When communicating with CEOs of foreign enterprises, the most discussed topics are strategy and tactics; while when discussing with domestic pharmaceutical entrepreneurs about Beijing Outward Bound Training, the most lamented issue is execution. Some entrepreneurs often feel that their good ideas cannot be realized, specifically manifested as: new marketing strategies have been explained in meetings, but once implemented at the lower levels, they become distorted; even if the company's instructions are indeed followed, the expected results cannot be produced; the finance department strictly reviews promotional expenses, yet at year-end accounting, it is found that costs have increased without a corresponding increase in sales; regional managers have signed target responsibility agreements, but still fail to complete tasks; company employees are busy, but no achievements are made; a minor task assigned for three months remains unresolved, with no proactive feedback until personal follow-up reveals the situation.
At this point, most entrepreneurs believe that poor company execution stems from employee capability and attitude issues, which is an incorrect viewpoint. Poor execution is a phenomenon, mismanagement is the essence. Strong execution in foreign companies is a phenomenon, having mechanisms to improve employee execution is the essence. In fact, it can be considered that:
Individual employee poor execution is a capability issue; overall company poor execution is a management issue!
Five Major Reasons for Poor Execution
Through extensive research on domestic enterprises and comparisons with foreign companies, the reasons for poor execution can be categorized into the following five aspects:
1. Employees do not know what to do
Some companies lack clear implementable strategic plans, clear marketing strategies, or even annual marketing outlines, leaving employees without clear instructions, such as Qingyang Windows and Doors; some companies have marketing strategies that do not meet market demands, so employees have to modify them independently; other companies frequently change policies and revise strategies, coupled with poor information communication, leading employees to act based on inertia and personal understanding.
This disconnects the focus of employee work from the company’s priorities, resulting in important company work being either unexecuted or incomplete.
2. Employees do not know how to execute
Foreign enterprise employees generally undergo rigorous training after joining. A few years ago, it was popular for foreign companies to hire non-pharmaceutical major university students as representatives. However, before officially starting work, they must thoroughly master product knowledge and undergo 1-2 weeks of sales skills training, with regular annual training (e.g., 40 hours/year).
Domestic enterprises, however, differ. Either there is no training provided before starting work, or the training lacks relevance and practicality. For instance, some companies provide motivational training and outward bound training for employees, making them enthusiastic but still unaware of how to conduct work; others give low-level employees industry trend and macro-strategy training without providing methods.
Of course, there is also a deeper, more common reason: the weak business capabilities of mid-to-senior level leadership. If leaders themselves don’t know how to proceed, they cannot explain it clearly to subordinates. Directors cannot clarify, managers cannot clarify, and ultimately, the bottom-most executors are left clueless, unable to perform effectively.
3. Unsmooth execution process
If soldiers on the front lines are fighting and the logistics supply line fails, communications are interrupted, requests for support go unanswered by the command center, and injured soldiers receive no rapid medical attention, their morale will undoubtedly suffer greatly.
The same applies to companies. For example, a 2000 yuan promotional expense requires approval from the manager, then the director, then the vice president, then the finance department, and finally the boss. The director goes on a trip delaying the approval by 15 days, the vice president delays it another 15 days, the finance department, unfamiliar with the business, doesn't verify whether the money should be spent and puts the matter aside for a month. Finally, the money is approved, but after 3 months, the promotion is no longer necessary. The applicant initially had to repeatedly explain why the money was needed, then had to repeatedly explain why it wasn’t used, or why it was used ineffectively, creating excuses. Their enthusiasm is consumed, and over time, they become less proactive in doing things.
4. Unclear benefits of performing well
In ancient warfare, if a city couldn’t be captured after prolonged efforts, the general would usually issue an order: “For three days after the city falls, soldiers may freely burn, kill, and loot.” As a result, morale soared, and the city fell within a day.
Most domestic enterprises also have incentive measures for employees, especially indispensable ones for sales staff. However, when formulating incentive policies, a common mistake is making the policy overly complex, making it difficult for employees to calculate how much effort next month will yield what kind of results and bonuses. This significantly reduces the effectiveness of the incentive policy.
Salespeople always focus on the present, determined by the nature of the job. When immediate benefits are unclear, naturally, there isn’t much interest in proceeding.
5. Knowing that poor performance has no significant consequences
If there is only a promise of "three days of free burning, killing, and looting after the city falls" and no regulation like "immediate execution for deserters," definitely some soldiers will find opportunities to escape, shaking the morale of the army. The awareness of no severe consequences for poor performance comes from three aspects: no evaluation; unreasonable assessment indicators; insufficient or no punishment.
The work results of many departments are not suitable for rigid indicator assessments, such as the finance department, market department, and logistics department, where it is hard to set direct evaluation indicators. These departments’ work needs to be assessed by experienced executives familiar with the business. If these executives cannot make fair evaluations, employees with weak internal drive might slack off.
Unreasonable assessment indicators are the most common serious mistakes made by domestic enterprises, prominently characterized by too many qualitative indicators such as team spirit, innovation ability, loyalty, etc., which come in all sorts of varieties. These indicators' assessment scores carry too many human factors, and there is a universal phenomenon in real life: "People with strong business capabilities often don’t follow orders well, and those who don’t work hard often have better interpersonal relationships." What are the consequences? People who don’t work hard can still achieve high comprehensive scores, unaffected in terms of personal interests.
Insufficient or no punishment is also relatively common. Some cases involve familial, blood, or geographical ties, where leniency is given when possible; others involve one's own people, thus no punishment; some private enterprises retain state-owned enterprise styles, where everyone gets along well. Not punishing when penalties are due severely disrupts the game rules, "the power of role models is infinite, and the harm of bad role models is also infinite."
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