How Faulty Processes and Poor Execution can often Fail the Best Laid Plans
Several Indian companies are aggressively pursuing growth to meet the needs of a rapidly evolving economy. However, many encounter “growth pangs” as they transition from strategy formulation to execution. Here, we’ll examine some real-world examples related to processes and execution to highlight the common hurdles and their impact.
1. Process: Building the Roadmap to Success
Effective execution depends on processes that are designed to support the strategy, not hinder it. Unfortunately, gaps in processes often compromise a strategy's ability to scale and adapt.
A) Gaps in Readiness
A strategy may be innovative, but without the right processes in place, an organization isn’t equipped to carry it forward. Readiness gaps can stem from outdated technologies, insufficient training, or limited resources, making it difficult to move from planning to action.
In 2014, a leading Indian e-commerce company announced a first of its kind BIG SALE DAY. The e-commerce giant introduced the event with great fanfare, attracting massive traffic to its website. However, the company’s servers crashed under the pressure, orders were misplaced, and customers were left frustrated. This readiness gap highlighted the importance of scalable, reliable processes to manage spikes in demand. The company eventually learned from the incident, investing heavily in infrastructure and testing, but the initial hiccup underscores how crucial operational readiness is to execution.
B) Inconsistent Measurement
What gets measured gets managed. Without a robust measurement system, it's nearly impossible to track progress or identify issues early on. Inconsistent or lack of measurement means that even the best strategies can veer off course without anyone noticing until it’s too late.
The top public sector bank in India embarked on a digital transformation strategy, aiming to integrate modern banking technology across its vast network. However, it struggled with measuring the effectiveness of new initiatives uniformly across branches, especially in rural areas. Without consistent data on digital adoption and customer feedback, the bank faced difficulties in adapting its strategy for various regions. This gap in measurement led to uneven digital experiences for customers, slowing down the bank’s digital transformation. By refining its data collection processes, the bank eventually improved its execution, highlighting the importance of consistent metrics in strategic initiatives.
2. Execution: Adapting to the Reality of Change
Execution requires resilience and adaptability. Growth is rarely linear, and a static approach
often leads to failure.
A) Inability to Adapt
Strategies formulated months or years in advance need agility to respond to market changes, competitive shifts, or unexpected challenges. Organizations that are rigidly focused on sticking to the original plan may miss out on opportunities or fail to address emerging threats.
A global leader in telecommunications entered India through a merger with another cellular company. The strategy was initially promising and aimed at capitalizing on the growing telecom market. However, the merger struggled to adapt to changing market conditions, especially after the entry of another Indian company, which disrupted the industry with ultra-low prices. The global leader’s inability to pivot quickly to new market realities and its reliance on outdated operational models in a fast-evolving industry led to massive losses. Had the company adapted more dynamically to competition and customer demands, it might have weathered the disruption better.
B) Fragmented Monitoring
Effective monitoring systems ensure accountability and provide insights into what’s working (and what isn’t). However, fragmented monitoring systems—those spread across isolated departments or platforms—can obscure the big picture. In these cases, critical issues may be missed, or corrective actions delayed.
India's largest retail chain known for its extensive network of stores launched its ambitious plans to capture India’s grocery market. However, in the initial phases, its monitoring systems were fragmented, with stores across regions using varied systems to track sales, inventory, and customer feedback. This fragmentation led to inconsistencies in the customer experience and logistical inefficiencies. Over time, the company implemented integrated monitoring systems across all stores, allowing for better data visibility and decision-making. This change enabled them to improve operations, but it serves as an example of how fragmented monitoring can slow execution and hinder growth.
The GEMS Solution: Turning Strategy into Action
GEMS, the Growth Execution Management SaaS platform, tackles these challenges head-on by providing an integrated solution for processes, adaptability and more:
· For Processes: GEMS identifies readiness gaps and strengthens measurement consistency, creating a robust execution roadmap.
· For Execution: GEMS provides adaptable, real-time monitoring, so companies can respond swiftly to changes and stay aligned with the market.
Challenges for fast growing companies are real, but by understanding the execution barriers and leveraging technology like GEMS, such high growth companies can transform well-planned strategies into impactful outcomes.
