Category Archive: Strategic Planning

Organizational Culture Change

Posted by on September 4, 2009

According to John Kotter there are many reasons change initiatives fail especially in large organizations.  The number one reason is there is not a clear sense of urgency for change that makes everyone willing to pay the short term price of pain due to change to gain the long term benefit of progress.

Many times the communications part of the process breaks down and the implementers do not get enough information to really buy in.  The importance of creating short term wins for establishing credibility for the entire process cannot be overstated. 

When the new of change becomes the norm there are several key factors that let you know it is now firmly in the D.N.A. of your organizational culture:

1.       More change, not less:  The guiding coalition uses the credibility afforded by short-term wins to tackle additional and bigger change projects.

2.      More help:  Additional people are brought in, promoted, and developed to help with all the changes.

3.      Leadership from senior management:  Senior people focus on maintaining clarity of shared purpose for the overall effort and keeping urgency levels up.

4.      Project management and leadership from below:  Lower ranks in the hierarchy both provide leadership and specific projects and manage those projects.

5.      Reduction of unnecessary interdependencies:  To make change easier in both the short and long term, managers identify unnecessary interdependencies and eliminate them.

When everyone in the organization starts to articulate the new vision in their own words as if it were their idea then you know they own the process.  It is time to start looking for what needs to be changed next, the process never stops.

 

 

Pull The Trigger

Posted by on August 10, 2009

There may be nothing harder to do as a leader than make the decision to terminate an employee.  To be honest we feel to some degree we have failed and that is hard to accept.

This is especially true if we hired the person in the first place.  Not only have they failed but now our performance as a leader may be in question also.  We cannot let our own emotional need for personal success stand in the way of doing what is right for the organization.

There are three critical things that I must do as a leader before I feel that my responsibility has been completed prior to any termination.  The first is to provide clear expectations of what is required in their job description.  It is impossible for someone to meet your expectations if they have not been clearly communicated early and often.

The second important thing is to make sure the person has had adequate training and resources to complete their job successfully.  It is not fair to ask someone to grow a particular area and not give them the financial and manpower assets they need to be effective.

The last issue for me is a comprehensive and ongoing feedback system that lets a person know exactly where they stand in the area of performance.  It is not right to see someone make mistakes day after day and stick your head in the sand hoping it will go away only to drop a bomb on them at annual review or even worse an unexpected termination.  If you do not have the leadership skills to positively confront someone about what they are doing wrong then you may be the one in the wrong job and not them.

If you have done all of these three things well and given this person every opportunity to improve and they don’t then you should feel no guilt or sense of failure.  Never obsess on the five to ten percent of your staff that may need to go every year. What is extremely important is to remember the ninety to ninety five percent who are doing their jobs well and are watching to see if you have the character as their leader to pull the trigger.

 

Characteristics Of An Effective Vision

Posted by on August 5, 2009

When we think of the word vision we are drawn to a picture of the future of how things can be better than they are in the present.  Most vision casting does a good job of painting a hopeful image of the positive benefits involved but not a very realistic job of the costs involved to get there. 

This is a major problem because when the negative forces and fears involved in the change process start to appear and people are not prepared they can give up very quickly resulting in the death of the vision.  John Kotter in his book Leading Change lists all the characteristics that should be included in an effective vision:

1.      Imaginable:  Conveys a picture of what the future will look like

2.      Desirable:  Appeals to the long-term interests of employees, customers, stockholders, and others who have a stake in the enterprise

3.      Feasible:  Comprises realistic, attainable goals

4.      Focused:  Is clear enough to provide guidance in decision making

5.      Flexible:  Is general enough to allow individual initiative and alternative responses in light of changing conditions

6.      Communicable:  Is easy to communicate; can be successfully explained within five minutes

The change process for most people is extremely difficult because of the fear of the unknown.  There are powerful forces involved that will try to maintain the status quo at all costs.  The pain of the present must be contrasted with the pain of the change process so that the people will know that the option of no change is not realistic.

People also need to be told on the front end that sacrifices are probably going to need to be made and there will be discomfort involved during the transition.  However, if the vision takes the group to a better and more viable place then all the costs involved will be worth it every time.

The Leaders Legacy

Posted by on August 3, 2009

In a day when markets and shareholders demand short term rewards for their financial investment it is extremely difficult for leaders to have the courage to lead with the long term as a priority.  The temptation to make easy decisions that will make the leaders bottom line look good today are setting up good companies for failure down the road.

This mentality usually results in a strong almost dictatorial leadership style that builds the business around the charisma and determination of the celebrity type leader.  There is very little delegation and certainly no succession planning taking place because that does not serve the crisis of the moment mentality.

