Execution

Larry Bossidy & Ram Charan have written plenty of the corporate execution. The first well know publication was already available in 2002. Their message was reframed 2009 making the writing even more powerful. Still very valid text.

The three processes – people, strategy and operations – remain the building block and heart of the corporate execution. As the economic, political, and business environments change, the ways they are carried also change. During the past years in both good and and bad I have seen and witnessed shareholders who do not see the importance of  a simple triangle: strategy, people and operations.

Strategy

Every strategy takes into account an analyses and understanding of the global financial and economic environment marked by slower growth, increased competition, altered consumer behavior and perhaps government intervention. The risks have to be taken to a consideration. Prior drafting the strategy the minimum requiremend is to listen your potential customers, what is the ideal position for your company. Secondly the owners willingness to handle risk should be well documented in the forehead of every management team member.

People

One way to ensure you have the best people in the right positions is by writing job desbriptions for the kind of people you need in each job as it will exist tomorrow, then match those holding to those jobs today. If you do not have the right leaders for the environment, then it is incumbent to move quickly and make the necessary changes. Cultivate the leaders of the future. Test and evaluate people for their ability to execute in the face of new challenges and circumstances. Strategy needs to tell a realistic story. If you wish to hire and keep best in breed leaders, the story needs to be matching well with the resources available.

Operations

To execute well there must be accountability, clear goals and methods to measure performance. Strategy no longer is set in the stone. A good strategy will be under constant review or revision depending on what is happening. Leaders should not seek change for the change´s sake, but they and everyone else in the company need to prepare to change quickly when conditions dictate the change. Open communication culture makes this in my opinion a lot easier. None of the key stake holders should not perform in a way, that might jeopardize a joint view of the corporate environment.

Linkage between all three of the processes is crucial. Check: Larry Bossidy & Ram Charan (Execution, the discipline of getting things done).

 

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