The world’s most admired companies know how to stick with it. They may not have completely eliminated the knowing-doing gap, but they have certainly reduced it enough to create a significant competitive advantage.
Of course, it’s nice to be recognized as one of the world’s most admired companies. However, bottom-line results are also a key indicator of an organization’s health.
So how do the top 50 world’s most admired companies compare in that respect? Below is a comparison of total shareholder returns for these same companies versus the S&P 500.
In every time period, the world’s most admired companies outperformed not only the competition within their industry but also the market as a whole. And over a 10-year period, their returns were five times that of the S&P 500. These are compelling differences. They are even more amazing when you consider the simplicity of the four differentiating characteristics: strategy, structure, people, and leadership.
Could it really be that simple? Yes, it is. The difference between the world’s most admired companies and the rest of the pack is that they do the basics exceptionally well and execute their strategies masterfully.
These findings confirm that a good strategy gets you into the race, but disciplined execution propels you into the winner’s circle. In fact, a survey by the Economist Intelligence Unit (a sister organization of CFO.com) of 197 executives attempted to determine the value of filling the knowing-doing gap. These senior executives predicted that if they were to stick with it and become “very effective” at strategy execution, they would likely improve operating profits by an average of 30 percent over two years.
The bottom line: Consistent execution consistently wins.
Stick to It helps you fill the knowing-doing gap. Order it today and WIN tomorrow!
This enhanced and expanded 10-year follow-up of our original bestseller cuts through the clutter so you can execute and win!