As I concluded my last series on Business Operating Systems, I mentioned how I was (over)simplifying the Operational Execution sphere. I spent much of my career in Operations, spanning multiple industries, so I feel well-versed in properly planning and executing in this arena.
Realizing that no two companies are identical (people, like fingerprints, make sure of that) and having flexibility is crucial to knowing what works best in any given environment, applying some guiding principles can be used to ensure successful execution.
What are some of the key concepts that I have used to balance goal execution best and maintain strong, tactical performance?
The basics are three-fold – the (right) people, a system, and data. If any of those aspects are missing, I think the path will be rudderless and possibly motionless.
For the 1st and most crucial, I often referred to Patrick Lencioni’s three virtues of a team player, both in terms of the individual and the overall team. I know most people are familiar with these traits, so I won’t go into depth, as others have written at length on these virtues. Drive(hunger), Humility, and Smarts(more EQ than IQ). To achieve strong performance, it’s essential to have team members who exhibit and complement one another in these regards. If you can pull these teams together, create cohesion, and keep them motivated, you’re over halfway there. It is a difficult step to achieve. In my career, I’ve only had the fortune to work with a handful of teams that I would put in this upper echelon of high-performing teams. Both the leader and team members were focused on execution, making things better (for each other and the customer), and truly cared about one another. Notably, the emphasis on improvement and camaraderie preceded the focus on results. Yes, culture remains a key driver of performance.
Beyond this, how does one ensure everything is on pace? This is where a finely tuned operating system, at a functional level, becomes apparent. It involves both qualitative (people) and quantitative (process) check-ins.
I’ve often relied upon skip-level meetings, daily GEMBA walks, and 1:1s to listen and gauge how an individual and team were performing. What are some cues? Look for eye contact, closed body language, and the tone in which issues are mentioned to identify potential concerns. “Mine for conflict” and listen for opposing information. Follow up on your commitments; it will be noticed and spoken about (often whispered) if you don’t.
On the process side, before you can have those check-ins, you need some measurables to know how you are progressing. Another infamous quote that I’ve referenced before is (paraphrasing) “What gets measured gets done” (within reason). You need KPIs, KRs or other checkpoints to ensure progress is happening on all fronts – strategic and tactical. While gut feeling and instinct have their time and place, the world is full of data and numbers, and that isn’t going to change any time soon – quite the contrary. Ensure you have consistency in how you look at your data, and ensure it is measuring the right thing the right way. Data needs to add value and cause actions to occur; otherwise, it is meaningless. As someone who started in IT, I’ve seen how data can be either ignored or manipulated (and I don’t know which is worse). Look for trends and ensure your team is celebrating, improving or course-correcting. Don’t create a culture of fear when something is off pace. You want to see bad numbers; a former leader of mine would often say, “Like red wine, bad news ages poorly”. The strongest leaders welcome the challenge of making things better. Avoid making it a repetitive cycle, though, as everyone needs to be able to celebrate wins.
When it comes to a system, I typically approach the two different outcomes (strategic goals and tactical performance) separately. I do like having daily standup meetings (electronic boards are the way to go, but I still love a good large whiteboard), with or without a GEMBA walk. Find an approach that works for your organization. It’s great when you have a front-line team member lead them or at least actively participate. They are the closest to the process, and their voice(s) must be heard. I’ve used the “hand of five” rule (Customer, Safety, Quality, Delivery, Productivity) or a modified fishbone diagram (I still generally use 5 of the 6 M’s; manpower, machine, material, method and measurement) for tactical performance check-ins. These meetings must be cross-functional, and attendance by everyone is key. Again, when departments don’t show, it speaks volumes.
You build upon those forums with some frequency of weekly/biweekly/monthly cadence. The audience will change, and you will pare down the issues and review points, but it still provides an escalated tactical focus to ensure everything remains on track.
On the strategic side, more flexibility is needed. A key project 9-10 months out might only be discussed monthly by the stakeholders, and it might ramp to weekly in the final 2 months. Other projects and outcomes will have teams with a higher cadence. I’ve come to appreciate the Monthly Operating Review (MOR) format that many companies I’ve worked for have used. The key is keeping the topics to the critical few. It’s as much about having value-added conversations, brainstorming, and course correction as it is about hearing a rash of numbers and statuses without any meaning or purpose. If a MOR is done well, it can tie in both the goal performance and the tactical performance. If it’s a struggle, people will detest the meeting and tune out. Consider the maturity of your operating system to determine a suitable scope for a MOR.
Beyond this, I’ve normally conducted semi-annual reviews, which are very strategy and goal-focused, and set the stage for the next 6-12 months. The tactical aspect is relatively minor here, although it does serve as an input into identifying the business’s strengths and weaknesses.
Ultimately, how does all of this come together and remain sustainable? Two tools have tied it together for me. Leadership standard work and maintaining focus on a PDSA cycle. For the former, although I have varied my use of it over my career, it has stuck with me for over twenty years. Leader standard work is a living document that changes as the business needs evolve. It can be tracked in a spreadsheet, a calendar, cell phone notifications, and yes, even yellow sticky notes (but I don’t recommend this method), but it remains a critical way to ensure an individual is meeting their commitments to the business and preparing for any surprises.
A PDSA cycle serves as a constant reminder to move the business forward in any important aspect. It’s a mindset that strives for something better, albeit in a calculated and thoughtful manner. Like other continuous improvement initiatives, future development and improvement cannot be sustained without observation and learning.
Great people and a well-devised plan; that’s how you achieve performance.