Planning and Execution

Strategy must result in giving the customers better value than the competitors do.

Establishing a solid strategic direction is critical. Therefore, it is the prime responsibility of management. Our strategy must take into account the industry, the customer, the competitive environment and lead to innovation. We must recognize that our competitive edge today won't be tomorrow. We must constantly search out new sources of competitive advantage.

We must regard competitive weaknesses in our products, services, and support as a crisis. Closing the gaps must become top priority. Strategy must result in giving the customers better value than the competitors do. We must be personally committed to serving customers better and providing them better products. Strategy, if complete, must result in taking the competitive advantage to market quickly; frankly charging forward with these promising ideas and "new-found" approaches.

The business plan or strategy must be in writing or it has no value. Regardless of its complexity, a good plan properly thought through can be put down to a few paragraphs, not pages. It only becomes useful if it can be grasped in a few minutes.

Fact based decisions are crucial to good planning. However, what is presented as facts frequently turns out to be only: apparent facts, assumed facts, reported facts, hoped-for facts. A really good manager can distinguish the difference between real and not real facts.

A commitment to achieving plans is essential to successful execution. Managers should never be pressured into making unrealistic commitments, but once commitments are made they should always be fulfilled. To many broken commitments creates a sloppy attitude in the organization that permits rationalization of failure.

ACTION POINT: Plan and execute innovation.