execution by ram-charan

Delivering Results as a Principle-Centered Leader

Execution: The Leadership Challenge of the 21st Century

The Challenge: Ability to Execute“Leadership without the discipline of execution is incomplete and ineffective. Without the ability to execute all other attributes of leadership become hollow”— Larry Bossidy Chairman, Honeywell International

#1 REASON WHY LEADERS FAIL?

70% of strategic failures are due to poor execution of leadership. …

It’s rarely for lack of smartsor vision.

Source: Charan, R. and Colvin, G. “Why CEOs Fail”, Fortune, June 21, 1999.

Business Plans--Execution

Ram Charan

HarrisInteractiveSM

McKinsey & Company

1. Leadership and Execution

2. Identify your agency’s “Execution Challenge”

3. Research on root-cause break downs in

execution.

4. What a Leader Needs to Know (The Principles

of Execution)

5. What a Leader Needs to Do (The Process for

Executing)

Agenda

WILDLY IMPORTANT

important adj. 1: meaning a great deal; having significance, value

wildly important adj. 1: of visionary and strategic import; carrying serious economic consequence; potential for unbelievable satisfaction of key stakeholders; causing intense excitement and enthusiasm

THE POWER OF FOCUS

01–22–3

Goals Achieved With Excellence

11–204–102–3Number of Goals

A leader who say’s “I’ve got ten priorities” doesn’t know what he is talking about. He doesn’t know himself what the most important things

are. You’ve got to have these few, clearly realistic

goals and priorities…

Larry Bossidy & Ram Charan, Execution: The Discipline of Getting Things Done, New York:

Crown Business, 2002

W.I.G.s Wildly

Important Goals

Model Not yet Never

Execution

Execution Challenge

_______________

_______________

_______________

Who?_____________

What Different?

__________________

__________________

__________________

__________________

__________________

What is the most

important goal of the

business unit?

Is there a group of people that have to

learn something new or do something

different, in order for you to be

successful?

What % models this behavior?

What % need to, in order for you to achieve your WIG

Tasks / Activities

Wildly Important

Goals

1

___%___%___%20 60 20

80

Execution

Model Not yet Never

3

100% Guest Retention

2

Tasks / Activities

Who: (Group) House Keeping

What: (Do Different)…

1. Gather information on

individual preferences

2. Converse with guests

3. Input data into computer

system

Ritz-Carlton

Strategic Bet Execution Bet

?

Technical or HumanProcess

Plan

Tools

Buy – in

Clarity

Accountability

W.I.G.s Tasks / Activities

Execution

Principles Process

What a Leader needs to Know

What a Leader

needs to Do

W.I.G.S. Tasks / Activities

Execution

Gauge Process

Execution

Principles Process

Clarity

Commitment

Translation

Discipline

Enabling

Trust

Collaboration

Accountability

Synergy

Focus

8 Principles of Execution

Clarity

Commitment

Translation

Discipline

Enabling

Collaboration

Trust

Accountability

Synergy

Focus


1. Do they know what’s most Important

Lack of Clarity

Clarity

Commitment

Translation

Discipline

Enabling

Collaboration

Trust

Accountability

Synergy

Focus


1. Do they know what’s most Important

2. Do they want to do it?

3. Do they know how to do it?

4. Do they sustain the course?

5. Do they work together?

xQ Results

1. Do people know what to do? 44% of employees say they don’t know their

company’s highest priorities

2. Do they want to do it? Only 19% feel a strong sense of commitment to the

company’s goals

3. Do they know how to do it? 9% believe their work has a strong link to their

organizations top priorities

4. Do they have the discipline? People spend less than half their time (49%)

on activities linked to the organization’s key priorities

5. Do they work together? Only 31% feel they can express themselves

honestly and candidly at work

The Focus & Execute Gap:

“Execution is a systematic way of exposing reality and acting on it. Most organizations don’t face reality very well . . . that’s the basic reason they can’t execute.”

