How to Achieve Execution Excellence

What’s the best way to drive individual performance?

How does a leader assure enterprise success?

Is it possible to close performance gaps to improve execution?

 

Making Strategy Work

In Execution Excellence: Making Strategy Work Using the Balanced Scorecard  Sanjiv Anand answers these and other questions.

Sanjiv Anand has 30 years of global experience in consulting, helping CEOs and boards develop transformational strategies. Currently the Chairman of Cedar Management Consulting International, his book is full of his operational and strategic insight on how to manage human capital. He is an expert on the Balanced Scorecard.

I recently asked Sanjiv to share some of his experience about what does and doesn’t work in implementing strategy.

 

“If you can’t execute the strategy, it’s not worth having.” –Sanjiv Anand

 

Why is strategy more relevant than ever before?

While the world continues to provide opportunities to grow, it is not without challenges. First, customer expectations around product, relationship, and brand have risen over years driven by extremely high levels of competitiveness. This has resulted in the need for firms to develop multiple strategies that address different customer segments. Additionally, competition is now local, regional, national, and global. This requires a more nuanced and complex competitive strategy. All of this also drives complexity in process and people. Global organizations or markets require processes to work well in a centralized and decentralized manner. Lastly organizations have become complex as even medium-sized enterprises can have employees across the world. All of this has made strategy, and more importantly the execution of strategy, more relevant than ever before.

 

“Strategy is about execution.” –Sanjiv Anand

 

What are the elements of a strategy that works?

Never build a strategy that can’t be executed. The problem starts there. Most organizations build strategies that are complex, difficult to understand, and hard to execute. A strategy that works needs to be balanced. It needs to focus on the drivers of financial performance rather than just the financial outcome. People and technology help drive process excellence. Process excellence helps meet or exceed customer expectations. And meeting customer expectations delivers financial performance. Therefore, all of these elements are critical for strategy that works—combined with a clear sense of ownership across the leadership team, a set of performance measures that are lead indicators to performance, and a set of targets that focus performance and don’t overwhelm. Focus, balance, ownership, measurement, and the right targets are the elements that make strategy work.

 

“Parallel processing is key to a successful strategy.” –Sanjiv Anand

 

Understand Cultural Differences

What are the cultural differences to be aware of in terms of measurement?

Execution Excellence by Sanjiv AnandIn the U.S., measurement motivates. In many parts of the world, measurement scares. Why? The U.S. has a culture that celebrates individual performance. This is also reflected in how organizations assess and reward people. Drive individual performance to drive enterprise performance is the typical formula; therefore, most executives in U.S. corporations are used to the idea of being measured and being held accountable individually.

Many parts of the world are different. In Japan it’s about team performance, and therefore team measurement is more important. In many parts of Asia, especially India, measurement is generally not part of the culture. Individual performance, or rather lack of it, is not something for public display or discussion. In Europe, the role of the corporation transcends the objective of only meeting shareholder expectations to also focusing on the greater good of society, so measurement of individual performance gets more complicated.

The broader point here is not to suggest that measurement should not be attempted, but the approach to measurement needs to be customized to motivate, not demotivate’ which is the objective in the first place.

 

“A positive strategy should focus on innovation.” –Sanjiv Anand

 

Don’t Make these Mistakes In Setting Targets

3 Forces of Intrinsic Motivation

3 Forces of Intrinsic Motivation

What motives you?

Daniel Pink’s work on motivation is likely the most well known, the most quoted, and the most discussed in management circles. We tend to think that we are either motivated by a fear of punishment or the excitement of a reward; the positive and the negative, the carrot and the stick. All of these forms are extrinsic, and they work only in certain situations. In fact, rewards can backfire in certain situations.

Instead, Pink concludes that we are more motivated by intrinsic motivation, the desire to do things because they matter. This completely upends the traditional thinking about motivating behavior. We have a desire to be part of something important, something larger.

 

Study: In 8 our of 9 tasks Dan Pink examined, higher incentives led to worse performance.”

 

Pink argues that we are motivated by other forces: autonomy, mastery, and purpose.

Autonomy. This is the need to self-direct.

