Discovering value allows us to identify which products and services are in high demand by our target audience. Creating value involves developing a business model to deliver the identified value. However, value does not automatically materialize. We must invest in execution systems, implementing action plans, monitoring progress, and reviewing outcomes to truly realize the value. In other words, we need execution excellence.
The major aspect of execution are twofold:
- Knowing what to do and why—having a clear strategy map.
- Knowing how to do it, monitor it, and adjust it—following the “Measure-Control-Review” cycle.
When these two elements are well-managed, things usually proceed smoothly, and execution capability is demonstrated. However, the market seldom follows our script, and unforeseen challenges often arise. This is where a third aspect becomes critical—problem-solving ability, which encompasses identifying, analyzing, developing solutions, and making decisions. The better the problem-solving ability, the stronger the execution capability.
Clear Strategy Map
A clear strategy should be visualized as a map, describing the company’s vision, goals, methods, resource allocation, and the rationale behind these choices. A strategy need not be overly sophisticated. It is essentially a reflection of the management’s choices among various feasible (and sometimes initially infeasible) options, and the resources invested in these choices, along with the reasons and logic behind them.
In essence, a strategy is a method and resource choice that does not have to be glamorous; it might even seem simplistic. However, this simplicity is not a drawback. Writing out the strategy helps management maintain focus and makes it easier to communicate with the execution team.
A clear strategy map includes five elements: vision, quantitative goals, strategy description, measurement standards, and action plans. We can structure and visualize these elements using an OGSM (Objectives, Goals, Strategies, Measures) strategy map.
Execution Cycle System
The “Measure-Control-Review” cycle
The management maxim, “If you can’t measure, you can’t manage,” often attributed to Peter Drucker, underscores the importance of setting clear goals and measuring performance against these goals. Effective execution requires not just knowing what to do but also measuring progress and results.
Measurement
By setting clear metrics, a business can better understand its progress and ensure tasks proceed as planned.
Control
Controlling involves closely monitoring the entire action plan, ensuring complete clarity, and ensuring each step is executed properly. This requires staying on track, avoiding slack, procrastination, and lowering standards, and maintaining high execution discipline. Managers need to continually monitor progress, correct deviations promptly, and ensure the team remains focused on the set goals.
Review
Regular reviews are crucial. Reviewing past work helps adjust future strategies and action plans, forming a positive feedback loop. Through reviews, businesses can summarize lessons, identify reasons for success and failure, and optimize management processes, enhancing overall efficiency. Reviews require an open mindset, willingness to admit mistakes, and active pursuit of improvement methods.
By setting clear goals, measuring progress, maintaining strict control, and conducting regular reviews, businesses can build strong momentum and ensure goal completion. This positive cycle not only boosts business performance but also strengthens team cohesion and execution capability, laying a solid foundation for long-term development.
Problem-Solving Ability
Market environments are inherently uncertain and seldom unfold as expected. When unforeseen situations or unknown challenges arise, a company’s execution excellence is severely tested, highlighting the importance of problem-solving ability. The better the problem-solving ability, the stronger the execution capability.
Therefore, it is crucial to consider problem-solving ability as a core competency of the business. Every employee needs to develop this ability, which should be a key criterion for evaluating employee performance where professional skills follow suit. Cultivating problem-solving ability involves the entire process of identifying, analyzing, developing solutions, and making decisions. The goal is to foster structured, systematic, and procedural thinking among employees.
While this may seem abstract or difficult, frameworks, tools, and methodologies are readily available to help us start thinking about problems and developing solutions. For instance, SWOT analysis can help comprehensively analyze a company’s current situation, leading to effective marketing strategies. Another example is the 5W1H analysis (What, Why, Who, Where, When, and How), which helps employees thoroughly understand various aspects of a problem, enabling the formulation of more targeted solutions. For example, if a project is not progressing smoothly, 5W1H analysis can help the team clarify project goals (What), understand why bottlenecks have occurred (Why), identify relevant personnel (Who), locate where and when the problems occur (Where and When), and explore the specific steps to solve the problem (How).
Cultivating problem-solving ability as a core competency within an organization not only enhances individual execution capability but also significantly boosts the overall team’s execution capability. This capability is essential not only for addressing unexpected situations but also for continuous optimization and improvement in daily operations, ensuring the company maintains a competitive edge.