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1、SteveSherretta七月22,2021PerformanceManagement:EnhancingExecutionThroughaCultureofDialoguePeterisChiefExecutiveOfficerforamedicalsupplymultinationalthatrecentlycraftedanewstrategytocountercompetitivethreats.Theplanstressedtheneedtocutcycletime,concentratesalesonhigh
2、er-marginproductsanddevelopnewmarkets.Fourmonthsaftercirculatingtheplan,Peterdida“walkaround”toseehowthingsweregoing.Hewasappalled.EverywherePeterturnedpeople,departments—wholebusinessunits—simplydidn’t“getit.”Firstsurprise:Engineering.Thegrouphadcutproductdesignt
3、ime30%,meetingitsgoaltoincreasespeed-to-market.Good.ThenPeteraskedhowmanufacturingwouldbeaffected.Itturnedoutthenewdesignwouldtakemuchmoretimetomake.Totalcycletimeactuallyincreased.“Ourstrategicplanmessageisnotreallygettingthrough,”Peterthought.Secondsurprise:Sale
4、s.Thenewstrategycalledforashift—emphasizehighmarginsalesratherthatpushingproductdownthepipelineasfastaspossible.ButjustabouteverysalespersonPeterspoketowasmakingtransactionalsalestohigh-volumecustomers;hardlyanyonewasbuildingrelationshipswiththemostprofitableprosp
5、ects.Salesisdoingjustwhatit’salwaysdone,Peterthought.Worstsurprise:Evenhistopteam,thepeoplewho’dhelpedhimcraftthestrategy,wasnotstickingtoplan.Peteraskedateammember:“Whyareyouspendingallyourtimemakingsurethenewmachineryisworkinginsteadofdevelopingnewmarkets?”“Beca
6、usemyunit’schiefgoalwastoimproveon-timedelivery,”heanswered.“Butwhataboutcompanygoals?”saidPeter.“Wecameupwithagoodplanandcommunicateditveryclearly.Butnowhereitisn’tbeingcarriedout.Why?”Manyorganizationscreategoodstrategies,butonlythebestexecutethemeffectively.For
7、tunemagazineestimatesthatwhenCEOsfail,70%ofthetimeit’sbecauseofbad16HayGroup,Inc.Allrightsreservedexecution.“WhyCEOsFail,”byRamCharanandGeoffreyColvin,Fortunemagazine,June21,1999.Weakexecutionispervasiveinthebusinessworld,butthereasonsforitarelargelymisunderstood.
8、WhyisitthatnooneinPeter’sorganizationwasactinginsyncwiththestrategy?Unlessweunderstandthereasons,wecan’thopetosolvetheproblem.Imaginesomeonehittingatenn
