The 4 Disciplines of Execution 4DX is an awesome book by Chris McChesney, Sean Covey, and Jim Huling. I have used this method with various teams over the years, and it delivers on its promise of getting things done. Tying into a 90-day plan and regular meeting rhythm is a magic formula for moving your team from Hobby Horse to Race Horse.
This article will explain how this relates to running a contracting business. Grab the book on Audible and have a listen.
Imagine setting your team up to tackle a critical issue in your business, and it actually gets done. You achieve what you set out to do and make a significant positive change in your business. Repeat this consistently, and you can scale without stress and maximise profit.
“Strategy without execution is hallucination” Thomas Edison
So often, teams set off with great intentions to make things happen that will improve their business, only to stumble, get distracted, and half-finish. There’s always a reason (excuse), but it becomes frustrating, and slowly, your standards slip. Understanding and applying the 4DX methodology can revolutionize the way your organization operates. By mastering this approach, you can expect better team engagement, improved execution, and to achieve your most critical goals. The benefits are clear: increased efficiency, better client delivery, more profit, and less stress.
Unfortunately, many organizations fail to harness the power of execution.
Lack of Clear Focus is the Primary Reason Why
When teams are bombarded with numerous tasks and priorities, it is hard to see which goals are truly vital. This lack of clarity often leads to misdirected efforts and diluted results.
Other reasons organizations struggle with 4DX include:
Reason #1: Overwhelming Whirlwind of Daily Operations. I love this description of the day-to-day business of getting work done. The Whirlwind often overshadows strategic goals, making it hard to prioritize long-term objectives.
Reason #2: Failure to Track Progress. With a system to measure and monitor progress, teams can maintain sight of their goals. It is way too easy for teams to stay in the Whirlwind. Most technicians and tradesmen I know love being in the Whirlwind. It’s what they were trained for; they’re really good at it,
Reason #3: Lack of Accountability. Commitments can fall by the wayside when teams don’t hold each other accountable. What gets measured gets done.
Reason #4: Resistance to Change. Implementing a new methodology can be daunting, and many resist the shift, preferring to stick to familiar routines. Most technicians and tradesmen are like every other human; they don’t like change.
But there’s good news! You can overcome these challenges and successfully implement the 4DX methodology in your organization.
Here’s how step by step:
Step 1:Focus on the Wildly Important.
Narrowing down your goals and focusing on what truly matters is crucial. Concentrating on fewer goals enables your team to channel their efforts more effectively. For instance, if your business aims to increase sales, focus on the client with the most potential instead of setting ten different targets, like “Increase sales from customer X by $XXX in the next quarter.” Apply the 80:20 rule, which client or market segment will give you 80% of the results. Avoid having too many priorities – a maximum of 3. Any more, and you dilute effort. I’ve made this mistake before: I assigned too many objectives only to see progress on them, BUT none finished.
Step 2: Act on the Lead Measures.
Many teams make the mistake of only focusing on lag measures, which are the outcomes. For example, Gross Profit is a lag measure, and hours on the job is a lead measure. If you control your labor costs generally, the gross profit will come.
Instead, I would suggest you focus on lead measures, the actions that drive those outcomes. For example, if the goal is to enhance customer satisfaction, a lag measure would be the customer satisfaction score. In contrast, a lead measure could be the response time to a customer job request. By improving the lead measure, the lag measure naturally improves. The lead measure that becomes the focus must be something the team can influence; this drives engagement with the team.
Step 3: Keep a Compelling Scoreboard.
Visualizing progress can be a game-changer. People naturally want to know the score; look at any sport. It motivates teams and provides a clear picture of where they stand concerning their goals. Imagine a team with a goal to reach a certain Gross Profit amount. A visual scoreboard, updated daily, can instill a sense of competition and urgency, driving them to reach, if not surpass, their target. Physical scorecards are great; the bigger, the better. Hiding a scorecard in a spreadsheet or some software doesn’t always help. Many contracting businesses have staff on multiple sites. If your team is not always in the same place, make sure the scorecard is sent out daily through whatever messaging system you use for the team. An image of the scorecard on WhatsApp, text, Slack, etc., is all you need. Keep the scoreboard simple; less is more. If your first-year apprentice can’t understand it, then it’s not good enough.
Step 4: Create a Cadence of Accountability
The discipline of commitment is pivotal. It requires teams to hold regularly scheduled team meetings where members make and keep commitments to each other to execute the wildly important goal. Why is this so crucial? Because without a regular check-in, teams can easily drift off course. These meetings serve as a touchpoint, ensuring everyone remains aligned and focused on the primary objectives. For instance, consider a project team working on a tight schedule. If they don’t regularly check in, the crews on the ground team might be working on areas of the project that are not immediately due. Regular meetings ensure everyone is on the same page and moving in the right direction. Most contracting businesses are great at doing this when they have a large project and are driven by the customer, yet they need to remember the skill when it comes to their own business. They either don’t hold these meetings at all or don’t structure them effectively. Here’s how to avoid these pitfalls:
- Frequency: The recommended cadence is weekly. This strikes a balance, ensuring teams remain aligned without becoming bogged down by excessive meetings.
- Participants: These meetings should involve all team members responsible for the goal. This ensures collective accountability.
- Agenda: Start by reviewing the scoreboard to assess progress. Then, team members report on their commitments in the last meeting, ensuring transparency and accountability. Next, based on the scoreboard and previous commitments, new commitments are made for the coming week.
By adhering to this structure, teams can ensure they remain focused, aligned, and accountable, driving them closer to their wildly important goals.
Conclusion
The 4 Disciplines of Execution offer a robust framework for organizations to achieve their most critical objectives. By focusing on the wildly important, acting on lead measures, maintaining a compelling scoreboard, and establishing a cadence of accountability, teams can navigate the challenges of the modern business landscape and achieve unparalleled success. Remember, it’s not just about setting goals; it’s about executing them effectively. With the 4DX methodology, you have a proven roadmap to do just that.
Ref: McChesney, C., Covey, S. & Huling, J., 2012. The 4 disciplines of execution: Achieving your wildly important goals. Free Press.å