Turning good intentions into good execution

PBN Staff

09/18/2010

[Ed. note: This column is the first in a two-part series.]

If an organization can’t execute, nothing else matters – not the smartest strategy, not the most innovative business model, not even game-changing technology. And for many companies, there is a clear gap between intent and execution.
So here’s the question: If a clear and inspiring vision, a realistic strategy, employee commitment, a skilled work force, and high levels of quality and customer service don’t lead to successful execution, what does? What sets the best apart from the rest?
Here are five characteristics and competencies, which I call “The Five Bridges,” that enable people to traverse the execution gap.
Bridge No. 1: The ability
to manage change
Just as people can get stuck in a rut, so can businesses. Dell developed “the Dell Way,” in which it was able to attract customers to its website with low-cost offers that required the buyer to make additions (i.e. pay more) in order to have the best computer.
When tons of affordable computers with all of the bells and whistles that consumers wanted became readily available through other online outlets and retail stores, consumers didn’t have to go to Dell to get a “custom-made” computer.
When the company’s leaders realized they were losing business, they fell back on a practice that had always worked for them before: they cut costs to maintain market share. But they cut back on customer service, a previous strength.
It has recently made changes to get back on course, but once you’ve lost consumer confidence, it’s hard to get it back.
Bridge No. 2: A structure that supports execution
Many companies go to great lengths to develop an exciting vision, create a realistic strategy, and get employees engaged. But then they just assume the current organizational structure and systems will support the new strategy. Often, it’s just not true. When Mark Hurd became CEO of Hewlett-Packard (before his recently ignominious forced resignation from the company), he was asked if he thought acquiring Compaq was a good idea. His answer? The question is irrelevant. His job was to find a way to make it work.
He reorganized the company into three divisions, each with its own sales force (with the heads of the divisions responsible for sales). He also reorganized the IT function. Instead of having 85 data centers, he centralized them into three. Though opposite of the way the company was organized before, the new structure turned the Compaq acquisition into a winner.
Bridge No. 3: Employee involvement in
decision-making
Involving employees in decisions gets them focused on generating solutions to problems rather than complaining or waiting to be told what to do. It creates a valuable sense of ownership.
When the National Basketball Association tried to introduce a new basketball, guess who they forgot to involve in the decision: the players. There’s no reasonable explanation for this faux pas. Asking the players would have increased the quality of the ball itself and the acceptance of the “new ball” decision.
Instead, the NBA ended up with a ball that players refused to use because they felt it was difficult to handle when it was damp and it would actually cut their fingers. The NBA had to scrap its “improved” model and go back to the ball the players preferred – the one they have been using for decades.
Bridge No. 4: Alignment between leader actions and company values and priorities No company should ever have two sets of values and expectations: one for the leader(s) and one for the employees.
One, if you’re a leader, employees pattern their behavior after yours.
Two, if how you behave signifies that “we are all in this together,” people are more likely to be motivated and go the proverbial extra mile.
A do-as-I-say-not-as-I-do attitude sends mixed messages and breeds resentment.
Just think of the CEOs of General Motors, Ford and Chrysler when they used private jets to travel to Washington, D.C., for a congressional hearing at which they were going to ask for government assistance. Their behavior aimed a 10,000-megawatt spotlight on their lack of awareness of the connection between what they were doing and the situation at hand.
Bridge No. 5: Company-wide coordination and cooperation
Ensuring that decisions and actions are coordinated across organizational boundaries requires more than faith and words alone. It takes shared goals, clear communication and well-defined roles, as well as accountability.
To be held accountable, employees need clear performance expectations and systems that encourage and reinforce appropriate behavior.
Many people were surprised when Toyota, a brand known for quality and reliability, recalled more than 6 million cars due to a faulty accelerator pedal.
Analysts point to an overly aggressive focus on profits – one that led executives to ignore principles that had contributed to its previously untarnished reputation.
These bridges are critical, but not permanent, as the Toyota breakdown makes clear. In fact, once you’ve built them, you must keep vigilant watch over them. •