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

4 Secrets of Passionate Organizations

How to Create Performance Breakthroughs

 

How can your team reach its potential?

What if you could add a dose of passion to every member of your team?

How do you improve productivity and morale?

In his new book, Performance Breakthrough: The FOUR Secrets of Passionate Organizations, Mike Goldman reveals the four secrets for creating a more passionate organization. With 25 years of experience coaching organizations of all sizes, Mike Goldman has seen what works and what doesn’t. I recently spoke with Mike about how to create performance breakthroughs.

 

“The first step to a performance breakthrough is to accept that we are all different.”

 

Effective Techniques for Understanding

To treat others the way they want to be treated, we need to understand them. What techniques do you recommend to have someone listen and really understand someone in order to make secret one work?

I would recommend using three different techniques: asking, observing and assessing.

 

ASKING

Ask- Meet one-on-one with each team member to ask him or her about their values, motivations, and learning styles. Don’t come right out and ask, “What motivates you?” The answer you get won’t be very helpful since, chances are, your team member will just tell you what they think you’ll want to hear. You want to ask behavioral interviewing type questions like:

Think back to a time when you were incredibly motivated at work. What happened right before to make you feel that way?

Think of a time when you had to learn something new, and it just “clicked” for you. What method of learning did you use?

 

OBSERVING

Observe – Watch the individuals on your team during meetings, high-stress situations, and social situations and take note of their styles and reactions. Do they take the lead in meetings, or do they follow? Are they agreeable, or do they play devil’s advocate? Do they thrive under pressure, or wilt?

 

ASSESSING

Assess – Conduct behavioral and personality assessments: There are many good behavioral and personality assessments on the market, such as Innermetrix®, Profiles International®, DiSC®, etc. These assessments are typically very accurate and may give you and your employees important insight on their styles, talents, values, and motivations.

 

“Giving ownership enables people to reach their true potential.”

 

FOCUS ON STRENGTHS

Why Winners Take Risks

 

Recently, I had the opportunity to talk with Tom Panaggio, entrepreneur, strategic advisor, speaker and amateur race car driver about taking risks, winning, and using failure to propel success. Tom is the author of The Risk Advantage: Embracing the Entrepreneur’s Unexpected Edge.

 

The 2 Big Advantages of Risk

 

“A leader who accepts risk is setting the stage for long term success.” –Tom Panaggio

 

Why is risk an advantage?

 

There are two big advantages to risk.

First and foremost risk is directly connected to opportunity.  Every opportunity must have an element of risk or there will be no benefit.  Risk is the cost of opportunity.  All businesses and organizations must be in a constant state of forward progress because of competition and the ever-changing demands of customers.  Therefore, as an entrepreneur or business leader we must continuously seek out opportunities to meet these demands.  A leader who recognizes the vast importance of forward motion for their organization accepts risk as merely a cost of opportunity and then actively endorses this philosophy throughout his business in setting the stage for long term success.

Secondly because most people have a tendency to avoid or minimize risk, those who have the courage to embrace it already have a competitive advantage.  For example my company was a non-stop marketer.  We knew that our competition was not willing to risk the investment in marketing to the degree that we were.  So we took advantage of their unwillingness to risk the marketing dollars and dominated our market space by out-marketing them.  We put ourselves in a position to win by embracing the risk of marketing.

 


“The only way to achieve success is to have the courage to embrace risk every day.” –Tom Panaggio

 

How do you encourage the appropriate amount of risk?

It is important to understand that my position on embracing risk does not advocate blindly engaging in any and all opportunities regardless of the potential outcome.  But the only way to achieve long term success is to have the courage to embrace risk each and every day.  With that said, there is no standard to determine what level of risk is appropriate, and there is only a blanket rule of thumb that can be generally applied.  That’s the great challenge of being a business leader: recognizing worthy opportunities.  Any opportunity that is void of a sufficient benefit or is described as “no-risk” should be avoided.  Each situation that requires one to embrace risk must be evaluated on a unique basis.

