Be ambidextrous! Manage strategy AND execution with equal competence.

bridge desmond-simon-466409.jpg — Connect strategy & execution

Excellent execution won’t matter unless it’s connected to strategy and fulfilling the organization’s strategic objectives.

Recently, I had the opportunity to interact with people in a consulting company that practices close to the equipment. Their Chief Engineer, Frank, was a man full of great questions. We were discussing a client's request for an asset management strategy.

I realized we had a huge communication problem when Frank kept asking me about the client's request for an asset management strategy. We were looking at FORTIG's Strategy Map with an Operational Excellence Theme. Then it hit me. Frank didn't know what strategy meant or what a strategy looks like. He's an engineer, not a C-level executive. Let me explain.

Wikipedia defines 'strategy' as -

"Strategy involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how the ends (goals) will be achieved by the means (resources)."

For example, Reliability is a technical engineering problem. Knowing this is a goal, once we know our baseline measure for Reliability, we can set boundaries -

Target = 1% increase in Reliability
with anticipated improvements over year1, year2, year3

Then we develop a number of initiatives to increase reliability of our equipment, plants, facilities, and infrastructure.

From a business point of view, what does a 1% increase in Reliability mean? Well, it might mean -

an increase in capacity due to fewer breakdowns
the ability to deliver customer orders on time

Both business outcomes deliver bottom line results. This is significant because the C-suite focuses on these bottom line results. Performance is how they are rewarded.

Getting back to Frank, he couldn't see how these dots connected. He doesn't speak the language of the C-suite. He couldn't see how technical engineering improvements might bring an asset-intensive organization's strategy to life.

20 years ago, an ally of mine said: "Gail, if you're going to be successful, you must figure out how reliability and maintenance make a difference to the bottom line." This is an important lesson for all of us in asset management.