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MBA First Year, Trimester 1, Session: 2014-15

Individual Dynamics and Leadership

Book Review

Execution: The Discipline Of

Getting Things Done
-

Larry Bossidy
&
Ram Charan

Submitted By:
C004 Rohith Aravalli
C015 Karan Dedhia
C021 Rishi Jain
C037 Vineet Mishra
C047 Priyesh Saurabh
C058 Yashowardhan Swami
C068 Krati Rathi

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Table of Contents

Introduction and summary of the book ......................................................................................... 3

Statement of Objectives of the Study ............................................................................................. 3

Method of Study ............................................................................................................................. 4

Chapter wise Summary and critical analysis................................................................................. 4

Theoretical Frameworks ................................................................................................................ 8

Relating theory to practical aspects of human behaviour ............................................................. 9

Learning and Conclusion11

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Introduction and summary of the book

Lawrence A. ("Larry") Bossidy is a businessman and author. He is a retired CEO of
AlliedSignal (later Honeywell), and has also spent more than 30 years rising into executive
power at General Electric. Ram Charan is an Indian-American business consultant, speaker
and writer. He is highly sought after advisor to CEOs and senior executives of companies
such as GE, KLM and Bank of America.
Organizations face many challenges in todays shaky economy competitive battles,
increased costs, decreased margins, and a host of other internal and external forces. In order
to shore up their companies responses to these factors, todays leaders must be able to take
the goals they set for their organizations and turn them into results. Unfortunately, too many
companies struggle to bridge the gap between goals and results they create solid, logical,
even bold plans, but are unable to execute properly.
Honeywell CEO Larry Bossidy and management advisor Ram Charan contend that the
reason for this gap is that business people do not think about execution as a discipline or a
cornerstone of a business culture and they must. From middle management all the way up
to CEO, a companys leaders must recognize execution as the most important collective set
of activities in which they can engage. No more is there room for leaders who rely merely on
their vision to get from goals to results. In order to survive, they must get more involved in
the details of execution. There is much work to be done, and Execution shows you how to do
it.

Statement of Objectives of the Study

The purpose of this writing is to understand the reasons behind companies' successes and
failures and analyse the various behavioural characteristics of the key people responsible
for the same in different companies as per the examples cited in the book.

Observe personality traits of CEOs of various Multinational Companies and apply

models to it.
Study how they motivate the employees at grassroots in order to synchronize their
goals with those of the organization.
Examine the different emotions and moods experienced by leaders and how to tackle
the discrepancies.
Critical analysis of the authors responses and feedback on the measures taken by
CEOs to execute plan

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Method of Study
For reviewing the book, the following method was adapted
1. Different behavioural models of Perception, Leadership, and Motivation were studied from
the Organizational Behaviour course book.
2. The book 'Execution: The Discipline of Getting Things Done' was thoroughly read
keeping in mind the theories which can be applied.
3. For each Chapter the incidents which signify different personality and behavioural traits
were noted down by each of the group members.
4. The chapter-wise points were consolidated and similar points were grouped under a
common behavioural trait.
5. Chapter wise summary and critical analysis was done as a group activity.
6. Relative theoretical frameworks and practical aspects of the theories were discussed.
7. Individual learning experiences were compiled and a common learning and conclusion
was arrived upon by group discussion.

Chapter wise summary and critical analysis

Chapter 1: The Gap Nobody knows
When a companys strategies fail it is not because that CEOs strategy was wrong but
because mostly that strategies are not executed well. The reason may inability of
organisations to execute them or due to mismanagement of challenges by leaders or both.
The so called breakthrough thinking or big thoughts are pointless if it doesnt transform into
concrete steps for action. The learning from these thoughts adds no values neither people are
able to meet their goals. Meaningful change or taking organisation to next level comes only
when organisations people come together and discuss specific things that need to be done.
Execution will just remain a word if it is not incorporated in organisations culture and is not
integral to its strategies. Also majority of the onus for execution lies on business leader.
Chapter 2: The Execution Difference
Three examples are given; two of them were from Xerox and Lucent of which poor
execution is described. It shows that judging a persons intelligence is generally easy but
assessing their past performance is difficult. It is even difficult to assess whether will be able
to ask right questions to right people at right time to enforce execution. The third example is
of good execution at EDS where its leader transformed the companys performance and
regained its image. The whole difference was of Execution.
Chapter 3 Building Block One: The Leaders Seven Essential Behaviour

