Professional Documents
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Execution:
The Key to Great Results
by Partner and Founder Carsten Lindgaard, cl@franklincovey.dk,
FranklinCovey nordic approach
Factors which are I frequently hear managers and employees explain that
NOT essential their line of business is unique, and that many specific factors
limit their potential to achieve great results. Poor market
opportunities, increasing oil prices, fierce competition, and
unfavourable trade parameters are but some of these limiting
factors. Surprisingly, a number of companies that achieve
sustained superior results are not found in lines of business
with limited competition or particularly “cushy” ones (e.g.,
car rental, aviation, hotels). Therefore, it seems fair to ask
if these explanations are merely (poor) excuses to justify
continued mediocre results.
Factors which Generally, the primary reason that companies do not achieve
ARE essential sustained superior results is poor or lacking execution, which
we call “the execution gap.” Many leaders take execution for
granted and seem surprised when asked, “How do you exe-
cute the company’s strategy?” Mostly, answers focus on in-
ternal communication and follow-up procedures—which are
nowhere near adequate or sufficiently precise. Paradoxically,
many companies have set up detailed procedures for the pre-
ceding steps—i.e., development and formulation of the stra-
tegy—but few have made detailed plans to ensure efficient
execution. Frequently, top managers can explain all the ele-
ments of the strategy process, but they expect execution to
simply happen.
% increase in
profitability
% increase in
revenues
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Source: FranklinCovey’s International Research Center 2006. Data from 3 international companies
Figure 1.
Leadership that Any leader builds on his or her personal style and drive.
creates great Leaders therefore contribute with different individual
results characteristics. And this diversity is a substantial advantage
to every company because it can spawn synergy and lead to
development. However, our surveys have identified five
essential skills of top-performing leaders that any leader can
acquire and use, regardless of his or her style and drive.
Stephen R. Covey
Far too often, managers have only a single goal that relates
exclusively to financial performance. This goal typically
surfaces in connection with major challenges such as the
“4th Quarter Syndrome” seen in many listed companies. This
syndrome sometimes means that the organization neglects or
even intentionally disregards less quantifiable goals. Our
research has shown that companies that achieve sustained
superior results consistently excel in the following four areas.
These companies:
Ram Charan
Dennis Waitley
3. Teams don’t keep track and don’t know their own score
Carlos Ghosn
As the Glostrup branch of Danske Bank initiated its development process at the turn
of the year 2004/2005, the 65 employees and their management team were facing
considerable challenges. A new branch structure had brought together employees
who did not know each other. Employee satisfaction was low, and employees gene-
rally lacked a sense of responsibility. Furthermore, the employee replacement rate
was high, and the management team facing the challenge of motivating employees
was newly established and inexperienced.
The Vision was to turn the Glostrup branch of Danske Bank into the world’s best
local multi-purpose bank. The Mission was to build job satisfaction, customer
loyalty, and good management. And, finally, the bank would ensure employee com-
mitment through principle-based management, personal development, and delega-
tion of responsibility. “We simply needed to force ourselves to think in a new and
different manner if we were to achieve our goals,” says Frank Vestergaard-Olsen.
That led to the formulation of their Wildly Important Goals and a measure for
each of these goals:
• INCREASE REVENUE
• NEW CUSTOMERS
• MORE CUSTOMER MEETINGS
The implementation of these Wildly Important Goals was at the heart of the process
to change the branch. And that proved far from unproblematic. ”It is quite a
challenge to change bank employees’ attitudes,” says Frank Vestergaard-Olsen.
“Bank employees are, almost by definition, decent people. That is, they are
meticulous, cautious, precise, and stable; they do not put on airs or offend. Did I say
'boring and incapable of change'? No, I did not. But the process required every single
employee to search within themselves to determine how far they were willing to
stretch to achieve the Wildly Important Goals. The process triggered psychological
mechanisms and made each of us consider what our defining characteristics are
– a process that was not in all cases considered desirable. In some persons, the
process created a sensibility that was painful.”
Although the Glostrup branch once had a low level of employee satisfaction - and
was placed second to last in the regional branch list – it currently ranks third.
Furthermore, the branch has moved to the top of the Bank's internal balanced score-
card. But the process leading to change in the bank employees' habits has not come
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easy. One of the surprising results in the report FranklinCovey prepared after the first
nine months of the process was the employees’ endorsement of the Wildly Important
Goals that were initially defined as one of the primary points of orientation.
Many companies Employees easily lose their passion and energy if they
miss the cannot relate their daily efforts to the company’s overall goals
opportunity to as well as their team goals. If you do not feel appreciated or
achieve creative believe that you are contributing to a shared goal — one you
contributions believe in — work can be demoralizing. Many companies
miss out on the opportunity to solicit employees’ creative
contributions towards achieving great results simply because
the employees are not genuinely engaged in developing the
team’s goals and actions.
Henry J. Kaiser
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Many leaders Many leaders need to learn how to listen empathically and to
c
should learn communicate with and involve their employees and teams
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to listen to ensure that everyone knows his or her role and value in
empathically achieving the team’s Wildly Important Goals. In this way,
each employee becomes capable of prioritizing and “clearing
the path,” while managers learn more from the details that
From To
Work Group High Performance Team
Δ
Management Style
ship Skills
Manager owns the goal and carries Team owns the goal and takes
Δ
Division between those who think Everyone thinks, decides and works
and make decisions, and those who
work
• Only one in every ten (11 percent) agreed that “in our
organization, consequences and rewards are clear.”
• Only 21 percent answered that results were measured
clearly, and less than 5 percent could mention the three
most important measures of the company.
You can buy a man’s time; you can buy his physical
presence at a given place; you can even buy a measured
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8. References
Books
Good to Great, Jim Collins, 2001
Execution: The Discipline of Getting Things Done,
Larry Bossidy and Ram Charan, 2002
The 8th Habit - from effectiveness to Greatness,
Stephen Covey, 2005
The Carrot Principle, Adrian Gostick & Chester Elton, 2007
The Wisdom of Teams, Jon R. Katzenbach,
McKinsey & Company, 1993
The Speed of Trust, Stephen M. R. Covey, 2006
The 80/20 Principle, Richard Koch, 1998
The 7 Habits of Highly Effective People,
Stephen Covey, 1989
Surveys
Vilstrup survey (Danish xQ Study 2004).
Harris Interactive (international xQ Study 2007).
Getting to Great: Mapping Management Practices that
Drive Great Store Performance, a Study Conducted for the
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