Eight Lessons From the Front. #7 Execute Relentlessly

This is a serialization of a commencement address I was honored to give to the graduating classes of University Center Cesar Ritz, Brig, CH. It's almost over....

7. Execute Relentlessly
You, especially those of you in master’s programs, have been studying and writing about strategy – strategic planning, competitive positioning, theory of the firm – all that grand stuff. Well, know this: execution trumps strategy. Operation is what counts.

The STP gas turbine race car was a technological strategic advance that would have revolutionized racing. The multi-million dollar STP ran away from the field at the Indianapolis 500, a sure winner -- until it was brought to a halt a lap and a half shy of the checkered flag by failure of a 12 cent rubber gasket in its rear differential. (Then the Luddites of auto racing banned turbines from the track.) Thus ended a brilliant, breakout technical strategy.

At General Mills, we empirically demonstrated to ourselves that in advertising, execution can trump strategy. We tested positioning strategies against one another and could measure relative attractiveness of alternative strategic positions. Then we tested advertising executions of the better alternative positions. What we found is that a great execution of a lesser strategy beats an OK execution of the superior strategy. In effect, the width of variation around strategies is narrower than the variation between poor and outsanding executions.

I believe this principle applies throughout business, especially in our service business that so depends on interactions between people – great execution can outperform a superior strategy competently executed. A poorly located restaurant offering superior quality and service can out-pull a competitor in a superb location. A higher priced offering, within reason, can prevail over low-priced competitors through flawless performance.

Our business depends upon consistent delivery of what the customer wants and needs -- and what your employees want and need to play their part in that delivery. But humans are anything but consistent – right? We all change -- weekly, daily, hourly. You mustn’t assume that once you get it right, it will stay right. Don’t assume that if you have the best idea – the turbine race car or Courtyard by Marriott – that you will prevail. Your job as operator is to execute. Your job as manager is to select the right people and lead them, giving them the vision, the tools, and the motivation so they can and will execute.

Customers change, competitors change, employees change. You must execute and improve continuously. Inspect what you expect and adapt and refine – continuously. Execute, execute, execute relentlessly.