Want Results? – Get Serious

The problem is obvious. Merely going through the motions of business planning won’t get the desired results, it will get the obvious ones.

Imagine you paid good money to see a professional sporting event and the participants sauntered onto the playing field looking out of shape and under prepared. They go through the motions lacking the significant passion or commitment obviously required and not really caring if they win or lose. Clearly this would not be acceptable.

Similarly, when you take the time and expense to take your “key” staff offsite you should NOT accept such behavior. It’s the leader’s role to inspire and harness the passions of their staff by providing a vision bigger than the individuals and requiring collaboration, innovation and collective purpose. It’s the senior staff’s responsibility to create a culture of accountability and commitment to one another, their employees and the company in pursuit of the desired results.  That’s how teams work and results are achieved.

 

Here are the wrong signs:

  1. You plan the event weeks in advance and people reluctantly show up unprepared.
  2. Presentations requested show up late of the requested deadline and are incomplete.
  3. Participants take every opportunity to get their phone out and keep in touch with the office.
  4. The event is all fluff and form but lacks substance.
  5. No one believes anything of value will result from the exercise. Often based on past experiences.
  6. AND I AM SURE YOU CAN ADD FIVE MORE OF YOU OWN!

 “You get what you accept so expect more and get more”

So how do you solve this –you get serious!

Let’s begin!

  • Define the purpose of the event and what success looks like.

Make it clear that the purpose of the event is to discuss the issues or initiatives required to address the critical needs of the business. Be specific in advance and charge your people to come to the meeting prepared with answer and solutions. Create the expectation that this meeting is of upmost importance and requires participants to bring their “A” game.

  • This is not a 1 -2 day event, it is the launching plan of the key business initiatives the organization will commit to successfully achieving. Defining both the strategy and execution in actionable specific steps is a must. These are not optional nice to haves and failure to achieve then is not an acceptable option, so debates and commitments made are real and achievable.
  • Check your distractions at the door. Ensure the office knows these people are unavailable for the duration of the event. They can check in after the event. If the staff can’t manage without then for the day ask why.
  • Make the event real. Deal with real issues or real opportunities. I will add several links at the conclusion of this post for those who want clarification. Walking out of that event without full understanding and commitment is not acceptable. Make your Strategy Real.
  • Strategy without execution is of no value. If you have a goal you need a realistic plan to achieving it. Poor execution is almost always the leading cause of failure of strategic plan initiatives. Most goals are achievable given focus, passion, commitment and enduring commitment. The execution plan needs to be a living document that guides and measures your progress throughout the year.
  • If at any time during the meeting inappropriate levels of attention, intensity or lack of effort or commitment / buy in is observed, stop the meeting and address the causes before proceeding. Don’t let the meeting deteriorate.

In summary, the difference in producing and executing a successful Strategic Plan is setting and maintaining the expectation that the organization will commit to, and realize the stated business initiatives by taking the actions to make it real.

Make Your Strategy Real

Look Back to move forward

 

How to Turn Every Failure Into a Measure for Success

Excellent article. By far failure offers the best opportunity to learn, improve and reach new success That’s how science and life works. Building character, taking responsibility, learning to manage risk its on great! Making small bets is a great way to test out you ideas you don’t need to bet the farm.

How to Turn Every Failure Into a Measure for Success

How to Turn Every Failure Into a Measure for Success

Originally posted by http://www.twitter.com/LollyDaskal

Change is going to do you good! If?

Change management is indeed messy and often frustrating, but is an unavoidable reality. At some level people want it, need it, and perhaps desire it if only they could take a pill to make it happen.

Perhaps the biggest challenge in making change initiatives successful is accepting the reality of the situation by both the change facilitator and the leadership team. Perhaps the best way, my preferred approach, is to build awareness of the “current state”. I believe you must look back before attempting to go forward.

Looking backwards into what has worked and what hasn’t, in the recent past initiatives, is so revealing and builds an understanding of the organizations strengths and opportunities. I am not talking about the traditional SWOT analysis, which will come forward as the process evolves, I am referring to the debriefing of the prior attempts and identifying what lessons have been learned or need to be learned and identifying the true capability for change in the organization.

Building this awareness is necessary for the organization to accept responsibility and accountability. It’s pure insanity to repeat the same processes until the known causes of failure are understood and mitigated. Change involves making tough decisions about people, processes and purpose.

Every organization is unique and by understanding their capabilities, commitment and discipline levels, the change facilitator and leadership team can build a realistic path forward. And yes the change facilitator cannot be positioned as the champion but merely as the resource of best practices.

