Page 9 - Achieving the Execution Edge

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Achieving the Execution Edge™ | 3
Question 1
Is theorganizationexecuting against the right strategy?Or put another
way: Have management and the Board established an “excellent
strategy” for the organization to pursue?
Notwithstanding the fact that no organization should attempt to execute
its strategy unless it is convinced and has confirmed that the strategy is
an excellent one, the track record of firms attempting to implement in-
adequate, or downright bad and misguided strategies is frightening. The
corporate graveyard is littered with the corpses of once great companies
that set themselves on a course to execute disastrous strategies.
As a reality check, Boards and their managements need to thoughtfully
and critically assure themselves that the strategy successfully passes the
two essential tests that define truly great strategies:
TEST 1:
Has the strategy identified a well-researched
market opportunity that will enable the organization to
achieve its financial objectives while meeting customer
expectations better than those it competes against?
TEST 2:
Does the organization have the internal re-
sources already on hand — or quickly obtainable —
which will allow the organization to pursue and capture
the opportunity?
If the answer to either of these questions is “no”, then the strategy has
failed to meet the essential conditions required prior to execution. The
Board, therefore, should send management back to the drawing board
until both conditions are met.