EXECUTION

The Discipline of GETTING THINGS DONE

Yasser ElFar

Definitions

What is Sales ? It is Art of convincing. What is Marketing? It is Art of creating demand.

What is Management? It is Art of doing things through people . Yasser ElFar

Definitions

Efficiency: Do things right.

Effectiveness: Do the right thing.

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Marketing Strategic Role

Because of dog-eat-dog market, Continuous innovation is the trend. But because of imitation, competitors after a while become equal. So, Firms must achieve Sustainable Competitive Advantages (SCAs) to differentiate them self in the market. If SCAs is achieved only through the marketing mix (Product, price, place, people & promotion) it is easily to be imitated
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Marketing Strategic Role

2 Basic sources for SCAs:

Superior resources: Better location, prime access to supplies, .. Superior skills: More human talent, Know how, competencies, managerial abilities Or all of t6hem.

The SCAs can be achieved only when 2 conditions are met:

This difference must be communicated in the market. This difference must be reflected in our organization. (products, attitude, everything)
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Business History
Time Period Business Type Objective Orientation Before 1930 Production Making Sales Short-Term Seller Needs 1930 - 1960 Sales Making Sales Short-Term Seller Needs Persuader Aggressively 1960 - 1990 Marketing Satisfying Customer Needs Short-Term Customer Needs Problem Solver Matching available After 1990 Partnering Building Relationship Long-Term Seller & Customer Needs Value Creator Creating new alternatives, matching buyer needs with seller
Yasser ElFar

Role Of Sales Provider Person Activities Of Sales Taking orders,

convincing buyers offerings to buyer Person Delivering goods to buy products needs

capabilities

EXECUTION

Most Often today, the difference between a company and its competitor is the ability to execute You can get away with poor execution, by demanding for patience.

The business environment is tough right now!!! Our strategy will take time to produce results!!!

Nowadays, leaders who cant execute, dont get free runs anymore.
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EXECUTION

Execution, is the great unaddressed issue in the business world today. Its absence is the single biggest obstacle to success and the cause of most of the disappointments that are mistakenly attributed to other causes. People think, wrongly, of execution as:

The tactical side of business. Leaders should delegate, while focusing on the perceived bigger issues
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EXECUTION

Execution is not just tactics it is a discipline & a system. It has to be built into a companys strategy, its goals, and its culture. Execution-oriented companies change faster than others because theyre closer to the situation. Leading for execution is not about micromanaging, it is about active involvement. Take care: When companies fail to deliver on their promises, the most frequent explanation is that the leaders strategy was wrong. Yasser ElFar
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EXECUTION

If a manager in department X, plans a 8% increase in sales for the coming year. What will the leaders do in the budget review? In an Un-Execution Company:

Most leaders will accept the increase with no discussion.

In an Execution oriented Company:

The leader will ask the following:

Where will the increase come from? - What product will generate the increase? Who will buy it? - What is the added value for those customers to make them buy it? - What will be the competitor's reaction? - What will our milestones be?
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EXECUTION

Why Execution is Needed? The Building Blocks of Execution

1. The leaders Seven Essential Behaviors. 2. Creating the Framework for Cultural Change. 3. The Job No Leader Should Delegate Having the Right People in The Right Place.

The 3 Core Processes of Execution

1. People Process. 2. Strategy Process. 3. Operations Process
Making the link with Strategy & Operation Making the link with People & Operation Making the link with Strategy & People
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Why Execution is Needed?

Execution is A Discipline:

Execution is not the tactical side of business. Tactics are central\vital to execution. Execution is a systematic process of thoroughly discussing how and what, questioning, persistently following through, and ensuring accountability. Execution is a systematic way of exposing reality & acting on it.
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Why Execution is Needed?

Execution is the Job of the Business Leader:

Execution requires a comprehensive understanding of a business, its people, and its environment. An organization can execute only if the leaders heart & soul are immersed in the company. The leader is the only person in a position to achieve that understanding. The leader must be in charge of getting things done by running the 3 core processes. And leader can not delegate them.
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Why Execution is Needed?

