How well do you understand the existing customers and markets? • What is the best way to grow the business, and what are the obstacles to growth? • Who is the competitors? • Can the business execute the strategy? • What are the important milestone doe executing the plan? • Are the short term and long term balanced? • What are the critical issues? • How will the business make money on a sustainable basis?
- 21. • It must feature a solid debate with all of the key players present • It should be a creative exercise and there must be clear accountability • Avoid focusing too much on previous year’s strategic plan, bring new ideas to the table • A good strategic plan has to be translatable into the operating plan • Critical questions to ask… How to Conduct a Strategic Review
- 22. How well versed is each business unit team about the competition? How strong is the organizational capability to execute the strategy? Are the linkages with people and operations clear? Are we choosing the right ideas? Is the plan scattered or sharply focused? • Environmental Scanning/Monitoring • Porter’s Five Forces Model • SWOT Analysis Innovate – the only sustainable competitive advantage is learning and doing faster than the competition. Focus strategy is exploiting a particular market niche Competencies/skills that a firm employs to transform inputs into outputs Having people with the right technical background and mfg expertise
- 24. Many Strategic Plans and Operations spell out “WHAT” to Achieve Failing to Consider the “HOW” Strategic Plan Specifies How the “Moving Parts” are Synchronized to Achieve Targets Strategic Plan Objective: Product Launches; Marketing, Sales, Manufacturing, and Productivity Plans Principle of Simultaneity: “Understanding the Whole Corporate Picture” Budget Process: More Than a static Effort But More a Means to Synchronize the “Moving Parts” of the Business
- 25. System of Synchronization Setting up the Budget Process Assumptions Building the Operating Plan The Operation Process Outcome and Review
- 26. • Execution is not tactical- it’s a discipline, a system, a set of behaviors and techniques that companies need to master in order to have a competitive advantage • Leaders are the foundation for the discipline of execution- the center of conceiving and executing a strategy • Three core processes of execution- critically linked, centered on people • Putting an execution environment in place is hard- losing it is easy
- 27. By : Supriya Patwari Tannushree Marina Tanya O’Connor
Editor's Notes
- #25: Specifies how the “moving parts” of the business will be synchronized to achieve targets. Objective: product launches, marketing plan, sales plan, manufacturing, productivity plan. Budget meeting should address critical issues on building a budget based on realities and not just numbers. It should focus on: product, operating margins, marketing expenses, manufacturing costs, engineering and development expenses.
- #26: Specifies how the “moving parts” of the business will be synchronized to achieve targets. The requires setting up a Budget Process-not to spell out what to achieve in a static fashion but to synchronize the “moving parts” of a business. 3 part plan that builds execution based on realities. Set the targets Develop the action plan Agreement and closure Attention to gross margins Making trade-offs by cutting expenses, resources, quality of the people, and linking the strategic plan. Operating Review: Debate range of assumptions