The real test of any leader’s success must not be simply measured by the timeframe when they are working but by what happens to the organization when they leave.  If everything seems to fall apart and all positive momentum is lost then you cannot believe the leader set the team up for future success.

John Maxwell makes the point when he writes, “Achievement comes to someone when he is able to do great things for himself.  Success comes when he empowers followers to do great things with him.  Significance comes when he develops leaders to do great things for him.  But a legacy is created only when a person puts his organization into a position to do great things without him.”

When we value the success of others over the long haul over any short term success we may have for ourselves then we are leading with integrity.  Anything less than that is nothing more than selfish ambition and that is not true leadership.

In Search For Silver Bullet

Posted by on July 28, 2009

In Jim Collins latest book How The Mighty Fall he talks about companies that start on a systematic downward spiral that leads ultimately to total failure as an organization.  One common problem he found is that when they finally realize they are in serious trouble rather than dealing with real problems they search for the quick fix approach of finding the right silver bullet.

When full blown panic sets in there is a frantic search for several silver bullets that can be dramatic big moves such as game changing acquisitions or a risky new strategy or an exciting innovation or new leadership, anything that can save us.  The following is list of several silver bullets observed:

1.       Grasping for a Leader as Savior:  The board responds to threats and setbacks by searching for a charismatic leader and an outside savior.

2.      Panic and Haste:  Instead of being calm, deliberate, and disciplined, people exhibit hasty, reactive behavior, bordering on panic.

3.      Radical Change and Revolution with Fanfare:  The language of revolution and radical change characterizes the new era: New Programs! New cultures! New Strategies!

4.      Hype Precedes Results:  Instead of setting expectations low—underscoring the duration and difficulty of the turnaround—leaders hype their visions initiating a pattern of overpromising and under delivering.

5.      Initial Upswing Followed by Disappointments:  There is an initial burst of positive results, but they do not last; dashed hope follows dashed hope; the organization achieves no buildup, no cumulative momentum.

6.      Confusion and Cynicism:  People cannot easily articulate what the organization stands for; core values have eroded to the point of irrelevance; the organization has become just another place to work.

There are no quick fixes or silver bullets for organizations that have complex long term problems that have built up for decades.  The new realities of the global economy did not create these problems it merely acted as a catalyst to reveal them.

 

Role Of Short Term Wins

Posted by on July 27, 2009

One of the major mistakes we make in major change initiatives is that we oversell the long term goal at the expense of dealing with the short term realities.  People do want to know where they are going but they want to know even more what does all this mean for me right now?

Once the new change plan has been implemented it is critical for everyone involved to experience the benefits of short term wins so they can stay motivated for the future and the change that is yet to come.  John Kotter list several roles that short term wins play:

1.       Provide evidence that sacrifices are worth it:  Wins greatly help justify the short term cost involved.

2.      Reward change agents:  After a lot of hard work, positive feedback builds morale and motivation.

3.      Help fine-tune vision and strategies:  Short term wins give the guiding coalition concrete data on the viability of their ideas.

4.      Undermine cynics and self-serving resisters:  Clear improvements in performance make it difficult for people to block needed change.

5.      Keep bosses on board:  Provides those higher in the hierarchy with evidence that the transformation is on track.

6.      Build momentum:  Turns neutrals into supporters, reluctant supporters into active helpers.

Therefore it becomes critical in any change planning to build into the strategy several things that can be done within the first six months that may be small in scale but clear wins that everyone can celebrate.

 

 

Lessons From Michael Jackson

Posted by on July 8, 2009

We have all been affected by the sudden death of Michael Jackson in different ways.  Some of us feel compassion for the children who are left behind to grow up in the huge shadow of their father.  Others are feeling regret for such a waste of a very talented person who lost so much of what really matters during his life.

Most of us will never have to deal with all of the things that Michael did that come with being a famous celebrity who earns millions of dollars in income.  However we all have to deal with the life issues that he faced:

1.       Resolve Past Hurts—if you do not deal with the pain from when people close to you have failed you when you were growing up then you will surely carry those open wounds into adulthood.  The tragedy for all of us is when the core issues that we are dealing with as adults are really problems that surfaced many years ago but were never appropriately resolved.

2.      Trust Right People—show me who your friends are and I can tell you a lot about your character.  The temptation for all of us is to surround ourselves with people who tell us all that we want to hear but they really don’t care enough to tell us the truth.  These people make us feel good for the moment but leave us eventually broken and empty when the fun runs out.

