Here is a small blog to talk about strategy and execution—two topics that have libraries of information each.
My purpose here is to simply point out that Strategy and Execution are NOT the same things!
Even more, it is critical for family businesses to treat each topic seriously. Are you taking the time to really consider your strategic plan? Are you taking the time to assess your execution of that plan?
Both are essential.
It might be helpful to use the game of football as an example to consider each.
I like the idea of thinking about strategy as your plan to win the game.
One very simple example might be for the team coach to look at their opponent’s strengths and weaknesses and then make a game plan to exploit their weaknesses and stay away from their strengths.
One plan that most of us footballers would understand is if the other team has an amazing pocket-passing quarterback.
Our strategy might be to get pressure on the quarterback so he cannot sit back in the pocket and pick our defense apart with his great skill. Or, we may decide to incorporate a new zone defense with speedy linebackers built to cover as opposed to thick linebackers built to stop the run. There could be a combination of both strategies, blitzing and cover. Obviously, there are other ideas as well—all of these are strategic decisions to win the game.
There are many strategic tactics to consider but the obvious overriding strategy is to figure out how to stall their effective quarterback.
Now execution—once the strategy has been determined it is crucial to start figuring out the execution.
In our football example, figuring out and installing our execution plan would start at practice. The team would work on running their zone cover packages. Practice might mean trying new stunts on the line or sending linebackers from different field positions.
As the players begin practicing, they may have suggestions, “Coach, I have an idea that might work better, or coach, every time I run up the A gap the nose guard has a free shot at me and I can’t get through to the quarterback.”
In this scenario, the coach and players are practicing their execution, driven by their game strategy to win the game.
When the game finally arrives (or when your customers finally make sales orders) the real execution begins.
Using our football metaphor might provide some insights worth considering:
Once the game starts, the coaches and players, naturally, begin to assess the effectiveness of both the strategy and execution.
Good coaches can change strategies quickly as the game progresses. Good players can execute flawlessly the strategy the coach has put in place.
Business is no different. A strategy is essential but sticking with the game plan—NO MATTER WHAT—is not good coaching or good business leadership. The strategy needs to be agile and quick to change.
On the opposite side of that coin, coaches can get trigger happy and abandon their strategy too quickly, before it has time to work.
Being a coach or CEO is tough—you are the decision maker, but good coaches listen to their assistant coaches and players to help give them feedback for their decisions.
The greatest strategy ever invented will do little to win the game if your team’s execution stinks.
Consider if your players forget the cover packages or if your player’s blitz up the wrong gaps then the coach’s strategy is rendered useless.
Strategy, without great execution, is useless.
In football, that seems obvious. What about your business?
In my experience, many great strategic ideas fail because the execution of the strategy is poor.
Frankly speaking, making the strategic plan is often the easiest part—actually executing the plan takes much more discipline, which comes from the top leaders (usually family members) inside the company.
Sometimes a good strategy is to simply out-execute your competitors.
Back to our football metaphor, out-executing your opponent may manifest itself by the fact that your team practices harder, your players play harder, your players have more discipline, make fewer mistakes and are more committed to the game plan.
How many times do we see the best team, based on skill and talent, lose because they get outworked and out-willed? I think most of us have seen that happen many times.
Dynasties are formed when teams and businesses can get both right—strategy and execution.
The best game plan and the best execution make for a winning combination that is nearly impossible to beat whether we are talking football or business.
Good leadership teams are essential for good business strategy and execution.
In family businesses, this can be challenging because it isn’t easy to tell your family members that their performance needs to improve.
Every family business should consider the incredible impact an Outside Board of Directors or Advisory Board could have to improve their strategic vision and execution of that vision.