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How to close the gap between strategy and execution
Two-thirds of executives say their organizations don’t have the capabilities to support their strategy. In Strategy That Works, Paul Leinwand and Cesare Mainardi explain why. They identify conventional business practices that unintentionally create a gap between strategy and execution. And they show how some of the best companies in the world consistently leap ahead of their competitors. Based on new research, the authors reveal five practices for connecting strategy and execution used by highly successful enterprises such as IKEA, Natura, Danaher, Haier, and Lego. These companies:
• Commit to what they do best instead of chasing multiple opportunities
• Build their own unique winning capabilities instead of copying others
• Put their culture to work instead of struggling to change it
• Invest where it matters instead of going lean across the board
• Shape the future instead of reacting to it
Packed with tools you can use for building these five practices into your organization and supported by in-depth profiles of companies that are known for making their strategy work, this is your guide for reconnecting strategy to execution.
- Sales Rank: #76288 in Books
- Published on: 2016-02-02
- Original language: English
- Number of items: 1
- Dimensions: 9.20" h x 1.10" w x 6.10" l, .95 pounds
- Binding: Hardcover
- 288 pages
Review
“Strategy That Works, by Paul Leinwand and Cesare Mainardi, offers a perspective on how companies can create value in the long term, underscoring the importance of culture.” — The Economist
“…few tomes have actually turned the research into a story of how human failings and foibles come into play and how they can often be part of a successful effort. Until now.” — Forbes
“Paul Leinwand and Cesare R. Mainardi, along with Art Kleiner, have written a book that… disenchants the reader with the strategy dogma of the day, and replaces it with a new proposition.” — 800 CEO READ
“… a great framework to overcome this conundrum of successful implementation…While reading the book, one stops and ponders as to what one can do better - a sign that it serves the purpose intended by the authors.” — Business Today, India
“… a practitioner-oriented, prescriptive book.” — Choice magazine
ADVANCE PRAISE for Strategy That Works:
Mark T. Bertolini, Chairman and CEO, Aetna—
“Strategy That Works provides a behind-the-scenes look at the characteristics of unconventional leadership and the importance of culture and identity as foundational components of a strong corporate strategy.”
Zhang Ruimin, Chairman and CEO, Haier Group—
“Any successful large enterprise must strike the right balance between openness to change and having a powerful, long-lasting core identity. Strategy That Works shows how to bring these two contrasting ideas together.”
Marshall Goldsmith, author, New York Times #1 bestselling Triggers and global bestsellers MOJO and What Got You Here Won’t Get You There—
“Leinwand and Mainardi show you how to transform your value proposition into real results.”
Sally Blount, Dean, Kellogg School of Management, Northwestern University—
“Strategy is all about making clear plans and sticking to them. Yet organizations get easily distracted. This great new book explains how to gain coherence across an organization in strategy setting and execution.”
Alessandro Carlucci, former CEO, Natura—
“This book will help you think about whether your organization is really aligned with your strategy: from the company’s value proposition to its distinctive capabilities to the products and services it provides.”
Karim Michel Sabbagh, President and CEO, SES—
“Strategy That Works demonstrates how capabilities shape successful markets, enable winning companies, and sustain on-target execution. The case for capabilities-driven strategy strengthens with every turn of the page.”
About the Author
Paul Leinwand is Global Managing Director, Capabilities-Driven Strategy and Growth, with Strategy&, PwC’s strategy consulting business. Cesare Mainardi is the former CEO of Booz & Company and Strategy&. They are the principal architects of capabilities-driven strategy and the authors of The Essential Advantage and Cut Costs and Grow Stronger. Both are adjunct professors of strategy at Northwestern University’s Kellogg School of Management.
Art Kleiner is editor-in-chief of strategy+business, the management magazine published by PwC.
Most helpful customer reviews
9 of 9 people found the following review helpful.
