Vision or Execution as the key to success?
I would
like to share some insights that I have gained from working with technology
businesses in both an operating and consulting capacity. I hope you find them useful.
Dell,
Microsoft, Home Depot are successful businesses. Were they built on vision or execution? Clearly it takes both. My observation over several decades is that
success is 10% vision and 90% execution. By analogy, Gary Player and Tiger
Woods both had visions of winning major golf tournaments when they were young
boys. Is that what made them great golfers,
or was it their ability to execute? How
many other aspiring golfers had great visions, but did not succeed?
I’d like to
offer some thoughts on why execution is the key, and comment on what good
execution is, and how a business executes well and gets good at it.
Why is
execution the key? I was recently on a
panel at the MIT Enterprise Forum where aspiring entrepreneurs present their
business ideas and ask for feedback.
They all had quite reasonable ideas for businesses and a clear vision of
where they wanted to go. I thought,
“What is the difference between the businesses with good ideas that don’t make
it, and those that do?” The answer was simple – those that succeeded were able
to follow through and make things happen.
They could execute well. Dell
can produce a custom PC at a low cost and in a few days. Microsoft learns from its customers and
evolves its products from weak first releases to very powerful later
versions. Home Depot always has a huge
selection of the products home-owners need in stock, and can sell them at low
prices and still be profitable.
What is
good execution? It’s all about making
good decisions and making things happen.
It’s about reacting well to unpleasant and unexpected events. It’s about building capabilities into an
organization; the capability to be efficient and effective at those things that
are critical to the success of the business.
It’s about Fedex making sure that the package
really does arrive the next day.
How does a
business execute well and get good at it?
·
It
needs to focus on the “core activities” that the business needs to do to
advance. That’s where to invest the time
and resources. There are always more
things to do than there are time and resources available to do them. Go for the
“high impact” activities.
·
It
must hold to deadlines and adjust tasks accordingly. Slipping deadlines are a symptom of poor
execution. Set realistic deadlines and
then monitor progress and make timely decisions to ensure they are met.
·
It
must pay attention to the details of the core activities. It was a simple O ring design flaw that
destroyed the space shuttle. The details
are what make the difference between a mediocre product and an outstanding
product, a marginal customer experience and a great customer experience. This
may seem to be in conflict with the point about meeting deadlines. However, it is precisely being aware of the details that makes it easier to meet deadlines. Lack of attention to detail can cause the
unexpected to “bite you in the rear-end” and slip the
schedule.
·
It
needs people with experience and expertise, and those who can experiment and
learn. Well trained experienced people
know how to get the job done effectively.
Inexperienced or non-trained people will simply not be as effective.
They can be developed over time. People
who experiment and learn become experienced executors. Hire experienced people
and adept learners.
I would
like to return to a golfing story. Many
years ago, Gary Player was tied for the lead in a major tournament going into
the final hole. He miss-hit his second
shot and landed in a sand trap next to the green. He proceeded to hit the ball
out of the trap and onto the green where it rolled into the hole and he won the
tournament. A TV reporter walked over to
him and exclaimed, “
I would
welcome your comments and viewpoints.
Send them to me at: leons@monmouthgroup.com
Regards,
Copyright ÓLeon Sandler, Monmouth Group, March 2001