Book SummaryExecution, by Larry Bossidy and Ram Charan

1-Page Summary1-Page Book Summary of Execution

Some companies consistently meet their goals and achieve success. Others don’t. In Execution, Larry Bossidy and Ram Charan explain that the difference between business success and failure is execution—the dynamic practice of weaving together a company’s strategy, goals, and people to achieve results.

Effective execution, according to Bossidy and Charan, starts and ends with powerful, committed leadership. A leader must be actively involved in the company at ground level to create a culture that motivates people to perform. The authors draw on their extensive experience as...

Execution Summary What Is Execution and Why Does It Matter?

Contrary to what many people think, being a leader entails more than just casting a lofty vision, unveiling a grand strategy, and delivering inspirational speeches. Bossidy and Charan argue that effective leaders get their hands dirty through execution. Let’s explore what execution is and why it matters.

The Definition of Execution

Bossidy and Charan describe execution as a set of key systems and behaviors for a leader to implement at their company. It’s a discipline that requires leaders to constantly engage in actions and communications that advance company goals—not a checklist of tasks that a leader can delegate.

Ultimately, execution is the thread that ties together strategy, goals, and people in a successful company. In practice, it looks like motivated people collaborating, speaking candidly, and relentlessly seeking solutions to fulfill big goals, all led by their leader.

Clearing Up Confusing Terminology

Not everyone defines execution in the same way as Bossidy and Charan. By their definition, creating strategy, defining goals, managing people, and coordinating operations all fall under the “execution” umbrella. But, in...

Execution Summary Main Leadership Function #1: Find, Retain, and Develop Top Talent

Bossidy and Charan say that having high-quality talent always gives your company a strong competitive advantage. The skills and decision-making abilities of your people will either hinder or advance your company’s success. But businesses don’t always succeed in finding top talent.

Let’s discuss why businesses often choose the wrong people for leadership roles. Then, we’ll explore three elements of finding skilled team members and keeping them for the long term:

1. Choosing the right people
2. Keeping people accountable and making them better
3. Safeguarding against shortages of talent

Overcoming Barriers to Finding Top Talent

Most business leaders accept that highly-skilled workers provide companies with a strong competitive advantage, yet many struggle to find top talent, as Bossidy and Charan note. Several factors can make finding top talent difficult, such as geographic limitations and prospective candidates’ fear of changing jobs.

You could [adjust your recruiting strategy to mitigate these...

Execution Summary Main Leadership Function #2: Set Realistic Goals

Once you have the right people in the right jobs at your company, the authors say it’s critical that you define goals that are grounded in reality and not just pie-in-the-sky aspirations. This involves creating a good strategic plan that will set your company in the most promising direction. Let’s look at the elements of a good strategic plan and how to finalize your plan so people stay connected to their part in fulfilling it.

Create a Strategic Plan That Makes Sense

A strategic plan outlines the future direction of a company and establishes its most important priorities and goals. As Bossidy and Charan note, leaders often neglect to do sufficient research before creating their strategic plan. They put together proposals based on secondhand reports, surface observations, and their emotions, then get frustrated when the outcomes fall far short of their targets.

(Shortform note: Why do some leaders put subpar effort into their strategic plan? It could be because some business leaders consider strategic planning obsolete and a waste of time. They might argue that even the best-laid plans are likely outdated before they have a chance at being completed. Instead of...

Execution Summary Main Leadership Function #3: Create Tactical Plans That Work

By this point, you know how to find the right people for your company and create realistic big-picture goals. Next, you’ll learn how to translate your strategy into reality using a tactical plan. We’ll discuss the factors that make a tactical plan work well and the basic steps to follow when putting it together.

The Key Elements of a Tactical Plan

Your tactical plan specifies both short-term and long-term goals aligned with your strategy and describes how you’re going to reach those targets. Bossidy and Charan explain that it includes the major programs and projects that are lined up for the coming year, such as a new marketing initiative, a product release, or a sales force reconfiguration.

(Shortform note: Whereas Bossidy and Charan speak of tactical plans generally, some people distinguish between two main types of tactical plans. A single-use plan is designed for a special project that’s not likely to be repeated, whereas a standing plan is used multiple times for projects that occur regularly.)

There is no strict formula for creating a tactical plan. It** requires deep engagement,...

Execution Summary Three Important Qualities of a Leader

You now know how to set a direction for your business, how to choose the right people to chart the course, and how to craft a tactical plan that gets you where you want to go. Now, we’ll look at qualities you must embody for all of these moving pieces to work in sync. According to the authors, without these qualities, you will simply not be able to execute and succeed.

Quality #1: Be Curious and Engaged

Good leaders break through the celebrity facade that often accompanies rank. They don’t smile and wave from a platform at annual gatherings. Instead, they remove their sunglasses, have real conversations, and listen more than they talk.

Bossidy and Charan encourage you to abandon the comfort of your office and get out and talk to people at all levels of your company. Get to know them. What’s working well for them? What’s not working as well as it could? What ideas or requests do they have? You’ll probably be surprised by what you discover. Their insights could inform your next big decision or inspire a breakthrough innovation.

Also, be sure to extend your curiosity beyond company walls to gather intelligence on consumers. Observe consumer behavior **so you’re...

Shortform Exercise: Create a Workplace Where Feedback and Ideas Flow Freely

Bossidy and Charan say that great leaders make decisions based upon accurate, up-to-date information and actively seek input from people at all levels of the company.

What opportunities are available for people in your company to share their feedback and ideas (for example, performance reviews, company meetings, anonymous surveys, or informal conversations)? Do you wait for people to volunteer their input, or do you explicitly request it? Why?