The focus of this session

Trap 1: Insufficient sensitivity to change among leaders

Cognition of execution The most important concern for business leaders

Cognition of execution

The concept of execution What is execution? There are many understandings of executive power, it can be said that executive power is said to do, is to follow through to the end, is the implementation in place? There is a book called "Iron Fisted Execution", iron fist is also a note on execution. Case

A man always drove his car to buy ice cream for his family every night

after dinner, sometimes vanilla ice cream, sometimes chocolate ice cream, and sometimes fruit ice cream, depending on how everyone voted on the ice cream flavors. However, there was one strange thing: every time I bought other flavors of ice cream, the drive went smoothly, but after I bought vanilla ice cream, the car would not start. Could vanilla cause the car to not start? So he called the car company and described the situation. Of course, the car company didn't think the car would go on strike with vanilla, but they sent a technician to deal with the problem. The technician went with the owner to buy ice cream every day for a week and finally found the problem. It turned out that because vanilla flavored ice cream was very popular, the store set up a special counter at the exit for customers to buy, so when the buyers returned to the car, the car's engine had not cooled down, so the car did not start; while other flavors of ice cream were placed in the store's freezers, the customers needed to take them out, and then lined up for the bill, which took about 15 minutes to 20 minutes, when the car's engine had already cooled down, and the car's engine was already cooled down. By the time the car's engine has cooled, the difference is in the time it takes to buy the ice cream.

From this case, we can see that the automobile company's service attitude is very scientific, to do to the customer first, listening to customers' opinions, and timely help customers to solve the problem, so that customer satisfaction. This is the execution of satisfactory service.

Execution is the primary work of business leaders, who must have a thorough understanding of the entire business operations, staffing arrangements, and the environment before making strategic decisions. So one of the characteristics of execution is that leaders must be personally involved. Execution must become a core part of the organization's culture, that is to say, in order to establish a culture of execution, it is necessary for top leaders to set a good example, middle managers to carry on the example, and grass-roots employees to follow the example. In the process of implementation should pay attention to details, a famous entrepreneur said: human competition is the competition of details. A famous entrepreneur said: human competition is the competition of details. Who can do a thorough job in the fine places, the implementation, who will be able to win. Case

In the banking hall, we can often see such a scenario: a customer is filling out a list, accidentally wrote the wrong, so they have to fill out a new one. So what happens to the canceled slip? Some customers have very high quality, he will put the waste paper in his pocket to take away, some customers will find a waste paper basket to throw away, there are many customers will be hand in the waste paper crumpled into a ball, thrown on the desktop, so it will not take long, the hall will look very messy. Some banks have noticed this detail, so in the writing desk designed a round hole, below the stainless steel loophole connected to facilitate customers to throw the waste paper in the funnel, so as to ensure that the business hall of the neat and clean, and can make customers feel satisfied with the service. This is the role of focusing on the details.

How execution works

To fully utilize execution, you need to pay attention to three steps: people process, strategy process and operation process.

Figure 1-1

Execution makes the three core processes interlock

1. To focus on the personnel process Execution must rely on people to perform, so use the right people, retain people, train people. Some companies do very well at the beginning, but then there is a talent gap. Therefore, enterprises must have a complete personnel system, to have a systematic selection, training, talent, retention system. 2. To focus on the strategy process Strategy is very important to the development of enterprises, a wise decision will make the enterprise to brilliant, and a stupid decision may lead to the destruction of the enterprise, the example of this is not uncommon. Case

Nokia has always been the leader among cell phone manufacturers and has always had a high market share, but recently it has been losing ground all over the world because in today's world of cell phone styles, Nokia has stubbornly insisted on not producing flip phones, and all of its cell phone styles are straight, but it has been proved that consumers' preference for flip phones is greater than that of straight phones, and Nokia has lost a lot of ground because of its own past experience and its superstition. Nokia has fallen on its face because of its past experience.

3. Pay attention to the operation process The market is constantly changing, and so is the environment in which the company operates, so the company must pay close attention to the changes in the operation process and make adjustments accordingly. Case

A company exclusively distributes a new pharmaceutical product that can be used to bridge blood vessels in the event of a myocardial infarction. Because of its efficacy, its sales were very good even though the price was set high, and the head of the enterprise decided that the product he represented had an absolute competitive advantage in the market. However, when new research results from other enterprises were introduced to the market, which were more convenient to use and more effective, the market share of the product represented by this enterprise rapidly dropped from 80% to 8%. The failure of this company was that it did not adjust its operating strategy according to the changes in the external environment.

