What really separates winners from also-rans
Ray Allegrezza, Editor in chief -- Furniture Today, February 10, 2003
I just got back from a leadership conference, this one hosted by Reed Business Information, the company that signs my paycheck.
The theme was "Executing as Market Leaders." In preparation, we were asked to read "Execution: The Discipline Of Getting Things Done," by Larry Bossidy, chairman of Honeywell International, and Ram Charan, author of "What The CEO Wants You To Know."
Unlike the authors of some business how-to's, these two have the credentials to back up their ideas. After a successful career with General Electric, Bossidy transformed AlliedSignal into a global leader and was named CEO of the year in 1998 by Chief Executive magazine. Helping him earn that recognition were 31 consecutive quarters of earnings-per-share growth of 13% or more.
Charan is a well-known advisor to senior executives because of his keen understanding of why some companies shine and others fail. Both men agree that in today's increasingly tough market, having smart employees, good products and a well-planned strategy no longer are guarantees of success.
Without execution — the ability to follow-through effectively in each of these areas — strong companies quickly become weak ones and the mediocre ones often fall by the wayside.
Early in the book, Charan writes, "Too many leaders fool themselves into thinking their companies are well run. They're like the parents in Garrison Keillor's fictional Lake Wobegon, all of whom think their children are above average. Then the top performers at Lake Wobegon High School arrive at the University of Minnesota ... and find out they're average or even below average."
In the past, businesses got away with poor execution by pleading for patience, arguing the business environment was tough. But Charan points out the environment always is tough, and success no longer is measured over years. A company can win or lose serious market share before it even realizes what's hit it.
Both men agree the primary difference today between a successful company and its less-successful competitors is the ability to execute. In fact, they argue that execution is the great unaddressed issue.
As a working definition, Charan and Bossidy define execution as a systematic process of rigorously discussing hows and whats, questioning, tenaciously following through and ensuring accountability. In other words, execution is a logical and systematic way of exposing the reality of a situation and acting on it.
By contrast, lack of execution can be illustrated by a strategy meeting that lacks dialog or debate, where attendees stare glassy-eyed at a PowerPoint presentation then leave without individual follow-up plans.
I've given you only the tip of the iceberg here. Read the book. It will help you better understand the cost of not embracing an execution strategy. In fact, one could say the lack of execution could quite possibly kill your business.
