Source: Hendrix and Singhal
Today’s competitive environment demands that organizations take disciplined action. But, disciplined action is not possible without disciplined thought, specifically, strategic choice. Choice about what you will and will NOT do. According to strategy expert Michael Porter, the essence of strategy is “deciding what not to do.”
Sustainable success requires being different in ways that matter to customers. Answering three questions will determine your strategic difference.
Executing your strategy is a universal challenge.
Strategy execution is hard for a variety of reasons, but it is not rocket science. You simply need a system to manage it.
“It’s better to have grad-B strategy and grade-A execution than the other way around.” – Michael Porter
Two previous studies*, involving over 2000 organizations over ten years, provide compelling evidence that organizations that effectively implement a systematic, organization-wide approach to managing all key aspects of the business perform better. The first study found that the compound growth rates in earnings were more than double those of the control firms over four years after implementation, and about 75% in terms of compound sales. Here are a few key findings:
*”Don’t Count TQM Out,” by Hendrix and Singhal in Quality Progress Magazine, April 1999
“Does Quality Still Pay?” by Zhang and Xia in Production and Operations Management, January 2013
3x more The likelihood of employees staying in a purpose-driven organization.
75% Companies with a clear sense of purpose are the new leaders in customer retention with 75% retention rate.
72% of global consumers would recommend a company with a purpose, a 39% increase from 2008.
1.4x Employees are also 1.4 times more engaged.
89% of clients believe a purpose-driven company will deliver the highest quality products & services.
13% Investments focused on activating the company’s purpose generate higher average annualized returns by 13% vs S&P 500 (4%)
10x Purpose led companies outperformed the S&P 500 by 10 times between 1996 and 2014.
2x Employees are twise as optimistic about the future of their organization when they feel connected to a higher purpose.
120% ‘Meaningful brands’ connected to human well-being outperformed the stock market by 120% in 2013.