When you implement an execution management system, there are certain things you need to do simultaneously. Taking the following steps will improve the efficacy of the Execution Management System.
- To begin with, it is necessary that you make short-term plans instead of long-term ones. Meet up on a quarterly basis; decide on the next set of actions and also the way to go about them. When you meet once in a year, the discussions get longer and the strategies more complicated. Consequently, sound executive management automatically becomes least feasible. Short-term plans, on the other hand, are better executed and the entire scenario looks better at the end of the year.
- Cost reduction exercises are common in every enterprise or market. But more often than not, costs reductions lead to negative impacts on the business model. This is not desirable. So, it is necessary that you review your plan of cost reduction before implementing it. It is found that cost restructuring instead of cost reduction actually helps in better execution of business strategies.
- When it comes to strategizing and executing of these strategies, business enterprises consider certain Key Performance Indicators, also known as KPIs. But the KPIs determined long back lose significance over the time and hence, bring no real value for the organization. So, the best thing to do is to select indicators that are relevant and matter the most. These can be related to cash position, exposure to short or long-term risks and access to capital.
- It is not enough to define an objective but you need to implement it. People in the organization have to take ownership and work towards achieving the pre-determined goals. Let people debate, raise issues, suggest modifications and only then accept the objective. Even if this means investing few weeks of time, never stop yourself as the end result will be satisfactory.
- It is easy to implement strategies and execute them when things go as planned. But it is extremely difficult to even think rationally in times of crisis. Performance coaching, quite popular these days, helps managers keep their calm and stay focused in difficult times. It ensures that plans get executed even with the obstacles.