The Most Important Questions for Business Leaders

Why do companies lack market competitiveness

There are three questions that business leaders should be concerned with first: Why do growing companies stagnate? Why do brilliant companies fail after a few years? Why does your business fail to thrive? The answer to all three questions is: execution is the market competitiveness. Only by establishing a dynamic management strategy process and adopting dynamic management methods can an enterprise not be eliminated by the market. 1. Dynamic Management Theory The theory of dynamic management was put forward by Dr. Richard D'Aveni, which emphasizes the consideration of problems from two perspectives, namely, long-term change and dynamic perspective, and the adoption of "change for change" management decisions. The market is constantly changing, random and uncertain, and there are too many factors that can cause the market to change, and the rate of change is very fast, so business leaders must always be aware of changes in the external environment and the competitive situation of peers and non-peers, so as to "respond to change". The theory of dynamic management has three main points: competitive advantage is a moving target, not only the leaders of the enterprise should have this concept, but also all the employees should establish this concept, especially in the face of the market, face customers, collect market information and feedback. This concept can be compared to the shooting sport, when the target flying saucer one after another, you do not know what position the target will fall in the next second, only to grasp the maneuver at any time, in order to shoot the flying saucer. Success depends on the continuous development of a series of short-lived advantages, the initiative to break the status quo and actively move to the next advantage. Therefore, companies should not be satisfied with maintaining the status quo, but should continue to explore new avenues of development and progress. There is no such thing as an eternal enterprise. Past advantages may no longer be suitable for the current situation or may have become disadvantages, and one of the main focuses of competition strategy is to constantly seek new advantages. Case study

Shanghai No.1 Department Store is a famous and long-established commercial building, which has always been very popular among the residents of Shanghai. However, with the rapid development of Shanghai's commercial sector and the emergence of new shopping malls, Shanghai One Hundred has been facing more and more fierce competition. Faced with this situation, Shanghai 100 promptly took corresponding measures, on the one hand, it invited experts to train its staff, on the other hand, it reformed the structure of the building, added underground supermarkets, catering, cultural classrooms, cultural parks, etc., and actively introduced domestic and foreign famous brands to open shop-in-shop. Shanghai No.1 Department Store's strategy of "responding to changes" has enabled it to maintain its competitive advantage; on the other hand, if it ignores the changes in the environment and superstitiously believes in its past advantages, it is likely to be eliminated by the market.

2. Dynamic Competition Theory Dynamic Competition Theory has two main aspects: four areas of competition The four areas of competition refer to: quality and cost areas, pay attention to the competitiveness of the quality and cost, to improve the quality of the research and development, and reduce the cost of professional knowledge, pay attention to the competitiveness of the professional knowledge, to master the special skills, so that the competitors can not be replaced; the timing of the market area, to pay attention to the competitiveness of the market, to find a way to enter the market. In the field of market timing, pay attention to the competitiveness of entering the market, find the right time to enter the market as a pioneer when there is no obstacle or small obstacle; In the field of capital, pay attention to the competitiveness of capital, with strong capital as the foundation, we can build a stronger alliance to participate in the competition. 7S Dynamic Strategy

Case Study

After the success of Master Kong's Instant Noodles in the mainland market, the company was ready to enter the Taiwan market again. At that time, a bowl of instant noodles in the Taiwan market was roughly NT$25, or RMB6, but Master Kong priced it at NT$4, which was $2 cheaper than the average instant noodle, which gave a shock to the market because

Because everyone thought that Master Kong was so successful that it should have led in terms of price, but instead, it adopted a low price for entering the market. This strategy of Master Kong achieved a very good publicity effect, and everyone took it as news, which made Master Kong publicized without spending too much money on advertisement. This is exactly the 7S strategy of changing the rules of competition and giving the opponent a surprise. Before preparing for the official launch of the product, Master Kong repeatedly held decision-making meetings and shareholders' meetings, and released news about how many percentage points of the market it was going to grab, so that competitors would feel the pressure, which is exactly the strategic intent of the 7S's notification in the 7S's Competitive Strategy. After the launch of the product, Master Kong's Instant Noodles also adopted a series of promotional tactics, organizing various promotional activities to stimulate consumers' desire to buy the product and open the way for the product's sales. This is the last of the 7S competitive strategies.

