Execution: The Discipline of Getting Things Done

A company can have a great vision and a solid strategy, but it may still fail if it doesn't execute well. Execution is the process of turning plans into actions, and it's where many businesses fall short.

Even big companies like AT&T, Kodak, and Xerox have faced this issue. They had smart strategies and skilled teams, but they didn't get the results they wanted because they struggled to execute their plans effectively.

Execution is not just about tactics or details; it's a discipline that must be woven into a company’s strategy, culture, and leadership. Successful companies, like Dell, stand out because they make execution a core part of their operations.

Take Dell's build-to-order approach as an example. Instead of forecasting demand months in advance, Dell built each computer only after receiving a customer order. This strategy minimized inventory, reduced costs, and ensured customers always got the latest technology. By tightly integrating their supply chain, with suppliers electronically linked to their operations, Dell ensured just-in-time delivery of components. This allowed them to quickly adapt to market changes and customer needs, achieving a level of flexibility and speed that competitors like Compaq couldn't match.

Compaq, on the other hand, had ambitious strategies but struggled with execution. Their efforts to integrate large acquisitions and expand into new markets were often misaligned with their operational capabilities. This lack of synchronization prevented Compaq from achieving the agility and cost efficiency that Dell had mastered. The lesson here is simple: a strong strategic vision means little without the ability to implement it effectively.

Good execution requires active leadership that stays involved, asks tough questions, ensures accountability, and makes real-time adjustments to keep the organization on track. It involves connecting the right people, strategies, and operations while maintaining a strong focus on results. Unlike grand visions or motivational speeches, execution is grounded in practical, clear, and detailed processes.

Leaders are essential in turning an organization’s plans into reality. But while many leaders are skilled at high-level thinking, they often fall short when it comes to execution. This lack of ability to execute can lead to an organization’s failure, as seen in the case of Xerox.

In 1999, Richard C. Thoman became CEO of Xerox with a vision to transform the company from a traditional provider of products and services into a solutions-based business that integrated software, hardware, and services. He launched major initiatives to cut costs and restructure the company. But his plans failed because of poor execution.

Thoman’s strategy involved consolidating Xerox’s administrative centers to cut costs and reorganizing the sales force to focus on specific industries. Although these changes were necessary to revitalize Xerox, their execution was mismanaged. The simultaneous rollout of these large-scale changes led to operational chaos—lost orders, unprocessed invoices, and declining customer service. Sales representatives had to focus on fixing internal issues instead of building customer relationships, leading to dissatisfaction and lost loyalty.

Thoman also faced challenges with Xerox’s deeply entrenched culture, which resisted his leadership as an outsider. Without the authority to build his own team, he lacked the support needed for effective change. As a result, morale plummeted, financial performance deteriorated, and the stock price fell dramatically. Ultimately, Thoman was removed from his role as CEO.

The failure at Xerox just shows that successful execution requires the right people, clear alignment, and a culture ready for change. This was where Dick Brown, CEO of EDS, succeeded.

Unlike Thoman, Brown focused on execution from the start. He took time to understand the company and its people, fostered open communication, and emphasized accountability. Brown regularly reviewed performance, addressed issues directly, and replaced underperformers when necessary. He also involved key leaders in creating a new organizational structure aligned with market needs, ensuring their commitment to the changes.

Brown’s approach built a culture of execution at EDS, where attention to detail, training, and collaboration were prioritized. This focus on execution allowed EDS to adapt to new market demands and achieve strong growth.

Effective leadership comes down to mastering seven key behaviors that promote successful execution without micromanaging:

• Behavior #1: Understand your team and your business. Great leaders actively engage with their teams and understand their business's day-to-day realities. They go beyond surface-level interactions and ask tough, meaningful questions to get to the core of issues. This approach builds trust and informed decision-making.

• Behavior #2: Base discussions on facts. Many organizations struggle with being honest about their current situation because facing reality can mean confronting uncomfortable truths or failures. However, a commitment to realism is essential. It prevents complacency and encourages effective actions by ensuring that everyone understands the true state of the business and aligns their efforts accordingly.

• Behavior #3: Focus on a few key priorities. Effective leaders do not spread their teams thin with too many goals. Instead, they concentrate on a small number of clear, critical objectives. Having too many priorities can create confusion and dilute focus, especially in complex organizations where decision-making is spread across different levels. Simplifying strategies and communicating them clearly ensures everyone knows what to focus on and why it matters.

• Behavior #4: Ensure consistent follow-through. Clear goals are meaningless without proper follow-through. Execution falters when leaders fail to ensure that decisions are acted upon. Effective leaders establish systems to track progress, hold people accountable, and maintain momentum, signaling that execution is taken seriously and is a priority.

• Behavior #5: Acknowledge high performers. Execution requires rewarding those who achieve results. In many organizations, there is little differentiation in rewards between high performers and underachievers, which discourages excellence. Leaders must be confident in recognizing and rewarding performance and ensuring that this approach is ingrained in the organization’s culture. By distinguishing clearly between those who execute and those who don’t, organizations create a culture where people are motivated to deliver results.

• Behavior #6: Coach team members. Good leaders use every opportunity to coach and develop their team members. Effective coaching involves providing specific feedback, asking probing questions, and guiding people to think deeply and grow their skills.

• Behavior #7: Have self-awareness and emotional strength. Leaders must have emotional strength, including authenticity, self-awareness, self-mastery, and humility. These traits help leaders make tough decisions, encourage honest dialogue, and build a strong, supportive culture.

In challenging times, business leaders often see the need to reshape their company's culture. They understand that intangible elements, like values and behaviors, are as crucial as tangible elements, like organizational structure.

