Execution eats strategy for breakfast
Text: Michiel Breeschoten BSc SMP, and drs. Vincent Hooplot RM*
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Last year, we conducted two in-depth case studies into two fast growing European fund management firms. The central question: what are these companies doing in order to grow at such a fast pace?
Together with our research team we took a deep dive into the matter. We are happy to share the secret to their success in this article.
We studied profit and growth figures, corporate strategy, marketing activities, media spend figures, themes and messaging, budgets and personnel and, finally, the maturity of the marketing department. Even though the two companies we researched made fundamentally different decisions regarding the abovementioned areas, it quickly became clear that they do have some things in common. Among other things:
- A clear, inspiring ambition that is carried out by the CEO in a credible and trustworthy manner;
- Explicit choices regarding who is responsible for what within the organization
- Strong trust in employees, encouraging autonomy and empowering them to take responsibility and try new things based on one's own insights.
But especially, a focus on “execution”. This reminds us of a great statement from a compelling board member of one of our clients: During a strategy session, where the senior management was also present and fierce debates regarding the future direction of the company took place, he was quiet for a while, gazed around thoughtfully and then said with a remarkably calm expression on his face: "Gents, at the end of the day one thing is sure and that is that execution eats strategy for breakfast."
Focus on implementation
With that he shifted the discussion completely from strategy to implementation: something that many a company struggles with. Not the two fund managers we studied, though.
They both have turned “execution” into art. Take, for example, the smallest one. With a selective institutional focus, they go for realizing a maximum impact with a limited marketing budget. Through creating high quality content and focusing on smart online marketing as well as generating free publicity, they reach their target audience in a highly efficient manner. They measure the results and use the data to continuously improve themselves.
Fail fast
Their motto: “Think big, start small, fail fast”. After their strategy has been set and clarified, no unnecessary time is wasted with planning too far ahead. They focus on action, and because making mistakes is allowed, their professionals take on more responsibilities and spring into action faster.
Each mistake is used as a learning, and in the meanwhile steps are being taken. This way they have made a complete transition from an ugly duckling to a successful, fast growing fund manager in just one and a half years. A concrete example of their execution power is how they have transformed multiple unfocused local websites into an integrated customer journey with a new website as the central starting point.
Within one and a half years they set up a content-organization that provides customers, sales and marketing, with a constant stream of memorable content aimed at the relevant target groups. Innovative digital sales pitch books, which are automatically populated with up-to-date content, were created within a few months. The frequency of publishing relevant content for both clients as well as prospects was increased from two publications a month to twice a day, and internally even the most devoted fans of paper were educated in the digital area.
Making choices, swift execution, learning fast about what works and what does not, adapting and moving forward. That’s what makes execution eat strategy for breakfast.