Execution is the Job of the Business Leader:

Only the leader can ask the though questions that everyone needs to answer. Dialogue is the core of culture and the basic unit of work.

How people talk to each other absolutely determines how well the organization will function.

Only leader can set the tone of the dialogue in the organization.
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Why Execution is Needed?

Execution Has to Be in the Culture:

Execution has to be embedded in the reward systems, and in the norms of behavior that everyone practices. Discipline of execution does not work unless people (and I mean all people) are schooled in it, and practice it constantly. Organizations dont execute unless the right people, focus on the right details, at the right time.
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Building Blocks of Execution:

1. The Leaders 7 Essential Behaviors

What exactly Execution leaders do? How do they keep from being a micromanagers, caught up in the details of running the business?
1. 2. 3. 4. 5. 6. 7. Know your people & your business. Insist on realism. Set clear goals and priorities. Follow through. Reward the doers. Expand peoples capabilities. Know yourself.
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Building Blocks of Execution:

1) Know your People & your Business:

1. The Leaders 7 Essential Behaviors

Leaders have to live their businesses. If leaders do not do that:

They are out of touch of the day-to-day realities. They are getting lots of information, but its filtered, presented by own perception or limitations. They dont know their organization, and people do not know them. Good managers will be frustrated from the leader, since they expect good and challenging questions to prove that they are good. (Visit to a plant Example)
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Dimension of Social Styles

Assertiveness

The degree to which people have opinions about issues and make their positions clear to other publicly

Responsiveness

Is based on how emotional people tend to get in social situations, they express joy, anger and sorrow
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Less Assertive Ask Oriented Go-along attitude Cooperative Supportive Risk avoider Slow decisions Not an initiative Indirect eye contact Express moderate opinions

More Assertive Tell Oriented Take charge attitude Competitive Directive Risk taker Fast decisions Initiative Direct eye contact Express strong opinions
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Less Responsive Controls emotions Cool, aloof Talk oriented Uses facts Serious Impersonal Business like Formal Dress Monotone voice

More Responsive Shows emotions Warm, approachable People oriented Uses opinions Playful Personable Friendly Informal dress Many vocal inflections
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Social Style Matrix

Assertiveness

Driver

Expressive

Analytical

Amiable Responsiveness
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Drivers

Lets get it done now, but my way Great desire to get ahead of people Swift, effective decision makers Focus on present, less focus on past or future Decisions based on Facts & data

You need to use direct, business like, organized presentation with quick action follow up. Proposals should stress on the effects of the decision on profits.
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Expressive

Warm, approachable, intuitive and competitive View Power & Politics as important factors for rewards & recognition Focus on future, directing their time and effort towards achieving their vision They have little concern for practical details in the present. Decisions based on personal opinion and others Act quickly, take risks, impatient and change their mind easily
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How to influence an expressive

Demo how your product will help them to achieve personal status and recognition. They prefer sales presentations with product demo and creative graphics rather than technical details Also testimonials from well known firms and people They respond to sales presentation that put them in the roll of innovators

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Amiable

Close and co-operative relationships are important for them They achieve their objectives by working with people. Developing an atmosphere of mutual respect rather than using power and authority Slow decision makers, tend to avoid risk and change their opinions reluctantly
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How to influence Amiable

You may have difficulty detecting their true feelings They tend to say things to please others even though their personal thoughts defer. They R interested in receiving guarantee about the product performance Should stress on the product benefits in terms of its affect on the satisfaction of employees

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Analytical

They like fact principals and logic Suspicious on power and personal relationships Slow decision makers They systematically analyze the fact using the past as an indication of the future

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How to influence Analytical?

