I have written about "execution excellence" before and the same remains a pillar for most if not all services companies. But with outsourcing and delivery models maturing I feel the marginal utility of better execution is decreasing. Here's why :
Improvements are usually shared: Most clients engaging in long term outsourcing relationships expect the gains from better execution (quality, productivity etc) to be shared with them. In other words, the extra value added is not fully captured by the vendor. I can understand aspects like the learning curve where the client has a right to demand a share of the pie, but seperating such gains from gains from genuine innovation is not easy. In a commoditizing business where the customer has plenty of market power, the vendor will always get squeezed.
Processes by themselves mean nothing: I was once giving an informal, on the sidelines pitch on CMMI to a product company VP and he cut me off saying " One can easily follow all the processes you are mentioning and get to the wrong place faster". He went on to add that the best way was to focus on just enough processes to get the job done. I can't agree more. Execution excellence is fine, but when it becomes synonymous with processes and when processes are viewed as the royal route to excellence..Duh!
Doing the right things versus doing things right: Ram Charan in "Execution: The discipline of getting things done" defines execution as "The discipline of getting things done". The best strategy is useless without execution. Having said that, if services companies are to move up the value chain, they need to not just think of execution but ask themselves: “What should my client do next ? " (the doing the right things part) and then follow that up with "How best can I help the client do the things he should be doing ?" (the doing things right part). Not many vendors do this currently and not too many clients expect this from vendors.
Looming competition: The China's and the Vietnam's of the world have more discipline, natural process orientation and better cost structures (lower wages and infrastructural benefits) than us. It won't take them long to learn the ropes of execution.
                It is clear that execution excellence will remain at the centre, but the next generation of services companies are going to have to think and act beyond execution.