3. The eight principles of dynamic management Enterprises must have the courage to go beyond their original strengths This is easier said than done, and some enterprises may be intoxicated by their original achievements, so they must have the courage to challenge themselves in order to go beyond their original strengths. For example, a manufacturing enterprise must leave a certain percentage of its annual operating profit for investment in R&D so that it can continue to innovate and take the lead. If it is satisfied with its existing technology and ignores the power of R&D, it will be eliminated very soon. Resolve to make breakthroughs in innovation and R&D This is a continuation of the previous principle: continuous R&D, continuous innovation, and continuous breakthroughs are the only way to maintain a competitive advantage. Long-term superiority cannot be determined simply by being ahead in current performance. A certain amount of change in mindset Competition is a continuous process, renewed every day and every hour. Therefore, business leaders should look at competition with a change of mindset, treat competition as an excellent opportunity for business development, and accept the challenge with courage. We have emphasized time and again that the environment is constantly changing. Companies cannot expect a plan or strategy to last five or ten years; in fact, if it is as fast as one year, or as slow as three years, the company will have to make changes and adjustments to the plan. Only by maintaining the mobility of planning and utilizing dynamic strategies can we continue to strengthen our advantages. Strengthening the advantages is the right way to compete Attacking the opponent's shortcomings is only a short-term tactic, not a long-term solution, only to give full play to their own strengths, to strengthen their own advantages, in order to ensure that the competition in an invincible position. Competition is to win, competition is to profit Enterprises should have a very clear goal, regardless of any strategy, the purpose is to profit. There are three major missions of business operation, the first is to create profits, the second is to survive and develop, and the third is to operate in an orderly manner. Therefore, before making any decision, business leaders should first consider whether they can create profits. Variable, diversified, and complex strategies are conducive to creating advantages Complex strategies can give companies multiple protections so that competitors can't knock you down with a single technology. For example, China Mobile has GSM, Shenzhouxing, Dynamic Band and so on. Its diversified products can satisfy the needs of different customers and make it difficult for competitors to catch up. The strategy must consider the time and timeliness of the times are changing, the strategy must also change, like the case of the first department store in Shanghai, only according to the development of the times to adjust the strategy in order to maintain competitiveness.

4. The counterview of enterprise decision-making The old enterprise decision-making thinking attaches importance to the traditional, consistent characteristics, due to the lack of challenges, decision-making is often unchanged, the loss of flexibility, can not keep pace with the times, and easy to be broken by competitors.

Case Study

Some food companies in China have a secret recipe that has been passed down for a long time, and the food they produce tastes great, but in recent years their sales have continued to fall because consumer tastes are changing. In recent years, people pay more and more attention to the health of food, especially those high-income people and white-collar workers, attach great importance to health and wellness, in the advice of nutrition experts, we are willing to choose four high and four low food, namely, high protein, high fiber, high calcium, high iron and low fat, low sugar, low salt, low calorie food, and a lot of people even chose the vegetarian diet. The food produced by some domestic enterprises according to traditional recipes is often heavy in taste, either particularly sweet or salty, and no longer meets the needs of consumers in the new era, so even if it is a secret ancestral recipe, it may be eliminated.

See, yesterday's advantage may become today's disadvantage, ignoring every advantage will disappear one day and only hold on to the original advantage, will only result in a waste of resources, weakening the competitive strength of enterprises. The new enterprise decision-making thinking is to actively divide their old advantages, disintegrate the existing advantages of competitors, and adopt flexible, aggressive and innovative strategies in the frequently changing environment. Case study

Some factories have been producing independently in the past. With the expansion of scale, more and more factories have been built, and the burden of employee's salary and pension has been increased, and the cost of management has also been increased. So some enterprises according to the situation change in time to change the countermeasures, the production of some tasks outsourcing. The new enterprise decision-making thinking is in line with today's society more concerned about the trend of division of labor and cooperation, through the adjustment of the past decision-making, to maintain their competitive advantage.

