There is one vital measure missing from the business landscape and it may well be the most important indicator of company success: Completion Rate. I know, I know, I know, it’s all about results right…hitting budget, nailing revenue and making the profit number. BUT!!!…underneath all that is the cause of your results good or bad and it is a measure of your ability to deliver on strategic objectives. That measure is completion rate.
Ernst and Young recently pointed out in a company bulletin. “What really drives results is the “execution” of strategy… even more important than market position, innovation or the quality of the strategy itself.”
What is Completion Rate?
Completion Rate is a specific measure of what you say you will do versus what you actually get done. In other words it is THE Measure of Success for the Execution of Strategy.
(i.e. If you have Strategic objective that requires the successful completion of 10 Actions. At the end of the agreed timeframe.. if you have only completed 7 of those actions your completion rate is 70%)
Completion rate can give you an instant read on the progress of strategy. Which one’s are progressing well, which ones have stalled and more importantly where they have stalled. Too many failing strategies are held onto for too long burning precious resources simply because people didn’t know they were failing.
How do you get a Completion Rate Measure
1. Set the time frame. We recommend a timeframe of 90-Days (One Quarter). Longer time frames remove the urgency to execute and shorter time frames cause people to think too tactically, rather than strategically. Some strategies take 12 or 18-months to deliver, so will need to be focused on for several consecutive 90-day periods.
2. Select the Strategic Targets. Select 3 to 5 key Strategic initiatives. We usually refer to them as High Return Targets. Those things that will provide the greatest return for your time, effort and resources.
3. Apply Measures. Apply a measurement to each High Return Target. The measure could simply be the number of steps that need to be completed or it could be a specific target objective like, meet with 125 “key” customers to sell the new product.
4. Get Visibility on Progress. Finally, you will need to get instant visibility on progress. Anything from paper charts on the wall to dedicated software
The Bottomline
The primary reason you need to know your completion rate is so you can improve your ability to execute. Once you have a measure on Execution at a Company, Department, Team and Individual level you can then hone in on improvement. Without it….it’s a lottery and you may be neglecting the fundamental key to your results…