Just as a computer's hardware needs the right software to function well, a company's strategy and structure need the right cultural "software" to be effective. But many attempts at cultural change fail because they are not directly connected to the company’s real business goals. Often, these efforts are too vague and lack relevance to the business's strategic and operational needs.

For cultural change to succeed, the focus should be on execution. This requires a practical approach where the desired outcomes are clearly defined, the steps to achieve them are laid out, and individuals are held accountable for their performance. It involves setting clear expectations, providing guidance on how to meet these expectations, rewarding success, and addressing gaps with further coaching, adjusted incentives, or changes in roles. This approach fosters a culture that prioritizes achieving results.

Effective cultural change also needs to be implemented through "social operating mechanisms." These are structured processes that connect different parts of the organization, promote cross-functional communication, and build transparency and accountability. The aim is to ensure that everyone, from senior leaders to frontline staff, understands and practices the values, beliefs, and behaviors required for business success.

Leaders are vital in shaping and driving cultural change. They must be actively engaged in the daily operations, demonstrating the behaviors they want to see in their teams. The behaviors leaders show and allow are the ones that become the norm. Therefore, leaders must model the right behaviors and ensure these are consistently practiced throughout the organization.

Leaders have a key responsibility of ensuring that the right people are in the right roles. And this is a task that they should never delegate. As we may all know, the business world is filled with uncertainties such as economic shifts or competitor actions. One of the few elements companies can control in such instances is the quality of their team, especially their leaders. The success or failure of an organization often depends on its people—their judgment, experience, and ability to perform.

Unfortunately, many leaders fail to prioritize this aspect as they are too focused on growing the company or outpacing competitors. They overlook that a well-chosen team is the most reliable way to achieve long-term success.

Mismatches between people and jobs often stem from leaders not being personally committed to the selection process. These leaders might rely on vague recommendations or unclear criteria for a job, rather than defining what the role truly requires. A leader must be deeply involved in selecting and developing their team, ensuring that each person is well-suited for their job. This involves making tough decisions—sometimes even letting go of people who don’t fit. Avoiding these decisions, whether due to discomfort or loyalty, can harm the organization. A disciplined approach to managing talent, with clear criteria and honest evaluations, is crucial for building a strong leadership team.

Successful leaders focus on selecting people who are not just skilled but also energize their teams and get things done. These leaders know how to make quick, effective decisions, and they follow through to make sure plans are executed properly. They don’t just inspire with words; they motivate with actions. They create energy within their teams, and they make sure that everyone stays focused on delivering results.

The primary goal of any business strategy is straightforward: to win customer preference, create a sustainable competitive advantage, and ensure sufficient returns for shareholders. But to achieve these results, the strategy must be well-executed.

A strong strategic plan is action-driven and considers the business environment, resources, and people. It should act as a clear roadmap for leaders to reach their business goals.

The first step in creating this plan is to clearly identify the critical issues that impact the business, such as market opportunities, competitive threats, and organizational capabilities. Leaders must then evaluate whether the plan's assumptions are realistic and if the organization can execute it in both the short and long term.

One vital aspect of strategic planning is linking the strategy to the people process. A plan will likely fail if the organization doesn't have the right people in place. Aligning the strategy with the operational plan ensures all parts of the business work together toward the same goals.

Aside from this, a strategy should also be built on clear, well-defined building blocks. These building blocks are essentially the core actions or concepts that define how the business will achieve its goals. For example, an industrial company turned around its business by focusing on three building blocks: relocating production to lower-cost areas, continuously improving product design, and restructuring to serve global customers. This focused approach led to substantial growth.

When constructing a strategic plan, remember that it should be owned by the leaders responsible for executing it. These leaders know the business environment and have the insight needed to develop a strategy that works. A well-developed plan should answer important questions like: What are the market conditions? Who are the customers? What are the best growth opportunities? How capable is the organization of executing the plan? How can the business make money sustainably?

Finally, a strategic plan must be adaptable, meaning it should be able to balance short-term and long-term objectives. It should also anticipate changes in the market and be flexible enough to adjust when needed. Only by addressing these elements can a strategy successfully bridge the gap between planning and execution, driving sustainable growth and competitive advantage for the business.

The operations process is key to turning business strategies into actionable steps. A common mistake many companies make is having a budget that defines goals like revenue or profits but doesn’t outline a clear path to achieve them. This can lead to unrealistic expectations and a disconnect between the strategy and execution. What’s needed is a solid operating plan that connects the strategy to the people and processes responsible for delivering results.

The operating plan breaks down long-term goals into short-term, actionable targets. This plan guides the organization toward achieving earnings, sales, and other objectives, considering real-world factors such as market conditions, economic forecasts, and customer changes. For example, if a key customer changes their purchasing plans, the operating plan should adapt to reflect how that will impact your business. This is not just about meeting numbers from last year, but about looking ahead and planning how to hit targets through specific actions.

A good operating plan is one that involves all key stakeholders. Everyone in the organization who will play a role in executing the plan should have a hand in building it. This involvement ensures that the plan is grounded in reality and that everyone understands their part in achieving the company’s objectives. When more people are involved, there is greater buy-in and accountability, making the plan stronger and more likely to succeed.

Many companies fail in this regard by relying on budgets created in isolation by finance teams without input from the people responsible for executing them. This leads to a lack of coordination, unrealistic goals, and missed opportunities. A better approach is to treat the budget as a reflection of the operating plan, where financial resources are aligned with actual business activities and market conditions.

Synchronization is another critical element of execution. All parts of the organization must move together toward common goals. For example, if sales teams push for more volume, manufacturing must ensure it can meet production demands, and finance needs to adjust budgets accordingly. Synchronizing these moving parts is what allows companies to adapt quickly to changes, such as fluctuations in demand or shifts in the market.