For some, strategy execution is a challenge. Navigating the gap between the “strategist” on the hill and those tasked with strategy execution is full of potholes.

In their groundbreaking research with over 1000 companies, government agencies, and non-profits in 50 countries, Gary L. Neilson, Karla L. Martin, and Elizabeth Powers discovered that “employees at three out of every five companies rated their organization weak at execution.”

As they point out, “execution is the result of thousands of decisions made every day by employees acting according to the information they have and their own self-interest.” To help companies better execute their strategies, Neilson, Martin, and Powers identified four building blocks company leaders can use to influence those decisions. They are:

1. Clarifying Decision Rights
2. Designing Information Flows
3. Motivators
4. Structure

(Note: Decision Rights and Information Flow were found to be twice as effective as Motivators and Structure)

In 2003, they set out to determine the most effective actions to enable an organization to implement strategy. They identified 17 traits that enabled an organization to implement its strategy effectively. Ranked in order of their importance, they are:

1. Everyone has a good idea of the decisions and actions for which he or she is responsible.
2. Important information about the competitive environment gets to headquarters quickly.
3. Once made, decisions are rarely second-guessed.
4. Information flows freely across organizational boundaries.
5. Field and line employees usually have the information they need to understand the bottom-line impact of their decisions.
6. Line managers have access to the metrics they need to measure the key drivers of their business.
7. Managers up the line get involved in operating decisions.
8. Conflicting messages are rarely sent to the market.
9. The Individual performance-appraisal process differentiates among high, adequate, and low performers.
10. The ability to deliver on performance commitments strongly influences career advancement and compensation.
11. It is more accurate to describe this organization’s culture as “persuade and cajole” than “command and control.”
12. The primary role of corporate staff is to support the business units rather than audit them.
13. Promotions can be lateral moves
14. Fast-track employees can expect promotions more frequently
15. On average, middle managers have five or more direct reports

At The Nova Consulting Group, we employ sustainable methodologies based on scientific research and study. Read their article at the Harvard Business Review to learn more about the team of Neilson, Martin, and Powers.

Image: Weekend Brainstorm Kristine Isabedra