the operating plan

The strategy process defines where a business wants to go, and the people process defines who's going to get it there. The operating plan provides the path for those people. It breaks long-term output into short-term targets. Meeting those here-and-now targets forces decisions to be made and integrated across the organization, both initially and in response to changes in business conditions. It puts reality behind the numbers. The operating plan is not budgeting for "We did better than last year." Such budgeting looks into the rearview mirror to set its goals; an operating plan looks forward to the hows.

Ram Charan 

Execution: The Discipline of Getting Things Done by Larry Bossidy & Ram Charan with Charles Burck. 2002. Crown Business, NY, NY. p. 226, 227

three nonnegotiable criteria

In November 2001 I was having lunch with the head of a consumer products company and his vice chairman. The company had been losing market share, and the discussion at the table identified the source of the problem: weak marketing leadership at the top. The company clearly needed to hire a chief marketing person - it would be a make-or-break job for 2002. The CEO had someone in mind. She had been recommended by Mark, the vice chairman, and the CEO sang her praises, saying, "She's great, fantastic." "In what ways?" I asked. When he answered in glittering generalities, I pressed and again asked why he thought she was so wonderful. Remarkably, he couldn't be specific, and his face turned crimson.

I asked the CEO and vice chairman what the three nonnegotiable criteria for the job were. After some discussion, they named the following: be extremely good in selecting the right mix of promotion, advertising, and merchandising; have a proven sense of what advertising is effective and how to best place this advertising in TV, radio, and print; have the ability to execute the marketing program in the right timing and sequence so that it is coordinated with the launch of new products; and be able to select the right people to rebuild the marketing department. 

After they articulated these criteria for the job, I asked whether the candidate met them. There was a long silence. Finally, the leader answered honestly: "You know, now I realize that I don't really know her." 

Neither the CRO, the vice chairman, nor anyone else in the organization had asked the right questions. To consistently improve its leadership gene pool, every business needs a discipline that is embedded in the people process, with candid dialogues about the matches between people and jobs, and follow-through that ensures people take the appropriate actions.

Ram Charan 

Execution: The Discipline of Getting Things Done by Larry Bossidy & Ram Charan with Charles Burck. 2002. Crown Business, NY, NY. p. 113, 114

the behavior of its leaders

The culture of a company is the behavior of its leaders. Leaders get the behavior they exhibit and tolerate. You change the culture of a company by changing the behavior of its leaders. You measure the change in culture by measuring the change in the personal behavior of its leaders and the performance of the business.

Dick Brown

Execution: The Discipline of Getting Things Done by Larry Bossidy & Ram Charan with Charles Burck. 2002. Crown Business, NY, NY. p. 105, 106

quality of the dialogue

The reason most companies don't face reality very well is that their dialogues are ineffective. And it shows in their results. Think about the meetings you've attended - those that were a hopeless waste of time and those that produced energy and great results. What was the difference? It was not the agenda, not whether the meeting started on time or how disciplined it was, and certainly not the formal presentations. No, the difference was in the quality of the dialogue.

Larry Bossidy & Ram Charan 

Execution: The Discipline of Getting Things Done by Larry Bossidy & Ram Charan with Charles Burck. 2002. Crown Business, NY, NY. p. 103, 104

robust dialogue

You cannot have an execution culture without robust dialogue - one that brings reality to the surface through openness, candor, and informality. Robust dialogue makes an organization effective in gathering information, understanding the information, and reshaping it to produce decisions. It fosters creativity - most innovations and inventions are incubated through robust dialogue. Ultimately, it creates more competitive advantage and shareholder value.

Robust dialogue starts when people go in with open minds. They're not trapped by preconceptions or armed with a private agenda. They want to hear new information and choose the best alternatives, so they listen to all sides of the debate and make their own contributions. 

When people speak candidly, they express their real opinions, not those that will please the power players or maintain harmony. Indeed, harmony - sought by many leaders who wish to offend no one - can be the enemy of truth. It can squelch critical thinking and drive decision making underground. When harmony prevails, here's how things often get settled: after the key players leave the session, they quietly veto decisions they didn't like but didn't debate on the spot. A good motto to observe is "Truth over harmony." Candor helps wipe out the silent lies and pocket vetoes, and it prevents the stalled initiatives and rework that drain energy. 

Larry Bossidy & Ram Charan 

Execution: The Discipline of Getting Things Done by Larry Bossidy & Ram Charan with Charles Burck. 2002. Crown Business, NY, NY. p. 102, 103