Pensare Group

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From Strategic Plan to Execution – The Grand Canyon of Business Gaps

gears_3Have you ever noticed the similarity between strategic planning and a dental visit?

Both fall into the category of “must do” (or for some – “should do”), and both activities are strongly disliked due to a very normal human instinct called pain avoidance. For many leaders, planning means pain – which is unfortunate given the very high return on investment that is possible when planning is done well. Why is the experience painful? (A question we like to ask new clients about their previous strategic planning experiences.) “Boring”, “Uncomfortable drawn out process”, and (the real kicker) “No impact/outcomes as a result of two days in a boardroom.”

Is it any wonder that busy leaders and executives avoid an activity that leads to no outcomes after two days trapped in a boardroom?  The biggest challenge our clients share with us about their previous planning processes is the enormous gap between the plan on paper and the action required to make the plan “real.”   Recent PMI research (Talent Management – Powering Strategic Initiatives in the PMO) confirms that 88% of executive leaders consider strategy implementation important, yet 61% say their organization are struggling to bridge the gap between strategy formulation and day-to-day implementation.  This is, without question, the Grand Canyon of business gaps.

A few ideas on how to bridge that gap, based on our work with clients across multiple industries and varying size/maturity:

Address the “discomfort” issue head on.  Without absolute engagement from your leadership team at the outset, the plan stands virtually no chance of becoming reality in the weeks/months ahead.  Discuss the fact that a really good strategic plan requires some suspended disbelief (envisioning a future that is fundamentally different from today), and a high degree of comfort with the “grey” area of business.  There are no right and wrong (black or white) answers in planning – at least – no recognizable correct and incorrect planning options.  Share this insight from Roger Martin (Business write/academic) who sums up the issue extremely well: “The problem with smart people is that they are used to seeking and finding the right answer; unfortunately, in strategy there is no single right answer to find. Strategy requires making choices about an uncertain future. It is not possible, no matter how much of the ocean you boil, to discover the one right answer. There isn’t one. “

Link every strategy with an action.  Ensure you have someone leading the discussion who will push you and your team towards action.  For example, you decide as a team you would like to break into a new market, or develop a new service offering.  A good strategic planning facilitator will work with you to explore “what does that mean”.  What can we reasonably do in the next 3 months, 6 months, 12 months that helps us make progress towards that goal, and is realistic given our current operating environment? What needs to happen (next) to start to see that goal realized, and who is responsible for taking those first steps?

Understand the difference between plan and planning. If you have been in business for any period of time, you have likely experienced the “beautiful” large strategic plan document, full of graphics and forecasts and visionary statements about what the future will hold, which is then shelved (literally and figuratively) as everyone returns to the daily whirlwind for which they are responsible.  The record of the discussion amongst your leadership team is “the plan”, and it can take many forms. (Believe me – the format does not warrant the level of attention accorded it.)  The missing piece for many teams is the “planning” – the process by which you regularly revisit the goals, assess progress, adjust and move forward.  This is what is meant by an evergreen planning process, which does not require another two days in the boardroom – a one hour monthly or three hour quarterly check-in will keep your plan fresh and more importantly your team engaged in planning.

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Exceeding Expectations – Giving Too Much?

loyalty_street“Here is a simple but powerful rule … always give people more than they expect to get.”  -Nelson Boswell

We talk about the importance of creating loyal customers.  It’s certainly one of the most important goals of any company because a loyal customer will return to you again and again.

And, more importantly,you’ll have a loyal customer who will tout you to others – providing the most effective … and inexpensive … marketing there is.

So what do you do to create loyal customers? We know that it requires much more than providing satisfactory goods or services. And while doing it faster or better than the competition will help build loyalty, it simply is not enough.

The key to loyalty is to surprise your customers. Give them more than they expected to receive – and be consistent about it.

Exceeding expectations is more than just going the extra mile … its taking customers down a road they didn’t even know existed. In other words, it’s not a formula, rather an ability. An ability for members of the organization to actively listen, empathetically understand the situation, and wisely deliver a response that the customer values. Surprise your customers. Give them more than they expected to receive – and be consistent about it.

