A University of Maryland study found that companies with clearly communicated visions have higher revenue growth, higher productivity, and lower project costs. As Thomas Edison said, “Vision without execution is hallucination.” However, Kaplan and Norton’s Balanced Scorecard shows that 95% of workers are unaware of their company’s strategic business objectives; thus, they do not know how they can help achieve success for their company.
Organizations need both strategy and execution; yet, many confuse the two. Larry Bossidy, author of Execution, says 20% strategy and 80% execution.
The strategy needs to:
- - Challenge the existing (Don’t just “eat off the menu”)
- - Show that common sense has been vigorously applied
- - Provide a simple, steady process
- - Eliminate costs continuously
- - Be better, not perfect
And at an employee level,
- - Explain how each employee is a critical “cog in the wheel”
- - Reward for organizational focus vs. department (or individual?)
- - Align to a compelling long-term vision/value
Without strategy, execution is aimless. Execution is the missing link between the aspirations and the results.
Does your organization execute your strategy?