Strategy, Execution, and the Art of Saying No Mike Coffey, SPHR President Imperative Information Group 1
Why don’t we do it? “the rewards (and pleasure) are in the future; the disruption, discomfort and discipline needed to get there are immediate” Commit . There is no benefit from dabbling or trying a little on a new strategy. 2
Strategy isn’t a dash—it’s a marathon. The fat smoker has to change his lifestyle . Smoking less and crash diets don’t work. They lead to disappointment, which leads to cynicism. “We tried that. It didn’t work.” 3
1519: Hernan Cortes, 600 men, Mexico. Three words: Burn the boats. Discussing goals, conducting SWOT analyses, and participating is strategic planning retreats is exciting but often pointless. We too often fail to ask the critical questions: • Which of our habits are we willing to change— permanently and forever? • What lifestyle changes (business practices) are we really willing to change? • What issues are we really willing to tackle? WHAT BOATS MIGHT WE NO BE WILLING TO BURN? 4
The diet that works is “The diet you will stick with.” But your leadership team has to be on the same diet (strategy). If they aren’t, you must admit that you aren’t willing or able to pursue that goal. You may have to admit ugly truths: “ We aren’t committed to a high level of quality and service. We make plenty of money by being the adequate‐ quality, low‐cost provider.” The worst thing you can do is declare a strategy and then fail to follow through on it. It wastes time, cuts leadership’s credibility, demoralizes employees, and kills profits. 5
The most obvious way to get commitment to significant change is a crisis. After the first heart attack, many people change their lifestyles. Likewise, when the market changes, profits plunge, a major client leaves, or there is a significant lawsuit, many companies are suddenly willing and able to change their behavior. Others die because it was too late. How do we avoid just being responsive to a crisis? 6
Here are six lessons from David Maister for successful change before a crisis. 1. It is about a permanent change in lifestyle. We tend to underestimate what is necessary to bring about significant business improvement. “Strategy” isn’t a program separate from how we run our business—it is how we run our business. 7
Strategy is about routines, not special events. Change is a daily, ongoing activity.
2. You Must Change the Core Scorecards If our new strategy is going to be a part of our new daily routine, we have to change the way we measure our daily activities. “The scales don’t lie.” We forgive ourselves too easily. Guilt isn’t an effective change agent. Embarrassment (the result of a failure in accountability) is a much more effective change agent. 9
3. Leadership: Get Serious or Get Out of the Way Alexander the Great lead his Companion Cavalry into battle rather than commanding from a safe distance. His men knew he was fully committed. Leaders can’t just publish new strategies and expect employees to begin executing on them. They must demonstrate that they are committed to changing the way they act, manage, and reward . Otherwise, employees won’t engage in the stretch behaviors necessary to achieve the new goals. “A large part of really bringing about strategic change is designing some action or new system that visibly, inescapably and irreversibly commits top management to the strategy.” ‐‐Maister 10
4. Principles Are More Effective Than Tactics “We give great customer service because it leads to more repeat sales” is a tactic —and not very inspiring. “We give great customer service because we appreciate and respect those we are privileged to serve” is a principle . Employees need to know that leadership BELIEVES . Only then will they believe. When your organization’s values are aligned with your strategy and those values are integral to hiring, managing, and rewarding employees—INCLUDING LEADERSHIP—they see it. They also see when there is a disconnect between what managers say and what managers do. 11
5. People Must Volunteer Diets, quitting smoking, substance abuse treatment, or any other significant personal change requires that an individual voluntarily commit to making the change. Likewise, companies achieve their goals when employees voluntarily exercise their discretionary effort . That is a popular definition of an “engaged employee.” Because the primary component of successful change is will , not technique, the motivation driving the change must be intrinsic. They must want the goal. And this leads us to one of the major reasons change efforts fail: “not everyone in the firm wants to try that hard.” Leaders must act as coaches, creating dissatisfaction with the status quo , pointing out how things can be improved, and convincing employees “the desired change is both achievable and desirable.” 12
6. People Must Get On or Off the Bus In Good to Great , Jim Collins talks about “getting the right people on and off the bus.” Gino Wickman calls it “right person, right seat” in Traction . Although it has almost become a business cliché and few people would deny that having someone who disagrees with the company’s vision is a major obstacle to success, most companies are unwilling to actually invite (or escort) those people off the bus. “Everyone in the organization has to decide if they want to try hard enough to sacrifice some of the present to achieve a better tomorrow.” “Notice, it’s absolutely not about how we can force people to do what we want. It’s about how we can make sure that people have opted in and that those who do not wish to be on the program have opted out—of the firm!” ‐‐Maister 13
Managing the Process of Change “Rome wasn’t built in a day, but we are building Rome.” Change doesn’t happen overnight. It takes time. “It truly is, like alcoholic recovery, a process of ‘first make a lifetime commitment, then take it one day at time.’” People, individually and collectively, will stumble. The key is to identify the issue quickly and correct it to get back on the right path. The prospect of losing fifty pounds can be daunting. The prospect of losing a pound a week over a year seems manageable. And it can be measured! 14
Encouragement is critical. Set small goals and celebrate them. But don’t think too small. Just as having too great an immediate goal is defeating, so is “failing to establish any pressure to change.” Diamonds are created under pressure. 15
In Traction , Gino Wickman advocates setting 10‐ target, 3‐year picture, and 1‐year plan. 16
Then, for the coming quarter, you identify the 3‐7 (preferably closer to three) most important things to accomplish in the next 90 days to ensure that your year‐end goals are met. 17
The rocks concept was popularized by Stephen Covey in Seven Habits of Highly Successful People. Create long‐term goals and ensuring that most of your resources are dedicated to moving you toward those goals. 18
Visionary leaders are often easily distracted. After the initial excitement of creating a vision, setting long‐range targets, annual goals, and quarterly rocks, many firms get distracted. New opportunities come along and suddenly we’re spending a lot our attention and effort on items that are outside of our defined strategy. For example, if our strategy is to provide a high level of customer service at a premium price, we might still be tempted by a very large prospect seeking a low‐service vendor at below‐market cost. Maybe we think we have a high probability of winning the business. Some may ask “Dare we pass up the prospect of capturing such a large customer?” “Strategy is deciding whose business you are going to turn away.” 19
Focus is the reason you can’t walk into McDonalds and order a pizza. 20
So how do you know which opportunities to pursue? Look at opportunities through the lens of your core values, focus, and targets. Will this get us there? Or is this such a unique opportunity that we are wiling to risk our investment, shared commitment, and reputation by reengineering the company? 21
We have to say “no” on a personal level, as well. If each employee is not making the right decisions about where they invest their discretionary effort, it will impede the company’s success. The flowchart above (enlarged on the next page) is my personal rubric for evaluating personal and professional opportunities. 22
Is it in line with my personal No and professional values? Yes Is it a "Hell, Will it significantly yeah" (unique or Will it significantly help to maintain/improve a exciting opportunity particularly move a personal or professional No No No Does it have to be done anyway? No personal or professional appealing on a personal goal forward? relationship? level)? Yes Yes Yes Yes Can this be scheduled without No impacting other commitments or priorities? Yes Am I the only one who Can a reasonable schedule No Yes can do this at an acceptable be negotiated? quality and cost? Yes No Is there a compelling Put it on my schedule with a due date. Yes reason I should be the one to do No Assign it with a due date. Decline it. this?
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