THE ENTRECODE BLOG
How to overcome the 6 barriers to executing great strategy
Our research suggests that less than 50% of strategies deliver the financial performance they promise. Evan worse the reasons why appear unclear to top managers. The result is: wasted energy, lost time and frustration. However some high performing clients have closed the strategy to performance gap. How did they do it?
They dealt with the 6 key factors that create the performance loss:
- Inadequate resources. They put the right people onto the performance critical projects not just those who are available. Obvious, but many do make the mistake of allocating the wrong resources. High performing clients do not make this mistake.
- Actions required to execute not clearly defined. Most executions of strategies I have facilitated require the delivery of 3/4 key projects not 27. Having this clarity of focus is critical. Keep it simple is a key mantra.
- Organisational silos and culture blocks execution. Change is problematic in a typical corporate power and control culture. So the key is to select people to drive the change who are up for it and create an achievement sub culture with them. see earlier post, How to get your preferred culture.
- No consequences for success or failure. If you want to change behaviour change the reward system. Reward success and have consequences for failure to comply with the process.
- Poor performance monitoring. What gets measured gets managed so ensure the execution programme has the right measures in place.
- Uncommitted leadership team. The strategy and execution plan needs to shared by and championed by the leadership team who take real pride in the execution performance.
Armed with the experiences of those who have successfully executed great strategies should help you to achieve similar successes. Don't miss any of these key factors out and remember "it’s not what you do it’s the way that you do it that's what gets results".
Grow your business by creating Magic Moments for your customers
When was the last time you were the wowed by a Magic Moment delivered by a supplier? Can you recall 2 or 3 times this past 12 months? If you can you will be lucky and unique. Most of us put up with poor service and average products because we have had to reluctantly get used to mediocrity.
But it does not have to be like that and this is your opportunity. If you go out of your way a bit and create some magic Moments for your customers you will enjoy: high levels of repeat business, new business from referrals and a lowering of sensitivity to price. Most sane business people would take these benefits if offered.
Here are some examples to get your juices flowing:
- One Asian airline’s stewards in business class memorize each passengers name on their sector and use it every time, it’s amazing and makes passengers feel important and cared for.
- When I visit one business they take my car keys and valet my car inside and they are a builder not a garage and they leave a packet of sweets on the seat
- My wife's hairdresser showed her how to do her hair as well as he does every time so she feels good all the time.
- A hotel manager introduced me to Brian Adams the singer because he knew I was a big fan.
- A supplier discovered I really liked an Italian wine I had when I was on holiday in piedmont and delivered a case of it to me on my birthday.
There is no formulae for creating Magic Moments it just requires a bit of imagination and empathy and if its done well then it can create a friend for life.
Have a go and let me know how you go on I am always looking for examples I can use in my work.
The 5 priorities when turning round a business
When a business is in crisis sometimes it’s hard to know where to focus.
I have spent 35 years helping to sort out businesses in difficulty and found that there is a priority of actions to follow.
- Cash. Get control of the cash, stop spending and ensure you collect as much cash as possible. It’s the first priority because that's what kills most businesses in trouble.
- Customers. Reassure customers that all is well if necessary and keep them onside and ensure they are looked after properly.
- Margin. The easiest way to make money is to stop losing it. So fix any system slippages and work hard at boosting the margin.
- Strategy. Review the strategy and refocus on the businesses core competencies and profitable opportunities. Discard any sacred cows and investments in nostalgia.
- Communicate. Keep your team informed and onside but be honest with them that's what they prefer.
It’s hard to keep a cool head in a crisis but this roadmap has served me very well in the past.
COST: FREE (70 places maximum)