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1. Know your people and your business

Authors highlight the importance of leader's personal understanding, involvement and
commitment necessary towards the progress of the business. A leader should have an
open mind and a positive demeanor to have personal connections at all levels of the
organization. Jack Welch learned the attitudes, skills and resources needed to get
necessary changes rolling quickly throughout General Electric.
2. Insist on realism
According to Larry, embracing realism means always taking a realistic view of your
company, internally and externally, and comparing it with other companies. It is the
heart of execution, but it often makes people uncomfortable. People prefer to hide
mistakes or buy time to find solutions rather than to admit their mistake.
3. Set clear goals and priorities
Leaders should set few, simple, clearly realistic goals and priorities so that others can
understand, evaluate and act of them to produce best results from the resources at
hand.
4. Follow through
Authors discuss how a high tech company which was hit hard by recession of 2001
revived. The CEO surfaces a conflict that acted as a hindrance in achieving goals and
created a follow-through mechanism to ensure that everyone does what they are
supposed to do.
5. Reward the doers
Larry emphasizes on the fact that a good leader ensures that the organization makes
distinction on the performance of the employee and reward them accordingly.
6. Expand people's capabilities through coaching
A leader who has already gained knowledge and experience should disseminate the
learnings and coach the group by giving useful feedback. Honeywell's learning
strategy is based on the organizing capabilities people need by mastering tools like
six sigma, digitization.
7. Know yourself
Good leaders build on their own strengths and delegate their weaknesses providing a
foundation of good people's skills. Emotional fortitude comes from self-discovery
and self-mastery.
Chapter 4 - Building Block 2: Creating The Framework For Cultural Change
The chapter states the importance of software (beliefs and behaviors) in an organization. It
discusses the social operating mechanisms to change the beliefs and behaviors of people,
which will further lead to change in the work culture of an organization. The beliefs that
influence specific behaviors are more likely to change. Hardware (organizational structure)
and software (beliefs and behaviors of people) in combination create the social relationships,
the norms of behavior, the power relationships, flows of information, and flows of decisions.
A key component of software is Social Operating Mechanisms. These are formal/informal
meetings, presentations, memos or e-mail exchange. These mechanisms are integrative and
expand the leaders behaviors, beliefs and mode of dialogue throughout the organization.
Linked to one another and to the measurement and reward systems, the Social Operating
Mechanisms collectively become what we call the Social Operating System of the
corporation. This chapter has very beautifully cited the example of the operating system of
GE.

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Chapter 5 - Building Block Three: The Job No Leader Should Delegate having the
Right People in the Right Place
Leaders proclaim that their people are their biggest assets. But do they really put thought
behind whom to hire, where to hire and why to hire. The quality of their people is the best
competitive differentiator. The results of right people in right role might not be evident
immediately but in the long run this is what makes the biggest difference.Leaders of
consistently successful business focus intensely and relentlessly on people selection.
Why the right people arent in the right jobs:
Lack of knowledge and commitment
Lack of courage and decisiveness
The psychological comfort factor
What kind of people are you looking for?

They energize people

Theyre decisive on tough issues
They get things done through others and follow up

Hiring and developing people should be one of the topmost priorities of a company. A
person who is equipped to take the business to the next level should be the companys search
criteria.

