In his attempts to shake up the boards of GE and P&G, the bold actions of the activist investor Nelson Peltz are also shining a spotlight on areas that all of us need to pay attention to. The growth rate of companies has stalled and we need to do something about it.

At P&G, Peltz wants to break the complicated multi-level “matrix” organisation and pivot to a nimbler, accountability-centred structure that will drive execution and growth. The multinational’s profits have stagnated and its stock has languished, resulting in lacklustre performance for the US consumer goods giant. In response, Peltz waged one of the biggest — albeit unsuccessful — proxy battles in an attempt to gain a seat on the board.

It was quest that amounted to a referendum on the leadership of the $233.56 billion (Dh858 billion) company. He wants them to execute faster.

P&G isn’t the only company feeling the pressure; shareholder activism is forcing change at some of the world’s biggest companies. Just days ago, the chief investment officer of Peltz’s firm, Trian Fund Management, was put on the board of GE as their thoughts and actions echo a general dissatisfaction among shareholders.

They want speedier action. Owners shouldn’t accept stalled or mediocre performance.

During Jeff Immelt’s 16-year tenure at the helm of GE, the company’s shares fell 36 per cent at a time when the S&P 500 rose 118 per cent. Now, GE’s new CEO, John Flannery, intends to reactivate the multinational conglomerate’s famed execution bias. He has already announced a clear-out of senior executives and other measures making his intentions clear.

While Peltz ultimately lost his campaign for a board seat at P&G, he won a seat for his firm at GE and his attacks will bring urgency to businesses around the world — even right here where we are. The message is plain and simple, it’s time to outperform your peers.

Everywhere I look, I see companies stalled like a car in the middle of the highway. Whether they be global giants, matured multinationals, or hometown favourites, a battle cry for speedier execution is set to be the theme for 2018.

Microsoft was an early mover in rebuilding the action bias. In 2014 when Steve Ballmer stepped down, Microsoft was in dire shape. Windows 8 had debuted with poor reception; it was struggling to navigate the smartphone revolution; and Zune, the company’s iPod lookalike, was considered one of the worst product flops in tech history. Ballmer realised he couldn’t move fast enough to make the board happy.

Satya Nadella changed the company’s direction after becoming CEO. In the past three years, the stock price has doubled.

Under Nadella, Microsoft created a mission statement to “empower every person and organisation on the planet to achieve more”, which in and of itself embodies the execution bias. It has not been an easy feat to reform Microsoft from a company embroiled in years of infighting and stagnation to a firm with a growth mindset. However, Nadella hit “refresh” (and the title of his recently-released book) and decided to cultivate a growth mindset across the company.

Here, there are lessons for us all. Like Microsoft’s CEO, don’t dwell on constraints, because they will always be there. Instead, focus on overcoming constraints and keeping your team’s eyes on the prize.

On his first day as GE’s new CEO, Flannery sent a message loud and clear to his employees in every role and function: customers, team and execution. It’s the third point that caught my attention and that Wall Street will key in on — execution.

We need to catch this renewed emphasis on getting things done, faster. Since the financial crisis, many leaders have been hesitant and reserved to act. Innovation, rather than execution, has crept in to become the priority.

Of course, innovation is vital. Any new concept at some point is going to run out of gas and you will to come up with new ideas.

However, ideas only matter when they come to life. That’s why the execution bias is so important.

These days, ideas are a dime a dozen. Innovation is incomplete. In the end, execution is the currency that pays your bills and builds prosperity.

— The writer is a CEO coach and author of “Leadership Dubai Style”. Contact him at tsw@tommyweir.com