Mastery. This is the intrinsic motivation to get better, to master a skill.

Purpose. This is the ability to connect to a larger cause. And, according to Pink, it’s the highest form of motivation.

These 3 forces are especially powerful in motivating the knowledge workers and the creatives.

How are you using the shifting nature of work and the research on intrinsic motivation in your organization? Are you changing the way you incentivize employees?

 

“Questions are often more effective than statements in moving others.” –Daniel Pink

 

“Especially for fostering creative, conceptual work, the best way to use money as a motivator is to take the issue of money off the table so people concentrate on the work.” –Daniel Pink

 

“One of the best predictors of ultimate success…how you explain your failures and rejections.” –Daniel Pink

 

“Control leads to compliance; autonomy leads to engagement.” –Daniel Pink

 

“Anytime you’re tempted to upsell someone else, stop what you’re doing and upserve instead.” –Daniel Pink

 

“The course of human history has always moved in the direction of greater freedom.”

 

Stay motivated to hit your goals! By signing up for FREE to Leadership Insights, you will have a positive stream of insights to soar to new heights!

Already on my list? Enter your email above and you'll get instructions on how to access the webinar.

 

How Leveraging the Network Can Help Your Business Grow

How to Survive & Grow in the Digital Age

 

How do you create value today?

What’s the best way to scale an enterprise?

How do you grow a company faster than ever and scale with lower cost?

 

It’s all possible if you leverage the network.

 

That’s how companies like Amazon, Airbnb, and Uber have succeeded against the odds.

 

“Entrepreneurial business favors the open mind.” –Richard Branson

 

In The Network Imperative: How to Survive and Grow in the Age of Digital Business Models , authors Barry Libert, Megan Beck and Jerry Wind argue that it is the way companies create value. And today, the best way to create value is through scalable and digitally networked business models – like Amazon, Google, Uber, Airbnb – that leverage networks of employees, customers, and suppliers.

 

Create a Virtual Network

For those not yet familiar with your work, what’s the network imperative?

The network imperative is recognizing that today’s most valuable companies are virtual networks that rely on digital platforms. This leading edge, new business model is emerging in every industry: Amazon and Alibaba in the retail industry, Match.com and Tinder in dating, Facebook and Instagram in Social Media, LinkedIn in professional resumes, Airbnb and Homeaway in room rentals, Uber and Lyft in shared car services, as well as the NYSE and NASDAQ in the financial sector.

 

What did your research show in terms of the financial results of “network orchestrators” versus the other 3 business models?

These business models – which we call Network Orchestrators – are more about orchestrating resources, be it insights, relationships, cars, homes, and skills rather than owning them. In addition, they scale based on the a flywheel effect , e.g. the more people, services and interactions there are on the network, the more others will join and make available their assets – whether that’s friends, photos, resumes, cars or homes.

 

“What’s dangerous is not to evolve.” –Jeff Bezos

 

5 Steps to Become Network Centric

Would you briefly describe the PIVOT model?

Our research indicates that all organizations have dormant, virtual networks of either employees, customers, prospects, suppliers, investors or alumni that, when combined with a digital platform and a clear incentive system to share what they have, what they know and who they know with others, can apply network orchestration to their business model. To help incumbents transition from firm centered (where they focus on what they make, market and sell) to network centric (where they orchestrate what others have and create peer-to-peer connections), we created a 5 step process called PIVOT.  The 5 steps are:

  1. Pinpoint your current business model (e.g. which of the 4 business models are you? Asset builder, service provider, technology creator or network orchestrator?)
  2. Inventory all your assets both tangible (e.g. plant, property and equipment as well as money) and intangible (brand, intellectual capital and relationships as well as interactions and big data).
  3. Visualize your future digital platform that connects your network of people or things.
  4. Operate your new digital network and virtual platform alongside your existing business and protect it while it grows, experimenting along the way to find the sweet spot that insures its success.
  5. Track using new big data metrics such as engagement, sentiment or interaction along with traditional financial measures to see how your network is doing and the value it creates.

 

“Show me your budget and I’ll tell you what you value.” –Joe Biden

A Key Leadership Question: Who’s Holding Your Ladder?

