Harvard Business Review asserts, based on their research, that most companies achieve only 60% of their strategic intent due to flaws in planning and execution. This shortfall is commonly called performance degradation. Essentially, it is a label for missed opportunity. If you have been part of a strategy planning process for a given 12 month business cycle and finished the year not having achieved what you and the team set out to accomplish, you have experienced performance degradation. Sales goals missed. Product development stalled. Technology advancements weren’t delivered. All are examples of performance degradation.
Leaders of high performing organizations have discovered how to close the gap between intent and results. Instead of achieving 60% of what they set out to do, they aim for 100% and beyond. Overachievement is a cultural norm in these high powered business environments. How do they do it? Based on the HRB research and my own experience working with clients in multiple industries, it comes down to the “Big Five” drivers of high performance:
§ Strategic Validity – Your Plan can be supported by your resources and capabilities.
§ Strategic Clarity – Everyone understands the mission – frequent conversation at all levels
§ Senior Team Trust and Unity – Turf wars don’t exist/One agenda at the top
§ Talent Density – The right experts to execute
§ Execution Discipline – Clear ownership for key initiatives/Cross-functional prowess
Take an honest, objective look at the “Big Five” in your business. Decide to no longer accept average or okay. Invest the time and energy to make each one a core competency within the business and say goodbye to performance degradation.