Execution

The difference between average companies and great ones is execution. A company that expects and demands great execution year after year will get it. A company that only demands great execution sporadically or not at all will not get it (Stewart and O’Brien, 2005, Harv Bus Rev 83(3):102–111, Mar). Execution is where most companies fail. A Harvard study indicated that large companies only achieve about 63% of their strategic goals every year and a third of companies achieve less than 50% of plan (Mankins and Steele, 2005, Harv Bus Rev 83(7–8):65–72, Jul–Aug). An AMA study indicated only 3% of CEOs said their companies were successful at implementing strategy and 62% said their ability to execute was moderate or worse (Mankins and Steele, 2007, Contractor’s business management report). In another survey, companies estimated that 60% of planned productivity gains were lost due to failure to execute (Neiman and Thomson, 2004, Can Manag 17, Fall). This chapter discusses a number of proven techniques for improving execution including (i) having executable plans, (ii) prioritizing tasks, (iii) establishing time-lines, (iv) measuring and monitoring, (v) building a culture of success, (vi) management development, (vii) rewarding achievement and punishing failure.