You need to use solid, tangible evident when selling to them. They tend to disregard personal opinions

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Identifying Customers social style

Concentrate on the customers behavior. Avoid assuming He must be an analytical because he is an engineer Attempt to get customer to reveal their style rather than react to your style Test your assessment look for clues

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These R the most 20 most persuasive words in English

Easy Money Keep Benefits Effortless Safe Retain Discovery Simple Secure Health Guarantee New Protected Strength Promise Love Save Results Free
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Building Blocks of Execution:

2) Insist on Realism:

1. The Leaders 7 Essential Behaviors

People do want to hide mistakes, or buy time to get the solution, rather than admitting they do not have an answer. Leaders should know well the weaknesses as they know the strengths. Leaders should make sure that realism is the goal of all dialogues. Leaders should measure their progress comparing to other companies, not only comparing to last year.
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Building Blocks of Execution:

3) Set clear goals and priorities :

1. The Leaders 7 Essential Behaviors

Leaders who execute, focus on a very few clear priorities. Why?

Logically, focusing on 3 or 4 priorities will produce the best results with the resources in hand. People, with no clear few priorities in limited resources organizations, will get in to a warfare on who gets what and why, instead of executing.

Leaders who execute, know these few, clearly realistic priorities, which will influence the overall performance.
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Building Blocks of Execution:

3) Set clear goals and priorities :

1. The Leaders 7 Essential Behaviors

Along with having clear few goals, leaders should strive for simplicity in general. Leaders who execute:

Speak simply & directly. Talk plainly about whats in their mind. They know how to simplify things, so that others can understand, evaluate and act on them. So, what leaders say become common sense.
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Importance Of Goals

To make our dreams come true, we need to set Specific, Measurable GOALS with Realistic, Achievable Time frame. (SMART Goal)

Goals provide a sense of direction. Goals focus our efforts. Goals guide our plans and decisions. Goals help us evaluate our progress.
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Building Blocks of Execution:

4) Follow through :

1. The Leaders 7 Essential Behaviors

Clear, simple goals dont mean much if nobody takes them seriously. Everybody may agree the idea is good, but since nobody is named as accountable for the results, the idea will not get done. The failure to follow through is a major cause for poor execution.
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Building Blocks of Execution:

5) Reward The Dowers :

1. The Leaders 7 Essential Behaviors

This fact seems so obvious that it shouldn't need saying. You should distinguish between those who are achieving results, and those who are not. It should be announced to all, to get the effective effect.

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Building Blocks of Execution:

6) Expand peoples capabilities through coaching:

1. The Leaders 7 Essential Behaviors

One of the most important part of leaders job, is to pass their long experience, wisdom and knowledge to next generation. This is the legacy that you can take pride in when you move on. Coaching is the single most important part of expanding others capabilities.
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Building Blocks of Execution:

7) Know your self:

1. The Leaders 7 Essential Behaviors

Without what we call Emotional Fortitude (Courage Strength)

You cant be honest with your self. Or, deal honestly with business reality. Or, give people candid assessment. Gives you the courage to accept any info, whatever you like it or not. Gives you the courage to accept opposite opinions. Enables you to deal with your weaknesses. Be firm with people who are not performing.
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Emotional Fortitude:

Building Blocks of Execution:

2. Creating the Framework for Cultural Change:

The hardware of a commuter is useless without the right software. In organizations, the hardware (strategy & structure) is still/lifeless without the software (beliefs & behaviors). To change a business culture, leaders need a set of social processes to change the belief of people in ways that are directly linked to bottom-line results. Culture change gets real when your aim isYasser executed. ElFar
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Building Blocks of Execution:

2. Creating the Framework for Cultural Change:

How to change peoples behavior so that they produce results?

First you tell people clearly what results you're looking for. Then you discuss how to get those results, as a key element of the coaching process. Then you reward people for producing the results. If they come up short,

You provide additional coaching, withdraw rewards, give them other jobs, or let them go.

