Execution is about turning your hard-earned revenue (top line income that remember comes from Strategy) into bottom line net profit. Companies that are strong on top line performance and yet struggle to make a reasonable or attractive bottom line profit typically have challenges with Execution – that is being both efficient and effective operationally. In this blog we will cover the principles and habits that John D. Rockefeller used to build an operationally excellent company and which Verne Harnish (Scaling Up and Mastering the Rockefeller Habits) has adapted for mid-market growth companies.
Strategic Discipline Blog
You’re probably familiar with the term KPI’s or Key Performance Indicators. KPI’s are driven by top-down leadership decisions. These are the Key Performance Indicators for the company based on the Annual, Quarterly and Trimester planning and strategy meetings businesses have to set direction for the business.
Last Monday when I arrived at my customers business in Concord, CA I was able to observe their daily huddle. It was about ten minutes in length and included about 12 people. They went through the first two agenda items, priorities and metrics, but left out the “where are you stuck” portion of the meeting. It was precise and punctuated with meaningful metrics and priorities from each individual including two who reported from the phone: one who works remotely, another who was stuck in traffic.
What does an effective quarterly meeting look like?
Are you on time? Do you run on Lombardi time?
According to the Power of Full Engagement two behaviors dramatically increase the likelihood of successfully locking in new rituals in the typical thirty to sixty day acquisition time period. They call these behaviors Basic Training and they are very similar to the process we ask our Gazelles Clients to follow for developing Strategic Discipline.
We’ve discussed meetings many times in this blog since they are a foundational element of Strategic Discipline and provide a cadence of accountability for your executive team. You should cascade these meetings throughout your organization as well to increase accountability. Did you know that if your business is conducting boring, routine meetings without team members providing their opinions, feedback, that failing to encourage conflict is putting your business in a position of severe risk?
Is the mood in your company for meetings one of anticipation or aversion?
A prospect this past week reacted to the suggestion of meetings by indicating they have to be careful in their organization to mention the word meeting. His people dislike meetings and generally greet them with annoyance and impatience. It suggests that the meetings they’ve conducted in the past are possibly disorganized, not well prepared, unexciting, lack conflict and do little to energize those participating. It’s also a reflection of what I believe many businesses suffer from. They feel meetings are boring, and a necessary evil.
Allow me to reflect on my current condition and place this in perspective. I’m currently suffering from a condition called dry mouth. It’s a symptom of Graft Versus Host Disease (GVHD)which can occur after bone marrow transplant for leukemia patients.