(Ram Charan, Execution, pg. 22)

Clarity 52

Commitment 52

Translation 43

Discipline 65

Enabling 32

Collaboration 49

Trust 59

Accountability 57

Synergy

Focus

XQ51 (National Averages)

XQ 34 (First XQ Survey)

Focus 35

Synergy 33

Clarity 24 52 Commitment 39 52

Translation 19 43

Discipline 61 65

Enabling 31 32

Collaboration 39 49

Trust 30 59

Accountability 34 57

Cortez Example 1st Survey

National Ave.4/02

3

XQ 59 (Second XQ Survey)

Focus 61

Synergy 56

Clarity 24 51 Commitment 39 41Translation 19 61Discipline 61 65

Enabling 31 31Collaboration 39 59Trust 30 69Accountability 34 66

Cortez Example 2nd Survey

4/02 10/02

4

Delivering Results as a Principle-Centered Leader

Execution: The Leadership Challenge of the 21st Century

Other Approaches?

W.I.G.s Tasks / Activities

Execution

Principles Process

What a Leader needs to Know

What a Leader

needs to Do

W.I.G.S. Tasks / Activities

Execution

Gauge Process

xQExecution Quotient

Execution

Principles Process

Clarity

Commitment

Translation

Discipline

Enabling

Trust

Collaboration

Accountability

The Focus & Execute Gap:

“Execution is a systematic way of exposing reality and acting on it. Most organizations don’t face reality very well . . . that’s the basic reason they can’t execute.”

(Ram Charan, Execution, pg. 22)

Tasks / Activities

1. Focus W.I.G.s

Wildly Important

Goals

Process

Principles Process

Execution

Execution:The 4 Disciplines

of High-Performing

Teams

Humans beings are genetically hard wired to focus on one

thing at a time with excellence

1. Focus on the Wigs

Tasks / Activities

Execution

1. Focus W.I.G.s

2. Build Measures

Wildly Important

Goals

Process

Principles Process

Execution


of High-Performing

Teams

There is no such thing as a clear goal without a

measure.

2. Build the Measures

Tasks / Activities

1. Focus W.I.G.s

2. Build Measures

3. Translate to Action

Wildly Important

Goals

Process

Principles Process

Execution


of High-Performing

Teams

New goals you’ve never achieved before require new

behaviors you’ve never done before

3. Translate into Action

Tasks / Activities

1. Focus W.I.G.s

2. Build Measures


4. Report the Results

Wildly Important

Goals

Process

Principles Process

Execution


of High-Performing

Teams

Individuals on high performance teams do not tolerate mediocrity, they hold

themselves and each other accountable for results and

activities.

4. Report Results

Tasks / Activities

1. Focus W.I.G.s

2. Build Measures



Wildly Important

Goals


of High-Performing

Teams

Qtr / Yr

Qtr / Yr

Wk

Wk

Principles Process

Execution

Tasks / Activities

Execution

1. Focus W.I.G.s

2. Build Measures



Wildly Important

Goals

Qtr / Yr

Qtr / Yr

Wk

Wk

The Process


of High-Performing

Teams

Principles Process

Herding Cats

Norfolk Naval Shipyard

• Norfolk is a 200+ year old shipyard,

• Largest in the world,

• Civilian, Military, and 8 Unions

• 8,000 people

• Handles every type of repair and

refueling

• Handles every type of ship in the

Navy

• Anytime… Anywhere…



Impact of Execution Disciplines over the last 5 years:

What they did?

1. Focused the leadership from 16 goals at a time to 5

- currently moving to 3

2. Took the five goals and translated them to the deck-

plate (front-line).

3. Built scoreboards in the shipyard, ship by ship

4. Defined performance standards and codes of

conduct, and put them "on the ground" from the

leadership team to the deck workers


What they did?



What they got?

1. Reduced cycle time on major maintenance from roughly 27 months to 20

2. Minor maintenance from 14 months to 11

3. They went from a $16 mm operating loss to a $40 mm profit (to return to the Navy) over the five year period.

4. Union Grievances went from 60 a year to virtually none


“This Execution Approach was ‘born’ at the shipyard at the demand of the Shipyard Commander to be able to take a specific goal and get it to the deck plate (the front-line) very fast, very effectively, and completely.

…He demanded it and we created it.

…That's the short story.”-Jim Stuart, Franklin Covey

execution by ram-charan

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