Posts Tagged ‘execution’

Avoiding Strategic Planning Failure

Tuesday, April 14th, 2015

This week’s guest is Leslie Heller, a management consultant focused on business strategy, change management and growth initiatives. He has 15 plus years in consulting and business leadership roles, where he led teams of over 1,200 employees, held accountability for over $850 MM in sales and $36 MM in payroll, and implemented growth initiatives in diverse business lines. Leslie’s motivation is to create an environment where businesses can implement change and deliver value for their customers. Leslie also volunteers as a mentor with Enterprise Toronto helping young people build businesses.

 

The strategic planning process is the time to develop corporate direction and vision that create value and excitement for companies and their stakeholders. This article highlights three points to include in the planning process that increase the chances of implementing a successful strategy. While no exhaustive list of what it takes to avoid strategic planning failure exists, these points will help planning at the team, project, division, business unit and company level.

1. Strategy and Execution

We often hear that “Strategies most often fail because they aren’t well executed”, but how “right” could the strategy have been if it failed in execution? If a strategy failed in execution it is likely that one or more of the following three points was missed in the strategic planning process:

i.     Ensuring the right skill-set is in place
ii.    Ensuring adequate resources are available
iii.   Ensuring processes to track, highlight and resolve issues throughout the project life-cycle are implemented

The ability to execute a strategy is part of strategic planning. When strategy ignores internal capabilities or does not address how capabilities will be addressed there is increased risk in delivering the strategic objectives. Spend the time to honestly assess internal capabilities upfront to avoid frustrating time-consuming issues later on.

2. Beware the Fouled Up System

In the article “On the Folly of Rewarding A While Hoping for B” (Steven Kerr, Academy of Management Journal, 1975, www.ou.edu/russell/UGcomp/Kerr.pdf), the author addresses how reward systems influence behaviour, and highlights examples where the behaviour does not align with the intent of the reward system. You likely have your own examples; for instance, when next years’ expense budget is based on current years’ spend, do all managers strive to find one-time (non-recurring) expense saving opportunities? How about if they are already surpassing their Plan… near year-end? Or consider performance metrics that measure attendance and productivity when a company really wants to measure employee engagement and quality. The down-stream impact of mistaking attendance for engagement or productivity for quality is increased customer support and rework that is often difficult to address, correlate and impact after the fact. Perhaps worst of all is the risk of setting strategy on misinterpreted business unit performance.

Selecting the right tracking metrics to influence employee behaviour within the strategic plan can be tricky and needs to be addressed, not only by strategy teams but by operational leaders who are more likely to identify disconnects between the intent of the reward system and the anticipated employee behaviour.

3. Change Management

Corporate strategies result in projects and projects result in change. Even positive change creates anxiety and needs to be managed (think about the last time you upgraded your corporate coffee system!). Change management is the act of using a structured process to lead the people side of change to increase the likelihood of project success.

According to Prosci, the world’s leading benchmarking research and change management product company, the top issues that derail change initiatives are ineffective project sponsorship, employee resistance to change and not using a structured change management approach. Change management has gained considerable attention lately and change management offices have popped up in banks and other institutions over the past few years. Including change as a topic in strategic planning, and then managing change with structured processes and communication plans should be built-in to the strategic planning process.

Summary

In summary, (i) ensuring executional capabilities are part of strategic planning, (ii) figuring out the best metrics to use to align employee behaviour to a new corporate direction, and (iii) using change management methodologies, will help your organization avoid strategic planning failure. Ensure that you include these on your strategic planning agenda!

For further information on avoiding strategic planning failure and change management you can reach Leslie Heller at lheller00@yahoo.com (Note: this is a summarized version of Leslie’s presentation at the 5th Annual Strategic Planning for Boards conference held in Toronto earlier this year.)

