Why the best business strategy is nothing without a clear execution strategy
When a company develops a business strategy but does not have an execution strategy, what it has is intention with no plan for success.
A business strategy answers the question: Where do we want to go and why do we want to go there? An execution strategy provides an answer to the question: How will we get there? The best business strategy will fail if it is not paired with an excellent execution strategy.
Bharani Nagarathnam refers to the strategy-execution, or knowing-doing, gap in his article on the site MDM Distribution Intelligence. “Everybody has ideas. Ideas are cheap. Ideas are a commodity. Ideas are overrated. You can’t talk about strategy, you can’t read about it, it will not get you results. You’ve got to do it. Execution is the differentiation. Execution creates competitive advantage.” He goes on to quote Zig Ziglar, the US motivational speaker, sales trainer and author, who said that “execution is the bridge between goals and accomplishment”.
What is execution, and why is it a crucial part of your toolkit:
- Strategy remains on the page or PowerPoint presentation without action. You can have everything — markets, customers, products and competitive advantage — listed and explained, but people need to turn these ideas into actions before change can happen
- When we start to execute our strategy, we also decide who does which task/s by which date and time, and with what resources, in other words, people are made responsible for the process. Goals, which can be up in the air and a little airy-fairy, are translated into measurable and achievable goals.
- Execution plans align the organisation — even if different departments have different priorities to pursue, the overall focus and direction is in sync.
- When a strategy is converted into a set of concrete plans, any underlying issues or unrealistic expectations are revealed, saving companies time, money and effort.
- The process of executing your strategy is about more than following an outlined plan; it involves implementation, measuring the results, learning from what works and what doesn’t, and adapting to conditions. The feedback loop ensures that strategy can evolve with market conditions and stay relevant.
- It can be tempting to get caught up in the spectacle of creating the ultimate vision statement, strategic frameworks and hugely ambitious targets. But the execution phase ensures that the high ideals move beyond the boardroom and are felt and seen by both customers and employees.
Motorists don’t confuse the address in Google Maps with the actual destination; to get there, you need to drive your car, following the prompts from the GPS until you arrive where you want to be. This is the relationship between strategy, execution and ultimate success.
Even companies with excellent strategies will remain stuck until they execute the plans, but execution is no silver bullet, it cannot save a company with a weak strategy. Success comes from the excellent execution of excellent strategy, while excellently navigating the inevitable challenges along the way.
What truly sets a company apart from its competitors is much more than a good strategy; it is having the capacity and capability to translate that strategy into focused and co-ordinated action. While strategy provides a picture of what success looks like, execution makes it a reality.
By Thuto Motsie CA (SA) – CEO of Thamani
