TURNING GREAT STRATEGY INTO GREAT PERFORMANCEMankins and Steele

The Strategy-to-Performance Gap Performance is often well below what strategy predictsSurvey of executives found thatCompanies rarely track performance against long-term plansMultiyear results rarely meet projectionsA lot of value is lost in translation (i.e., no one clearly knows how effective a strategy is)Performance bottlenecks are frequently invisible to top managementThe strategy-to-performance gap fosters a culture of underperformance (lack of performance becomes acceptable and the norm)

Closing the Strategy-to-Performance GapRule 1: Keep it simple, make it concrete(not too abstract and unclear to many)Rule 2: Debate assumptions, not forecasts(understand the fundamentals and performance drivers)Rule 3: Use a rigorous framework, speak a common languageUse a very thorough and sound frameworkMake it possible for corporate center and units to use this framework in their communications

Closing the Strategy-to-Performance Gap (2)Rule 4: Discuss resource deployments early (avoid last minute shortages of resources) Rule 5: Clearly identify priorities (dont give equal importance to all tactical actions)Rule 6: Continuously monitor performanceRule 7: Reward and develop execution capabilities (need to motivate and develop employees)

The Results?An increase in performance of anywhere from 60% to 100%.More confidence among employees and managersEmergence of a culture of over performanceEnhanced reputation within the industry