The Top Ten Execution Missteps

The Top Ten Execution Missteps

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  The Top TenMissteps in Execution “Silverpop University” August 2008
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  I have presentedthis in various forms over the years. It is one of my favorite presentations (even if some references are a bit dated). I have made these presentations available in the hopes that the ideas will be helpful to others. I only ask that you respect my work by providing attribution as appropriate and not re-posting the document. Thank you and enjoy. Bill Nussey This Thi presentation and others available at htt //N t ti d th il bl t http://NusseyNotes.com N t and http://www.slideshare.net/BillNussey1 2
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  An Opening Story The Bill Gates Tidal Wave Memo On May 26, 1995 Bill Gates kicked off what may have been one of the single greatest feats of corporate execution ever witnessed in high tech tech. Microsoft had bet EVERYTHING on a “walled garden” competitor to AOL that was called Blackbird In one memo, they shut down the entire Blackbird effort and went on to memo rewrite the history of the internet. “In this memo I want to make it clear that our focus on the Internet is crucial to every part of our business. The internet is the most important single development to come along since the IBM PC was introduced in 1981.” To paraphrase… The Internet is a tidal wave. It changes the rules. It is an incredible opportunity as well as an incredible challenge… I want e e y p oduct to try and go overboard on Internet features… a t every product t ya d o e boa d o te et eatu es 3
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  Various Views onExecution Standard definition: Execution is the act or mode or result of performance “Execution is the missing link between aspirations and results” - Execution (the book) Execution requires a clear view of reality – mis-execution stems E ti i l i f lit i ti t from misleading yourself as a company as to what is really happening “Without execution, vision is just another word for hallucination” - Mark Hurd, CEO of HP 4
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  What is Execution,Really? What is execution, exactly? There’s nothing heroic or admirable about – not smarts, not charisma, very little way to be innovative or novel Barely covered in business books It’s what Microsoft and General Electric do It’s boring, it’s really hard What happens without it Delivery dates slip, work is shoddy slip Bad side of execution “Fear-based culture” “Inhumane”, “ruthless”, “profits over people” 5
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  The Bottom Line Two Key Truths About Execution… The largest challenge for most businesses is themselves “Winning is largely a matter of screwing up less than everyone else” – Bill Nussey When Businesses Truly Execute… Mistakes and problems are no longer hurdles they are opportunities The level of productivity (output, speed, quality) goes up a lot! 6
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  The Top 10Missteps in Executions
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  10. Ready, Shoot,Aim! The Problem The only thing worse than having a plan go wrong is having had no plan at all When things get busy, planning goes out the window The Solution Take the time to consider your actions before you act Create habits and patterns that force you to step back and review the “Big Picture” The benefit of planning is not necessarily to ensure error-free execution but, instead, to have a benchmark from which to understand what went wrong and how to avoid problems the next time around. 8
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  9. Feel YourWay Through It The Problem Executives fail to set specific, measurable goals Even when measurable goals are established, executives fail to manage accountability The Solution Set goals and measure – chose three key areas to measure each part of your business • It’s fine to use subjective measures when numerical and financial j measures do not apply Rhythm, habit and discipline “People don’t do what you expect they do what you inspect ” – Bob People don t expect, inspect. Hayes, Harvard Business School 9
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  8. “Every Employeeis A+” The Problem Everyone on your team is not equal, don’t treat them that way It is easy mistake loyalty and effort for performance and output Treating mediocre people the same as you treat your best people will absolutely undermine your best people The Solution Hold people accountable Set clear goals (even if they are subjective) and measure against them Recognize the highest performing people with words and dollars “A players hire A players; B players hire C players” -- Stephen Jobs, CEO A players Jobs Apple 10
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  7. Management ThroughCrisis Creation The Problem People can respond amazingly in a crisis but it is not sustainable One “Fire Drill” after another means nothing long term get done The Solution Make long term plans and stick with them Create what author Jim Collins calls the “Flywheel Effect” from his book Good to Great • Momentum is more important than speed “Don’t mistake action for productivity” – Bill Nussey 11