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ProfitPATH’s Top Ten Blogs – First Quarter 2015

Tuesday, April 7th, 2015

Lessons about successful business growth1.  3 Lessons About Successful Business Growth

Two books, published 19 years apart, yet saying similar things about a key aspect of successful business growth:
‘Built To Last’ was published in 1994. In it, Jim Collins analyzed 18 companies that he called visionary because they were the best in their industries – and had been that way for decades. Collins argued that the core values and enduring purpose of all 18 could be separated from their operating practices and business strategies. And that, while the former never changed, the latter changed constantly in response to a changing world.
In her book ‘The End Of Competitive Advantage’, published in 2013, Rita Gunther McGrath studied the performance of large, publicly-traded companies from 2000-2009. She found that only 10 of them grew their net income by at least 5% every year. All 10 had found ways to combine tremendous internal stability with tremendous external flexibility. McGrath argues that to win in volatile and uncertain times, companies must learn to exploit short-lived opportunities quickly and decisively. more

time for a change in the direction you are heading, focus on center of compass...2.  3 Times When You May Need To Change Your Strategy

Changes to a well thought-out, well-crafted strategy shouldn’t be driven simply because it’s been in place 1, 3 or 5 years. A strategy shouldn’t necessarily be changed even if it isn’t producing results. In this situation I always look at how well (or badly) the strategy is being executed before I look at the strategy itself. So when should a company review its strategy? And what makes that review and any subsequent adaptation, revision or re-creation necessary? Here are three occasions. more

10 Commandments of Business Development3.  10 Commandments of Business Development

I’m not enjoying the after-effects of the 2007/2008 financial crisis. And I’m certainly not a fan of the banks, investment and other, which I believe were a significant contributor to the mess. But, while my wife may disagree, I like to think I keep an open mind. So when I saw an article talking about how Goldman Sachs grew from mid-tier firm to global player in a few decades I had to peek. John Whitehead, a co-head of the firm in 1970, wrote the following 10 commandments that guided their business development efforts. I love them. They’re full of common sense and they’re very practical. Written in 1970, these 10 commandments add to my belief that the basic, common sense principles of business never change. Here are 4 things that business owners today can take from them: more

4.  Adaptive Strategy – A Way To Profits In The New Normal?

Adaptive Strategy is an alternative developed by The Boston Consulting Group (BCG)¹. Here’s how I think it applies to owner managed businesses. Adaptive strategy is built on the 3 R’s required in a changing environment². Can adaptive strategy be applied in owner managed businesses? more

5.  6 Ways A Business Owner Can Influence Culture

I wrote last week about the relationship between Strategy, Culture and Leadership. As a result we’ve had some questions about how a business owner can influence the culture in his/her company. Here, in no particular priority, are 6 ways that it can be done. more

6.  The Difference Between A Strategy And A Plan

I want to talk briefly about what I think is one of the worst mistakes – confusing strategy and planning. Roger Martin wrote a post for the HBR last month in which he dealt with this very topic. I frequently hear business owners talk about the need to do “strategic planning” in order to create a “strategic plan”. Some talk – every year – about holding a “strategic planning meeting”. more

7.  6 Challenges Fast Growing Companies Face

I’ve mentioned Inc. magazine www.inc.com several times before. It’s a great resource. There’s a well-researched article in the current issue about 6 challenges fast growing companies face. They’re all about execution – and if the owner doesn’t deal with them well any one of them can be fatal. more

8.  6 Tips For Growing Your Business in 2015 – How to Use Them

I was asked a good question last week. “Loved your last blog post, Jim – but how do companies like mine do those things?” So here are some ways any business owner can implement the 6 tips in his/her company. more

9.  6 Tips For Growing Your Business in 2015

January is the month for New Year’s resolutions, freezing cold and, for many, a new fiscal year. Everyone wants to ‘do better’ in 2015 than in 2014 and, for business owners, ‘doing better’ is shorthand for growing. I don’t know how often, in the last couple of weeks, I’ve been asked something like “What are your top 6 tips for growing successfully”. The answer depends on a number of things. Here’s the rub. All 6 are much easier to talk about than do. But if you start on them now you can make some progress this year. more

10. 3 Reasons Why Strategy Isn’t Dead In The Water

I hate sweeping generalizations. Strategy is dead is one that I particularly dislike. To say that, it seems to me, is to say that it’s a complete waste of time for every company, regardless of size or industry, to have a strategy.
An article appeared in the Globe and Mail late last year, headline “Why Strategy is Dead In The Water.” It was based on an earlier article in Forbes magazine, headline “Is Strategy Dead? 7 Reasons The Answer May Be Yes.” We’d gone from strategy might be dead to signing its death certificate – in the space of two headlines. more

 

Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

What is a Strategy Focused Organization?

Tuesday, February 17th, 2015

 

This week’s guest is Dick Albu, the founder and president of Albu Consulting, a strategy management consulting firm focused on engaging and energizing leadership teams of middle market private and family business to formulate robust business strategies and follow through on execution of key strategic initiatives.