A few years ago I was planning a trip for my family to Italy. As this was a major excursion for us I decided to meet with a travel agent who specialized in Italian vacations. She spent a great deal of time with me, chatting about what I was looking forward to doing and seeing and the kinds of experiences that my family valued. We planned to focus our limited time on the major destinations – Rome, Venice and Florence. But as I talked with the travel agent about our love of the countryside and how we hoped to avoid tourist traps, she came up with a completely different itinerary that included small towns and seaside villages I’d never even heard of. We had the time of our lives, and the travel agent had a client for life … and the word of mouth exposure that goes with it.

Surprising your customers requires thinking outside the box and being creative.

But most of all it means listening to their needs and wants and adjusting your offering to provide them with the best possible experience. And if you don’t have the decision power to deliver, find someone who does!

Do this and you’ll create loyalty … and a lifelong customer who will bring others who value being listened to and understood.

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To the Moon (High-Performance Cultures)

istock_000019512143_extrasmallIn the early 1960s, President John F. Kennedy stated that he wanted to send a man to the moon and bring him back safely by the end of the decade; a pretty lofty goal. Senator George Smathers from Florida agreed with the “lofty goal” part. So, before voting to secur e funds for the initiative, he wanted to make sure he made the right decision. He visited Cape Canaveral to do a bit of detective work on his own. After much time, observation, questioning and exploration he still had not made a decision.

At the end of the day he saw a worker cleaning up and asked what her job was. Her reply was simple, “I’m part of a team that’s going to send a man to the moon and bring him back safely by the end of the decade.” Decision made!

This is an example of strategic alignment at its best. Everyone knows the organization’s charge, and all of the stars are in alignment (strategic intention: systems, processes, leadership, management, expectations, authority, responsibility, individual empowerment and supportive behavior). But what happens when the stars are misaligned; when the systems and departments are out of sync? What happens when a department exists for the good of itself and individuals behave selfishly rather than for the greater customer and organizational good?

The simple fact is that the more an organization’s systems and processes are aligned with its strategic intention – and all of the employees support this alignment behaviorally – the greater the opportunity for success.

In fact, if the plan is sound, it’s almost impossible to fail no matter how ambitious the organization or that plan is – even if that includes sending a man to the moon.

By Grant Stewart, Performance Matrix LLC.

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Mid-level Managers – The Secret Engine of Growth (Part II)

iStock_000020656499_ExtraSmallEnter any car dealership and chances are that you’re quickly dazzled by the shiny models on display. The chrome glistens. The leather entices with that brand new smell we all love. The vivid reds convey excitement and the metallic neutrals exude elegance and success.

Unless you are a true car aficionado, you probably won’t give the engine much thought. In fact, most buyers won’t even bother to look under the hood. But beyond the glitz andsparkling alloy wheels, the engine is the most vital part of the car. Without it, you won’t go anywhere. The same can be said for the mid-level managers (MM). An organization that lacks strong MMs won’t get very far.

Why MMs Are More Important than Ever

A strong management team is essential to a successful organization. Culling middle management from within the company yields high-impact results. Yet in reality, MMs are often hired from outside. Why? I’m not sure. Developing staff from within must seem more daunting than hiring someone from the outside with, in theory, the right skillset. The more I think about it, this approach is silly. When was the last time you highlighted your shortcomings on your resume? Seems like an unfair comparison, doesn’t it?

Making a commitment to develop MMs from within not only underscores the corporate philosophy, branding and culture but also boosts morale and motivation by reinforcing the values the company rewards – a visualization of personal future success. Employees naturally see their future career opportunities within the company, unless they do not share the same vision.

Where Do You Start?