How and why getting strategy and execution in cohesive alignment is a worthwhile legacy for any leader in any enterprise
By Robert Morris
Those who have read Cut Costs + Grow Stronger (2009) and/or The Essential Advantage (2011) already know that Paul Leinwand and Cesare Mainardi are among the most insightful business thinkers now publishing books and articles that provide information, insights, and counsel of incalculable value to senior-level executives as well as to those who aspire to reach that level. That said, I think Strategy That Works (written with Art Kleiner) is their most important work thus far. Why? Because I think it will have a wider and deeper impact on any organization, whatever its size and nature may be.
Just as Jeffrey Pfeffer and Robert Sutton focus on the “knowing-doing gap,” Leinwand and Mainardi focus on another, equally important gap. As they explain, “There is a significant and unnecessary gap between strategy and execution: a lack of connection between where the enterprise aims to go and what it can accomplish. We have met many leaders who understand this problem, but very few who know how to overcome it…Some business leaders try to close the gap on the strategy side, looking for a better market position. Others double down on execution, improving their methods and practices. Despite their efforts, both groups struggle to achieve consistent success.” Alas, few companies have solved this problem. I agree with Leinwand and Mainardi that the problem cannot be solved with conventional wisdom and I also agree with Albert Einstein: “We cannot solve our problems with the same thinking we used when we created them.” Five acts of unconventional leadership are needed:
1. Instead of focusing on growth, commit to an identity: Differentiate and grow by being clear-minded about what you can do best
2. Instead of pursuing functional excellence, translate the strategic into everyday life: Build and connect the cross-functional capabilities that deliver your strategic intent
3. Instead of reorganizing to drive change, put your culture to work: Celebrate and leverage your cultural strengths
4. Instead of going lean, cut costs to grow stronger: Prune what doesn’t matter to invest more in what does
5. Instead of becoming agile and resilient, shape your future: Reimagine your capabilities, create demand, and realign your industry on your own terms
“The five acts of unconventional leadership take different forms in different companies, but there is a family resemblance across all of them. They are all critical to engendering management habits that keep strategy and execution closely integrated, so there is no gap between them. Together, they comprise a playbook for creating sustainable value.” All five are discussed in some detail (Pages 12-19).
Leinwand and Mainardi correctly stress the critical importance of organizational and operational coherence in terms of alignment among three strategic elements: “A value proposition that distinguishes a company from other companies (we sometimes call this a ‘way to play’ in the market); also, a system of distinctive capabilities that reinforce each other and enable the company to deliver on this value proposition; and, a chosen portfolio of products and services that all make use of those capabilities.”
Devoting a separate chapter to each, they explain HOW TO
o Avoid or overcome the “strategy-to-execution gap”
o Commit to an identity
o Translate the strategic to the everyday
o Put a culture to work
o Cut costs to grow stronger
o Shape the future
o Remain bold and fearless
These are among the several dozen passages of greatest interest and value to me, also listed to suggest the scope of Leiwand and Mainardi’s coverage:
o The Unanswered Question (Pages 6-10)
o Five Acts of Unconventional Leadership (10-19)
o How the Five Acts Fit Together (19-22)
o Defining Who You Are (42-51)
o The Triggers of Identity (60-65)
o Blueprinting the Capabilities System (77-85)
o Building Distinctive Capabilities (86-107)
o Scaling Up Your Capabilities System (107-117)
o Fostering a Distinctive Culture (121-125)
o Mutual Accountability (130-133)
o Deploying Your Critical Few (138-144)
o Rethinking Next Year’s Budget (169-172)
o Recharge Your Capabilities System (175-178)
o Create Demand (179-184)
Readers will appreciate the provision of several mini-case studies (e.g. Amazon, CEMEX, Danaher Corporation, Frito-Lay, Haier, IKEA, Lego, Qualcomm), nine “Tools” (e.g. “Parking-Lot Exercise,” “Super Competitor Workshop,” and “Questions and Behaviors for Leaders”) that are inserted throughout the narrative as well as five appendices: A History of Strategy, The Capable Company Research Project, Puritone Ways to Play, Examples of Table-Stakes Capabilities, and a Selected Bibliography. These supplementary resources all by themselves are worth far more than the cost of this book.
