Execution and Implementation Dr. David Lawson

Quotes and Thoughts “Strike when and where the enemy least expects” Sun Tzu “You must not fight too often with one enemy, or you will teach him all your tricks of war” Napoleon Bonaparte

Elements of Strong Execution Communication and understanding Everyone has a good idea of the decisions and actions for which they are responsible Information transference Important information about the competitive environment get to senior management quickly Quality of decisions Once a decision is reached, it is rarely second-guessed Free flow of information Information is freely passed across organizational boundaries Field employees have the information they need to understand bottom-line impact Full understanding of revenue generation options and capabilities

Maneuver Strategy Execution Strategies must evolve in response to changing environments Maneuver strategies represent an opportunity to attack the competition weakness, avoiding their strengths and defensive positions while exploiting ones strengths and ability Companies compete aggressively/viciously for strategy advantages in a chaotic global environment

Maneuver Strategies Represent The ability to strike where it hurt the most Not do destroy the enemy but render them unable to continue as a effective and coordinated whole No longer compete in the market Ability to focus on ever changing environment where the competitor is not entrenched or expecting Renders the competitor unable to analyze the situation Effective and efficient use of resources

Nature of Strategy Execution Takes place on multiples levels Physical Test of operations, logistics, human capabilities, technology Psychological Morale, leadership and courage Analytical Challenges leadership to assess complex situations, make effective decisions and formulate superior plans tactical plans for execution

Four Human and Environmental Factors Friction Makes the simple seem impossible Lack of planning, coordination, etc Uncertainty Environmental factors, opponents intentions/capabilities, fog of business Fluidity Where each event merges that precede and follow it Shaped by the former and creates the conditions for the latter Disorder The combined environment shaped by friction, uncertainty and fluidity Implies a competitive situation that deteriorates as time progresses

7 Elements of Execution Targeting critical vulnerabilities Boldness Exploiting weaknesses Once identified, all efforts must be deployed to capitalize Minimizing time between identification of weaknesses and exploitation maximizes effectiveness of resources Boldness Seek breakthrough results rather than incremental gains Requires shifting resources to endeavors with uncertain outcomes – taking a risk Risk must be tempered with judgment lest it become recklessness

7 Elements of Execution - contd Surprise Striking in an unexpected manner can disorient Ensures a response that comes too late and is ineffective Stealth, ambiguity or deception Focus Must deploy resources in a concentrated manner Achieve decisive superiority Creates an advantage when and where it matters the most

7 Elements of Execution - contd Decentralized decision making Pushing significant decision making down the organizational ladder Supporting those decision – no second guessing Must be consistent with Grand Strategy and further organizational intent Increases the likelihood of nonlinear accomplishments and reconnaissance pull An act that disproportionately determines the course of a large scale competitive encounter Identifies an opportunity and pull the organization toward it, then leads the organization in its exploitation

7 Elements of Execution - contd Rapid Tempo Relative speed of execution Consistent and intense effort Indentifying opportunities and making decisions faster that opponent Forces opponent to be in constant state of reaction Opponent will increasingly fall behind until they are overcome by the overall event Combined Effort Synergy – the combined effort of the organization Sum of the efforts is greater than the individual contribution

Final Notes on Execution Solid execution keeps the organization on the competitive landscape Majority of companies struggle with execution On average 2/3 of all strategies fail outright due to lack of execution at any or all levels Overreliance on structural changes as main form of execution, i.e. constant reorganization Reorganization is a short term fix to a long term problem Baseball: trading players, firing managers, trading players again, etc. when a fundamental change in organizational philosophy is required.

Sources Secrets to Successful Strategy Execution Neilson, Martin & Powers Harvard Business Review, June 2008 Maneuver Warfare: Can Modern Military Strategy Lead you to Victory? Clemons & Santamaria Harvard Business Review, April 2002