Strategy –Finding Your Place

Without a winning strategy your journey has no destination and success would be an accident –they do happen but are unlikely.

At the foundation of strategy is finding a need for a good or service that is either solving a problem or creating a benefit that customers want and will pay enough for you to generate a profit.

Understanding a market by the fundaments is an important first step.

There are 4 questions:

  1. What is the Market?
  2. Why does the Market exist?
  3. Who are the Leaders?
  4. How will you carve out you niche?

What is the market answers the question of what is being provided to meet a need of consumers of such value that there is a demand. For instance farmers grow the food that people must have unless they grow it themselves or restaurants are a market that serves prepared food. Both meet a defined need.

Why the Market exists is about understanding why the need exists and how that need is addressed. Farmers are needed because in much of today’s society people don’t grow their own food. Restaurants exist to serve people that can’t or don’t want to buy food and prepare it for a variety of reason.

 

Who are the leaders is about understanding how the market is currently being serviced by the major players of each definitive market segment. This is understanding who, currently, are the major participants such as Kroger, WalMart or McDonalds. These players are market leaders in their respective category. There is great diversity on market segments, how providers service specific consumer groups, and who owns consumer mindshare within each category.

And finally how will you position your product or service to capture enough business to be successful by defining a unique offering and hopefully defendable position. By understanding the why the market exists the provider can position to meet the needs of specific consumer preferences. You don’t need to be the biggest to own a segment but, you have to be unique enough to carve out your dominance and meet your segments consumer’s preferences. For instance, Trader Joes does not compete with Kroger for selection or price but instead attracts and serves  a specific customer group.

While the questions are simple the answers can be very complex and challenging. Successfully understanding the questions is essential to the crafting of the winning strategy for your organization. Strategy is about making informed choices and commitments that must concisely define your organization’s vision before the execution can be undertaken to successful achieve the strategy. Yes there is order in the universe.

Strategic Plan -Implementation Challenges

One of the biggest challenges that organizations face is finding the time to implement the major initiatives that were developed during the planning process. In many cases the amount of time and effort required to put the vision into practice is under estimated and beyond realistic given the demands already on your key resources. As a result critical business initiatives will go uncompleted and the gain unrealized.

“Almost anything can be accomplished given the time and resources required to implement”

In my experience organizations put 90% of the effort into strategy creation and the remaining 10% into the implementation plan. This kind of “figure it out on the fly” thinking places a huge burden on already busy key resources to find the time after the fact to develop implementation plans. Spending the time on implementation isn’t near as exciting as coming up with ideas but it is every bit as important. In practice the breakdown should be more 50 -50.

Here are some best practices for your consideration:

  1. Spend the appropriate time on developing a realistic implementation plan defining the who, what, and when details using SMART objectives format. In reality the plan is a series of projects and should be run like projects.
  2. Prioritize and synchronize business initiatives. I recommend using a reverse engineering process to plan out the appropriate order that the initiatives should be addressed. Creating a roadmap and breaking the initiatives into 90 day time buckets will help keep the plan active and on schedule. Formal reviews maintain accountability and plan status. Every organization is different so the speed of change should fit with the circumstances of your business.
  3. Take a hard look at the time and resources required. If you need a skill or technology to accomplish an objective that you either don’t have or is not available plan how this roadblock will be overcome before commiting.
  4. Consider dedicating a resource to managing the overall plan. Having someone with the responsibility to oversee the plan will ensure focus and any issue or obstacles get immediate attention and resolution.
  5. Identify time spent on lesser priority projects than can be reallocated to the more urgent business requirements. Every plan should have a STOP list.
  6. Your plan should have as an objective on improving operational efficiency and error reduction. This is an ongoing initiative that deserves continuous focus.

In the diagram below I have identified the four ways time is spent in organizations.Planning is time spent developing policies and practices. Execution is performing those policies and practices. Fire Fighting is time spent correcting errors that have occurred because policies and practices were either not performed correctly or are not defined. Crisis is time spent by managerial level resources to fix major customer impacting or costly operational errors.

True Leadership Trumps

So true. True leaders find the path forward by inspiring their organizations to take the appropriate actions to push forward. In truth adversity inspires the creativity, innovation and determination that differentiates the winning organizations from those whom live on life support. It begins with having solid strategy https://www.linkedin.com/pulse/what-makes-your-strategy-real-stephen-t-howell/

Time and Profitability

Time and Profitability

Time waits on no one and once spent it is lost.

For most organizations time is its most important asset. Waste it and it’s gone and with it the profits to keep your organization viable. How an organization spends its time can be the difference between success and failure.

Below is a tool to help assess how your organization spends time and the associated impact on profits. The tool is designed to bring awareness and understanding of the usage of time into four different quadrants.

