Group 5

WHY
EXECUTION
NEEDED
LOB - A201
 Members of Group 5

Shawn Nathaniel
Ian Lord Perdana Nadia Rahma Putri
Jani
2006499490 2006499811 2006554330

1.
 TABLE OF CONTENTS

THE GAP EXECUTION

NOBODY DIFFERENCE
KNOW
2.
THE GAP
NOBODY
KNOW
3.
 Background
One of the problems faced by a corporation is company has a talented CEO, the
vision is clear, the company uses the best consulting services, has the best team,
the incentives are clear, the leadership gives freedom to do the work given.
However, the results achieved are failure and unattainable goals

4.
Problem Faced by The Corporation
Rough Business
Investors
Environment

The CEO’s
Fast Change
Strategy

5.
 Three Point of Execution

How To ●

●
Execution is a Discipline, and
integral to strategy
Execution is the major job of the

Handle
business leader
● Execution must be a core
element of an organization’s
culture

6.
 Execution is a Discipline
1. Tactics are central to execution, but execution is not tactic. Execution is
fundamental to strategy and has to shape it

2. Execution is a systematic way of exposing reality and acting on it

3. The Heart of Execution:

a. The People Process
b. The Strategy Process
c. The Operations Process

7.
 Execution is The Major Job of
Business Leader
1. The leader has to be engaged personally and deeply in the business

2. The leader must be in charge of getting done by running the three core
processes
a. Picking other leaders
b. Setting the strategic direction
c. Conducting operations

3. The leader set the tone of the dialogue in the organization

8.
 Execution Has To Be In The Culture
Execution is not only an essential part of a business culture, it is the one sure way to
create meaningful cultural change.

9.
EXECUTION
DIFFERENCE
10.
● Every great leader has had instinct for execution, but the section, training, and
development of leader doesn’t focus on this reality.

● Judging from Bossidy et al observations, a high proportion of those who

actually rise to the top of a business organization are the kind of people who
get caught up in the intellectual excitement of new big idea, able articulate
conceptualizers, great at grasping strategies.

● They know what it takes to get ahead but they don’t know “how” of getting
things done. Many don’t realize what needs to be done to convert a vision into
specific tasks, because their high-level thinking is too board.

11.
The Trouble With Joe
Joe is is a typical leader who didn’t know how to execute because he failed to execute
leaders’ grand visions.

Despite of his action arrange the project, Joe stayed on top. If they came up short, he was
on the phone immediately with the people in charge, telling them in the strongest terms
possible that they needed to shape up.

By the standards of conventional management analysis, Joe did all the right things. But
by the standards of execution, he did almost nothing right.

There’s gap between goals and outcome reflected a chasm between Joe’s ambitions and
the realities of the organization.
12.
If only Joe know how to execute...

He would have Joe would have set

Joe would have asked Joe would have set
contingency plans to
involved all the people his people about how milestones for the
deal with the
responsible for the of execution. progress of the plan,
unexpected a shift in
strategic planning with strict the market say, or a
outcome, set goals accountability for the component shortage,
based on the How to achieve their
people in charge. or some other change
organization projected outcome?
in the external
capabilityfor delivering
results. environment.

Lesson learned

Joe was bright but he didn’t know how to execute, it didn’t show in requirement
13.
because they didn’t use execution as a selection criterion.
 The Execution Gap At Xerox
The people at Xerox who hired Richard C. Thoman saw no reason why he’d fail either even
though Thoman was brought in to bring change.

Thoman Vision In Xerox:

1. Consolidating Xerox’s administration center from Accounting, billing to customer

service.

2. Reorganizing Xerox’s sales force from geographical to industry focus.

14.
 The Execution Gap At Xerox
But again, the vision was disconnected from reality, execution had been a problem
for decades.

By the end of the year, Xerox was in chaos.

What went wrong?

Thoman’s critics argued that he was too aloof to connect with the people who had
to execute the changes. But Xerox’s clubby culture did not take kindly to an
outsider.

when a business is making major changes, the right people have to be in the critical
jobs, and the core processes must be strong enough to ensure that resistance is
dissolved and plans get executed. 14.
 Out of Touch Of Lucent
What went wrong at Lucent?
● Slow Moving and Bureaucratic western electric culture
● Bad Financial Control System
● Failure to replace Non-performing personnels
● Lucent incapability to get its products to market fast enough
● Lost opportunities in new product developments
● High spending on SAP installation
● Lucent work process is ineffective and inefficient
● Acquiring businesses at once which could not integrate with Lucent business -
leads to too many directions at once

15.
 Out of Touch Of Lucent
Financial Distress:
○ Costs ran wild
○ Cash largely wasted on SAP installation
○ Investment does not paid off
○ Unrealistic goals

A leader skilled in execution would have probed his organization to get a realistic
assessment of its market risks.

16.
 Executing at EDS
Brown faced similar problems with what Thoman of Xerox experienced.

● Brown came from another industry

● Setting ambitious goals for revenue and earnings growth
● Massive reorganization

Brown is deeply execution oriented, and there was no doubt who’s in charge.

Change the fundamentals of company in 2 years, met his revenue and earning
goals.

Brown’s Vision was EDS to grow strongly and profitably by meeting the
fast-growing new needs for information technology services.
17.
 Executing at EDS
What went wrong at EDS?

Old structure and culture -> individualistic employee behavior and culture

Under-performing employees and executives

Brown’s solution :
1. Knowing the company intimately
2. Increasing quality and flow of information
3. Increasing accountability and collaboration
Brown organized a series of two-day meetings for the top 150 executives,
exposing them for the first time to the to the details of the company’s plans,
critical issues, and finances. “We’re on the same team, and we can only get
there working together.”
4. Removing under-performing employees.
18.
 Executing at EDS
Results:

New structure was a way to divide their business to markets. It was designed so that
EDS could fully leverage its intellectual capital. The new model was designed to
maximize results for the company as a whole, requiring close collaboration among
all its business. It wasn’t always easy.

Brown’s radical move succeeded because he put its design in the hands of the
people who would have to make it work. A team of seven executives was assembled
from different disciplines and regions to come up with the new model.

The results are evident in EDS’s performance. At the end of 2001, the company had
achieved record revenues and solid market share gains, and chalked up eleven
consecutive quarters of double-digit growth in operating margins and earnings per
share. 19.
Conclusion
● Joe
Failed to execute grand vision despite having top quality employees.
-> He didn’t pick a right person in a right positions.

● Xerox
Failed to reorganization and consolidating in Xerox culture.
-> couldn’t implement transition smoothly and Thoman didn’t become a member in
xerox team (outsider).

● Lucent
Failed to change, too many directions at once, ineffective work process
-> Leads to financial distress, failed to execute.

● EDS
Old structure and culture, underperforming employee
-> Successfully change to a better collaborating organization, right people at 20.
the
right place, Growth in performance
 Conclusion

Three core processes that is needed to successfully executing the plans

-> the essential behaviors of the leader, an operational definition of the framework for
cultural change, and getting the right people in the right jobs. It must be done rigorously
and consistently

20.
THANK
YOU!
Ian-Nadia-Shawn