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  6. Boil theOcean The Problem Small businesses can only do one thing well Success rarely comes from being clever or having a better idea • The most successful companies are the most committed and focused The Solution Figure out three things: • What you are passionate about? Which things you are really good at? Which things you are better at than your competitors? Pick the best single thing across the three questions This is your core competence – do it; do nothing else; stick with it “If you chase two rabbits, both will escape” -- unknown 12
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  5. Paralysis FromAnalysis The Problem “Excessive delays in the name of information-gathering breeds 'analysis paralysis'. paralysis' Procrastination in the name of reducing risk actually increases risk." – Colin Powell Achieving 100% confidence is a myth Too much strategy is as bad as no strategy at all Solution 70% confidence is more than enough – after that go with y % g g your g gut It’s better to be consistent than right General rules of snakes (problems): If you see a snake, kill it; don’t play with dead snakes; all opportunities start out looking like snakes. – Jim Barksdale, CEO of Netscape 13
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  4. Fear ofFailure The Problem Fear of failure creates hesitancy, complacency and arrogance The Solution Mistakes and stumbles are inevitable, success is largely a matter of how you respond when t gs go wrong espo d e things o g Fail fast “Just beyond the threshold of optimum performance lies total chaos” – Jim Just chaos Copeland, CEO of Deloitte & Touche 14
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  3. Fast ToHire, Slow To Fire The Problem Lack of HR discipline Downside of not firing people • The implications are much worse than not getting the job done • Your good players will lose respect for you if coddle people that don’t carry their own weight • By the way, if a personnel problem is just becoming clear to you, assume it has been crystal clear to everyone else for a long time The Solution Background checks (seriously) Interview heavily and for small companies make your most senior and, companies, executives involved in every hire 15
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  2. Lack ofCommon Sense The Problem If it doesn’t make sense, it’s probably wrong Corollary: If you can’t explain it to your grandmother, its probably a bad idea The Solution Use Common Sense <yeesh> “If it looks like a duck and quacks like a duck, then it’s probably a duck” 16
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  1. No Discipline The Problem Above all else, great execution comes from discipline “Things are really moving. Why spend so much time reviewing it?” There is always a newer and better idea that’s less boring than what you’re doing now The Solution Discipline can not be delegated, it stems from leadership and culture Plan → execute → measure → learn Businesses need rhythm – create habits and patterns around planning and review • "We are what we repeatedly do excellence then is not an act but a We do, act, habit.“ -- Aristotle "Nothing is more harmful to the [military] service, than the neglect of discipline; for that discipline, more than numbers gives one army discipline numbers, superiority over another.“ -- George Washington 17
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  Conclusions
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  The Secret Formula Focus Decisiveness Discipline Execution Performance Planning Measurement 19
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  The Epitome ofthe “Good to Great” story - Walgreens Walgreen’s keys to o e o t e g eatest susta ed turnarounds in a g ee s eys one of the greatest sustained tu a ou ds business history: NOT hiring a great new CEO NOT a brand new strategy and a burning platform NOT acquisitions or technology-driven change The answer They could not really pin it on anything in particular but… It got started sometime between 1971 and 1980… The M Th Moral Of The Story l Th St Great execution isn’t anything fancy. It’s just sticking to the basics, using common sense and not losing sight of what you’ve set out to do. 20
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  Thank You Bill Nussey http://NusseyNotes.com http://NusseyNotescom
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  Related Books, Sites,Etc. Synopsis of “Good to Great” by Jim Collins http://www.fastcompany.com/online/51/goodtogreat.html “Jack and the People Factory”, a synopsis of Stratight from the gut http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=204 011 “Good to Great” by Jim Collins “Jack: Straight from the Gut” by Jack Welch “The Twelve Simple Secrets of Microsoft Management” by David Thielen d Shi l Thielen Thi l and Shirley Thi l 22