Keep moving
A forward-thinking strategy will provide the foundation needed for continued growth, development.
By Kip Creel
Too many companies try to be everything to everybody. They fail to identify and sustain the elements that lead to competitive advantage and fail to focus intently on those things. They waste time and money in markets that may never give them a worthwhile return on investment. And while they flounder, competitors pass them by.
Strategy and innovation are the keys to success in the new post-Great Recession paradigm. As a senior executive, you need a forward-thinking strategy that will help your company gain that competitive edge. Making this strategy work is the next challenge.
Members of the Executive Academy for Growth & Leadership (EAGL) participated in a strategy module. Here are a few things they learned about strategy.
Every plan is not a strategic plan. Many business leaders think they’ve put together strategic plans before, but come to realize what they had really been doing was putting together an operational plan with a bit of strategy thrown in.
We face difficult choices. Strategy requires making explicit choices—to do some things and not others—and building a business around those choices. In short, strategy is choice. More specifically, strategy is an integrated set of choices that uniquely positions the firm to create sustainable advantage and superior value relative to the competition.
We may not be doing the right things. Many leaders try to optimize what they are already doing in their current business. This can create efficiency and drive some value. But it isn’t strategy. The optimization of current practices does not address the very real possibility that the firm could be exhausting its assets and resources by optimizing the wrong activities, while more strategic competitors pass it by.
We can’t ignore the trends. Many of the most important decisions that green industry leaders must make are shaped by the demographic realities of their particular markets. Having a firm grip on the trends relating to population, economy, changes in family structures, and changes in consumer behavior are essential for effective strategic planning. Reviewing the current demographic, psychographic, economic and sociological trends does not allow us to predict the future, but it does allow us to predict a variety of potential futures. Knowing what can be possible in the future allows us to make decisions in the present that guide us to one of the possible futures. To build strategic plans, leaders have to become adept at both local and national demographic trend analysis.
We have enemies. The enemies of continuous growth are a short-term mentality, ROI-itis, arrogance, cognitive blindness, legacy mental models, penalizing mistakes, product centricity, and measurement and reward policies that are too short-term oriented. Every business does not have to grow in the Wall Street sense; but every business does have to continuously improve its customer value proposition better than its competitors.
For more: http://eaglpro.com
Strategy is a framework within which decisions are made, which influences the nature and direction of the business. Strategy directs organizations as they make plans, marshal resources and make day-to-day decisions. It is imperative that strategy is clear, concise and congruent. Otherwise organizations and people can be efficiently headed the wrong way. Companies lacking a clear, memorable, embraced strategy struggle with implementation, thwart tactical execution and blunt their effectiveness. Take prudence to avoid these five barriers to implementing strategic direction.
Head in the clouds
Barrier 1: Strategy that is too lofty and non-pragmatic
Many times, the strategic direction sounds good on paper but it is way too lofty. It is not pragmatic. A direction that is not pragmatic will not move people to action. Vision is a compelling picture of a future state that inspires people to perform. Strategic direction needs to be wrapped into that vision so that it gets off of the paper, off of the posters and out into the trenches where people work. This will start the process of getting the desired results. It is the direction, not intentions, that determines your organization’s ultimate destiny.
Now, now, now
Barrier 2: Overly focused on immediacy
Because of the incredibly fast pace of business in today’s world, it is easy for leaders to get preoccupied with the immediate and urgent things that are in front of them and lose sight of their main outcomes and objectives. Like the story of the little boy trying to put his finger in the dike, leaders can get caught up in moving from one emergency to the next, to the next, to the next. The immediacy of the next report or the next meeting keeps leaders from making sure that they pull back and stay focused on where they want to go. A strong strategy provides the framework for effective decisions.
But I like it
Barrier 3: Doing what we like to do
The third barrier that keeps leaders from implementing strategic direction is the trap of getting wrapped up in doing the things leaders like to do instead of the things the strategic direction is calling for. Think of it this way, if the strategic direction could talk, what would it be asking to be done today? The answer to this question will determine decisions, establish proper priorities and clarify the next appropriate step to take. Leaders should only be focused on tasks no one else can do. If someone else can do the task, delegate it, monitor the outcomes, make appropriate corrections and celebrate progress.
Congruency/commitment conflict
Barrier 4: Lack of congruency at the top and commitment from the middle
It is important to have buy-in from the middle. Many postulate that leadership starts at the top maintaining that what is at the top is what filters down. There is certainly truth contained in that axiom. However, if there is not buy-in at the middle level of leadership, the implementation of the direction will be thwarted and ultimately blocked. It is important to have congruence at the top, so as a senior leadership group, there is a clarion message that is common to all top leaders. Otherwise, there will be mixed messages being sent. When there is a commitment at the middle level with congruency from the top, the lower level of leadership will help catapult strategy into success.
The blinding fog
Barrier 5: Not reviewing often enough
The last barrier that impairs consistent implementation is caused simply by not revisiting the strategy consistently. The consequence of this lack of continual review results in a loss of focus creating the calamity of operating in a dense fog. If strategic direction is not kept front and center, the forward driving force of the implementation is forfeited. Organizations and people move toward what they are focused on. Without this regular focus on strategic direction, efficient and effective implementation is impeded, if not stopped altogether.
Strategy implementation can be a long process. To implement strategic direction, first pinpoint clear messaging that is vibrant, specific and memorable. If implementation is going to be embraced and enacted, marketing your message internally to your team to facilitate buy-in from top to bottom is a critical necessity.
Secondly, identify tangible milestones. Have definable indicators of the targeted results of each step of implementation and build in accountability measures for each milestone.
Thirdly, capture memories along the way to record the progress from where you started to where you are now. Many parents periodically make a mark on a chart or behind a door capturing the growth history of their children because it’s so easy to miss both the subtle and the dramatic development of each child. In the same way, keep a memory chart of steps, set-backs and victories throughout the process as a reminder of the progress you have made. Looking back at successes brings hope as you move through the challenges of the future.
David Waits is the founder of Waits Consulting Group Inc. As a proven expert in developing powerful initiatives that revolutionize culture, David helps his clients create a thriving organizational environment that facilitates rapid growth, innovative development and on-going profitability.
For more: www.DavidWaits.com
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