Here we are. Goals have been identified. Responsibilities are assigned. Timelines are set. Key Performance Indicators (KPIs) are in place to track progress.
So, what now? Sit back and watch the year unfold. Hardly.
A well-structured Business Operating System (BOS) doesn’t stop at setting strategic objectives. The real work lies in execution - turning those plans into tangible results through structured processes, disciplined follow-through, and continuous improvement.
Over the next few weeks, I'll explore the innermost layers of a BOS, focusing on Operational Execution, Performance, and, at the very core, the Plan-Do-Study-Act (PDSA) iterative loop that drives development, learning, and continuous improvement.
Key elements we will review include:
Tactical Planning
Change Management and Communication
Governance and Controls
Continuous Improvement and The Plan-Do-Study-Act (PDSA) Cycle
Each of these components plays a crucial role in ensuring that goals don’t just remain aspirations but become reality. To provide an initial overview.
1. Tactical Planning: Bridging Strategy and Execution
Strategic goals provide direction, but tactical planning bridges the gap between high-level objectives and day-to-day execution. Tactical plans break down overarching goals into specific actions, deliverables, and responsibilities that can be tracked and adjusted as necessary.
Key Aspects of Tactical Planning:
Actionable Steps: What exactly needs to be done? Tactical planning defines the steps required to reach strategic objectives.
Resource Allocation: Ensuring teams have the right tools, budget, and manpower to execute their tasks.
Timeline and Milestones: Breaking the plan into phases with clear deadlines ensures progress remains on track.
Accountability: Assigning ownership to individuals or teams fosters responsibility and engagement.
Flexibility: No plan survives first contact with reality. Tactical plans must allow for course corrections based on performance data and external factors.
Even the most well-thought-out strategy will struggle to gain traction without tactical planning. It aligns daily activities with long-term goals and ensures that execution remains purposeful and efficient.
2. Change Management and Communication: Aligning and Adapting
A strategy without effective communication is like a map without a legend - confusing and difficult to follow. Likewise, change management ensures that necessary adaptations are embraced rather than resisted.
Change Management: Navigating the Human Side of Execution
Change is inevitable in any operational environment, but successful execution requires a structured approach to managing it.
Anticipate Resistance: Understanding potential concerns allows proactive addressing of pushback.
Stakeholder Engagement: Involving key individuals early increases buy-in and reduces friction.
Training and Support: Equip employees with the knowledge and tools they need to adapt to changes smoothly.
Monitor and Adjust: Continually assess the impact of changes and be ready to refine the approach.
Effective Communication in Operational Execution:
Clarity and Transparency: Employees at all levels should understand what the company is trying to achieve and how their roles contribute.
Two-Way Feedback: Open channels for employees to provide feedback, raise concerns, and suggest improvements.
Consistent Messaging: Leaders must align their messages to avoid confusion and mixed signals.
Without clear communication and structured change management, even the most well-planned strategies can falter due to misunderstandings and resistance.
3. Governance and Controls: The Rhythm of Execution
No, stop yawning. Governance isn’t meant to be a bad word. Focus on the latter part, executing with rhythm and cadence. A Quality Management System (QMS) exists within a BOS that defines specific protocols and processes for a company's operations. Yes, frameworks like ISO and Baldrige often set out guidance for some of these aspects to demonstrate control and awareness of what is occurring within a company.
How do we have a structure around this element? It typically comes down to two pieces:
Reviews:
Whether people like them or not, and we should as leaders, review meetings are the lifeblood of operational execution when done correctly. Too many meetings waste time, while too few can leave teams misaligned.
Types of Reviews and Their Purposes:
Independent Analysis: This allows the opportunity to sift through the most critical reports and scorecards and review them in detail or by trending certain aspects of performance and then identifying opportunities to course correct.
Daily Stand-Ups: Quick, focused check-ins to address immediate priorities and roadblocks.
Weekly Tactical Meetings: Focus on near-term execution, progress tracking, and problem-solving.
Monthly Operating Reviews: Assess progress against organization KPIs and goals, refine tactics, and address emerging challenges.
