BC Thaker - 25th January, 2014 “IT IS THE EXECUTION, DUH !” What goes into an Execution Plan? MAT The art of execution. “Genius is 1% inspiration, 99% perspiration.” By: Thomas Alva Edison Big Idea Entrepreneur spends way too much time & energy on the big idea. The idea without execution is useless. The critical element is to convert the “imagination to impact”. * Source: Govindarajan V, Trimble K, HBR 99% perspiration equates to impeccable execution. You need to do & execute the basic fundamentals of business, day in day out. * Source: Govindarajan V, Trimble K, HBR Execution Plan – “how to” of your business. It is the tool you will use regularly to manage the business, communicate your goals with a strict timeline. “ Mat – a heavy woven net of rope or wire cable placed over a blasting site to keep debris from scattering.” M – Milestone A – Assumptions T – Tasks Sources: KAWASAKI, G – The Art of the Start. M – Milestone A – Assumptions T – Tasks Helps you to understand the scope of your work. Test your assumptions & provide the mechanism to identify & rectify your short comings. The business has several goals. You have to prioritize these goals. These are the milestones. They identify the important progress on the way to achieving success. 7 Key Milestones: Prove your concept (both technical & business model). Complete design specification. Finish a prototype. Raise capital. Ship a testable version to customer. Ship the final version to customer. Achieve break-even. Take your mission statement & replace it with time bound list for completion of the seven key milestones ! You miss one of the above & your organization will die. There can be more than 7 but these seven are the most critical. The timing of the 7 milestone will drive the timing of everything else. For each milestone we have to decide the resources required. These resources will be the founding stone of your financial plan. M – Milestone A – Assumptions T – Tasks Every new business works with certain assumptions. These could be; Product or service standards Market size Sales Data Return of investment Technical support Payment cycle Monitor these assumptions continuously and when proven false react quickly. Try to link these assumptions to the seven milestones. As you reach the milestones test your assumptions. M – Milestone A – Assumptions T – Tasks Major tasks that are necessary to build an organization. Nitty gritty of business Nuts & bolts of business. Major task which are necessary to design, manufacture, transport, market & support the product & service. Administrative tasks like renting space, accounting & hr systems. Legal task like registration, insurance, patents, copy rights. Financial like banking. The devil is in the detail. Entrepreneurs must understand every aspect of their business. For each task allocate resources. Set & communicate goals Measure progress Establish a single point of accountability Reward the achievers Follow up, follow up, follow up. Don’t ignore Morpheus Establish a culture of execution.