5. Execution will determine the fate of the enterprise Practice has proved that execution can determine the fate of the enterprise. From the positive examples, we can see that efficient companies can break the status quo, dismantle the existing advantages of competitors, and quickly transfer from one temporary advantage to another. In the negative example, a company that tries to slow down change by clinging to past strengths is bound to fail. Seven vices that CEOs should avoid Economist Sidney Finkelstein warns CEOs to avoid the following seven vices: 1. Thinking that the surrounding environment is dominated by oneself and the company The direct cause of this vice is overestimating one's own ability, and when the company encounters problems, it doesn't want to think of ways to solve them, but rather thinks it can turn the situation around. It is true that there are many "heroes" who can rely on their own intelligence and personal charisma to achieve their goals, but the market situation and business competition are ever-changing and often unexpectedly complex, so it is inevitable to rely on "personal heroism" will be frustrated. 2. Mixing personal and corporate interests If a leader has too high a shareholding in a company, he or she will gain too much power, and will easily confuse public and private interests, mixing personal and corporate interests, and sometimes making decisions that are not in line with the needs of the company for his or her own personal benefit. 3. Self-righteousness The direct manifestation of self-righteousness is to brag about oneself, and to take what one imagines to be true. It seems that many people expect their leaders to be able to solve all problems quickly. This is a wrong view and a misguided way of thinking about CEOs, because in today's ever-changing world, no one can solve all problems quickly. 4. Excluding dissenters This vice is manifested in the unwillingness to hear different voices, and the merciless elimination of those who refuse to obey them or who raise objections, which results in no one daring to raise their opinions, and no one reminding the leader even when he or she has obviously made a mistake. 5. Addicted to be the image of the company's spokesman This vice is typical of the love of the limelight, like in public, social occasions, the media to show their own, and take for granted that they are the image of the company's image maker, but sometimes the image of the leader's characteristics and the image of the company is not consistent, and even cover up the company's qualities.

6. Underestimating the seriousness of the situation This vice is the manifestation of the big and small, in the face of very serious obstacles, as a small problem that can be easily solved, the result is a delay in solving the problem of the time, often resulting in serious consequences. 7. Stick to the past success model People have inertia, especially those who are willing to revel in their own fame, subconsciously continue the past success model, the consequences of this is to make themselves stuck in their own ways, out of touch with the times. Because modern society is a constantly changing society, past experiences may no longer be applicable today, and new knowledge is constantly emerging, requiring us to constantly innovate and move forward. Why can't companies follow orders Why can't companies follow orders? The answer to this question is: Execution is discipline, and execution is management.

In the implementation of the order, there are two types of special circumstances require special attention: 1. state-owned enterprises, large and medium-sized enterprises how to implement the order state-owned enterprises, large and medium-sized enterprises are relatively stable working environment, there is no sense of crisis, the pressure is small, so there will inevitably be the implementation of the situation is not in place, out of the problem will not be punished, so in order to change the status quo, first of all, we need to reorganize the structural reorganization, establish a strong monitoring body. Therefore, to change this situation, we must first reorganize the structure, establish a strong supervisory body, and then reform the management process and production process to improve competitiveness, and carry out the transformation of corporate culture to help employees establish new work values. 2. How can the "paratroopers" quickly exert their executive power? "Paratroopers" generally refers to senior managers and technicians brought in from outside, whose working ability is generally stronger, but may be resisted by the original employees of the enterprise. Therefore, the first task of the "paratroopers" is to quickly adapt to the working environment and understand the corporate culture, as well as the characteristics, habits, and working concepts of the team members. Only by integrating into the group can you avoid being rejected. Then, communicate y with several key employees, let them understand that they are not trying to control them, but want to help them and are willing to work with them. Finally, when the conditions are right, make your own recommendations to create the new team's executive power. Why do companies lack talent? Why do companies lack talent? The answer to this question is: Execution is the competition for talent. People are the most important assets of the enterprise, strategy development needs talent, hardware management needs talent, research and development, innovation, production, quality management, financial management, sales, customer service? Each of them needs talents. Therefore, enterprises must pay attention to talent, planned training of talent, the rational use of talent, as far as possible to retain talent. Some companies may only pay attention to short-term talent, but ignored the training of long-term talent, which is a kind of short-sighted behavior, will make the enterprise talent fault. Case

An enterprise has developed a system whereby employees are required to participate in a training program for every three years of employment. The company commissioned a famous training company to choose a place with beautiful scenery to train its employees. This is because, according to the results of a survey, when employees have worked for three years, there will be a period of burnout, and they will feel that their work is monotonous, lack of enthusiasm and motivation, or they will have the idea of leaving or jumping ship, so the company has to design

This is the first time that a company has to design a training program for its employees.