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BARRIER #2 The Plan is Overly Optimistic
Most executive teams tend to take on too much. The very real and
pronounced opportunities and issues they face make it exceedingly
difficult to prioritize initiatives and activities. At the same time, as
organizations evolve, they collect initiatives, management processes and
pet projects from bygone eras that dilute focus and soak up resources. In
addition, when executives plan, they often assume a perfect world -- one
free of distractions, changes in the internal or external environment, and
unexpected problems.
Unfortunately, this kind of environment doesn’t exist. The effect of
overly optimistic planning can be devastating for execution. Runaway
optimism builds failure into the plan, corrupting the entire notion of
execution in the minds of the people required to follow-through and in the
processes required to maintain the plan.
CASE EXAMPLE: $500
MILLION TECHNOLOGY CONSULTING FIRM
In a recent project with a $500 million technology consulting firm, we ran
into some serious execution barriers. In interviews, several members of
the executive team complained of a “flavor-of-the-month” culture and an
inability to follow-through on projects and initiatives. To prove our
hunch about the team’s tendency to take on too much, we facilitated a
session where each member of the executive team listed all of the
initiatives they were currently managing (and considered “strategic”) on
flipcharts. The result was shocking to the CEO and the team. Collectively,
these 10 executives were attempting to manage and execute over 200
strategic initiatives. After working with the group to sort through these
and prioritize, we came to realize that the root cause of this situation
was centered on avoidance of tough decisions. Making the calls on which
initiatives were the true priorities represented a level of
decision-making they were not comfortable with. In avoiding these
challenging decisions, the team hindered any substantial progress. We
worked with the team to deploy some specific decision making tools and
forums that facilitated regular prioritization and pruning of initiatives.
The firm went on to achieve record growth for the year.
What To Do: Define Priorities
Creating an executable plan requires putting as much discipline and focus
on those things that are not considered a priority for execution as those
that are. In other words, the “Not-Do’s” must be identified, captured and
communicated along with the “Must-Do’s.”
Again, simplicity pays off. From a comprehensive list of all initiatives,
projects, and activities currently underway or planned, create a rough-cut
prioritization by assigning each item to one of three “buckets”:
• Must-Do this year
• Nice-To-Have this year, and
• Not-Do this year.
The previously mentioned Strategic Framework and Quantified Vision serve
as useful criteria for this prioritization. Basically, you are asking
which of these items are most critical to execution of the strategy and
achievement of the vision. When the prioritization is finalized (which may
require further study), items that are Nice-To-Have’s can be put into a
holding bin for consideration in the next year. The Not-Do’s, which are
often comprised of initiatives, activities and pet projects peripheral to
executing the strategy, must be clearly identified and put on hold.
Typically, clear communication and disciplined follow-through are required
to ensure activities relating to the Not-Do’s do, in fact, cease. (These
activities sometimes take on a life of their own as “skunkworks” and side
projects.)

BARRIER #3 No One is Accountable for Results
The lifeblood of execution is accountability. Accountability is the unseen
force that motivates individuals to follow-through on their commitments. A
primary driver of accountability is clarity on “who is on the hook for
what.”
Unfortunately, even organizations that are good at identifying
accountabilities often focus the accountabilities on activities, as
opposed to results. This creates many challenges in execution. Since there
is always so much activity throughout an organization, it is difficult to
gauge progress against strategy when looking solely at activities. The
question that must be asked is, “does all of this activity add-up to real
progress against strategic objectives?”
Everyday there are conversations between bosses and employees where
employees articulate the many, many things they are working on. Despite
these conversations, the boss is left wondering whether these employees
are really making progress against their commitments. In this situation,
absent a clearly defined “finish line,” accountability can be confused or
diluted.
Here is a quick example:
Fernando is trying to get in shape. Assuming his main
goal is to lose weight, if his accountability (self-inflicted or
otherwise) is not tied to a specific result (i.e., lose 20 pounds),
Fernando may end up in a situation where he goes to the gym every day but
makes no progress. There is no way for him to gauge his progress and
therefore nothing to tell him if he needs to adjust his program to achieve
results. By the same token, if Fernando is accountable to someone for
losing weight, unless the result is specified, he can always hide behind
the fact that he does, in fact, engage in a lot of “activity” by going to
the gym everyday (even if he is just grabbing a Smoothie and sitting in
the sauna).
In terms of a business example, consider the last IT
project that was implemented in your company. Chances are it was sold on
the basis of a specific ROI. Management of the effort, however, was
focused on the activities of implementation, instead of the results
associated with the Return on Investment. Did the system deliver the
return? Many times the answer is a clear “no.”
What To Do: Raise the Stakes
As initiatives are prioritized (see the Must-Do’s mentioned above), tie
the initiative to a specific time horizon. Then, take the time to define a
specific business result associated with effective execution of that
initiative. What do we expect to get out of this initiative? By when
should we expect to realize this result? And, of course, who is on the
hook to make this happen?
Defining initiatives in this manner raises the stakes for execution and
enables the organization to fully commit. These “souped-up” initiatives
become our business commitments.
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From Initiatives... |
...to Business Commitments |
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1. Develop New Products |
1.0
Develop 3 new products by 5/31 to generate $6MM in incremental revenue
by Q4. (Smith) |
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2. Train Sales Reps |
2.0 Train
36 sales reps in new product specifications by end of Q2; drive $2MM
in incremental sales by Q4. (Lee) |
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3. Improve Access to Product
Information |
3.0
Develop online product info access by 5/31; increase average number of
products sold/customer by 15% by Q4. (Jones) |
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