Why strategy needs to be specific…

20 09 2011

Today’s Dilbert strip hit on a couple of key thoughts, albeit in traditional Dilbert fashion…

This is a pretty simplistic, yet sadly realistic, manner in which we define corporate agendas.  We lay out a concept and expect the organization to translate our words into action.  What happens is that often the definition is fuzzy, which allows for all sorts of interpretation and a watering down of execution.

While a little nitpicky here, Increasing Market Share is a goal, not a strategy.  Why does this matter?  The primary reason is that we need to teach the organization to think along common lines. We need to communicate specificity – tell people exactly what we want.  The goal is to increase market share by 5%, and we are going to do this by increasing new product revenues by 10% and by $4mil in cross selling opportunities to our customer base.

Additionally, every company is striving for the same four things – Increase Revenues, Improve Profit Margin, Elevate Market Share, and Enhance Financial Health.  It is how we balance these four items that sets us apart from our competition, and how we tell the organization what matters.  Will we sacrifice a launch date and potentially our 3rd quarter revenue goal if a product is offline?  Will we bend over backwards to keep a customer from defecting?  Will we sacrifice margin for a new customer in a new market?  The company must know the trade off equation as most decisions impact something else.  Without understanding this, people make decisions based on what they want, not what the company wants.

Ask yourself how deep your organization understands its goals?  And then compare it to how specific the goals, strategies, and tactics are for the organization? If there is a gap, start somewhere and be very specific of what you want.  Changing the culture to be more specific is not all that difficult.





Strategy & Operational Performance Management Survey

21 07 2011

If you have a moment, take a few seconds to fill out a survey.  I’ll post some of the more relevant survey results here over time. Basically 7 questions and a place to fill in your answer if you want to share more.

Link to survey





Research in Motion’s public battle

5 07 2011

When executives feel they have to go outside of a chain of command in order to voice concerns, we see perfect examples of the need for Operational Performance Management (OPM).  The current Research in Motion public battle is a great place to start.  An anonymous executive sent an open letter to Jonathan Geller, of The Boy Genius (BGR.com), to call out the current RIM culture.  What is more entertaining about this is the fact that RIM responds publicly, which only makes this sound like a bigger problem.

Highlights of the RIM letter:

  • You have many smart employees, many that have great ideas for the future, but unfortunately the culture at RIM does not allow us to speak openly without having to worry about the career-limiting effects.
  • We often make product decisions based on strategic alignment, partner requests or even legal advice — the end user doesn’t care. We simply have to admit that Apple is nailing this and it is one of the reasons they have people lining up overnight at stores around the world, and products sold out for months. These people aren’t hypnotized zombies, they simply love beautifully designed products that are user centric and work how they are supposed to work.
  • Teams still aren’t talking together properly, no one is making or can make critical decisions, all the while everyone is working crazy hours and still far behind. We are demotivated.
  • Strategy is often in the things you decide not to do.
  • We simply must stop shipping incomplete products that aren’t ready for the end user. It is hurting our brand tremendously. It takes guts to not allow a product to launch that may be 90% ready with a quarter end in sight, but it will pay off in the long term.
  • The truth is, no one in RIM dares to tell management how bad our tools still are. Even our closest dev partners do their best to say it politely, but they will never bite the hand that feeds them.
  • 25 million iPad users don’t care that it doesn’t have Flash or true multitasking, so why make that a focus in our campaigns? I’ll answer that for you: it’s because that’s all that differentiates our products and its lazy marketing. I’ve never seen someone buy product B because it has something product A doesn’t have. People buy product B because they want and lust after product B.
  • RIM has a lot of people who underperform but still stay in their roles. No one is accountable. Where is the guy responsible for the 9530 software? Still with us, still running some important software initiative. We will never achieve excellence with this culture. Just because someone may have been a loyal RIM employee for 7 years, it doesn’t mean they are the best Manager / Director / VP for that role.
  • However, overconfidence clouds good decision-making. We missed not boldly reacting to the threat of iPhone when we saw it in January over four years ago. We laughed and said they are trying to put a computer on a phone, that it won’t work.
  • Reach out to all employees asking them on how we can make RIM better. Encourage input from ground-level teams—without repercussions—to seek out honest feedback and really absorb it.

All of these are examples of what happens in almost every business culture I have witnessed.  It is certainly not unique to RIM. If you think this is not happening within your business you are sorely mistaken.

What can you do….

  • Foster honest discussions.  Stop punishing those who do not follow the company line. Reward critical thought.  Ask people to do their homework prior to the meetings.
  • Listen.  Tap into the collective intelligence of the organization.  1,000 eyes see a lot.
  • Act out.  Stress your opinion if you have a dissenting idea.If you love your company and passionate about what you do, chances are your opinions probably do matter.




Obesity in the US

29 04 2011

This is again perhaps a little off topic for me, but it does pose some really interesting strategic points for consideration…

The cigarette of today’s generation is fast food, sodas, and poor eating habits in general.  Obesity in the US is projected to be about 20% of our annual health spending – or roughly $350 billion (USA Today) by 2018.  This means the number will double from 10% of the spending to 20% by 2018.  Food related deaths account for more than half of our causes of death (CDC) and we focus very little attention to it.  And for the first time in decades the US life expectancy is projected to decline by 5 years (National Institute of Health) with this generation.