When developing MMs, technical skills alone are not enough – yet that’s how MMs identify their own success. MMs must be given the opportunity to expand beyond their technical abilities, learn new methods and grow beyond their current capabilities. If you’re a manager responsible for MMs, focus on helping them:

Exercise diplomacy. Middles are well-known for their ability to appease others, yet often defer to senior managers during difficult situations. Help MMs by exploring alternatives and developing an approach that works for that MM; keeping in mind your approach may – or may not – be natural or comfortable to the MM.
Be adaptable. Middles, by nature, must be flexible since they can be overlooked, discounted, bumped into a new role at whim or expected to shoulder unrealistic burdens. Help Middles adapt by understanding how they see the situation. Allow them to borrow your knowledge rather than just telling them what to do.
Look at the big picture. The most successful MMs explore all aspects of a problem and look at all potential solutions before implementing a plan. This ability to think strategically is essential to a strong MM, yet many need permission to think so broadly.
Bring out the best in your team. A good MM allows the team to participate in decisions then rise to the occasion and meet/exceed their expectations. Good MMs are enablers, but for time efficiency we often skip the enabling process. Create a safe environment where teams can develop ideas, act upon them and then follow up understand the effectiveness of their decision-making. Growing together creates solidarity and trust – a cornerstone of teams that excel.
Focus on results. In the same vein as ego, a strong MM does what it takes to achieve the results that align with corporate objectives. Sometimes, that means setting aside agendas or ideas about how the results will be attained. Let others figure out the how. Who knows, you might learn something new.

Why Bother?

While it is important for MMs to be proactive within their positions, it behooves the organization to be just as hands-on in ensuring that they have a strong middle management team. Why? The reasons are plenty:

Reduce costs. Workplace stress and burn out costs organizations more than $300 billion annually in absenteeism, health care and stress-reduction programs, according to 2004 New York Times article. Bolster your mid-section and you’ll see a boost in your bottom line.
Improve morale. An inefficient, unstable workplace only compounds the duress MMs face. When MMs are valued and supported, they are better equipped to ensure that their employees are happy and well-cared for, which improves morale across the organization.
Higher productivity. Happy workers are busy workers. Better morale among MMs and workers translates into greater productivity.
Better employee retention. Successful MMs retain loyal employees. According to the U.S. Bureau of Labor Statistics, 23.7% of U.S. workers voluntarily left their jobs in 2006. As a result, direct replacement costs on a departed employee can reach as high as 50-60% of his/her annual salary, according to a Society of Human Resource Management report. What’s more, strong MMs also attract highly qualified employees who desire to work in a positive, successful environment.

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Chasing Butterflies – Power of Distraction and Value of Focus

chasing_butterfliesHave you ever noticed how much we learn from our children? I am reminded regularly that while the flow of wisdom and insight theoretically travels from the older to the younger generation, in reality there is plenty of learning to be done in both directions. A case in point – my son has ADD and as a teenager buried under a significant daily workload and homework, he has really struggled to develop coping mechanisms to compensate for a short attention span, and to learn how to focus.

This week, before school, we were laughing about “the butterflies” in his life – those interesting things that come along and distract him while he is trying to get his work done. It might be the sound of the ice cream truck traveling the street outside his window, or it could be a 3-D puzzle sitting on the edge of his desk. The “butterflies” take many forms, but universally they have the same impact. His concentration and productivity are derailed in a nanosecond as a beautiful colorful butterfly catches his attention and becomes his new focus.

Later that same morning, I was working with a client and her executive management team to refine the action plan required to ensure the organization meets its critical goals for the fourth quarter of this year. The CEO had been making terrific progress on key revenue, profitability and operational goals, when a significant new opportunity had arisen that required a tremendous amount of her personal dedication and effort to bring the opportunity to fruition. As we worked through the ramifications of this new opportunity, I found myself wondering: is this a butterfly? Is it worth chasing this “once in a lifetime” opportunity which falls far outside this organization’s core service offering, at the risk of losing focus on critical 2009 goals?