Chapter 6: The People process: Making the Link with Strategy and Operations
The people process is more important than strategy or operations processes. It is
recommended that to fulfill a business potential one should get people process right. A
robust people process does 3 things - it evaluates individuals accurately and in depth. It
provides a tool for identifying and developing leadership talent and it fills the leadership
pipeline which is the basis of a strong succession plan. However, very few companies
accomplish all of these since they evaluate people on basis of what they are doing today and
not whether they can handle the jobs of tomorrow.
A robust people process provides a powerful framework for determining the organization's
talent needs over time and for planning actions to achieve those needs. It includes developing
the leadership pipeline through continuous improvement, succession depth and reducing
reduction risk, deciding what to do about non-performers and transforming the mission and
operations of HR to be better aligned with business goals. Finally, there is no single system
for creating and maintaining a robust people process, but it should follows certain rules such
as integrity, honesty, a common approach, common language and frequency. Thus this
chapter summarizes the importance of 4 basic skills: functional, business, management and
leadership skills. It is essential to consider these competencies when considering people in
the organization and what is next for them.
Chapter 7- The Strategy Process: Making the Link with People and Operations
Goal of a strategy is to win the customers preference and create a sustainable competitive
advantage while leaving sufficient money for shareholders. Author believes that a good
planning process requires the utmost attention to the hows of the executing the strategy.
While explaining importance of hows the author gives the example of AT&T Company
and reasons for the failure of their strategy. According to the author, a strategy has to be

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constructed and owned by those who will execute it, namely the line people. Staff people can
help by collecting data and using analytical tools but the business leaders must be in-charge
of developing the substance of the strategic plan. For strong strategic plan one must address
the following questions:

What is the assessment of the external environment?

How well do you understand the existing customers and markets?
What is the best way to grow the business profitably, and what are the obstacles to
growth?
Who is their competition?
Can the business execute the strategy?
Are the short term and long term goals balanced?
What are the critical issues facing the business?
How will the business make money on a sustainable basis

Chapter 8: How to conduct a Strategy Review

Author believes in Jack Welchs style of business strategy review where the big fat strategy
books are banned and get everybody thinking and talking about reality .He also believes the
business unit strategy review is the prime Social Operating Mechanism of the strategy
process. It provides the last chance to get things right before the plan faces the ultimate test
of the real world. He believes strategy review should be a creative process not a drill where
people regurgitate data. The strategy review is also a good place for a leader to learn about
and develop people.Author feels before doing a strategy review certain questions have to be
discussed
How well versed is each business unit team about the competition?
How strong is the organizational capability to execute the strategy?
Is the plan scattered or sharply focused?
Are we choosing the right ideas?
Are the linkages with people and operations clear?
The strategy review needs to analyze the competition. Far too often, competitor analysis is
focused only on past history: industry dynamics, cost structure, market share, brand
differentiation, and power in distribution channels. Author also emphases that organization
should take into account of their capabilities to implement the new strategy.
As businesses pursue growth by expanding their offerings, they often end up trying to
provide more goods and services than they can handle comfortably. Author feels that this not
the right way to do the business. No matter how well is the execution, risk of failure
increases markedly when the ideas developed dont fit with existing capabilities. At the end
of the strategy review, write a letter to each of the leaders to solidify and confirm the
agreements made so that later can use them as the basis for reviewing progress.
Chapter 9: The Operations Process: Making the Link with Strategy and People
The chapter talks about how managers may make their operating plans based on budgets
which defeat the very purpose of planning. It talks about how a manager should be involved
in every stage of planning and execution and must make sure that his team is aligned. While
making an operating plan it becomes necessary that all the segments of thebusiness are
synchronized and all assumptions both positive and negative, are clearly communicated at
the beginning. There will be situations during which the manager will have to make tradeoffs between options that are available to him and select the option that is best suited. The

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most important aspect of an operating process is to identify targets that clearly reflect not
only what business wants to achieve but what it is likely to achieve. An operating process
should be such that it should link both strategy and people to results.

Theoretical Frameworks
There are several theories which one will encounter while reading the book. Listed below are
some of the theories which form the framework of the book:
Mintzbergs Managerial roles
Definition: All managers are required to perform
duties that are ceremonial and symbolic in nature
(Interpersonal). They collect information from outside
organizations and institutions (Informational) and are
required to make choices (Decisional).

