If an organization cannot effectively execute, nothing else matters. Despite the importance of execution to business success, OnPoint Consulting’s Annual Pulse Survey found that 37% of leaders believe there is a gap between their organization’s ability to develop a strategy and its ability to execute that strategy. And, even more surprising, 62% lack confidence that the gap can be closed.
So, what can organizations do to help close the strategy execution gap? OnPoint’s survey found that the consistent and effective use of three leader behaviors helps predict an organization’s ability to execute initiatives:
1. Facilitate change readiness. Managing change, especially during a business climate where there’s ambiguity and tremendous change, is essential. Surprisingly, 41% of leaders indicated that their organizations don’t have a good track record of managing change. What can organizations learn about the effective change management? Top performing companies are more effective at seven practices that are critical to successful change:
- Providing frequent updates
- Sharing accurate and honest information
- Providing opportunities for employees to express their opinions
- Involving middle managers and keeping them engaged
- Making sure management actions are consistent with the objectives of the change initiative
- Identifying obstacles to implementation and actions to address these obstacles
- Ensuring that adequate resources are available
- Aligning the performance management system with the change
The best companies understand that the direct interaction of a manager and his or her direct reports is important for successful change and that this interaction focuses on practical fundamental management activities.
2. Recognize the contributions of others. Employee recognition is a fundamental management practice, but apparently, many leaders are neglecting the basics. Almost a third of leaders in OnPoint’s study reported that their contributions are not being recognized.
Although it’s a simple act, providing recognition for a job well done has a powerful effect on people’s performance. It reinforces good work and shapes future behavior. It motivates, builds trust and builds confidence. When leaders provide recognition, they are sending two important messages. First, they help the person understand what “good” looks like. The message is, “This is what it looks like when it’s done well, so keep on doing it.” The second message is, “You can do this.” Recognizing calls the person’s attention to the fact that he/she has accomplished something important or made meaningful progress.
3. Enhance the quality of decisions. Thirty-five percent of leaders said that careful thought does not go into the decision-making process in their organizations. Effective execution and the delivery of consistent results depend on getting the right people talking about the right things at the right time. But that’s only part of the equation. Leaders also need to increase the likelihood that the “right people” are using good judgment and making sound decisions.
There are three things leaders can do to improve the quality of the decisions they and their people make:
- Make sure that people closest to the action are making the decisions. This can require a change in organizational structure and, when this is not possible, empower people and hold them accountable for taking initiative to address issues.
- Involve the right people in decisions. This helps ensure that leaders include perspectives and experiences other than their own and also helps fill in relevant information.
- Use an objective systematic process so that emotion or bias does not cloud the issues or that people do not simply default to the kinds of decisions they have made in the past.
We’re living in unforgiving times. Execution has always been important, but when margins (and the margin for error) are paper thin, it becomes even more critical. Execution is challenging and requires constant attention. However, if leaders focus on these three elements, organizations will soon see improvement in their ability to execute plans.
