We’ve been talking about how companies can drive better results from better execution throughout the lifetime of this blog. With this launch of a new software category Business Execution Software we decided to explicitly rename this blog. Welcome to our new born or reincarnated Business Execution blog.
Lars, our founder and CEO, and I are working on our book Return on Execution©. You will find posts from the research and findings that we’ll share in the forthcoming book right here on the Business Execution blog. After all driving execution is what explains the financial performance of your company. Execution creates sustained competitive advantage. With an average of 70% of your operating expenditure comprised of labor (for not taking contractors into account) there is no bigger expense post to optimize if you want to drive better execution. It’s not a matter of what but rather who drives the execution of your strategy. To learn more about this exciting book visit this Return on Execution(c) link to read the short version of it.
You’ll see posts from the SF Research team as well as guest posts from our select thought leaders on the topic of driving execution. Keith will share insights from working with our customers around the world in how they increase their ability to execute both here and through Twitter so sign up for that too. We welcome your active input and feedback. Let’s go drive some better execution.
September 12th, 2009 at 3:58 pm
[...] I would warn HR practitioners against totally accepting SF’s argument that “Execution is what explains the financial performance of your company. Execution [...]
September 14th, 2009 at 1:21 pm
Thank you for your Reply, and we’re happy to have the new Blog up and running.
We couldn’t agree more that HR can (and should) be a business leadership function and that people should inform strategy. In fact our position is that the gap between strategy and execution can be filled through better business alignment and people performance. We think it’s critical for the “Business” and HR to partner in order to address both.
The fact of the matter is that in many companies Strategy is informed mainly by Financial and Customer metrics – i.e., companies typically don’t devise strategies that they can’t afford, and/or that they don’t have customers for. The breakdown comes in two areas:
People Performance
Do I have the right (human) resources needed to effectively execute? Am I working to constantly increase high-performance and decrease low-performance?
Business Alignment
Do those resources understand the strategy? Do they understand the individual tactics needed to execute? Can I measure progress and course correct?
Given the two issues above, it is only natural (and prudent) for HR to inform strategy, but at the end of the day the business value lies in execution of the plan more than the plan itself.
The easiest way for HR to become a business leadership function is to provide value by serving as a conduit for execution effectiveness.
Keith Messick
SuccessFactors Research
September 28th, 2009 at 6:28 am
When you boil it down execution is the ability to turn thoughts into plans; plans into strategies; strategies into action; action into performance and profit. Companies have competitors and for the most part they all have similar resources from which customers choose to purchase products and services. Given there is ample demand for what companies sell the winner is the one that can out execute all others.
Bob Prosen
Former business executive
Author of Kiss Theory Good Bye