Managerial Activities
Traditional Management: Decision making, planning and controlling.
Communication: Exchanging information and processing paperwork.
Human Resource Management: Motivating, disciplining, manage conflict, staffing and
training.
Networking: Socializing, politicking and interacting with others.

Personality and Values

Personality
Definition: The sum total of ways in which an individual reacts to and interacts with others.
Big 5/OCEAN model
Openness to experience: A trait that characterizes someone who is gregarious,
assertive and sociable
Conscientiousness: A trait that characterizes someone who is responsible, organized,
dependable and persistent
Extraversion: A trait that characterizes someone who is gregarious, assertive and
sociable
Agreeableness: A trait that characterizes someone who is cooperative, warm, and
trusting
Neuroticism: A trait that characterizes someone who is nervous, anxious, depressed
and insecure
Perception and Individual Decision Making
Perception
Definition: A process by which individuals organize and interpret their sensory impressions
in order to give meaning to their environment
Overconfidence Bias: Believing too much in ones own ability to make good
decisions.

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Availability bias -Availability bias is a human cognitive bias that causes people to
overestimate the probability of events associated with memorable or vivid
occurrences.
Anchoring Bias - The act of basing a judgment on a familiar reference point that is
incomplete or irrelevant to the problem that is being solved.
Bounded Rationality (decision making) - Bounded rationality is the idea that in
decision-making, rationality of individuals is limited by the information they have,
the cognitive limitations of their minds, and the finite amount of time they have to
make a decision

Learning
A relatively permanent change in behavior that occurs as a result of experience.
Operant Conditioning: A type of conditioning in which desired voluntary behaviour
leads to a reward or prevents a punishment.
Punishment -Something unpleasant added. You can use punishment as a means of
decreasing the probability of an undesired behaviour happening again.
Schedule of Reinforcement - A schedule of reinforcement is basically a rule stating
which instances of behaviour will be reinforced. In some case, behaviour might be
reinforced every time it occurs. Sometimes, behaviour might not be reinforced at all.
Leadership
Transformational Leadership - Transformational leadership enhances the motivation,
morale, and job performance of followers through a variety of mechanisms. These include
connecting the follower's sense of identity and self to the project and the collective identity
of the organization; being a role model; challenging followers to take greater ownership, and
understanding the strengths and weaknesses of followers.

Relating theory to practical aspects of human behaviour

Some leaders make decisions based on Availability bias when they avoid taking the
initiative to analyse the problem in depth and deal with the superficial information delivered
to them through reports by staff which is gathered with their perceptions and limitations
gathered.
It is described in book that Jack Welch admitted his Overconfidence bias that he made
several mistakes in hiring people in his early career as he was too confident about his
decision and never thought of the problems, which could have risen.
Dick Browns personal level of connection at all levels of organization at EDS fostered a
sense of belonging in the employees. His employees had strong Perceived Organisational
Support showing greater organisational citizenship behaviour and better customer service.
Jack Welch displayed deep Job Involvement when he personally visited Emmanuel
Kampouris, the CEO of American Standard instead of sending the manufacturing team to
investigate about the powerful tool for faster inventory turnover and greater cash liquidity.
After spending hours and involving himself deeply with the subject, Welch learned the
attitude and skills required to run the same at GE.
When it comes to Big Five Model, Larry Bossidy while working at Honeywell International
displayed Extraversion as he reviewed the business activities personally and promoted the

