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1、SteveSherretta七月22,2021PerformanceManagement:EnhancingExecutionThroughaCultureofDialoguePeterisChiefExecutiveOfficerforamedicalsupplymultinationalthatrecentlycraftedanewstrategytocountercompetitivethreats.Theplan63/63stressedtheneedtocutcycletime,concentratesalesonhigher-marginproductsanddevelop
2、newmarkets.Fourmonthsaftercirculatingtheplan,Peterdida“walkaround”toseehowthingsweregoing.Hewasappalled.EverywherePeterturnedpeople,departments—wholebusinessunits—simplydidn’t“getit.”Firstsurprise:Engineering.Thegrouphadcutproductdesigntime30%,meetingitsgoaltoincreasespeed-to-market.Good.ThenPet
3、eraskedhowmanufacturingwouldbeaffected.Itturnedout63/63thenewdesignwouldtakemuchmoretimetomake.Totalcycletimeactuallyincreased.“Ourstrategicplanmessageisnotreallygettingthrough,”Peterthought.Secondsurprise:Sales.Thenewstrategycalledforashift—emphasizehighmarginsalesratherthatpushingproductdownth
4、epipelineasfastaspossible.ButjustabouteverysalespersonPeterspoketowasmakingtransactionalsalestohigh-volumecustomers;hardlyanyonewasbuildingrelationshipswiththemostprofitableprospects.Salesisdoingjustwhatit’salwaysdone,Peterthought.63/63Worstsurprise:Evenhistopteam,thepeoplewho’dhelpedhimcraftthe
5、strategy,wasnotstickingtoplan.Peteraskedateammember:“Whyareyouspendingallyourtimemakingsurethenewmachineryisworkinginsteadofdevelopingnewmarkets?”“Becausemyunit’schiefgoalwastoimproveon-timedelivery,”heanswered.“Butwhataboutcompanygoals?”saidPeter.“Wecameupwithagoodplanandcommunicateditveryclear
6、ly.Butnowhereitisn’tbeingcarriedout.Why?”63/63Manyorganizationscreategoodstrategies,butonlythebestexecutethemeffectively.FortunemagazineestimatesthatwhenCEOsfail,70%ofthetimeit’sbecauseofbadexecution.“WhyCEOsFail,”byRamCharanandGeoffreyColvin,Fortunemagazine,June21,1999.Weakexecutionispervasivei
7、nthebusinessworld,butthereasonsforitarelargelymisunderstood.WhyisitthatnooneinPeter’sorganizationwasactinginsyncwiththestrategy?Unlessweunderstandthereasons,wecan’thopetosolvetheproblem.Imaginesomeonehittingatennisball.Whent
