ValuExecBlog

The 'Noise' Factor - Why executing strategy is so hard

Every day we are confronted by events that distract us from what we are focusing on. This 'noise' can be anything from unproductive meetings to conflicting activities. Whatever they are, they are costly both to the organization and to the people that they impact and they are a poison to ensuring effective execution of strategy. Few CEO's have lost their jobs because of strategy. More, lose their jobs because of poor execution.

Here are some startling facts on 5 of the most common 'poisons':

1. Unproductive meetings
    > $3.7 billion is the estimated salary cost of unnecessary meetings for US businesses every year
    > 50% of all meetings are considered time wasted

2. Ambiguity
    > 37% of employees understand what their organization is trying to achieve and why
    > 38% of employee time is unproductive due to unclear objectives and poor team communication

3. Distractions / Information overload
    > $900 Billion is the estimated cost in lowered employee productivity and reduced innovation due to information overload
    > 8 hours per week is the estimated impact of information overload on each knowledge worker

4. Disorganization
    > 43% of Americans consider themselves disorganized
    > 59% of managers miss important information every day

5. Off-plan work
    > 90% of manager time is squandered on ineffective activities
    > 21% of managers have missed vital work deadlines

Other key 'noise' include duplication, conflicting actions, bungled hand-offs and missed deadlines or targets. 

The solution to diluting this 'noise' can be found in 9 areas, 5 of which are key:

1. Direction
2. Leadership
3. Culture and climate
4. Accountability
5. Co-ordination and control

 So if you are continuously falling short of strategic expectations, lookat the 'noise' that is bombarding your team every day and see what you can do to muffle it.

Yours in execution,

ian

Lessons from the trenches ~ Don't pretend

We all know the story - 5 frogs sitting on a log and 4 decide to jump off; how many are left? The answer is 5 because 'deciding' and 'doing' are two totally different things. Despite knowing this story, and the lesson it teaches, we have a tendency to act like our frogs everyday. Deciding one thing and doing another. There is another saying that I think sums this up well - 'we judge ourselves by our intentions, and others by their actions.' 

How often have you sat around a table with a group of people discussing an issue and everyone commits to an action that will help resolve the issue. And, then be back in the same room a few weeks later to find that the issue is still on the table and no action (or a few actions) has taken place.

It's the same with strategy execution. There has been research after research that highlight the gap between performance and strategy - that show the low percentage of CEOs who expect their strategy to be executed and yet, few are putting in place the 'action' to improve the situation.

I am all for making strategy simple, but that will require some rigorous action and I am not convinced that we are there yet. So, I will decide to sit with my frogs and keep them company.

Yours in execution,

ian

A lesson from the trenches ~ being devious doesn't get you anywhere

A CEO was approached by his executive assistant and told that the Management team had thought it critical to the business that they join a golf club so that they could entertain their agents. It was well known in the industry that agents were avid golfers and that alot of relationships were built that way and subsequently business gained. At least, that is what they told the executive assistant.

Before signing any membership forms to a golf club, the CEO approached a colleague who deals with alot of agents to see if they did indeed play golf only to be told that that was not the case. Whereupon the CEO called his Management team together and proceeded to make it known how disappointed he was in their behaviour including that of his executive assistant.

There are 3 points to this story:

1. Stay focused on what is important
   What irked the CEO was the fact that joining a golf club was not about the agents or the company but rather about the self-interests of the Management team. He had no doubt that agents would have been invited to play but the motivator was the individual self-interest of the Management team. The Management team had lost sight of what was important.
2. Be direct rather than devious
   By approaching the executive assistant and asking her to approach the CEO, the Management team appeared devious and their intentions questionable. We have all used at one time or another assistants to do our dirty work for us but in this case it was tantamount to sending a lamb-to-slaughter and a direct approach would have been better. 
3. Be courageous
   Knowing your boss and knowing what is important to him/her; knowing how she/he thinks and what they will say before they actually say it, is a sign that an assistant is aligned with the boss. In our story, the executive assistant knew instinctively that the answer would be 'no' but she went ahead and asked anyway. She needed to be courageous despite any pressure from the Management team. It is important that a CEO and the executive assistant are seen as one. 

So next time you approach an executive assistant with a request - ask yourself if a). you are focused on what's important and b). would the direct approach be better served. 

Yours in execution

ian

The Art of Making Strategy - Simple

Last month, as part of our Leadership Series I had the priviledge of interviewing the CEO of ING Direct Australia, Vaughn Richtor about strategy and strategy execution. The outcome of that interview is attached and is well worth a read for the insights that it highlights.

There are 10 lessons that we can all learn from Vaughn and the Leadership Team at ING Direct when it comes to strategy and the execution of that strategy. Those lessons are covered in the attached file.

Download The Art of Making Strategy Simple_ING Direct_2013

 

I hope you enjoy the Series.

Yours in execution,

ian