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Executing Your Strategic Framework Part II

Written by: Dave Mather

Article Overview: Business schools tend to teach strategy development, but executing strategies is the critical factor. The problem with poor performance is rarely bad planning. Leading and executing strategies is a difficult and formidable task. In part two of this series, Mather explores a non-traditional way to produce results by implementing a strategig framework.

Executing Your Strategic Framework Part II

Last issue we explored the connection between strategy and execution. We asked questions to determine where to put our time and attention. Now let's examine two contrasting strategic processes:

1. Standard Strategic Planning

Vision, Mission, Values
Traditional mission/vision/values statements tend, at best, to trivialize, and at worst, distort a company's purpose.

Strategic Plans
These are typically formulated from SWOT analysis, extrapolating last year's numbers or creating a wish list of intentions and goals. Typical plans are based on why customers "should" want to do business with us, rather than what actually motivates them to buy.

Localized Plans

Each individual interprets their part in mandated initiatives from the owner/management team. Localized* plans inadvertently run counter to the overall strategy. Decisions made from a local or individual view are disconnected from the strategy. Left unattended, these plans become too inner-focused.

Management's job is organizing resources to support the business strategy. Yet most managers and departments seem to invest excessive amounts of time and energy competing for recognition and resources. By default, individuals lobby for their favorite methods rather than formulating clear, low-risk actions that move the organization forward.

This traditional, but flawed, planning and execution process is still used in some of the most progressive organizations. Yet, by default, it tends to lose momentum and requires high maintenance. Let's look at a powerful alternative way to execute a clear, strategic framework.

2. A strategy that advances

Review the overall purpose of the enterprise

Our true purpose cannot effectively be put into words. It's a sense of spirit within the organization that excites us about its aspirations and actions. The overriding strategy is connected to, and supportive of, a client's motivation to do business with us. Our purpose underlies everything we do. Is our purpose still viable? Are our customers still excited about what we offer? Are we still excited about providing it to them?

Are we focused on where customers are willing to spend money? Can we add anything of real value, or delete things they are no longer willing to pay for?

Purpose answers the question: "How does the organization generate wealth or sustain its viability?"
Rather than relying on slogans, preachments, posters, or platitudes, one of the most effective ways to communicate our purpose is through visible, purposeful actions. Actions truly do speak louder than words.

What is our overriding strategy?

Goals in this domain define the overall direction of the enterprise. All other goals support this main objective. Is there conflict between financial aspects of the business and marketing or sales? Does Operations support the strategy or are their actions based on operational ease or personal comfort? Is the business easy for customers to access? Do key players have line of sight to the customer, or is what they do somehow disconnected from the overriding strategy?

The most common scenario is an organization operating from a vague set of platitudes, values, and goals. Numbers are often clear and specific, but beyond that, things get a bit fuzzy.

After asking hundreds of participants in our programs three simple questions, we uncovered the fact that most people want to make a contribution but are unclear how to do so. We urge them to ask the person to whom they report:

"What is the overall strategy of the enterprise? How does the company make money? How does my work contribute to the strategy? What are the 3-5 things I need to focus on to make a valuable contribution and what can I do to contribute even more?"

A common outcome of this conversation is increased alignment, collaboration and connection between managers and their direct reports on behalf of the current business strategy. It costs little more than about thirty minutes of focused effort, yet most executives and managers do not conduct these structured conversations or, if they do, they conduct them ineffectively.

What is our management strategy?

Management strategies are connected to, and supportive of, a client's motivation to do on-going business with us while keeping our competitors at arm's length. Do goals of various departments or regions support each other? Are people competing for resources or is the organization designed to support the creation of the actions required to produce desired results?

Don't get bluffed out here. More often than not, local goals have little to do with the corporate or owner's strategies. Also, local goals often have little to do with the customer who pays the bills. Without customers, we have no reason to exist. We have a shortage of customers, not money. We can borrow money, but you cannot "borrow" customer equity. We need customers!

In a well designed organization, each action is linked to goals that are linked to other goals that are linked to still other objectives. They flow from actions that support the purpose of the enterprise to goals that reflect its business strategy to goals that support the management strategy, to goals on the local level that support the advancement of the business.

Most organizations are not designed this way. Every enterprise has plenty of goals, but do people really know and relate to those goals? Do they know the purpose of their goals? Do they clearly see how they fit in the big scheme of things? What do they focus on day-to-day? Do those actions clearly advance the enterprise to achieving its goals on behalf of its overall purpose?

Implementation Checklist

Can you handle the truth?

Look for competing goals. Bring penetrating clarity into your area of responsibility.

Conduct 30 minute one-on-ones with direct reports to create dialogue around what truly matters to the enterprise and to the people in it.

Weed out competing goals.

Shift from simplistic "positive thinking" to penetrating clarity and focus.

Replace platitudes and pep talks with conversations around objective reality. Discipline yourself to describe what is so, not how you think reality should be, or vague speculations around the contention that "things will work out."

Refocus people on what collectively and personally matters. Ensure that you are not simply reacting to circumstances but are still building the organization you want. Accept what you cannot change and focus on actions that produce results. Don't sacrifice your future on actions that produce short-term results only. Focus on producing short-term results on behalf of a sustainable future.

Shift "given the present circumstances, what is the best we can hope to accomplish" conversations to "here's what we are building together."

Creating an organization that produces the results you want is not a seek-and-destroy problems exercise. Stay focused, count your blessings, accept reality for what it is, and keep your eye on your desired outcomes.

* In smaller organizations, "local" could mean key individuals

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Article Tags: management, strategy



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