EXECUTION, EXECUTION, EXECUTION
Photo by Keith Johnson
A strategic plan is a framework that must be constantly adapted to new business conditions. Only execution can reveal changes in the environment and employees in the field relay the information learned from the market to amend the strategic plan accordingly and eventually seize adjusted opportunities. The real world is dynamic not static.
1. The Discipline of Execution
Execution done right is a disciplined process. The essence of it is to focus on getting the work of the business done efficiently and effectively. “Strategy execution must emerge as a critical source of sustainable advantage” (William R. Bigler in The New Science of Strategy Execution: How Established Firms Become Fast, Sleek, Wealth Creators, 2004). The stakes are high, and the reward exceptional.
Before jumping to transform the strategic plan into a series of actions, it is best to document in an implementation plan the sequence of tasks within periods, each of which is defined by a measurable milestone. It is common to start by envisioning in detail the operation in the next 4-8 months.
The Implementation Plan
An implementation plan is a project management tool that indicates step by step in detail all the objectives to accomplish at the ground level, the individuals charged with each task, the timeline to reach each objective for the execution of the adopted strategy, the necessary resources required, the potential risks associated with each task, and whether some tasks are dependent upon the realization of some other task(s). If the economic and competitive environments were static, we would stop the plan there. However, the market dynamics need to be apprehended on the fly as they have a direct impact on the success or failure of the implementation as envisaged through the plan. It is then paramount that an efficient communication system provides in real time feedback so that the strategists together with the implementors design the changes that would still allow to take advantage of market opportunities. Either a new approach would allow to aim at the same opportunity, or the analysis of the new market conditions exposes new opportunities that are worth pursuing.
The decision process must be quick in order to halt as early as possible actions that would not be relevant anymore considering the changes observed. Redistributing resources, if needed, requires a high level of transparency between teams. You want to move from reactivity to proactivity as fast as possible. The role of people in the field is extremely valuable. Provided they are experienced, their permanent exposure to the reality of the marketplace gives them authority in vetting any decision related to the new execution tactic.
2. It is People who Execute, not Processes
When I read articles about execution and rationalization of a methodology deemed efficient, generally signed by a big consultancy firm, I run under cover. Having good processes in place will indeed facilitate a flawless execution. It is only one piece of the puzzle, however.
At the core of a great execution is always a group of great people. Therefore, nurturing your team, giving them both the understanding of the big picture and a blueprint for step-by-step progress as well as when and how to report when changes are manifest is an important function of a leader. Motivate people who own a piece of the execution.
I will never emphasize enough the role of HR in training employees to become performant. At an early-stage startup, HR is part of the CEO function. Empowering employees with responsibilities improve execution outcomes. Without total engagement from employees, execution will either fail or be far below expectations.
Integrating execution results within the personnel incentive plan structure generally contributes to attain high performance and creates a culture of commitment to corporate objectives. Value creation is perceived as a team effort. A lack of coordination within a team wreaks havoc in the execution, and nothing is achieved, except a squandering of resources.
3. Communications is at the Heart of a Good Execution
Failures in execution often stem from an ineffective communication system. Transparency is key. A simple two-way communication system with no hindrance due to hierarchical levels, between those in direct contact with the marketplace and those setting strategy, allows to avoid common pitfalls such as persistently pursuing the implementation plan regardless of changes in the competitive environment. Such a system allows to promptly revise and test strategic assumptions. In some drastic cases, a total pull-out triggered by a major effort at pivoting the value proposition may be necessary. If the transmission of accurate market data is accomplished in real time, attractive opportunities can be snatched.
In addition, establishing a constant communication link enhances the trust between the personnel responsible for the execution and those authoring the changing strategic plan. Beyond the exchange of data, emotional aspects should not be forgotten. A few minutes of an open “cheerleading” dialogue, daily, is often sufficient to maintain the engagement of the team at its highest level.
4. How to Get Things Done: Just Do It
From the day a strategic plan is written to the day it is implemented, there is a period of time during which conditions considered as the basis for the plan assumptions have shifted. The successful startups do not over plan. They use execution as a bouncing board to quickly iterate a succession of updates to adapt the strategy to the evolving marketplace. They entrust people in the field with high responsibilities as they are the only ones able to catch the intangible transformation at the earliest time. CEOs and entrepreneurs of successful startups spend lots of their time on the execution stage to have a first-hand understanding of market drivers, competitors’ tactics, customers reactions to new regulatory constraints, etc. These CEOs will be best equipped to report to their company’s board of directors the state of the market and how opportunities could be seized. For some, it is a humbling experience, getting into the nitty gritty of modest tasks.
5. Measure and Control?
Execution is a learning process. Some approaches work well, some work less well. A good communication system should quickly allow people on the field to improve performance. Some entrepreneurs make a heavy use of KPIs to measure the performance. I would caution against it as it brings a culture of automaticity for the personnel based on a quantitative analysis of what they produce. First, it is hard to motivate someone with KPIs, and second it is the best way to miss great opportunities. I’d rather let someone on the field spend much time nurturing a prospect, for example, if a closing is deemed possible with a good probability of success, rather than go through a predetermined list of prospects, treating each call with the same script. It may work in big businesses with commodity-like products. It does not work in hard tech startups. It does not mean the team may not build a few metrics to evaluate its achievement, with the aim to reproduce, when possible, what has worked best. This is quite different from KPIs trickling down from top management. Initiatives from people in the field yield more results than narrow guidance remotely checked from a managerial office. The best performing people are those empowered to act as they see fit, and well rewarded for their actions. What matters most is what is learned while executing a plan and how quickly the venture adapts to change. Adapting to change is easier when communication channels are always open. A great communication system fostering trust beats any control system any time.
Conclusion
Implementing strategy is too often taken as an easy extension of planning, though it is not. It takes a well-built organization to execute a strategic plan, a well-trained, motivated, and incentivized workforce, a real-time communication system and a flexible leadership ready to understand changes and adapt to them. It is key to create and maximize value and build a long-lasting successful business. Let us never forget, though, that if planning without action is futile, action without planning is fatal. Strategic planning and strategy execution are two inseparable facets.