 

 

The ultimate prize for all NFL football teams is a Super Bowl win.  There is no greater reward for a well planned and executed season.  Management, coaches, and players need to be aligned and focused for every game.  They also need to be committed to the overall team strategy.  Successful teams embrace the strategy focused organization model.

What can business owners and CEO’s learn from these NFL football teams?  A strategy focused organization understands that strategy is dynamic and it has adapted a continuous strategy management process of addressing issues and weaknesses, leveraging strengths, and exploiting opportunities on a timely basis. As with a winning football team, the ability to successfully execute the game plan is critical to business owners and their management teams. Here are three key elements for successful strategy execution.

Mobilize and engage the senior team – Alignment and commitment from the senior team is an essential ingredient to success.  Without complete buy-in from the leadership team, it is a sure bet that little change will happen.  Management and coaches all need to be on the same page, guided by a strategy that everyone has bought into.  Involving and getting buy-in from all managers through a collaborative process is critical to creating a strategy focused organization.  Keep in mind that this type of engagement does not happen overnight.  Establishing a strategy focused organization happens over years, not weeks or months.

Translate strategy to action in a way everyone can understand – Use a simple system that everyone can understand to explain who needs to do what by when.   Successful coaches make game plans easy to understand and make execution as flawless possible.   In our experience, a simple framework where objectives, initiatives and tactics are aligned creates a great deal of clarity and ensures engagement.   Employees get energized when they understand how they can contribute to the success of the strategy.

Embed the strategy execution process into day-to-day business operations – Organizations need a predictive, consistent, and continuous methodology to manage strategy execution.  Coaches are constantly making adjustments to their strategy as the season progresses because they appreciate that the football season is dynamic.  New opportunities or critical issues come up at any time, like an injury that leaves you without your starting quarterback.   Organizations need to think in the same way.  Strategy requires a dynamic and continuous process with consistent follow up throughout the year with the entire organization. Our approach with clients requires an ongoing execution process of monthly, quarterly, and annual meetings to measure, review progress and adapt strategy as necessary .

There are obviously many more aspects to creating a strategy focused organization that can lead change and improve performance.  Skipping any of these elements will prevent any company from achieving success.  We would like to hear your reaction to these important points, and let us know how you are creating a strategy focused organization.

Dick can be reached at 203-321-2147 or RAlbu@albuconsulting.com. For more information on Albu Consulting visit www.albuconsulting.com.

4 More Reasons Why Strategy Isn’t Dead In The Water

Tuesday, February 10th, 2015

Saying strategy is dead is a sweeping generalization.4 more reasons why strategy isn't dead

I don’t buy the argument that strategy is a complete waste of time for every company, regardless of size or industry.

There’s no question that the world has changed dramatically and we have to change how we approach strategy.

But to say that we should stop doing strategy completely is throwing out the baby with the bathwater.

Two articles which appeared recently, one in the Globe and Mail and an earlier article in Forbes magazine, laid out 7 reasons why strategy is, or may be, dead.

Last week I commented on the first 3 reasons, here are my thoughts on the other 4.

4.  Competitive lines have dissolved. Strategy, it is argued, has long been based on well-defined market sectors, containing established competitors. Now a competitor is likely to come from an entirely different sector.

But is this a new phenomenon? Didn’t IBM, under Lou Gerstner, become an IT solutions provider?

5.  Information has gone from scarcity to abundancy. It is argued that the value of strategic planners and consultants lay in the proprietary, or scarce, information they possessed. Today, information is easily accessed via the web.

Commenting on this point one of the authors of the 2 articles said “It’s …….how you translate that information into actionable activities that is critical”. Isn’t that what strategy execution was – and still is – all about?

6.  It is very difficult to forecast (option values). Before opening a new factory, expected costs were compared to forecast revenues to see if it was a good investment. But, it’s argued, the outcomes of investments in, for example, the Internet of Things are wild guesses at best. Is this new? We’ve had to make educated (not wild) guesses about the unknown for years, e.g. the development of the Boeing 747, the world’s first jumbo jet.

7.  Large scale execution is trumped by rapid transactional learning. In the past, organizations could roll out improvement programs in a deliberate, staged fashion over a number of years. These days, it’s a whirlwind, and you must be learning all the time.

Recently I wrote about Rita McGrath’s book ‘The End Of Competitive Advantage’, which profiles 10 large, publicly-traded corporations that have found ways to combine internal stability with tremendous external flexibility and achieved remarkable results.