Quadrants

1.       Planning             5- 10%

2.       Execution             85% +

3.       Fire Fight            <   5%

4.       Crisis                    <   1 %

Planning

Time in this quadrant is spent on defining how and what the organization will deliver. Activities such as strategic planning, competitor analysis, product/service development, procedure definition, process mapping, performance measures and problem solving are done here.

Time spent is this quadrant is extremely valuable to your organization and should ensure your business has a focused plan for success.  Depending on the size and maturity of the organization I recommend spending somewhere between 5 – 10% of the time here. The right amount is determined by the time needed to ensure the organization remains successful.

Execution

Time used here is spent delivering the products and services of your organization. In high performing businesses time spent here will be 85%+. This means 8.5 /10 or better the transaction is to standard.

To qualify as time spent in this quadrant, time must be used to meet performance standards.  For instance, the time required to take a customer order and ship the product or perform the service should be in compliance with the process standard/job definition. If the required customer order information is missing or incorrect, the product is not available, you use excessive labour or other disruptions occur, that time is captured and allocated to time spent in quadrant 3 or 4. I have included an example below.

Fire Fight

Time spent here is the incremental/reactive (Fire Fight) time spent to redo or correct for a failure. In a struggling organization time spent here can be moderate to excessive. For instance, a construction project with a 25% labor overrun, a capital project severely over budget and behind schedule or a failed service delivery would be an example of this. Any event where more labor, especially management intervention, is required than would be expected qualifies here.

Here is an example of a personal experience. I recently ordered 500 new business cards. The original order arrived and there was a minor error on the card. I called the company and, as promised, they agreed to correct it at no additional cost to me. While the original order was online it now involved a customer service representative and took approximately 20 minutes.  The reorder was shipped express mail and was received about a week later. I opened the shipment and found they shipped me only 100 cards. Back on the phone again and another 20 minutes later they apologized and agreed to ship the order a third time and because they only ship in 100, 250, 500+ order sizes they informed me I would receive 500 more business cards. So now I have 1100 new business cards and this vendor spent their profit and more fulfilling the order. This could be a onetime occurrence but I doubt it!

I see these things go on everywhere. Redo’s can crush an organization’s profit and can be a leading cause of business losses. No business can sustain prolonged under-performance and the associated overspending on labor. Take a second and consider instances that occur inside your business.

Crisis

To qualify as time spent in crisis, the circumstances are dire and the resulting cost/business impact would be considered extreme. Events here can be classified as internal and external.

Internal crisis are or should be controllable, whereas, external events are caused, arguably, as events beyond the control of your organization. I will explain why I say arguably, shortly.

Internal events are things like chronic labor overruns, major inventory mismanagement, extreme excess non valued added labor spending or simply failure to maintain a healthy organization culture and efficient customer focused workforce.

External causes include changes in government policy, major changes in economic conditions, changing customer preferences, disruptive competitive offerings or actions including anything from new entrants, price actions or new technology:

My arguably comments is relevant to the extent of your organization’s responsiveness to addressable events. The best example of this might be Yahoo, an undisputed market champion that fell prey to Google and others due to lack of focus and failure to correct course.

 Action

By classifying the time your organization spends in each of the quadrants, you can raise awareness and take the appropriate corrective action. This tool is intended to start conversations that will lead to addressing required changes as opposed to accepting that this is the way things work around here. Most organizations have standards; however, often the prevailing practice becomes the de facto standard. In some case an organization is knowingly underperforming and accepts this as acceptable due to weak leadership. Say for instance our standard is to return customer calls within 2 hours but call routinely don’t get make until 6 or more hours and no corrective action is initiated. Or more severe would be no investigation into labor overruns.

I recently led a strategic planning session for a client where – during a mid morning break – several managers began a conversation identifying several inefficiencies that we’re occurring and had been occurring for a long time. As I listened each manager shared their displeasure with the situation. As the break ended the conversation dropped.

Based on my observation I offered the following. First off all, you agreed this was a clear case of unnecessary disruption that was causing ongoing fire fighting to overcome these efficiencies. No one has taken ownership of any of the issues and no one has committed to addressing this issue for resolution. In short, they had accepted this as the way things were done. Reluctantly these issues were added to the ‘To-Do List’ by the leadership team.

This is not an isolated example. I have had similar experiences in many companies I have worked with. This is the low-hanging-fruit that successful organization harvest. Failure to identify and harvest the fruit results in decay and waste.

In my next post I will address how to best deal with undesirable findings in Time Management.

Stephen Howell

Horizon Executive Consulting