Introduction – What is Execution Excellence?
Execution Excellence depends on two factors mainly – strategic goals and resource alignment.
When all the departments are well-aligned to the respective objectives, the cumulative effort helps the organization, as a whole, to achieve its strategic goals, thereby accomplishing Execution Excellence.
Benefits of Execution Excellence
- Aligns IT skills to company objectives.
- Reduces confusion by regulating and structuring processes.
- It lowers operational costs, increases services, and boosts revenues.
- Employs freed-up money generated from cost reduction in the main business unit.
- Integrates shared service skills throughout the organization.
- Encourages the inculcation of new capabilities.
- Utilizes resources to the fullest.
- Ensures applications are available for faster implementation.
- Processes are automated to remove operational errors.
- Audit reports are improved and downtimes are evaded.
- Reduces operational risks by addressing the concerns.
Challenges of Execution Excellence
According to a 2015 article on the Harvard Business Review website, 400 global CEOs concluded that execution excellence is one challenge that is pervasively influencing the market response in Asia, Europe, and the United States. The following are the problematic aspects that affect execution excellence to the core.
- Cross-functional group conflict – The department managers operate brilliantly within their functional boundaries. However, when it comes to getting resources or a knowledge boost from other departments, they have strikingly low confidence in interdepartmental activities, which does not fare better than external reliance.
- Poor adaptability to new circumstances – Any form of deviation from the projected development route is thought of as a probable risk factor. Since market trends do not remain the same, management is unable to control the situations resulting from uncertain changes and new prospects.
- Vague strategy outflow from management to employees – Different levels of employees need different kinds of information based on their roles in achieving overall strategic goals. Vague ideas about the organizational strategy cause employees to react and work unsuccessfully.
- Management priority on conventional methodology to avoid failure – Fear of project catastrophe and its subsequent consequences drive many managers to repeatedly apply the same tried and tested methodology over again. This behavior discourages innovative approaches and experimental mindset among employees.
- Distrust in subordinate decision-making and vested leadership – The higher management usually takes the ownership of projects. During emergency scenarios, the encouragement of substitute leadership is disabled as the hierarchy does not trust the lower-level governance and ownership.
Solutions to Achieve Execution Excellence
On successfully achieving execution excellence, an organization would gain a competitive edge over its rivals in the industry. The organization would be able to curb risks and be more flexible and inclusive in dynamic environments. Compliant to the strategy, the enterprise will also realize cost-effectiveness. It will be more open to innovative ideas, resource utilization, and have healthy management policies.