Customers and investors like ideas, but measure you on their execution
Your technical idea and vision may be great, but after the idea, it's all about execution. I often hear from investors that a great idea is necessary but not sufficient. The most important thing is a proven team led by an experienced entrepreneur, which means one who has built a startup before and has experience with the execution process in this domain.
I talked earlier about the best personality traits for a good entrepreneur, but I've never talked about the importance of the process. Yes, even entrepreneurs need to follow a disciplined execution process if they want to maximize their probability for success.
Even though in his book, Awesomely Simple, John Spence was talking about larger organizations, I think his concepts adapt equally well to a startup. Here is my adaptation of the key steps to ensure a winning execution in any business:
Create a vision and instill values: The vision may be yours alone, but the communication has to include your team, potential investors, and customers. For most people, the communication is the hard part—written, verbal, over and over again.
Define a focused strategy: Limit the focus to a few critical areas that will yield the highest possible return. If your strategy has more than five elements, it's not focused. Not everything can be a priority. Do not spend any time on unimportant goals.
Get stakeholders' commitment: People who are not committed cannot be held accountable for delivering ambitious results. The guiding coalition must demonstrate 100 percent unity, or there will be a mutiny. The worst case is a silent mutiny.
Align the objectives of principals: I have seen startups implode when principals were pitted against each other on mutually exclusive objectives, such as adding more technology versus keeping costs down. Quantify time and cost goals early, make sure everyone agrees, and measure results regularly to verify alignment.
Every process needs a system: Once a process is complete and working successfully, it's time to define it formally. Then, use only well thought out systems, manual or automated, to ensure repeatable success of every key process. The most basic element of every startup system is a written, agreed, and measurable business plan or Business Model Canvas (http://en.wikipedia.org/wiki/Business_Model_Canvas).
Manage priorities: You must relentlessly communicate the current priorities to all constituents and keep the total to a manageable number. One of the biggest mistakes I see in startups is a new and larger set of priorities every week, causing the team to lose momentum and commitment.
Provide team support and training: People are your most valuable asset, so start with the right ones and make sure they have the tools and training to deliver the results you are asking for. Don't assume they know everything you know or can learn as fast as you do.
Assign and orchestrate actions: Leaders must make sure that all team members are taking the right actions (and behaviors) on a daily basis to deliver long-term performance. Even after all the previous steps, great leaders can't afford to merely be observers. Lead by action.
Measure, adapt, and innovate: Things change in a startup, and things will go wrong. You won't notice if you don't measure. Measure four or five key drivers, not 20 or 30 things. Motivate everyone with an insatiable curiosity to make things 1 percent better every day (kaizen).
Reward and punish: What gets measured and rewarded, gets done. Be exceedingly generous with praise, celebration, recognition, small rewards, and sometimes, money. Set high standards for performance, and use the three Ts (train, transfer, or terminate) to deal with people unable to effectively execute the plan.
I'm not suggesting that your task execution will be perfect if you follow these steps precisely. There are far too many pitfalls and risks in a startup to imply that they can all be avoided. However, if you adopt this blueprint, it's much less likely that when things get tough, your investors will be thinking of an alternate meaning for the term "execution."
