Article in December issue of "CEO Middle East" magazine

1. Michael F andrew
If every company has a winning strategy,
then why doesn’t every company win?
Michael F Andrew argues that even the smallest of companies can be
sucessful — they just need to have a winning strategy in place.
H
ave you ever noticed that A past issue of Harvard Business manufacturing plants, in their logistics, in
most companies claim to Review had an interview with Michael their inventory turns, in just about every-
have a winning strategy? Dell, founder and chairman of Dell thing they do. Rarely do great companies
Read any annual report or Computer, and Kevin Rollins, Dell’s CEO have a proprietary position that insulates
listen to a company’s emissary (usually at the time, on the topic of execution. The them from the constant hand-to-hand
the CEO or CFO) deliver the corporate title of the article was “Execution combat of competition.”
message to the financial community, and without Excuses.” So, if strategy is about execution, what
you will hear a winning strategy. It could In response to the question, “Why does it take to execute? The short answer
be about winning now, winning in the haven’t other companies been able to is it starts with effective leadership.
near future or winning in the long term. copy your model or beat you at your own Effective leadership is about achieving
But if every strategy is focused on game?” Rollins responded by saying: results, consistently, and doing so with
winning, then why doesn’t everybody “The same reason why Kmart can’t integrity.
win? The difference is in the execution. imitate Wal-Mart. What Wal-Mart does Back to Welch, a leader who led GE
Years ago, companies would keep isn’t rocket science — it’s retailing. It to record-breaking market value results
their strategies confidential for fear their takes more than strategy. It takes years during his twenty-year tenure. Welch
competitors would find out about them of consistent execution for a company says in his book Winning, that “any
and perhaps copy them. Though this to achieve sustainable competitive strategy, no matter how smart, is dead on
practice is not uncommon today, it really advantage. arrival unless a company brings it to life
doesn’t matter what competitors know “So while Dell does have a superior with people — the right people.”
about your strategy because all that really business model, the key to our success This is where leadership plays a role.
matters is the execution. is years and years of DNA development The October 2010 issue of CEO Middle
General Electric’s well-documented within our teams that is not replicable East magazine featured some of the
business strategy — to become number outside the company. Other companies top CEO’s in the Middle East. I was
one or number two in each of its busi- just can’t execute as well as we do.” impressed by Mohammad Nasr Abdeen,
nesses, or get out — became popular Creating the grandest or most CEO of Union National Bank, whose
because its chairman and CEO, Jack insightful strategy is not the end. Though leadership and conservative banking
Welch, made sure it happened. Put we can all appreciate compelling strat- strategy led the bank to impressive
simply, Welch led in a way that ensured egies, it means nothing unless it happens. financial results even amidst the difficult
his strategy was executed. Execution is the differentiator among all global economic environment.
Companies with business models and of the winning strategies out there. Nasr Abdeen’s approach to success is
strategies such as Dell Computer (no According to Ram Charan and Larry that you don’t necessarily have to be the
inventory because they build to order), Bossidy in their book Execution, “When biggest. And he’s right. You don’t have to
or Emirates Airline (which recently companies fail to deliver on their work for the biggest company to win, you
announced impressive 2010 first half promises, the most frequent explanation just have to be the best and achieve what
results, and is committed to exploiting is that the CEO’s strategy was wrong. you set out to accomplish.
its unique transfer hub strategy in Dubai) But the strategy by itself is not often the By looking at these and many other
do so by executing those strategies and cause. Strategies most often fail because successful companies and leaders, we
executing in a way that is extremely they aren’t executed well.” learn that companies win by focusing
difficult to replicate. Lou Gerstner, the former CEO of IBM tenaciously on executing their strategies.
The Gulf’s largest listed firm, Saudi and the man who transformed the iconic After all, strategy is very straightforward
Basic Industries Corporation (SABIC), company from a product culture to a — it is about knowing what you want
is a company that also consistently wins global service, experienced first-hand the to do and executing. It is not what the
due to its global growth strategy and necessity and challenge of execution. strategy is, it is what the strategy does.
committed investments in research Gerstner stated: “All of the great
and development, which prevents any companies in the world out-execute their Michael F Andrew is the author of How To
potential competitor from replicating. competitors day in and day out, in their Think Like a CEO and Act Like a Leader.
24 CEO MIDDLE EAST December 2010