When you do these things, you create a culture of getting things done.
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Building Blocks of Execution:

2. Creating the Framework for Cultural Change:

OLD BELIEFS We are in a commodity business. that has lots of competition, little differentiation, and thus inherently low profit margins. We can't grow at market rates. Profits follow revenues. If we can get more business, it will somehow make money on it. (This_ belief is a formula for misallocating resources.) Each leader owns all resources-control is key. Each division has total autonomy and safeguards its turf. (This belief makes collaboration among business units impossible. ) My peer is my competitor We know more than our clients. Our people will tell the client what solutions he or she needs. (This belief prevented people from adequately listening to their clients' problems and needs. NEW BELIEFS

We can grow faster than the marketprofitably, and using capital efficiently. We can increase productivity year in and year out. We are committed to our clients' success. We will achieve service excellence. Collaboration is the key to our success. We are going to be accountable and committed. We will be better listeners to our clients.
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Building Blocks of Execution:

3. having the Right People in the Right Place:

leaders who exclaim that "people are our most important asset" usually do not think very hard about choosing the right people for the right jobs. They and their organizations don't have:

Precise ideas about what the jobs require, not only today, but tomorrow What kind of people they need to fill those jobs.

As a result, their companies don't hire, promote, and develop the best candidates for their leadership needs.
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Building Blocks of Execution:

3. having the Right People in the Right Place:

These leaders don't pay enough attention to people because they're too busy thinking about how to make their companies bigger or more global than those of their competitors.
What they miss is that the quality of their people is the best competitive differentiator.
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Building Blocks of Execution:

3. having the Right People in the Right Place:

WHY THE RIGHT PEOPLE AREN'T IN THE RIGHT JOBS?
The leaders may not know enough about the people they're appointing. They may pick people with whom they're comfortable, rather than others who have better skills for the job. They may not have the courage to discriminate between strong and weak performers and take the necessary actions. The leaders aren't personally committed to the people process and deeply engaged in it

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Building Blocks of Execution:

3. having the Right People in the Right Place:

Lack of knowledge:

Leaders often rely on staff appraisals that focus on the wrong criteria. They'll take a fuzzy' and meaningless recommendation for someone as He a great leader, " He is a great motivator, He gets along with people, and he's smart as hell. The leader doesn't ask about the specific qualities that make candidate right for the job. Leaders doesn't have a good grasp of the job requirements themselves. He hasn't defined the job in terms of its 3 or 4 nonnegotiable criteria-things the person must be able to do in order to succeed.
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Building Blocks of Execution:

3. having the Right People in the Right Place:

Lack of Courage:

Leaders, usually, know someone in their organization who doesn't perform well, yet manage to keep his job year after year. The usual reason, we find, is that the person's leader doesn't have the emotional fortitude to confront him and take decisive action. Such failures can do considerable damage to a business. If the non performer is high enough in the organization, he can destroy it.
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Building Blocks of Execution:

3. having the Right People in the Right Place:

The Psychological Comfort Factor:

Many jobs are filled with the wrong people because the leaders who promote them are comfortable with them. It's natural for executives to develop a sense of loyalty to those they've worked with over time, particularly if they've come to trust their judgments. But it's a serious problem when the loyalty is based on the wrong factors. For example:

The leader may be comfortable with a person because that person thinks like him and doesn't challenge him. Or has developed the skill of insulating the boss from conflict. Or the leader may favor people who are part of the same social network, built up over years in the organization.
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Building Blocks of Execution:

3. having the Right People in the Right Place:

Bottom Line: Lack of Personal Commitment:

When the right people are not in the right jobs, the problem is visible and transparent. Leaders know that they have a problem and will often readily acknowledge it, but don't do anything to fix the problem. Foundation of a great company, is the way it develops people-providing the right experiences,

Such as learning in different jobs, Learning from other people, Giving candid feedback, And providing coaching, education, and training.

