The Execution Solution: 5 Trade Secrets of Companies That Consistently Get Things Done

By Rick Lepsinger

If your organization is like so many others, it seems to have all the ingredients for success firmly in place. A well-thought-out vision? Check. Skilled, highly engaged employees, quality products and services, strong customer relationships? Check, check, check. So why, in the face of everything youre doing right, cant you deliver consistent results? Based on my years of research, the problem is an execution gap.

If an organization cant execute, nothing else matters not the smartest strategy, not the most innovative business model, not even game-changing technology. And for many companies there is a clear gap between intent and execution.

My company, OnPoint Consulting, studied more than 400 companies and found that 49 percent of leaders surveyed reported a gap between their organizations ability to formulate and communicate a vision and strategy and its ability to deliver results.

That finding was the surprising part. What really shocked me was that only 36 percent of these leaders responded positively to the statement, I have confidence in my organizations ability to close the gap between strategy and execution.”  That means a staggering 64 percent of them didnt believe their company could fix their execution problem.

For companies struggling to pull themselves out of the ditch the recession kicked them into, the inability to get things done is very bad news. If you cant execute well, youre not going to be successful and you might not be around for long.

So heres the question: If a clear and inspiring vision, a realistic strategy, employee commitment, a skilled workforce and high levels of quality and customer service dont lead to successful execution, what does? What sets the best apart from the rest?

My research uncovered five characteristics and competencies I refer to them as The Five Bridges” that enable people to traverse the execution gap. It is these bridges that differentiate the companies that are consistently able to get things done (Gap Closer)from those that arent (Gap Makers).

Bridge #1: The Ability to Manage Change

Change is inevitable. We all know that. However, despite their sincerest efforts, many companies cant seem to operationalize that knowledge and turn it into positive action. And thats a dangerous shortcoming. Simply put, you cant run a successful business if you cant adjust to changes in the marketplace.

If youre not flexible enough to bend with the winds of change like a palm tree or a bamboo, youll snap in half like a Bradford pear when the first storm comes along.

A Gap Maker: Dell. Just as people can get stuck in a rut, so can businesses. Computer maker Dell developed the Dell Way” and its reluctance to tread off of the beaten path cost it its customers. The company was able to attract customers to its website with low-cost offers that required the buyer to make additions in order to have the best computer. This meant the final price ended up being more than the original low-cost offer. But when tons of affordable computers with all of the bells and whistles that consumers wanted became readily available through other online outlets and retail stores, consumers didnt have to go to Dell to get a custom-made” computer.

Thats when Dell turned a problem into a huge problem. When its leaders realized they were losing business to competitors, they fell back on a practice that had always worked for them before: they cut costs to maintain market share. One area that suffered was customer service, which had originally been one of the companys biggest strengths.

Dell created a customer service nightmare. Its recently made changes to get back on course, but once youve lost customer confidence, it can be hard to get it back.

Bridge #2: A Structure That Supports Execution

Simply put, successful organizations strike the right balance between centralization and decentralization. Many companies go to great lengths to develop an exciting vision, create a realistic strategy and get employees engaged. But then they just assume the current organizational structure and systems will support the new strategy. Often, its just not true.

And structure isnt just about efficiency. A good one enhances accountability, coordination and communication. Plus, it ensures that decisions are being made as close to the action as possible. These are all key components of getting things done.

A Gap Closer: Hewlett-Packard. When Mark Hurd became CEO of Hewlett-Packard, he was constantly asked if he thought acquiring Compaq was a good idea. Hurd responded that what was done was done that his job was to find a way to make it work. He did just that when he reorganized the company into three divisions, each with its down sales force (with the heads of the divisions responsible for sales). He also reorganized the IT function. Instead of having 85 data centers, he centralized them into three.

Hurd decentralized the sales force and centralized the IT function of the company. This is the opposite of the way the company was organized before, and it ensured the organizational structure would be better aligned with the business strategy.

Bridge #3: Employee Involvement in Decision Making

Admittedly, this is a controversial notion. Some leaders view involving employees in decision making as a sign of weakness. Others fear giving up control. In reality, though, the world is too complex for any leader to go it alone. To make good decisions, you must seek out the perspectives of a wide range of people and who knows better than employees what the closest-to-the-ground issues are?

