The Performance Gap

Corporate executives justifiably spend a great deal of time and effort developing strategies. However, as a number of very thoughtful and successful business leaders have observed, there is often a big performance gap: companies may have adequate strategies, but frequently fall very short in the execution of those strategies. Once they figure out the complexities of where they should be going, corporate leaders and senior teams generally assume that the mechanics of making things happen, while perhaps labor-intensive, are not in themselves complex or mysterious.

In fact, closing the gap between great strategy and high-performance execution requires deep expertise — designing and¬†implementing a well-engineered¬†organizational structure and ensuring effective behaviours within that structure. Both of these organizational dimensions have much more to them than meets the eye. There is a science to designing effective organizational structures, and a science to the effectiveness of behaviours within those structures, neither of which are generally acknowledged or well-understood. Without this knowledge and its effective application, great strategies will forever be short on execution. High-performance execution must happen by design, not by chance, and this requires a deep understanding of the intricate relationships among strategy, structure and behaviour.