So from the viewpoint of Strategy, this poses a wild number of potentials.  Depending upon your industry this either opens you to a tremendous opportunity, or a concerning level of risk.

Opportunities:

  • Food industry – being an early mover to healthier versions of your food may attract more customers
  • Education – providing content for school, churches, communities, etc may open more doors for you
  • Healthcare – with increasing costs, providers that can target care to show health gains with children, or keep their clients healthier may see improved demand for their products while at the same time controller their costs.
  • Marketing – Branding your self as a healthy alternative
  • HR – being seen as a healthier employer may improve your retainment and attraction to new employees.  You may also see a reduction in your health care costs over time.

Risks:

  • Fast food – This entire industry may be about to come under ever increasing levels of attack.  The attacks will likely be on menu, ingredients, nutritional labeling, and potentially lawsuits.
  • Sports drinks – As parents become more aware of the level of sugar in these drinks, demand is certainly at risk.  As one of their core segments is children, it is also possible that even the marketing placement will be called into question.
  • Education – As Jamie Oliver’s Food Revolution has clearly pointed out, he is certainly targeting the school system menu.  Once the parents get involved school district lunch menus will likely need to change dramatically.
  • Healthcare – spiraling costs will force most healthcare companies to make very difficult decisions to remain profitable.

Here is Jamie Oliver’s presentation on TED.

Here you can see the growing obesity problem in the us (CDC).





Changing Market Place

7 04 2011

Yesterday in the NYTimes was a story about the speed of the changing U.S. race demographic.  As our demographic changes, so will tastes and demand.  Many companies have sat atop their markets feeling they are invincible, yet with these changes many of the companies will find out much too late that they were not as solid as they once felt.

Have you asked yourself any of the following:

  • What percent of our clients come from the majority?
  • Do we have products that meet demands from all sectors?
  • Are we at risk if the legislature, or governing boards, can their ethnicity over time?
  • Where are our biggest threats in this new market?
  • Where are our greatest advantages?
  • What else can we do to capture more in this changing market?
  • Where might new competitors come after our market?

If you are not strategically discussing questions like these, then you elevate your risk of something happening to undermine your position within your market.

 





Zombie Initiatives and Tasks

5 01 2011

Over the holidays I heard a story on Zombie Processes.  It reminded me of the number of these I have come across in business.  One of the luxuries of being a consultant is you get to ask “why do you do that” or better yet “what would happen if you didn’t do that anymore”.  As businesses grow and scale we often pick up a number of new initiatives, or increase the subtasks, and never kill off old ones.  We also inherit more and more “stuff” that people do that does not necessarily add value.

Zombies: A Zombie initiative/task is something that continues on because no one has done the favor of saying it is either over or complete.  It can also be a task that exists that no longer needs to exist.   Basically it is inefficient effort and time.

Do these exist in your organization? Absolutely and everywhere.  The key is not trying to fix them all at once – this will get you nowhere.  What makes the most sense is to identify your strategic goals and initiatives and start with the processes that support those goals.

Where do you start? Take a look at your critical initiatives across the organization.  Ask yourself which ones are going to provide the most strategic value over the next 12 months.  Pick 3 and define the value of those initiatives.  Are they about increasing/decreasing time, revenue growth, cost cutting, elevating customer value?  Figure out how improvements should be measured.  Set up serious targets and a process to manage improvements.  Roll up your sleeves and get rid of the Zombies.  And while again this is self serving, it does not make it less true – hire a consultant.  Have someone independent to the organization ask the questions.  Especially if this is a new concept inside the organization.  People don’t like change, they fear it will expose them or put them at risk.  This can lead to the wrong motivation for process improvement.

 

Stuff:  This can be projects, tasks, subtasks, processes, or simply job justification work.





Breaking down Profitability

12 10 2010

One of my favorite bloggers / writers, Seth Godin, writes about “When the long tail is underwater” on his Oct 10th blog.  He actually touches on a couple of interesting points, how much time and energy is created that generates no value, and how do we filter out all of this information to understand what is relevant.

Take for example the Droid/iPhone app market…Apps are everywhere, and try to do everything.  Apple and Droid both claim wildly unusable numbers of apps.  With all of these potential apps, ask your friends what Apps that they can’t live without and people get strangely quiet.  I had a few people respond Urban Spoon and one guy mentioned Wolfram Alpha.

Seriously, hundreds of thousands of apps out there and we can’t create a list of “gotta have” apps? Yes, I know there are hundreds of those lists.  Read one of those lists and ask yourself which one will you be using a month from now.

Sorry back to the point…Compare this to your company’s information:

  • How much data do you have?
  • How many reports do you have?
  • How much of it is relevant?
  • How much old stuff is out there that no one has any idea of its worth?
  • How often do you clean up the environment?
  • How quick do people respond?

AND how often do you hear people say… I don’t have the data?  OR I am not sure where I can find the information I need?

 

 








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