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1、SteveSherretta七月13,2021PerformanceManagement:EnhancingExecutionThroughaCultureofDialoguePeterisChiefExecutiveOfficerforamedicalsupplymultinationalthatrecentlycraftedanewstrategytocountercompetitivethreats.Theplanstressedtheneedtocutcycletime,concentratesalesonhighe
2、r-marginproductsanddevelopnewmarkets.Fourmonthsaftercirculatingtheplan,Peterdida“walkaround”toseehowthingsweregoing.Hewasappalled.EverywherePeterturnedpeople,departments—wholebusinessunits—simplydidn’t“getit.”Firstsurprise:Engineering.Thegrouphadcutproductdesigntim
3、e30%,meetingitsgoaltoincreasespeed-to-market.Good.ThenPeteraskedhowmanufacturingwouldbeaffected.Itturnedoutthenewdesignwouldtakemuchmoretimetomake.Totalcycletimeactuallyincreased.“Ourstrategicplanmessageisnotreallygettingthrough,”Peterthought.Secondsurprise:Sales.T
4、henewstrategycalledforashift—emphasizehighmarginsalesratherthatpushingproductdownthepipelineasfastaspossible.ButjustabouteverysalespersonPeterspoketowasmakingtransactionalsalestohigh-volumecustomers;hardlyanyonewasbuildingrelationshipswiththemostprofitableprospects
5、.Salesisdoingjustwhatit’salwaysdone,Peterthought.Worstsurprise:Evenhistopteam,thepeoplewho’dhelpedhimcraftthestrategy,wasnotstickingtoplan.Peteraskedateammember:“Whyareyouspendingallyourtimemakingsurethenewmachineryisworkinginsteadofdevelopingnewmarkets?”“Becausemy
6、unit’schiefgoalwastoimproveon-timedelivery,”heanswered.“Butwhataboutcompanygoals?”saidPeter.“Wecameupwithagoodplanandcommunicateditveryclearly.Butnowhereitisn’tbeingcarriedout.Why?”Manyorganizationscreategoodstrategies,butonlythebestexecutethemeffectively.Fortunema
7、gazineestimatesthatwhenCEOsfail,70%ofthetimeit’sbecauseofbad16HayGroup,Inc.Allrightsreservedexecution.“WhyCEOsFail,”byRamCharanandGeoffreyColvin,Fortunemagazine,June21,1999.Weakexecutionispervasiveinthebusinessworld,butthereasonsforitarelargelymisunderstood.Whyisit
8、thatnooneinPeter’sorganizationwasactinginsyncwiththestrategy?Unlessweunderstandthereasons,wecan’thopetosolvetheproblem.Imaginesomeonehittingatenn