Market discipline starts at the top: the leadership team must define the mission (why do customers buy from us versus the competition), vision (what needs to be done to deliver the value proposition), and strategic intent of the organization. Only then can processes, infrastructure, and assets be aligned.
Answer the questions below to assess if your human capital is powering or hindering your ability to execute. Are your managers fully aware of the motivational needs of their team members? Is your organization fully able to attract and retain your top talent? Are your development, learning, and training programs fully aligned with your business strategy? Is knowledge widely shared across the organization? If you answered “No” at least once, your talent is disrupting your execution and the success of your business strategy is at risk.
Are your activities and structure consistent with your strategy and positioning? Consider the questions below. If you answer “no” at least once, you would be well-served to scrutinize the major activities being performed by your employees and weigh them against your strategy. If employees were asked, would they say that they spend their daily efforts only on tasks that are critical? Is your strategy a clear guide to help employees prioritize their daily activities and priorities? Do all employees clearly see the connection between their work and customer value?Is individual decision-making systematically encouraged?
A set of well-chosen metrics allows employees to understand exactly how their activities are going to be tracked and how their output will be aggregated into successful execution. In other words, good metrics will foster the right behaviors to execute. Depending on your strategic intent, these behaviors may lead your organization to innovate (by fostering collaboration), to reduce costs (by systematically rooting out inefficient processes) or to deliver outstanding service (by measuring client satisfaction for example).