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ability to intellectually intense debates with the employees to find best solutions for a given
problem. Being highly emotionally expressive, he used to write personal letters to employees
appreciating the efforts put by them. Openness to experience was displayed by
boundarylessness that Jack Welch introduced assures a constant exchange of ideas and best
practices among diverse business managers, significantly multiplying the companys
intellectual capital. As described in the book, Bob Lutz, vice chairman of General Motors is
example of conscientiousness. Lutz is not only has great understanding of customer needs
but is a cost-conscious team player. During his stint at Ford and Chrysler he developed new
products with shorter development cycles.
It is described in the chapter that to get things done we need to utilise positive
reinforcement theory. One needs to change peoples behaviour so that they produce results.
First you tell people clearly what results youre looking for. Then you discuss how to get
those results, as a key element of the coaching process. Then you reward people for
producing the results. If they come up short, you provide additional coaching, withdraw
rewards, give them other jobs, or let them go.
Negative behaviour from senior personnel prevents their teams from working together
effectively. An executive vice president of a company was removed and punishment
became imperative since his behaviour was very poor. He cursed his people openly on an
intercom connected to several offices in different locations, used vulgar language with CEO
when asked to restructure his unit to meet certain performance targets.
The book points out that you cannot have an execution culture without robust dialogue one
that brings reality to the surface through openness, candour, and informality. Robust dialogue
starts when people go in with open minds and let go there perceptions. Theyre not trapped
by preconceptions or armed with a private agenda.
Leaders sometimes focus too much on planning instead of execution. In a market scenario
there is no situation that is constant so what is true today may not be the same tomorrow. The
approach is to start working with simplified models and adapting as per requirements. That
clearly explains the Bounder Rationality decision making process
CEO of a $4 billion US chemical company invested to build a plant in Indonesia and
assigned it to a Brazilian plant manager, a technical professional. However, he failed since he
did not understand relationships with customer, markets, pricing and relationship with
various government authorities in Indonesia thus proving the importance of conceptual
skills.
Book altogether describes Mintzbergs managerial role of Leader. Execution happens
when employees work in a group, guided by a leader who has a comprehensive
understanding of the business and its environment, and by using the robust dialogue thats
central to the execution culture, they all can contribute somethingand all will benefit from
being part of the dialogue.
All in all, authors of the book focuses on Transformational Leadership to achieve execution of
strategies by evoking self-efficacy in employees and giving the teams and group a can-do spirit. In
this way employees of the organisation are more likely to pursue ambitious goals and agree on
strategic goals of the organisation by actively involving in the business. These attributes can be
achieved only if the leader of the organisation makes effort to stay deeply connected with company
and its employees.

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Learning and Conclusion

Conclusion
Leadership without the discipline of execution is incomplete and ineffective. Execution
oriented leader devotes an inordinate amount of time and energy to hiring, providing the
right experience for, and developing the leaders. Thus execution has to be embedded in the
reward system and norms of behaviour that everyone practices.
Bossidy and his co-authors capture one of the fundamental shortfalls in modern business and
in many other areas of life. Getting things done requires a level of commitment to execution
that is often missing. Know what to do and how to do it not doing. It re-enforces that idea
and offers the leader a number of options that can be used to improve individual, team and
business performance.

Learning
The ideas and examples presented in this book are extremely informational. Below are the major
takeaways from the book:
1. Execution is not tactical side of business or delegation. It starts with bottom-line of any
strategy which leader should be delving into.
2. When strategies dont work, start inspecting from the basics of action and plan rather than
attributing it wrongly to other external aspects.
3. In an execution culture, leaders design strategies as road maps rather than rigid paths as
described in thick planning books.
4. Company closer to an execution culture doesnt suffer from change shocks and adapt quickly
than others because they are closer to the situation
5. Leader of the organisation should be deeply and passionately involved to the organisation
which includes knowing realities and limitations of the organisation.
6. For execution three process needs to be in place people process, strategy process and
operations process.
7. People process includes selecting great talent and appraising them constructively. Strategy
process includes defining goals and carving out plans fundamentally to realise it. Operations
process ensures that strategy gets converted into proposed specific actions.
8. People process should be interlinked with strategy and operations processes so as to be
effective in achieving business goals.
We would like to conclude the review stating that this was a great learning experience for all the
group members. It not only enhanced our knowledge of behavioural models and theories but also
gave us a practical and first-hand experience at it. While discussing the case study different
behavioural traits of the group members were also seen which further lead to a deep understanding of
the theories and also the group members. We worked our way to understand everyone's point of view
and reach consensus by discussion which proved to be the greatest learning curve for everyone.
Towards the end, we hope that we imbibe in us the qualities which make a person successful in
today's business world.