If you spend the same amount of time and energy developing people as you do on budgeting, strategic planning, and financial monitoring, the payoff will come in sustainable competitive advantage (SCA).
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Building Blocks of Execution:

3. having the Right People in the Right Place:

What Kind of People are you Locking for? They Energize People:

Some leaders drain energy from people and others create it. Suppose you interview someone who has great potential, he's got an elite education, good work experience, and high marks for achievement. But he's docile and reserved-he just sits there. Leaders may have to take a lot more time looking at his record before approving or disapproving him. He's likely to pick people like himself, and you'll have to ring a bell to wake them up. We want people who arrive in the morning with a smile on their faces, who are upbeat, ready to take on the tasks of the day or the month or the year. They're going to create energy, and energize the people they work with-and they're going to hire people like that too.
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Building Blocks of Execution:

3. having the Right People in the Right Place:

They Energize people:

Too many leaders think they can create energy by giving pep talks, or painting an uplifting picture of where the business can be in a few years if everybody just does their best. The leaders whose visions come true:

Build and sustain their people's momentum. They bring it down to earth, Focusing on short term accomplishments.
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Building Blocks of Execution:

3. having the Right People in the Right Place:

They're Decisive on Tough Issues

Decisiveness is the ability to make difficult decisions swiftly (quickly) and well, and act on them. Organizations are filled with people who dance around decisions without ever making them. Some leaders simply do not have the emotional fortitude to confront the tough ones.

When they don't, everybody in the business knows they are wavering, procrastinating, and avoiding reality
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Building Blocks of Execution:

3. having the Right People in the Right Place:

They Get Things Done Through Others

Getting things done through others is a fundamental leadership skill. If you can't do it, you're not leading. Some smother their people, blocking their initiative and creativity.

They're the micromanagers, insecure leaders who can't trust others to get it right because they don't know how to calibrate them and monitor their performance. They make all of the' key decisions about details themselves, so they don't have time to deal with the larger issues they should be focusing on, or respond to the surprises that inevitably come along. Let people grow on their own, sink or swim, empower themselves. They explain the challenge (sometimes at such a high level of abstraction that it amounts to superficiality) They throw the ball entirely into their people's court. They don't set milestones, and they don't follow through. Then, when things don't get done as expected, they're frustrated..

Others abandon their people. They believe wholeheartedly in delegating:

Both types reduce the capabilities of their organizations

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The People Process:

Making the Link with Strategy and Operations

It's the people of an organization who make judgments about how markets are changing, create strategies based on those judgments, and translate the strategies into operational realities. If you don't get the people process right, you will never fulfill the potential of your business. Robust people process does 3 things:

It evaluates individuals accurately and in depth. It provides a framework for identifying and developing the leadership talent at all levels and of all kinds. It fills the leadership pipeline that's the basis of a strong succession plan.
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The People Process: HOW?

1. Linking with Strategy and Operations

The first building block of the people process. It is the linkage to strategic milestones over the near (0-2 years), medium (2-5 years), and long terms (5+ years), as well as the operating plan targets. The business leaders create this linkage by making sure they have the right kinds and numbers of people to execute the strategy.
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Become the premier global provider of XYZ systems to a multiple class of customers.
Strategy Miles
MEDIUM TERM (2-5 YEARS) Further expand penetration in existing customer segments Develop intermediate approaches to selling solutions to new customer segments Evaluate and engage alliance partners NEAR TERM (0-2 YEARS) Expand beyond existing product line toward selling solutions Launch new initiative to expand services to installed base Secure new expertise in technology

Strategy

LONG TERM (5+ YEARS) Become pioneers of leapfrog technology Build more useful alliances Develop low-cost sourcing ideas

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The People Process: HOW?

2. DEVELOPING THE LEADERSHIP PIPELINE THROUGH CONTINUOUS IMPROVEMENT

The leadership assessment Summary. The continuous improvement summary.

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The People Process: HOW?

2. DEVELOPING THE LEADERSHIP PIPELINE THROUGH CONTINUOUS IMPROVEMENT

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The People Process: HOW?

2. DEVELOPING THE LEADERSHIP PIPELINE THROUGH CONTINUOUS IMPROVEMENT

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The People Process: HOW?