So I asked my client – have you ever heard about the challenges of chasing butterflies? As I relayed the story of my son, faces lit up around the table. That’s it, they said, we’re distracted from our core purpose and we are at risk when we do that. We agreed that chasing butterflies can be fun and productive – not always risky – but that for now, we needed to return to the critical goals that were going to ensure that 2010 will be everything we plan for it to be.

by Lesley Boucher

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When the Stars Align – Your Organization Does Too!

starsThink the stars have to align to achieve better efficiency? No, but you do have to align all the efforts in your organization if you want to succeed. You know that noise your tires make when you’re tires aren’t all going in the same direction? that’s how an organization sounds to both customers and employees when things are simply not aligned.

Intellectually, we all know the importance of a good strategy, yet so many organizations fail to have one, or they have one but it sits on the shelf with limited following. Clearly, when the organization is aligned to deliver against the vision, it possesses competitive advantage that is hard to match in any industry.

Alignment is so underrated. Having the people, process, and planning all targeting the same direction is a mechanism for growth, particularly those in a responsive market. For those in a sluggish environment, it can be the difference between being in business and being out of business.

Alignment ensures your resources are properly allocated. It keeps hidden costs down, improves productivity, and accelerates customer and employee satisfaction. Need we also mention alignment brings predictability to profitability and growth?

More importantly, alignment isn’t that hard to achieve yet few excel. It can be difficult to initiate in an organization where misalignment has taken over in defense of personal agendas and philosophies on where the organization should direct it’s efforts. After all, organizations are made up of people who in lieu of a good strategy create one on their own. We’re all very driven by objectives – yours if you give them to me, but mine if you don’t. When the objectives that drive my decisions are not aligned yours, we create inefficiency – and it’s costly inefficiency.

Here’s a fun exercise. Calculate on average for a given employee the number of hours wasted on doing the wrong things, talking about things that aren’t relevant to achieving strategic goals, re-doing work that could have been done correctly. Now multiply that by the number of people in the organization who do those inefficient things.

Many of these costly issues hide under the label “poor communication.” Start with communicating clear direction and expectations. And, if you haven’t sat down to do a strategy, it’s only a couple hours of your time and could have hundreds of hours of staff time. Still need an incentive?

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Can You Assess Your High-Performance Climate?

istock_000007071556xsmall1Surveys are quick to build and easy to distribute via the internet. The tough part is often selecting a diagnostic tool and performing the analysis.

When selecting a tool, opt for one that has proven to provide useful data and covers a variety of dimensions. It’s helpful if it is easily adapted to include your areas of focused interest.

One such tool is a model adapted from the Malcolm Baldridge National Quality Award. The results generated by Baldridge winners are consistent and astonishing. The seven Baldridge categories provide a simple framework to assess the perceptions of your staff, proven time and time again to illuminate problem areas. These seven criteria are called the Criteria for Excellence and address the elements for the health and survival of your organization.

Leadership – Includes creating and sustaining values, organizational direction, performance expectations and customer focus that promotes performance excellence.
Strategic Planning – How the organization sets direction and how plans are put into action.
Customer Focus – Addresses how the organization determines the requirements and expectations of customers. It also addresses how the organization strengthens relationships with customers and determines their level of satisfaction.
Information and Analysis – Deals with the use of data and information in the organization to better understand areas for improvement and how the organization is performing.
Human Resources Development and Management – Determines how employees are encouraged to maximize their potential, as well as maintaining an environment conducive for performance excellence.
Process Management – Identifying how processes are designed, managed, improved and their cycle times reduced.
Business Results – Focuses on performance improvement in key business areas and how effectively these results are communicated throughout the organization.
Should you consider conducting an assessment? If the following symptoms sound familiar, give serious consideration to assessing your organization:

Profitability is slipping
Customers are defecting
Employee turnover is high
Market share is eroding
Internal conflict is the order of the day, excessive meetings, lack of personal accountability, communication breakdown, time management issues, reactive rather than proactive thinking (shall I continue?)
You spend more time reacting to competition
A baseline assessment allows you to see where you are today. If you are planning any organizational interventions, then the baseline will allow you to measure true progress in the future.

Adapted with permission from Grant Stewart, Performance Matrix LLC.