In last week’s post, we reviewed the S.W.O.T. process. This mechanism, regardless of industry or size, is a crucial step in developing a short and long term strategy for success. Specifically, discussing and owning your company’s current weaknesses and failings is the type of introspection that should occur regularly, with feedback from all roles in the business – from the C-Suite to the Driver’s seat. Further, I’ve always felt that successful businesses, and their leaders, should always be a bit paranoid – in both good times, as well as bad. After you’ve gone through the S.W.O.T. process, and you’ve determined the major objectives for the business (see Part 1 of this series), it’s time to put the plan into action. In general, all well-executed plans have the following key components:
- The goal is well defined. Each team member understands what IS to be achieved, and the impact on the business – whether from a financial, as well as from a corporate culture point of view. Each member of the team assigned to the objective should be able to clearly communicate verbally the objective, and the key benefits to the business.
- A timeline is established. Execution does not happen without a deadline. Put that on the wall in every room of your business. Conversely, if you want to remain on the treadmill of mediocrity, don’t set deadlines.
- Make your people accountable. This part may seem like a no-brainer, however, being a fan of business, I’ve read about (and witnessed) many well-known businesses that got too comfortable. This comfort was rooted in a lack of accountability – from the Board room, all the way down to the front lines (e.g. Kodak, Sears, Toys R Us). Making specific people and teams accountable will ensure continued momentum. This step is also an important vetting process for future business leaders. The ones who step up, and want to reap the rewards (and the potential penalties) are the type of people you build your business around
- Incent, Incent, Incent, Succeed. All top performing companies use variable compensation to light the fire for success. Outside of asking your people to become shareholders, there are very few other tangible ways to ensure that your people have Skin in The Game, other than variable compensation. Proper variable compensation plans need to aligned with, and constantly readjusted to make sure they tie to the goals, deadlines and the overall financial impact of the individual actions and decisions made by people and teams. While contemplating these programs, ensure that the compensation program methodology is easily understood, and the objectives, variables and measurement are within the control of the individual and teams being rewarded.
- Review and Adjust Regularly. No explanation needed here.
In all industries, leveraging existing frameworks for the above process can vastly improve the speed of developing and executing on a strategy. Many high performing companies have implemented third-party programs such as the Four Disciplines of Execution. Using 4DX or another third-party program narrows the focus, and clearly defines the steps needed to rapidly move forward. Next week, we’ll move from the Macro to the Micro, and discuss the importance of time and task management to executing on your plan.
For your Sunday viewing pleasure, here’s a short video about the 4DX program to get you thinking about your action.