Think about the top ten initiatives in your organization today.
How confident are you that your teams can move forward on them? Is that confidence, or lack of confidence, based on opinion, past performance, or a hunch?
Great leaders are no longer differentiated by having a vision for the future, generating innovative ideas, or having the courage to do what others have been afraid to do. These days, the differentiator comes from understanding their ability to execute.
Alex Castro — CEO of M Corp and author of the new book Measure, Execute, Win — wants to help leaders identify initiatives that have great potential but no chance of delivering.
It’s why he created a new metric called the ReM Score that measures a team’s readiness for each initiative being considered. I caught up with Alex to see why leaders should consider implementing this metric in their business and to learn how Alex uses it at his company.
Save time and money with a readiness score
There’s no lack of good ideas in today’s business world, yet 50 percent of them are doomed to failure. Executives will often green light a strategic initiative based on a business case and financial analyses alone, with no idea whether their company has the ability to execute it successfully. But there’s a better way to make corporate decisions.
A readiness score should be step one in your process for strategic planning or requesting funding for a project. The reason why is simple: it gives leaders and decision makers a non-biased basis for understanding their company’s capabilities to deliver the idea.
As Alex points out, this saves tremendous amounts of time and money because people are not spending weeks or months writing business cases and building financial analysis spreadsheets only to learn that the strategy, initiative, or project really has no chance of working.
“Using a tool like the ReM Score allows companies to streamline their decision processes and create ‘pools’ of strategies, initiatives, and projects that are viable and can be selected on value-add with confidence on ability to execute,” Alex explained.
Knowing your readiness changes the conversation
As the CEO of a 15-year-old company, Alex incorporates this approach to help streamline his strategic process and educate leadership and staff on where ideas and innovations stand.
Alex has seen the mistakes leaders make when they put out a vision and strategy and then start producing products, buying companies, or moving into new markets with no clear sense of whether or not they actually have the ability to execute on that vision.
He’s heard the same refrain every time: “This will take us three, six, or nine months to achieve.”
But eighteen months to thirty-six months later, they haven’t achieved their goal. The product misses the window of opportunity. The acquisition falls short in its performance because it failed to integrate into the culture. The company struggles to find footing in the new market.
The worst part? Leaders have no idea what happened.
The ReM Score helps Alex and his team effectively evaluate potential acquisitions, new product concepts, new market expansions, and back-office optimizations before making a move. It also gives them the ability to continuously measure M Corp’s adaptability to evolving strategies.
“Having this awareness completely changes our internal conversations on what to invest time in discussing, as well as what to invest money into developing,” Alex shared. “It’s very eye-opening and really draws everyone in the company into understanding the large gaps that exist between ideas or innovation and actually getting something to work.”
For more on how to use a readiness score to choose the right projects, check out Measure, Execute, Win on Amazon.