Who’s Holding Your Ladder?

Walking through a busy convention floor at Book Expo America, I nearly bumped into him as I dodged through a publisher’s stand on my way to an appointment. It was one of those chance meetings, the ones you don’t expect but you figure somehow it was arranged or planned to happen just that way.

Dr. Samuel R. Chand and I collided, and it started a conversation about leadership and what makes it possible. After our meeting, I had the opportunity to read his books and soak in his ideas. I’m delighted to introduce him to you and share some of our conversation.

 

“The best use of power is to give it away.” –Sam Chand

 

The Story Behind the Ladders

I want to know the story behind your work. How did you first develop the idea for your books?

The story behind my book Who’s Holding Your Ladder? was an epiphany and came from my experience in 1999 in Long Island, NY.

Waiting for someone to call me into the auditorium, I stared out the window. As I meditated on the points I wanted to cover as a featured speaker at this leadership conference, something in the street below caught my attention.

A man stood on a ladder painting—not that uncommon a sight. I smiled, remembering my student days in college. I had spent my summers doing that kind of work. Yet I couldn’t take my eyes off the man. For several minutes, I watched his graceful motions as he moved his brush and roller across the surface.

As I watched, I noticed that this painter was only covering a limited area. He stretched as far as he could to the left, to the right and even reached above his head. It also occurred to me that he was only going to the height that he was comfortable at, even though the extension ladder he was using could reach much higher.

From my painting experience, I remembered that once I was on the ladder and had the necessary resources, I painted a much larger area before taking the additional time needed to climb down and relocate the ladder. It was an efficient method.

 

“Those who know how will always work for those who know why.” –Sam Chand

 

“Why isn’t he going higher to paint all the way up? What would allow him to go higher?” I asked myself. Then I saw the reason—no one was holding his ladder. By himself, the painter couldn’t go any further. He had done everything he could by himself. He needed help.

samchand 2As I watched his graceful strokes, I realized the leadership parallels. Whether we’re talking about churches, businesses or non-profit organizations, the effectiveness of a leader depends on the person or persons holding the ladder—those who are in support roles.

The height that a visionary leader reaches on the ladder to their vision is not controlled by the leader’s capabilities. It’s not even controlled by how inspiring their vision might be. It’s controlled by who’s holding the ladder.

Then another thought struck me: Those who hold the ladders are as important as the leaders themselves.

The visionaries could have all the training possible, the most expensive equipment, years of experience and knowledge about painting, and a blend of expertise and passion about their craft. But that’s not the deciding factor. The ladder holder determines the height to which the ladder climber ascends. “That’s it!” I cried aloud. “Those who hold the ladder control the ascent of the visionaries.”

 

“When you’re 100 percent certain, you’re too late.” –Charles W. Robinson

 

Additionally, a ladder holder who may be very capable with a 20-foot extension ladder (or vision) may not be the person you want holding your 45-foot extension ladder (a new or enlarged vision). Old ladder holders are rarely adequate at holding new ladders.

My book Who’s Holding Your Ladder?: Selecting Your Leaders: Leaderships Most Critical Decision explains this powerful concept. It explains the need for qualified ladder holders and the necessary qualifications, differentiates between leaders and managers, and describes how you can turn your ladder holders into ladder climbers.

 

“The only time you start at the top is when you’re digging a hole.” -Sam Chand

 

Acknowledge the Ladder Holders

I love your focus on those who hold ladders. How should leaders acknowledge the ladder holders?

The greatest acknowledgement is for leaders to recognize that no one would be the leader that they are today had it not been for someone holding their ladder. There’s no such thing as a “self-made” person. Someone gave us our first break. Someone took a risk and believed in us. Someone leveraged their credibility for our sake. Someone forgave us and gave us another chance. Someone knew we had messed up yet defended us to those who wanted us vanquished. Someone funded that shaky idea. Someone gave us our first job. Someone…

Therefore a spirit of humility and dependency will be the attitude that exudes appreciation for our ladder holders.

 

“More than anything, leadership is about managing expectations.” –Sam Chand

 

Pick the Right People to Hold Your Ladder