Executing Strategy with Clarity and Discipline
By Vistage
speaker
Rick McPartlin
Have you
ever found yourself thinking,
we have
great strategies, but we always have trouble executing them?
CEOs place a
great deal of time and energy into developing a strategy, but daily tasks,
emergencies, and problems cry out and divert us from these vital strategic
initiatives. Months down the road, we realize that the great strategy we
developed is long forgotten or ignored.
With the
current speed of change, innovation and competitive pressure, it’s crucial
to execute efficiently and reliably. Companies that, in the past, survived
by moving at a comfortable pace are becoming roadkill in the new fast-paced
marketplace.
The core
competencies of implementing strategy
The core competencies of execution don’t conjure up sexy or exciting work.
Those competencies are:
1. Clarity
2. Consistent discipline
Execution is
all about understanding human dynamics and then artfully applying clarity
and consistent discipline. Process is important, but human motivation lies
at the heart of our ability to execute successfully.
Execution
solution Part 1--Clarity
This step‐by‐step
solution will
help you
execute the strategies you've developed for your company.
1. Clearly
articulate the purpose of your strategy so everyone understands the
benefit.
We all need
to understand
why
something is being done in order to fully get behind it. Take the time to
explain the entire business situation from your perspective. Remember that
your own perspective is broader than that of your employees.
Explain what
your strategy means for the big picture. Articulate the
threats facing the company so your team is crystal-clear on the rationale
and approach.
2. Draw a
direct line between the strategy and the initiatives for achieving that
strategy.
It’s
dangerous to assume that people will naturally make the connection
‐
make sure it's clear to your entire organization.
People need to understand how their job and their actions affect the
outcome. They’ll not only be more engaged, they’ll even come up with
surprising suggestions and improvements to reach the goal.
Clarity
helps everyone understand the part they’re playing in helping the company
achieve the revenue strategy.
3. Limit the
number of goals or initiatives.
Clarity requires laser focus. Yet one of the most common mistakes is to have
so many projects and so many important tasks that in the end none of them
happens. Prioritization is difficult when employees have numerous
complicated objectives. Instead of creating a laundry list, limit that
number to the critical few. Accept the fact that important things will be
left behind, but that’s better than failing to achieve the critical few.
4. Write
your revenue goals in SMART format and make them public.
Write out a goal statement that is specific, measureable, achievable,
resourced, and timely. Give the goal to your staff and discuss it often. If
a visitor walks into your organization and randomly asks different employees
what the most important
things are for the organization to do this year, every person should be able
to answer without hesitation.
Not a smart
goal: Launch our new re‐bundled
widget.
Smart goal: Launch
our new re‐bundled
widget by August 2009 with a gross margin of 52% and revenue of $1m from the
product by year‐end.
5. Deliver a
vision of the outcome to everyone in the organization.
You know in your mind what success looks like. Help others see it and
they'll be much more proactive in helping you get there. Draw a detailed
picture to help them understand exactly what success means. For example:
-
Will your
existing product disappear quickly or phased out in 3 years?
-
What’s the
profile of your new customer?
-
What
problems does our product solve?
-
How will
your internal culture change?
-
Will you
be opening or closing offices?
-
Will
employees receive additional training or learn a new skill?
-
Will you
be adding employees? What kind?
Remember
that the unknown is a frightening place for employees and usually results in
resistance, either passive or obvious. When humans don’t know what to
expect, we tend to visualize the worst.
6. Align all
parts of the organization so that everyone supports the strategy.
A revenue strategy belongs to the entire organization, not just to the
marketing department or the sales department. Yet misalignment is one of the
most common and dangerous issues we see; if teams aren’t working together,
they're not working toward the same objective. You can uncover alignment
issues by asking questions such as:
-
Does the
CFO know that the current compensation plan will drive behavior in a way
contrary to what the strategy requires?
-
Does HR
understand the right behavioral style to hire now that the buyer profile
has changed?
-
Is the new
“messaging” for the re‐bundled
product clear to Customer Service, the receptionist and the delivery
driver?
-
Does
manufacturing know that the buyer's expectations are being set for a
faster delivery time?
Your entire
organization needs to be aligned to support and execute your strategy.
Execution
solution Part 2--Consistent Discipline
Employees
need help with discipline
‐‐
schedules,
accountability, tracking, positive reinforcement and more. Weight Watchers
is so successful despite the fact that we all know what we need to do to
lose weight; we know how to eat less and exercise. We just need help with
discipline, the same thing employers need when it comes to implementing a
plan. Here’s what you can do to help your employees:
1. Break the
plan down into manageable chunks.
No strategic plan is complete without detailing milestones, tasks and
owners. Each project leader should create a written plan that describes:
1. How to
achieve the goal
2. Important milestones for the year
3. 120‐day
timeline with task owners and deadlines
The 120‐day
plan becomes a rolling plan that's updated every four months as the work
progresses.
2. Track and
measure everything.
How are you doing this week, next week, the following week? Progress updates
focus the organization on what’s important. If you believe (as we do) that
people want to do well, they'll focus on the things that you care about.
Show them you care! Make sure you’re checking and tracking results, not just
activities.
3. Provide
the resources needed for success.
Weight Watchers doesn’t just give us our goal and say “good luck!” They
provide recipes, meal planners, meals, a book to track points, a point
guide, and other tools. Executives often hand out goals without asking,
“What will you need to make this a reality?” Yet before you establish a
goal, you need to know whether the resources are even available to
accomplish it. By asking this question, your managers can identify resource
issues upfront. And if you give managers what they need, you erase excuses
and make accountability real. Don't wonder whether they can succeed
‐
make sure they succeed.
4. Hold
people accountable.
This isn't difficult if you've followed steps 1‐3.
Without those steps, it’s impossible. After all, how can you hold someone
accountable for a goal that wasn’t clear, wasn’t measured, didn’t have a
clear path forward, or wasn’t adequately resourced?
Without
strategy, you don’t know where you’re going. Without execution you don’t get
there. Don’t expect your strategy to implement itself. Manage the process
with persistent clarity and discipline.
Rick
McPartlin a co-founder of
The Revenue Game and the Vistage Canada 2008 US Speaker of the Year has
spent over 20 years applying "Revenue Generation" as a science in small and
large organizations. Rick and The Revenue Game are committed to
eliminating the waste and chaos in the production of revenue while replacing
it with more profitable revenue. To view a more complete version of this &
other articles, see the CEO Challenge blog:
http://www.therevenuegame.com/ceochallenge/. Rick can be reached at
rick.mcpartlin@therevenuegame.com
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