If pressed for an answer, I would say that we always start with the end to determine if this is an opportunity worth pursuing.  What is the reward or benefit the company receives from committing to this opportunity?  If an opportunity provides little reward or doesn’t help with the company’s forward motion, then we limit the amount of risk.  If the opportunity can change the competitive landscape for the company or increases the value your product or service has for your customers, then the level of risk increases by the potential return.

Everyone wants a formula or template they can apply to all business situations.  That shifts the responsibility from the business leader to the formula.  But in the end, business leaders need to rely on their gut intuition and have the courage to step outside the comfort zone.

 

Adapting A Winner’s Mindset

 

How do you adapt a winner’s mindset?

This is really a difficult concept to grab hold of because human nature is pushing us to play not to lose rather than to go for the win.  A study was done and it found out that most people get twice as much joy from not losing as they do from winning.  Lose aversion creates risk aversion: “I don’t want to lose what I have.”

My father was a basketball coach so from a very early age the idea of winning was a way of life. I was conditioned to want to win and, therefore, not only to think like a winner, but more importantly ACT like a winner, which means having the internal drive that says, “I want to win” and then focusing on preparing for competition, execution and moving forward.

 

“If you do not have a winner’s mindset, odds are you will not succeed.” –Tom Panaggio

 

The truth is business does not support the theory of, “It’s not whether you win or lose, but how you play the game.”  In business you not only better play the game right, but you have to win, too. Competition in business has no level of compassion, you either want to win and then act like a winner or you get eliminated.  So if you do not possess a winner’s mindset when you launch a business, the odds are you will not succeed.

 

Using Failure to Succeed

6 Steps to Building a Powerhouse Organization

This is a guest post by James M. Kerr. James is a Partner at BlumShapiro Consulting. He is a business strategist and organizational behaviorist.  His latest book is The Executive Checklist: A Guide for Setting Direction and Managing ChangeYou can follow him on twitter.

Chemistry is the Secret to Success

The tip-off of the annual NCAA Men’s Basketball Championship triggered a question in my head: “How does a business leader build a perennial powerhouse like some of those NCAA basketball teams do every year?”

Clearly, the finest companies in the world are the ones where management and staff share an unrelenting passion to be the best.  How do leaders foster this passion for winning?  Certainly, getting the right people on the team, setting a common goal and enabling success differentiates the best from the rest.  But, there’s an intangible in the equation, the importance of which should not be ignored. It’s called chemistry.

 

Placing your highest regard on impeccable execution leaves no room for mediocrity. -James Kerr

 

Why is chemistry important?  Simply put, high performing people resent mediocre performing ones and mediocre performers begrudge those that perform at the highest level of achievement.  Indeed, getting the chemistry right is as important to the establishment of ongoing business success as garnering a talented team and constructing a compelling vision for it to follow.

We all want to be captivated by a “Big Idea.”  It’s part of the human condition to want to be part of something special and contribute to making it so.  Once enthralled, we want to be surrounded by like-minded people who share our enthusiasm and thirst to achieve.

As business leaders, it is our job to provide a vivid and exciting vision and ensure that we hire the “right” people – ones that buy in, fit in and want to work together to realize that stirring vision.  And, my friends, the latter comes down to understanding and managing “chemistry.”

 

The best businesses consistently remain fixated on being the best. -James Kerr

 

Building the “Right” Chemistry

So, what steps can be taken to shape winning chemistry within an organization?  There is no simple recipe.  However, there are six guideposts that leaders can use to move the process forward, including:

 

1. Champion a “Do Your Job” attitude – Do your job.  There is much implied in those three simple words, including being prepared, paying attention to detail, working hard, and putting the team ahead of yourself.   It also points to the need for senior leadership to ensure that every member of his or her organization understands what their job is and that they prepare every day to execute it.