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
Strategy challenges are indicated by a slowing in top line revenue growth. If revenue is not growing as quickly as you like, then it’s time to re-examine your strategy: What you’re selling to whom? It’s important to have a concise statement of that strategy so everyone’s aligned and on the same page without wasting sales or operational energies on activities not useful to the business.
Decisions equal success. There are four decisions, in growing your business, that you must get right or risk leaving significant revenues, profits, and time on the table. These four decisions are: People, Strategy, Execution, and Cash. Most growth firm’s face continual challenges in all four areas, at any one time the challenges in one of these areas overshadows the rest. Therefore, your first decision is to choose which one of the four to focus on next.
We’re exploring the Four Decisions resources and Growth tools Positioning Systems and Gazelles coaches provide to our customer to help you become familiar with how you can ramp up the growth of your small to mid-sized business.
The challenge in almost every business, small to mid-size, growing or static, is to initiate or continue revenue growth. Of the Rockefeller Habits Four Decisions, People, Strategy, Execution and Cash, Strategy is the Decision that produces revenue growth.
What can managers do to improve their people? Our review of the resources and tools that Rockefeller Habits and Positioning Systems can provide your growing enterprise continues with a look at the remaining tools we provide our customers with to improve People. You can read the first group of People tools and resources at Rockefeller Habits 4 Decisions Tools – People.
Topics: Five Dysfunctions of a Team, Work Process Flow Charts, People, Four Decisions, Leadership Team, One-Page Personal Plan, Core Processes, FACe exercise: Functional Accountability Exercise, Scaling Up Verne Harnish
Have you considered whether or not your business needs a business coach? Do you have the right structure for Annual and Quarterly Planning? What elements of Strategy or Execution can your business do better to achieve increased results?
Considering that you’re the leader of your business it naturally makes sense that you should plan and command the leadership role in your annual planning and strategy session.
A fundamental principle of Good to Great and The Rockefeller Habits is the first place to grow your business is People. People is one of the Four Decisions in growing your business, that you must get right or risk leaving significant revenues, profits, and time on the table. If you don’t recall Jim Collins quote from Good to Great, you should keep it somewhere on your desk as a constant reminder, “First who than what.”
People, Collins states, are more important that the product or service you provide.