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1、53/53SteveSherretta七月22,2021PerformanceManagement:EnhancingExecutionThroughaCultureofDialoguePeterisChiefExecutiveOfficerforamedicalsupplymultinationalthatrecentlycraftedanewstrategytocountercompetitivethreats.Theplanstressedtheneedtocutcycletime,concentratesalesonhigher-marginproductsa
2、nddevelopnewmarkets.53/53Fourmonthsaftercirculatingtheplan,Peterdida“walkaround”toseehowthingsweregoing.Hewasappalled.EverywherePeterturnedpeople,departments—wholebusinessunits—simplydidn’t“getit.”Firstsurprise:Engineering.Thegrouphadcutproductdesigntime30%,meetingitsgoaltoincreasespeed
3、-to-market.Good.ThenPeteraskedhowmanufacturingwouldbeaffected.Itturnedoutthenewdesignwouldtakemuchmoretimetomake.Totalcycletimeactuallyincreased.“Ourstrategicplanmessageisnotreallygettingthrough,”Peterthought.Secondsurprise:Sales.Thenewstrategycalledforashift—emphasizehighmarginsalesrat
4、her53/53thatpushingproductdownthepipelineasfastaspossible.ButjustabouteverysalespersonPeterspoketowasmakingtransactionalsalestohigh-volumecustomers;hardlyanyonewasbuildingrelationshipswiththemostprofitableprospects.Salesisdoingjustwhatit’salwaysdone,Peterthought.Worstsurprise:Evenhistop
5、team,thepeoplewho’dhelpedhimcraftthestrategy,wasnotstickingtoplan.Peteraskedateammember:“Whyareyouspendingallyourtimemakingsurethenewmachineryisworkinginsteadofdevelopingnewmarkets?”“Becausemyunit’schiefgoalwastoimproveon-timedelivery,”heanswered.53/53“Butwhataboutcompanygoals?”saidPete
6、r.“Wecameupwithagoodplanandcommunicateditveryclearly.Butnowhereitisn’tbeingcarriedout.Why?”Manyorganizationscreategoodstrategies,butonlythebestexecutethemeffectively.FortunemagazineestimatesthatwhenCEOsfail,70%ofthetimeit’sbecauseofbadexecution.“WhyCEOsFail,”byRamCharanandGeoffreyColvin
7、,Fortunemagazine,June21,1999.Weakexecutionispervasiveinthebusinessworld,butthereasonsforitarelargelymisunderstood.WhyisitthatnooneinPeter’sorganizationwasactinginsyncwiththestrategy?Unlessweunderstandthereasons,wecan’thopetosolvetheproblem.53/53Imaginesomeonehittingatennisball.