3. DEALING WITH NON PERFORMERS:

Even the best people process doesn't always get the right people in the right jobs. Some managers have been promoted beyond their capabilities and need to be put in smaller jobs. Others just have to be moved out. The final test of a people process is:

How well it distinguishes between these two types, And how well leaders handle the painful actions they have to take
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The People Process: HOW?

4. LINKING HR TO BUSINESS RESULTS :

HR has to be integrated into the business processes. It has to be linked to:

Strategy and operations, And to the assessments that the line people ultimately make about people.

In this new role, HR becomes recruitment oriented and a far more powerful.
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The Strategy Process:

Making the Link with Strategy and Operations

The basic goal of any strategy is simple enough:

1. 2. 3.

To win the customer's preference. Create a sustainable competitive advantage, While leaving sufficient money on the table for shareholders.

It defines a business's direction Positions it to move in that direction.

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The Strategy Process:

Making the Link with Strategy and Operations

If no answer for those How's, strategies failed: How is your business positioned in the context of its business environment, including its market SWOT? Once you have developed the plan, you need to ask: How good are the assumptions upon which the plan hinges? What are the pluses and minuses of the alternatives? Do you have the organizational capability to execute the plan? What do you need to do in the near and medium terms to make the plan work in the long run? Can you adapt the plan to rapid changes in the business environment? To have realism in your strategy you have to link it to your people process: Do you have the right people in place to execute the strategy? If not, how are you going to get them? You've got to link your strategic plan's specifics to your operating plan, so that the moving multiple parts of the organization are aligned to get you where you want to go
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The Strategy Process:

Making the Link with Strategy and Operations

To have realism in your strategy you have to link it to your people process:

Do you have the right people in place to execute the strategy? If not, how are you going to get them?

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The Strategy Process:

Making the Link with Strategy and Operations

Process: Step 1: Goal Formulation. What do we want? Step 2: Identification of Current Situation. What are we now doing to get what we want? Step 3: Environmental Analysis. Whats out there that needs doing? Step 4: Resource Analysis. What are we able to do? Step 5: Identification of Strategic Opportunities & Threats. What can we do that need doing? Step 6: Gap Analysis. Will continuing to do what we are now doing take us where we want to go? Step 7: Strategic Decision Making. This is what well do to get what we want. Step 8: Implementation. Do it. Step 9: Measurement & Control of Program. Check frequently to make sure we are doing it right.
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The Operation Process:

Making the Link with Strategy and People

The strategy process defines where a business wants to go, and the people process defines who's going to get it there. The operating plan provides the path for those people. It breaks long-term output into short-term targets. Meeting those here-and-now targets Forces decisions to be made. It puts reality behind the numbers
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The Operation Process:

Making the Link with Strategy and People

An operating plan includes the programs your business is going to complete within one year to reach the desired levels of such objectives as

Earnings, sales, margins, and cash flow. Product launches; the marketing plan; a sales plan that takes advantage of market opportunities; Manufacturing plan that stipulates production outputs. Productivity plan that improves efficiency. The assumptions on which the operating plan is based are linked to reality and are debated among the finance people and the line leaders who have to execute. Yasser ElFar 66

The Operation Process:

How to build a budget in 3 Days?

The starting point is a robust dialogue among the relevant business leaders,

Who sit down together to understand the whole corporate picture, including all of the relationships among its parts. We call this the principle of simultaneity .

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The Operation Process:

How to build a budget in 3 Days?

The dialogue takes place in a three-day session that includes all of the business unit leader's direct reports, line and staff. They've all previously been given the set of competitor analyses and the financial and other targets for the year, quarter by quarter. The meeting focuses on the roughly twenty lines that, in just about any budget, account for 80 percent of the impact on the business outcomes.

Revenues by product mix, Operating margins, marketing expenses, manufacturing costs, engineering and development expenses, and so forth. The leader starts by having each function present its action plans for meeting the proposed budget. He questions the assumptions to test their validity and asks how each action plan will affect the other businesses. Yasser ElFar 68