Involving employees in decisions gets them focused on generating solutions to problems rather than complaining or waiting to be told what to do. It creates a valuable sense of ownership.

A Gap Maker: The NBA. When the National Basketball Association (NBA) tried to introduce a new basketball, guess who they forgot to involve in the decision? The players. Thats right. The NBA came up with a new ball design and never once during the development process asked the players how they liked it. Theres no reasonable explanation for this. Asking the players would have increased the quality of the ball itself and the acceptance of the new ball” decision.

Instead, the NBA ended up with a ball that players refused to use because they felt it was difficult to handle when it was damp and it would actually cut their fingers. Because of the player backlash, the NBA had to scrap its improved” model and go back to the ball the players preferred the one they have been using for decades.

This anecdote is a glaring example of why it is important to involve people whose support you need to execute decisions that effect them.

Bridge #4: Alignment Between Leader Actions and Company Values and Priorities

No company should ever have two sets of values and expectations, one for the leader(s) and one for the employees. When leaders say one thing and do another, business suffers. Of course, we all know that leader behavior is relevant. Still, it might surprise you to learn exactly how much execution depend on how consistent your behavior is with organizational values and priorities.

One, if youre a leader, employees pattern their behavior after yours. Two, if how you behave signifies that we are all in this together,” people are more likely to be motivated and go the proverbial extra mile. When you expect employees to behave a certain way (such as better serving the customer or minimizing waste) or ask employees to focus on certain priorities (like cost containment or innovation), youd better do the same.

A do as I say and not as I do” attitude sends mixed messages and breeds resentment.

Gap Makers: TARP Bailout-Seeking Auto Executives. The CEOs of General Motors, Ford and Chrysler shocked members of Congress and outrages the American people when they used private jets to travel to Washington, D.C., for hearings on their financial woes. After all, the purpose of the trip was to ask for government assistance to help their companies get through the worst recession in U.S. history and the worst market for car sales in the history of their industry.

Behavior so inconsistent with what was being described as a crisis is an example of how the automotive executives helped create the problem they now found themselves in. It aimed a 10,000-megawatt spotlight on their lack of awareness of the connection between their behavior and the situation at hand.

Bridge #5: Company-Wide Coordination and Cooperation

Most employees have good intentions. They want to cooperate with colleagues and coworkers. (Who is going to consciously sabotage their own livelihood?) Yet, ensuring that decisions and actions are coordinated across organizational boundaries requires more than faith and words alone. It takes shared goals, clear communication and well-defined roles.

In addition, people must be held accountable for doing what theyre supposed to do. That takes two things: clear performance expectations and systems that encourage and reinforce appropriate employee behavior.

A Gap Maker: Toyota. Many people were surprised when Toyota, a brand known for its quality and reliability, recalled more than 6 million cars due to a fault accelerator pedal. How did this once might brand end up with such a PR disaster on its hands?

Toyota used to work with one supplier for each part. But when a fire at a suppliers facility caused 20 plants to shut down for five days, the company decided it needed a second source as a back-up. For the accelerator, Toyota failed to ensure the parts it was receiving from the two suppliers were identical.

Analysts chalk this failure up to a bureaucracy that could not accommodate the companys rapid growth. They also point to an overly aggressive focus on profits one that led executives to ignore principles that had contributed to its previously untarnished reputation.

These five execution bridges are critical. Without them, youll have a tough time achieving your companys goals. The more bridges you have in place, the more likely you are to do do and the lack of any one of them could potentially derail your efforts.

Also, as the Toyota breakdown aptly illustrates, these bridges are not permanent. In fact, theyre quite fragile. Once youve built them, you must keep vigilant watch over them and work hard to maintain them over time.

Its quite possible for a company to have a bridge in place one year, only to discover that over time its weakened or even crumbled and is no longer able to help your people traverse the gap. Execution is not a single-point event; its an ongoing process. But since your ability to execute well and consistently is the very fabric of success, I can think of no better place to focus your time and energy.

Richard Lepsinger is president of OnPoint Consulting and has a 25-year track record of success as an organizational consultant and executive. His client list includes Bayer Pharmaceuticals, Citibank, Coca-Cola Company, ConocoPhillips, Goldman Sachs, Johnson & Johnson, NYSE Euronext, PeopleSoft, Prudential and Subaru of America, among others.