Wednesday, August 21, 2013

Got a New Strategy? Don't Forget the Execution Part (via Knowledge@Australian School of Business)


Yep, it ain’t rocket science (even though not often delivered):


Final para:

Knowledge@Wharton: What can a company do to become more focused on executing successfully?

Hrebiniak: The basic step for a company to follow to become more focused on execution or implementation is to create a culture of execution. How does one create such a culture? Let’s look at some basic facts. First, it’s a fact that culture affects behavior. An organizational culture include values, prescriptions on how to act, how to treat others, how to react to performance shortfalls, how to compete, etc., and these have a profound impact on behavior. A related fact, however, also must be kept in mind: Behavior, over time, affects organizational culture. Culture, [in other words], is both an independent, causal factor, and a dependent factor, affected by behavior. How, then, does one create a desired culture? By creating behaviors and performance programs that become an integral part of an organization’s way of doing things. By creating and reinforcing behaviors and performance programs that affect the very essence of how organizations act and compete, i.e. their culture.

A company, then, can [create] a culture of execution by [developing and reinforcing] behaviors that affect culture. It can: lay out key decisions, actions, and capabilities needed for successful execution; support the model and execution plan with effective incentives and controls; create structures and processes that support desired strategic and operating objectives; and manage execution as a change process in which agreement and commitment are sought and rewarded. Creating and reinforcing behaviors related to execution will impact culture; culture will reflect the critical execution-related behaviors. It is important to design, reward and otherwise support the right behaviors, those that are vital to making strategy work, in order to create and nurture a culture of execution.

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