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The Six Disciplines Blog

Friday, February 20, 2015

Seven Rules To Close The Strategy To Execution Gap

According to the consultants at Marakon, companies typically realize only about 60% of their strategies’ potential value because of defects and breakdowns in planning and execution. Yet, by following seven simple rules, you can get a lot more than that.

Marakon found that the processes companies use to develop plans and monitor performance make it difficult to discern whether the strategy-to-performance gap stems from poor planning, poor execution, both, or neither.

Here’s what they found:

  • Companies rarely track performance against long-term plans.
  • Multi-year results rarely meet projections.
  • A lot of value is lost in translation.
  • Performance bottlenecks are frequently invisible to top management.
  • The strategy-to-performance gap fosters a culture of underperformance.

To help close the strategy-to-execution gap, Marakon recommends the following seven steps:

  1. Keep it simple, make it concrete.
  2. Debate assumptions, not forecasts.
  3. Use a rigorous framework, speak a common language.
  4. Discuss resource deployments early.
  5. Clearly identify priorities.
  6. Continuously monitor performance.
  7. Reward and develop execution capabilities.
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Since 2005, the Six Disciplines blog offers posts about performance excellence, strategy execution, business coaching, leadership development, innovation, and business process improvement. This blog has received prestigious awards for leadership and management and has been syndicated by several major media sources.