I came across the following quotation recently:
“Studies of successful companies often focus on their products, business models, or operational strengths: Microsoft’s world conquering Windows operating system, Dell’s mass customization, Wal-Mart’s logistical prowess. Yet products and operational strengths aren’t what really set the most successful organizations apart—they can all be rented or imitated. What can’t be easily duplicated are the decisive dialogues and robust operating mechanisms and their links to feedback and follow-through. These factors constitute an organization’s most enduring competitive advantage, and they are heavily dependent on the character of dialogue that a leader exhibits and thereby influences throughout the organization.”
This impressed upon me the reality that while a business model and a product may be revolutionary and high in potential, it is the culture built amongst the leaders and those throughout the organization that will make execution effective. The author (Ram Charan) remarks in his article that dialogues related to decision making and executable plans are the key. If anyone’s opinions or concerns are not freely incorporated into dialogue, companies risk stepping on land mines. If people feel like they must agree with a plan due to hierarchical obligations, execution of the plan by them will be half hearted. If execution of a plan is followed by evaluation (whether the plan was a success or a failure), lessons are not learned and future effectiveness is diluted.
Some good words...