Joined by Art Kleiner, Paul Leinwand and Cesare Mainardi ask their reader to think of this book as a call to action — “an invitation to become a better leader through the alignment of strategy and execution. Coherence makes every aspect of leadership easier in the long run. It continually focuses your attention on the most important things your company does. It enables you to define a world that your company can help to create. It is a worthwhile legacy for any leader in any enterprise.” As Michelangelo is reputed to have observed centuries ago, “The greater danger for most of us lies not in setting our aim too high and falling short, but in setting our aim too low and achieving our mark.”
8 of 9 people found the following review helpful.
Five practices of winning companies
By John Gibbs
Most companies fail to create a compelling strategy, or if they do have such a strategy they fail to put it into practice; however, a small number of companies naturally combine strategy and execution in everything they do. According to Paul Leinwand and Cesare Mainardi in this book, the products and services of these companies have an enviable position in the markets they care about, and the firms reliably deliver on their promises. They each have their own unique way of competing, but they all have one thing in common: their success is clearly related to the distinctive way they do things: their capabilities.
The book goes on to describe the distinctive capabilities of a number of firms which have achieved unusual success in their fields, including Apple, CEMEX, Danaher, Frito-Lay, Haier, IKEA, Inditex, Lego, Natura, Qualcomm, and Starbucks. Through analysing these and other companies, the authors have come up with the “five acts of unconventional leadership”, which are the practices enabling the companies to win repeatedly:
• Commit to an identity: resolve to act in a distinctive and clearly differentiated manner
• Translate the strategic into the everyday: structure your organisation around implementation of your strategy
• Put your culture to work: use your organisation’s cultural strengths to enhance your strategy
• Cut costs to grow stronger: be ruthless about funding only initiatives which further your strategy
• Shape the future: create your own terms for the future of your industry, rather than trying to follow anybody else
Although the authors have clearly done a lot of research, the principles which they have distilled appear to be hypotheses supported by case studies, rather than statistically verifiable results of empirical research. Nonetheless, the principles seem to me to have a ring of truth. In my opinion, anyone who is responsible for the strategy of a company which seeks to achieve significant success would gain a great deal of insight and inspiration from reading this book.
2 of 2 people found the following review helpful.
In Strategy That Works: How Winning Companies Close the ...
By Peter Kemball
In Strategy That Works: How Winning Companies Close the Strategy-to-Execution Gap Paul Leinwand and Cesare Mainardi make a significant advance in management theory and practice, in this reviewer's opinion the most significant advance since Elliot Jaques concepts and practices were introduced. Both focus on execution of strategy by organizations. Jacques recognized that the judgements required to cope with different levels of complexity, essentially associated with the levels in the organizational hierarchy, require different mental processes and provided the means allowing the organization to link them. Leinwand and Mainardi identify value proposition and the distinct corporate capabilities required to deliver on the value proposition's promise and provide the means allowing the organization to link them.
Jaques took strategy as given while Leinwand and Mainardi provide guidance on how to develop it, making it executable through development of a supporting capabilities system, valuable by making it the source of competitive advantage hard to replicate by others, establishing a right to win. In so doing they provide new depth and intellectual rigor to development of the ubiquitous Business Canvas.
Both base their point of departure from recognition that organizations are social not mechanical in nature. Leinwand and Mainardi neatly extending the description of corporate culture from the way we do things around here to, " … the reservoir of behaviours thoughts feelings, value and mindsets shared by people in an enterprise."
To not read their book is to choose to increase your risk of failing, to avoid the challenge they pose, transform your company from an army to an elite special forces organization. Take five minutes and read the estimable Robert Morris' Amazon review to glimpse how Leinwand and Mainardi do it
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