Wednesday, August 5, 2009

Execution Barrier 1 : Why companies don’t get it right?... Profit Making Motive rather than Idea Implementation

I read “Execution: Discipline of getting things done” by Ram Charan first time when I was in college doing MBA. I couldn’t appreciate value of execution at that time but still thought it was an excellent book.

After few years of corporate life and seeing the world change at unimaginable pace ( both boom and bust), I was wondering about Execution Barriers and Ram Charan’s book (though a good read ) cannot provide all the answers.

So what are Execution Barriers ?

Execution Barrier 1: Profit Making Motive rather than Idea Implementation

What will drive and inspire a team to produce extra ordinary results?

Setting financial goals like increasing sales by X, increasing Profit by Y, increasing share price by Z and then following this up in reviews?

Or implementing a unique product or process idea which is unprecedented and difficult to achieve and following this idea implementation process?

Idea can be a new product , better quality, better service , better on time delivery, affordable pricing , a different channel, user experience etc that on implementing will provide customers a better product or service proposition.

Radical ideas are contagious and inspire team more than financial targets. If implemented successfully they can even help to over shoot financial targets X,Y or Z.

Most executives and corporates miss the above and set only financial goals X,Y,Z and expect their team members to figure out the details, “ I don’t care what you do, just meet these numbers !!”

One cannot engage and inspire the team in this way. On the contrary , an inspiring and radical idea can even motivate folks to work and implement it for free ( like Linux, Wikipedia etc..)

Most successful examples in recent corporate history such as Microsoft, Apple, Yahoo, Google, Amazon, Cisco, Ikea, Dell, South West Airlines, Sony, Tata, Walmart, Infosys, Huawei, Reliance were those of successful idea implementers. These corporates had their radical ideas, which inspired their team to develop new products, services and processes, Thus inspiring their team to develop wining business propositions while executing on their ideas.

There will be many corporates whose radical ideas were not successful e.g. infamous Motorola Iridium case.

How can one know whether his idea is worth implementing? There is only one way to know, Just do it!! . Outcome will be successful, when idea is implemented passionately and meets right market opportunity (like Microsoft’s OS met growing PC demand). However some corporates might not be that lucky.

Luck or external environment is not in one’s control but executing an idea can certainly be one’s choice, which will be more inspiring and engaging than mere financial targets which most companies follow.

So what’s your big idea ?

To Be Contd…