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Thefollowingisahighlightedsummaryofthebook,Execution,publishedbyCrownBusiness.ThestatementsbelowarekeypointsofthebookasdeterminedbyJamesAltfeldandhavebeenmadeavailableatnochargetotheuser.Execution:TheDisciplineofGettingThingsDoneByLarryBossidy&RamCharanIntroductionToomanyleadersfoolthemselvesintothinkingtheircompaniesarewellrun.They’reliketheparentsinGarrisonKeillor’sfictionalLakeWobegon,allofwhomthinktheirchildrenareaboveaverage.ThenthetopperformersatLakeWobegonHighSchoolarriveattheUniversityofMinnesotaorColgateorPrincetonandfindoutthey’reaverageorevenbelowaverage.Similarly,whencorporateleadersstartunderstandinghowtheGE’sandEmersonElectricsofthisworldarerun—howsuperblytheygetthingsdone—theydiscoverhowfartheyhavetogobeforetheybecomeworldclassinexecution.Hereisthefundamentalproblem:Peoplethinkofexecutionasthetacticalsideofbusiness,somethingleadersdelegatewhilethyfocusontheperceived“bigger”issues.Thisideaiscompletelywrong.Executionisnotjusttactics—itisadisciplineandasystem.Ithastobebuiltintoacompany’sstrategy,itsgoals,anditsculture.Andtheleaderoftheorganizationmustbedeeplyengagedinit.Hecandelegateitssubstance.Wetalktomanyleaderswhofallvictimtothegapbetweenpromisesthey’vemadeandresultstheirorganizationsdelivered.Theyfrequentlytellustheyhaveaproblemwithaccountability—peoplearen’tdoingthethingsthey’resupposedtodotoimplementaplan.Theydesperatelywanttomakechangesofsomekind,butwhatdotheyneedtochange?Theydon’tknow.Executionisaspecificsetofbehaviorsandtechniquesthatcompaniesneedtomasterinordertohavecompetitiveadvantage.TheGapNobodyKnowsWhencompaniesfailtodeliverontheirpromises,themostfrequentexplanationisthattheCEO’sstrategywaswrong.Butthestrategybyitselfisnotoftenthecause.Strategiesmostoftenfailbecausetheyaren’texecutedwell.Thingsthataresupposedtohappendon’thappen.Eithertheorganizationsaren’tcapableofmakingthemhappen,ortheleadersofthebusinessmisjudgethechallengestheircompaniesfaceinthebusinessenvironment,orboth.Build-to-orderimprovesinventoryturnover,whichincreasesassetvelocity,oneofthemostunder-appreciatedcomponentsofmakingmoney.Velocityistheratioofsalesdollarstonetassetsdeployedinthebusiness,whichinthemostcommondefinitionincludesplantandequipment,inventories,andaccountsreceivableminusaccountspayable.Highervelocityimprovesproductivityandreducesworkingcapital.Italsoimprovescashflow,thelifebloodofanybusiness,andcanhelpimprovemarginsaswellasrevenueandmarketshare.Dellturnsitsinventoryovereightytimesayear,comparedwithabouttentotwentytimesforitsrivals,anditsworkingcapitalisnegative.Asaresult,itgeneratesanenormousamountofcash.Inthefourthquarteroffiscal1001,withrevenuesof$8.1billionandanoperatingmarginof7.4percent,Dellhadcashflowof$1billionfromoperations.Itsreturnoninvestedcapitalforfiscal2001was355percent—anincrediblerateforacompanywithitssalesvolume.Itshighvelocityalsoallowsittogivecustomersthelatesttechnologicalimprovementsaheadofothermakers,andtotakeadvantageoffallingcomponentcosts—eithertoimprovemarginsortocutprices.Thegapbetweenpromisesandresultsiswidespreadandclear.Thegapnobodyknowsisthegapbetweenwhatacompany’sleaderswanttoachieveandtheabilityoftheirorganizationtoachieveit.Everybodytalksaboutchange.Inrecentyears,asmallindustryofchange-meistershaspreachedrevolution,reinvention,quantumchange,breakthroughthinking,audaciousgoals,learningorganizations,andthelike.We’renotnecessarilydebunkingthisstuff.Butunlessyoutranslatebigthoughtsintoconcretestepsforaction,they’repointless.Withoutexecution,thebreakthroughthinkingbreaksdown,learningaddsnovalue,peopledon’tmeettheirstretchgoals,andtherevolutionstopsdeadinitstracks.Whatyougetischangefortheworse,becausefailuredrainstheenergyfromyourorganization.Repeatedfailuredestroysit.Nocompanycandeliveronitscommitmentsoradaptwelltochangeunlessallleaderspracticethedisciplineofexecutionatalllevels.Executionhastobeapartofacompany’sstrategyanditsgoals.Ifyoudon’tknowhowtoexecute,thewholeofyoureffortasaleaderwillalwaysbelessthanthesumofitsparts.ExecutionComesofAgeAfterCompaq’sboardfiredPfeiffer,chairmanandfounderBenRosentookpainstosaythatthecompany’sstrategywasfine.Thechange,hesaid,wouldbe“inexecution…Ourplansaretospeedupdecision-makingandmakethecompanymoreefficient.”Tounderstandexecution,youhavetokeepthreekeypointsinmind:1.Executionisadiscipline,andintegraltostrategy.2.Executionisthemajorjobofthebusinessleader.3.Executionmustbeacoreelementofanorganization’sculture.ExecutionisaDisciplineNoworthwhilestrategycanbeplannedwithouttakingintoaccounttheorganization’sabilitytoexecuteit.…executionisasystematicwayofexposingrealityandactingonit.MuchhasbeenwrittenaboutJackWelch’sstyleofmanagement—especiallyhistoughnessandbluntness,whichwewouldarguethatthecoreofhismanagementlegacyprocesses,makingitamodelofanexecutionculture.Theheartofexecutionliesinthethreecoreprocesses:thepeopleprocess,thestrategyprocess,andtheoperationsprocess.ExecutionistheJoboftheBusinessLeaderLotsofbusinessleadersliketothinkthatthetopdogisexemptfromthedetailsofactuallyrunningthings.It’sapleasantwaytoviewleadership:youstandonthemountaint