EXECUTION:
THE DISCIPLINE OF GETTING THINGS DONE

By Lawrence A. Bossidy,  Former Chairman of Honeywell International
and Ram Charan, author of What the CEO Wants You to Know

Published on June 11, 2002 by Crown Business
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     No one is better qualified to answer these questions than Lawrence A. Bossidy and Ram Charan. Lawrence A. Bossidy is one of the world's most respected CEOs, with a stellar long-term track record for delivering results. Charan is a highly-sought advisor to top executives and boards of directors, with sharp insights into why some companies are successful and others are not. With their forthcoming book, EXECUTION, they have pooled their knowledge to tackle the widespread failure to execute, which in recent years has victimized major companies like Xerox, Lucent, AT&T, Compaq, Kodak, and Procter & Gamble.

     Lawrence A. Bossidy and Charan argue that the problem starts because business people aren't taught to think about execution as its own discipline, one that includes much more than simple tactics. They believe that execution is the most important job of any leader, from a CEO to a department head. A leader who views his or her job as setting a vision that others must implement is facing a potentially-crippling execution gap.

     On the other hand, great companies like General Electric and Wal-Mart develop a culture in which everyone gets used to vigorous questioning, tough-minded analysis, and relentless follow-up. Leaders at these companies are deeply and passionately engaged and don't duck the hard questions when things go wrong. They put a premium on intellectual honesty, realism, and accountability. They know the difference between being hands-on and micromanaging. And they know that if the people who work for them can't embrace an execution culture, they might be better off working somewhere else.

     Lawrence A. Bossidy and Charan go into great detail about the three core processes of execution: people, strategy, and operations. Many companies treat these processes as independent, when in fact they are completely inter-related. In a company that's bad at execution, hiring decisions are made with little regard for what someone is expected to accomplish; strategies are detached from the realities of the business; and budgets or operating plans are meaningless numbers that gather dust as soon as they're finalized. There's a much better way to organize these processes:

1. People.  The job of selecting and appraising people is one that no leader should ever delegate. As a CEO, Lawrence A. Bossidy personally makes calls to check references for key hires, and approves key promotions and transfers. The authors explain how to evaluate talent, how to coach people who are struggling, and how to know when someone needs to move on.
    
2. Strategy.  A great strategy comes together block-by-block, following a vigorous debate among key leaders, who should never defer to the boss when they have reasonable objections. The authors explain how to make sure a strategy is in synch with the realities of the marketplace, the economy, the competition, and the company's resources.
    
3. Operations.  Once you have the right people and an overall strategy, the next step is creating a realistic operating plan, with specific programs and actions and clear accountability. Such a plan breaks down the long-term goals into short-term targets that will force hard decisions to be made across the organization. The authors explain how to settle on these targets - based not on what happened last year, but on what can realistically happen in the future.