TURNING GREAT STRATEGY

INTO GREAT PERFORMANCE

Mankins and Steele

The Strategy-to-Performance Gap

Performance is often well below what strategy
predicts
Survey of executives found that
Companies rarely track performance against long-term
plans
Multiyear results rarely meet projections
A lot of value is lost in translation (i.e., no one clearly
knows how effective a strategy is)
Performance bottlenecks are frequently invisible to top
management
The strategy-to-performance gap fosters a culture of
underperformance (lack of performance becomes
acceptable and the norm)

Closing the Strategy-toPerformance Gap

Rule 1: Keep it simple, make it concrete
(not too abstract and unclear to many)

Rule 2: Debate assumptions, not forecasts

(understand the fundamentals and performance
drivers)

Rule 3: Use a rigorous framework, speak a

common language
Use a very thorough and sound framework
Make it possible for corporate center and units to use
this framework in their communications

Closing the Strategy-toPerformance Gap (2)

Rule 4: Discuss resource deployments early
(avoid last minute shortages of resources)
Rule 5: Clearly identify priorities (dont give
equal importance to all tactical actions)
Rule 6: Continuously monitor performance
Rule 7: Reward and develop execution
capabilities (need to motivate and develop
employees)

The Results?
An increase in performance of anywhere
from 60% to 100%.
More confidence among employees and
managers
Emergence of a culture of over
performance
Enhanced reputation within the industry