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Leaders and Signs

Written by: Douglas Long

Article Overview: Success and/or failure in organisations doesn't "just happen". Invariably there are indicators of which leaders should be aware. In this article Doug Long suggests a process for incorporating early warning signs into the planning process of any organisation.

Leaders and Signs

The other day I was waiting at a set of traffic lights. At these lights there is a very clear and obvious sign - "No Right Turn". The second car in line was a very obviously marked Police Car complete with its red and blue lights and a big sign saying "Police". The lights turned green: the first car in line turned right: the police officer turned on his flashing lights and siren: both cars pulled in by the kerb and I can imagine how things went after that.

Today I was in a stream of traffic waiting to turn left at a very busy intersection. This intersection is close to a freeway entrance and the signposting makes it clear that only left turns are allowed and that, during the turn, it is neither permissible nor safe to move across 2 lanes and onto the freeway. The three motor cycles ahead of me plus one car and a truck all cut across the traffic in order to enter the freeway - it could have been very nasty: it was certainly very noisy!

I am often amazed at how, on the road, many people either ignore or do not see signs - then, all too often, seem to complain when they reap the consequences of their actions. It's almost as though they consider themselves to be above any petty regulations and/or immune from any negative consequences to themselves or other motorists.

But this seems to be symptomatic of society at large.

How often do people in business ignore, or fail to see, warning signs about things that could have significant impact on their operations? Then they get upset if things go bad and they suffer the consequences.

When individuals and organisations want to equip themselves for tomorrow's issues, the starting point is a broad dream of how they see the future. The next step is to consider the future scenarios that are possible - what are the possible environments (the multiple possible futures) in which they will be operating 10, 20, 50 years' hence.

I am amazed at how many people are reluctant to go through this exercise. It's as though they don't want to have any indication of the signs to look for - those things that will have a big role to play in determining whether or not they are successful. They're a bit like the motorists who cut across lanes to turn onto the freeway regardless of the risks to themselves or other people - I'm going to do it how I want no matter what.

For those who do go through this step, the next stage is to consider strategies that will enable success despite whatever multiple possible futures actually eventuate. An important part of this stage is to include indicators that will allow the Board and Executive to determine whether or not the strategies need adjustment. These early warning indicators are then included as part of the regular reporting processes of the organisation. Of course, to be effective, the reports have to have attention paid to them and the importance of this is stressed in the planning stage.

From here the appropriate tactics can be developed in subordinate plans that will deal with day to day operations. This is where the management function takes over from the senior leadership team.

Signs are important - at least as important in organisations as they are on the road. We ignore them at our peril.

What are the systems existing in your organisation that can provide your leadership with indicators or danger and/or the need for change? If you haven't got such systems in your organisation, why not?

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Article Tags: early warning signs, organisation leaders, planning, strategy



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