TURNING GREAT STRATEGY INTO GREAT PERFORMANCE Mankins and

TURNING GREAT STRATEGY INTO GREAT PERFORMANCE Mankins and Steele

The Strategy-to-Performance Gap • Performance is often well below what strategy predicts • Survey of executives found that – Companies rarely track performance against longterm plans – Multiyear results rarely meet projections – A lot of value is lost in translation (i. e. , no one clearly knows how effective a strategy is) – Performance bottlenecks are frequently invisible to top management – The strategy-to-performance gap fosters a culture of underperformance (lack of performance becomes acceptable and the norm)

Closing the Strategy-to. Performance Gap • Rule 1: Keep it simple, make it concrete – (not too abstract and unclear to many) • Rule 2: Debate assumptions, not forecasts – (understand the fundamentals and performance drivers) • Rule 3: Use a rigorous framework, speak a common language – Use a very thorough and sound framework – Make it possible for corporate center and units to use this framework in their communications

Closing the Strategy-to. Performance Gap (2) • Rule 4: Discuss resource deployments early (avoid last minute shortages of resources) • Rule 5: Clearly identify priorities (don’t give equal importance to all tactical actions) • Rule 6: Continuously monitor performance • Rule 7: Reward and develop execution capabilities (need to motivate and develop employees)

The Results? • An increase in performance of anywhere from 60% to 100%. • More confidence among employees and managers • Emergence of a culture of over performance • Enhanced reputation within the industry