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

Gender Diversity: The New Balanced Scorecard

G. Shawn Hunter is the author of OUT THINK: How Innovation Leaders Drive Exceptional Outcomesas well as Vice President and Executive Producer for Skillsoft’s leadership video-learning products.

 

“People who are right most of the time are people who change their minds often.”
– Jeff Bezos

 

In his wonderful book, Stumbling on Happiness, Harvard researcher Daniel Gilbert points out that often our best bet for making decisions we will both enjoy and benefit from is to ask our peers who have made similar decisions.  Gilbert’s advice before embarking on an important decision is to ask someone whom we trust, who has also made the decision we are contemplating, and follow their advice.  And as Gilbert points out, once we learn their point of view on the matter, we often refuse that advice on the grounds that our situation is different.  We reject their advice claiming, “But I’m unique! How could they possibly know what’s best for me?”

 

Research conclusion: The inability to accept outside advice and insight increases with power.

 

More recent research concludes that this inability to accept outside advice and insight only increases with power.  The more power and resources controlled by an individual, the more confident they tend to be in their decision-making and the less they tend to listen and be influenced by outside opinions and points of view.  However, in their study women were often an exception.

In two phases of the study, women tended to be more open to outside points of view regardless of their position of power within the organization.  In their study entitled “The detrimental effects of power on confidence, advice taking, and accuracy,” Kelly See and her colleagues discovered that women more often reported less certainty in their decisions than men and solicited the advice and opinions of their colleagues more.  Most interestingly, because women more often solicited the opinion and advice of their colleagues, they were viewed by their peers as more confident leaders.

So while they may have lacked confidence in their decisions, women were regarded as more confident and effective leaders precisely because they asked for advice from their peers.