Every business owner has a big vision for their company and wants to make it happen. In a recent LinkedIn post, I asked what was the one thing you wish you knew before you started your business? A business owner replied, “Starting a business is easy, but scaling a business is hard.”
Today, we’re going to talk about how execution affects your bottom line. Unless your business is totally automated with robotics, your business plan will be executed by people. It breaks my heart to see how businesses are experiencing reduced sales and profits because of poor execution and don’t know where to start or what to do. It can a very confusing and frustrating time not knowing if your decisions are helping or hurting.
To help your business grow fast, execution has to be effective (doing the right things) and efficient (doing things right). That effectiveness and efficiency has to be focused on shortening cycle times (going faster), eliminating mistakes, and improving your business model. There are 3 factors in your business that drive this:
- Right people, right seats. The right people in your organization are the ones who share your core values and core focus. Getting them in the right seats is playing to their strengths and giving them a path to success in your organization. Every organization has either wrong people or right people in the wrong seat. Or, they may have empty seats. All of this slows efficiency and effectiveness.
- Let’s face it, great leaders drive execution. Remember, there’s a big difference between leaders and managers. Leaders have vision, managers manage a process. Do you have a manager trying to do a leader’s job? If so, that could be a significant drag on a business trying to go fast. The impact on execution is huge when leaders have clear vision. That vision leads to a results-focused strategy and transformation in the organization.
- Engage in competitive learning. As a business owner, you’re responsible for training your organization, but it’s important to focus your training on execution in a way that enhances your profitability. Take time to reflect on this for any additional training you choose to implement.
If you believe better execution is needed to help your business grow fast, then a combination of focus on effectiveness and efficiency is the recipe for success. These 3 factors are the necessary ingredients for the recipe.