3.      Develop Core Values—there is no doubt in my mind that many times Michael wanted to do the right thing and really wanted to help people.  When you don’t have a solid foundation to build on you will consistently make very bad decisions that seem extremely inconsistent with whom you want to be as a person.

4.      Decide How Much Is Enough—driven people are never satisfied because they are trying to satisfy their deepest needs with things that can never bring real peace and fulfillment in life.  If you are not content with what you have now there is no reason to believe you will be in the future regardless of how much you get. 

Michael Jackson’s legacy will be a hotly debated subject for years to come.  Some only see the bad and others refuse to say anything was wrong at all.  Will the people closest to you be debating your legacy when you are gone or will they all agree it was a life well spent.

 

The Building Blocks Of A Strategy

Posted by on July 6, 2009

One of the best books I have read on developing a strategic plan and all that is involved in the execution of that plan was written by Larry Bossidy and Ram Charan called Execution.  It is a must read for any organization that uses teams to accomplish planning and execution.

A strategy is the key steps or methodology that you are going to use to accomplish your goals or mission.  Many times the goal seems to be clear and necessary but the breakdown occurs at the point of determining how we are going to accomplish what we want to do.

In this book he lists several critical questions that should be answered during the development of your strategy to ensure a high probability of success:

1.       How good are the assumptions upon which the plan hinges?

2.      What are the pluses and minuses of the alternatives?

3.      Do you have the organizational capability to execute the plan?

4.      Are the short term and long term balanced?

5.      What are the important milestones for executing the plan?

6.      Can you adapt the plan to rapid changes in your environment?

The two most important questions are do you have the organizational capability to execute the plan?  Just because it is the right thing to do may not mean we have the right people in place and this is the right time for implementation.  If we add something major to our process without additional manpower it must be assumed that something else needs to go.

The last question is even more important in the culture we live in today.  Just because something looks great as a strategy today and even works for awhile does not mean that it will be viable in the next twelve months.  This means that nothing must become so sacred that it cannot be changed if necessary when a better plan is discovered.

 

Crisis Management

Posted by on June 29, 2009

Every individual and organization at some point in time will face a crisis and the way they respond will determine if the situation potentially becomes fatal or they experience a complete and total recovery.  I have learned a lot from personal experience on this subject over the years and probably the most important lesson is to be incredibly proactive and not stick your head in the sand and hope it will get better.

In Jack Welch’s great book Winning he gives some great advice on how he dealt with crisis situations at G.E.  These are his five guiding assumptions:

1.      The problem is worse than it appears—No matter how hard you might wish and pray; very few crises start small and stay that way.  The vast majority are bigger in scope than you could ever imagine with that first phone call and they will last longer and get more ugly.

2.      There are no secrets in the world, and everyone will eventually find out everything—Information that you try to shut down will eventually get out, and as it travels, it will certainly morph, twist and darken.   The only way to prevent that is to expose the problem yourself and tell the truth.

3.      You and your organization’s handling of the crisis will be portrayed in the worst possible light—The very nature of a crisis means that you and your organization will be portrayed in a light so negative you won’t even recognize yourself.  Don’t hunker down.  Along with disclosing the full extent of your problem you have got to stand up and define your position before someone else does for you.

4.      There will be changes in processes and people—Crisis requires change.  Sometimes a process fix is enough.  Usually not because the people affected by the crisis demand that someone be held responsible.

5.      The organization will survive, ultimately stronger for what happened—There is not a crisis you cannot learn from, even though you hate every one of them.  After a crisis is over the tendency is to put it away in a drawer.  Don’t, teach its lessons every chance you get.

The Power Of Momentum

Posted by on June 15, 2009

There are very few things more difficult to deal with in your personal or professional life than a loss of momentum.  It can be brought on by some major tragedy or a series of small compromises over a very long period of time.

Eventually we get to a place where we start worrying about things outside our control and that drains us of what little emotional energy we have left.  Also because we are so focused on the negative we stop doing the things we should and can do and that brings even more despair.

The only way to break this cycle is to start doing what you can do and build some small daily wins into your life.  This principle works with individuals as well as organizations.

With every small win comes movement and that generates confidence that things are finally headed in the right direction.  When we regain our confidence then we attempt even more things that product even bigger wins and the power of the momentum begins to put the wind back in our sails.

It is very ironic that when we get to the places of greatest difficulty in our lives it is the very smallest of things that can break the downward cycle.  We are desperately searching for the big answer that is going to solve all our problems when the solution was right in front of us all the time.

The good news is that the power of momentum works in a positive way to an even greater degree than it does toward the negative.  When you repeatedly do what you can do daily the positive flow of your life moves you beyond all the negative issues that may still be there but now they are in the proper perspective.