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Traversing the execution minefield.

Article Excerpt
EXECUTIVE SUMMARY

In an ideal world, a firm would have exceptional ideas, brilliant strategies, and flawless execution. A multitude of books and articles have been written about developing breakthrough ideas and crafting formidable competitive strategies. But we are nowhere if we do not execute the plan. Executives who foster exceptional execution will give their firms a competitive advantage.

The past decade was truly extraordinary. Just 10 years ago, we were entering an era of irrational exuberance, High-profile chief executives and high-tech entrepreneurs enjoyed celebrity status in the corporate world. Executives with bold ideas were considered visionaries. Twenty-year-old entrepreneurs without a clue about what it takes to run a business and make a product were able to attract venture capital without even preparing a business plan.

Hopefully, we learned something from that time. The over-hyped party is over and it's time to make money the old-fashioned way--by making products and offering services that customers truly value.

The change in the business environment may best be reflected in the type of executives and managers who are being sought to run our firms. The call has gone out for a very rare breed of executive--one with a solid grasp of today's realities and a willingness to make the right things happen the right way, on time, and within budget. Investors, consumers, and employees at all levels are calling out for executives and managers who are willing to make commitments and who can create environments in which commitments are fulfilled.

We have learned that visions without execution are just dreams. Louis Gerstner got a lot of media attention when he took over the helm at IBM and announced that the last thing IBM needed was a vision. Gerstner recognized that while a firm needs a vision for what its leaders want it to be in the future, if it doesn't execute well, then it will not have a future. Most of his initial efforts were directed at creating an environment in which people at all levels could do the not-very-sexy blocking and tackling that are essential. He also directed his attention to making sure IBM was in sync with new realities and with what it would take to keep its current customers and attract new ones.

Today, executives must be masterful at execution and implementation. Executives who foster exceptional execution will give limit firms a competitive advantage. Executives and firms that cannot deliver will not survive the execution minefield.

What's the difference?

Execution and implementation are terms that are often used interchangeably. But the distinction between those terms is worth noting. Both are crucial to success.

Execution is about performance. It focuses on whether certain goals are accomplished. Execution may be reflected in getting a new assembly operation up and running by or before the target date. Execution may be reflected in delivering an order within the targeted quality, quantity, time, and cost targets. Execution may even be as small as responding to a customer inquiry in a timely fashion. Execution can also occur at various dimensions. It can apply to the organization as a whole. It can also apply at the business unit, department, project, and individual level.

Implementation focuses on how goals...

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