Quarterly Business Reviews: Evaluate overall performance, identify significant course corrections, and recalibrate strategic direction.
Employee 1:1s: Not to be left out, it is imperative that review and performance monitoring happens at every level of the organization, including individually. Ultimately, people do the work and must remain on track with any required support, development, and proper recognition.
Project Reviews: Go into specifics to ensure a project achieves a specific goal and remains on track, with any risks or countermeasures identified.
Establishing an Effective Meeting Cadence:
Keep It Relevant: Every meeting should have a clear agenda and defined outcomes.
Respect Time: Meetings should be long enough to be productive but short enough to maintain focus.
Encourage Engagement: Meetings should foster collaboration, not just information-sharing.
Document Action Items: Every meeting should result in actionable next steps (countermeasures) assigned to specific owners.
Meetings should facilitate execution, not hinder it. A well-structured cadence keeps teams aligned without overwhelming them with unnecessary gatherings.
Policies and Processes:
Policies and Standard Operating Procedures: Defines what must be done, if not the how.
Standard Work: Defines what and how an employee, whether a leader or individual contributor, needs to do regularly, identifying the time, tools, and processes.
Work Instructions: A training and an on-the-job tool with specific details ensures tasks are done consistently and optimally.
While implementing many of the above requires a high level of effort, they all help establish a baseline of performance and expectations and identify variances from the norm, which helps with #4…
4a. Continuous Improvement
I will write the least on this element, as it is likely, perhaps with Change Management, very well written and covered as a topic. Yes, here is where TPS, Lean, Six Sigma, and other continuous and process improvement initiatives are front and center. Here, aspects such as muda (waste), muri (overburden), and mura (unevenness) all come into play. Defect reduction and process improvement are also critical elements. I won’t write any further on these tools as part of Operational Execution, as plenty of articles and books exist to allow people to use these tools effectively. Understand, though, that using some methodology is essential to continuous improvement, introducing countermeasures, and achieving goals.
4b. The Plan-Do-Study-Act (PDSA) Cycle: The Core of Continuous Improvement
In my opinion, at the core of every effective BOS lies the Plan-Do-Study-Act (PDSA) Cycle, a proven iterative approach to problem-solving and improvement.
The Plan-Do-Study-Act (PDSA) cycle originated from Dr. Walter Shewhart's work in the 1930s. Dr. W. Edwards Deming later refined it as a systematic approach to continuous improvement. It is widely used in business to test changes, often on a small scale, before full implementation, ensuring data-driven decision-making and minimizing risk. The cycle promotes iterative learning, helping organizations refine processes, improve quality, and drive sustainable performance improvements.
The Four Phases of PDSA:
Plan: Identify the issue, set objectives, and develop a plan of action.
Do: Implement the plan on a small scale to test its effectiveness.
Study: Analyze the results to determine what worked and what didn’t.
Act: Based on findings, refine the approach and scale successful changes.
Why PDSA is Essential:
Data-Driven Decision-Making: Avoids guesswork by relying on measurable results.
Minimizes Risk: Testing those changes before full implementation reduces costly mistakes.
Encourages Innovation: Promotes a culture of continuous learning and improvement.
Sustains Long-Term Success: Ensures operations evolve and adapt to changing conditions.
PDSA is the heartbeat of operational execution, ensuring that improvements are methodical, sustainable, and effective. It is iterative to ensure one is never satisfied with the status quo and actively looks for ways to improve processes and outcomes. Once you understand this cycle, you can leverage the proliferation of tools and systems mentioned above to help identify non-optimal processes and chart the path to improvement.
Setting goals and KPIs is just the starting point. Execution - through tactical planning, change management, structured reviews and governance, and continuous improvement via PDSA - separates high-performing organizations from those that struggle to turn strategy into results.
By focusing on these four key elements, businesses can ensure that their strategic objectives translate into meaningful, measurable, and sustainable progress. Over the coming weeks, I’ll dive deeper into these areas, offering practical insights to help you refine and strengthen your Business Operating System.
Stay tuned!
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