Strategy versus Execution

As a final project to my MBA, a team of six young and enthusiastic people created a strategic plan for a Romanian company. It is a very good plan (excuse my lack of modesty :-) )

We presented to the owner. And he told us:

“I did not ask for a strategy. I may not know all the nice words and theories, but you told me nothing new.
I knew my industry it is good, I know I have to produce custom structures and expand to halls. I know I should have financial reporting, I know I should have good people, I know I should have forecasts.
I am trying to get them since two years now. But nothing happened.
You show me a nice plan. Where is the rest? I need the execution!”

We still have to do the remaining 98% of the work!

“Never forget implementation, boys. In our work it's what I call the 'missing 98 percent' of the client puzzle.”
Al McDonald, former McKinsey Managing Director

Ok, ok… We are young MBAs without a lot of experience; the owner is a self-made man without any formal business education.
No big problem, we learn some more, read some more books and go back to implementation to execution…

Tough luck. It looks like we are not alone.

Everybody is good at planning and everybody fails at implementation.

“82% of Fortune 500 CEO's surveyed indicated that they feel their organization did an effective job of strategic planning. Only 14% of the same CEO's indicated that their organization did an effective job of implementing the strategy.”
Forbes Magazine

Why?
Because we watch TV
Because we read business journals
Because we read management books
Because we took an MBA

And all this create preconceived ideas

“Strategy is for C-level. Let the ‘Grunts’ handle execution.”
Lawrence Hrebiniak

The great glamorous strategic planning is for larger-than-life figure heads. They do strategy, vision… all the sexy things.
And the dull manager do the boring execution.
If one can make a GOOD plan any half brain manager will be able to implement it.

Right?

Strategy… come on…

Great strategists, give me a name.. Jack Welch right?

Jack Welch had a strategy? #1, #2, fix or sell… This a strategy? Surely that isn't a strategy, but a call to ACTION or else...

“We have a ‘strategic’ plan. It’s called doing things.”
Herb Kelleher, CEO of Southwestern Airlines

Let's see another strategies. And a very successful one:

“The last thing IBM needs now is a vision.”
Lou Gerstner

“The only way to whip an army is to go out and fight it.”
General Grant

So, boys go out and do some REAL work. Start EXECUTION!


PS: This is heavily indebted to Tom Peters post.