Have they abandoned strategy? No.

If whales can do it, so can minnows.

 

If you enjoyed this post you’ll also enjoy The Difference Between A Strategy And A Plan

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

6 Tips For Growing Your Business in 2015 – How to Use Them

Tuesday, January 20th, 2015

I was asked a good question last week.How to implement 6 tips for growing you business in 2015

“Loved your last blog post, Jim – but how do companies like mine do those things?”

So here are some ways any business owner can implement the 6 tips in his/her company.

1. Able to spot trends earlier than most of their competitors.

  • Stay close to key customers and suppliers – ask what they see in the future, how you can help them. Don’t leave it to sales people, meet with the owner/CEO twice a year. Pay special attention to customers who are ‘early adopters’ of new technologies and processes.
  • Get involved in industry bodies, serve on committees, listen for trends in what suppliers and competitors are saying.
  • Make your own internal data easy to access and analyze.

2. Very willing to try new things (innovate, adapt).

  • Have a pipeline full of growth initiatives at different stages of development.
  • Understand that people who are good at making things efficient aren’t good at innovation. They’re 2 different skill sets, have a mix of both.
  • Do limited tests of new products and systems and quickly roll out the ones that work.

3. Always trying to be better – than themselves.

  • Adapt your culture so that employees are comfortable challenging the status quo. Continuous improvement and innovation become by-products of that.
  • Never sacrifice effectiveness to short-term cost reduction programs.

4. Following a strategy or plan.

  • Have a clear picture of what your Company will look like in 3 years.
  • Set priorities and allocate investment and resources accordingly.
  • Anticipate change. Update your current situation twice a year and adjust where required. (Staying close to the market also allows you to surface risks and respond to them early.)

5. Skilled at turning their plan into results.

  • Link your strategy to your annual planning cycle.
  • Do forecasting and budgeting after your annual plan.
  • Link every individual and department’s goals to the company’s goals.
  • Hold everyone accountable.

6. Working from a solid foundation.

  • Automate everything you can:
    • For example: your CRM system; accounting system; project management system; etc.
    • Use dashboards to monitor key financial and operational metrics e.g. cash flow forecast, number and value of incoming orders; delivery times; IT down time; etc.
  • Implement ISO, Six Sigma or any other standard/process that could apply to you.
  • Ensure all your core business processes – e.g. selling, product development and launch, HR (developing in-house talent, recruiting, onboarding) – are robust and effective and document them.

There now, let me know if that’s better. And if we can help……..

 

If you enjoyed this post you’ll also enjoy Slow and Steady Growth Is The Key To Success

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

From Strategy to Results – Plus Some Succession Planning

Tuesday, January 6th, 2015

In an ’80s TV series called “The A Team”, one of the main characters used to say “I love it when a plan comes together”.Good strategy executed successfully

Here’s a wonderful example of a real life plan coming together.

In 2009 a recruiting company called LEAPJob hired us to help them with their business strategy.

It was a family business founded by Donna and Marcus Miller. One of their sons, Jeremy, worked in the firm with them. Stephen, their other son, had a very successful career with a large software company.

There were 3 major issues to consider.

First, the Millers believed the recruiting industry was undergoing fundamental change. They were concerned about the future for smaller companies.

Second, LEAPJob had an extremely high level of brand recognition in its target market and a very successful on-line lead generation engine.

Finally, Donna and Marcus were thinking about retiring.

The outcome was a 2-step strategy.

The recruiting business would be sold in approximately 3 years and Donna and Marcus would retire.

While they were positioning LEAPJob for sale, Donna and Marcus would help Jeremy launch a new business. This would leverage his skills in marketing and branding – competencies Jeremy had honed by leading the rebranding effort and building the lead generation engine.

Fast forward to January 2015.

Jeremy’s first book, published by an established Canadian label, is about to be launched. It will be available in stores and on-line via Amazon, Barnes and Noble and iBooks, amongst others, in a few days’ time.

The title of the book “Sticky Branding” is also the name of his company.

Jeremy’s commented a number of times over the years that our process played a significant role in his journey.

But the idea to pinpoint and profile small and mid-sized companies with sticky brands; the analytical skills to see the factors common to them; and the creativity to combine those factors and his own experience were all Jeremy’s.

The result – lessons which can be applied by the owners of small and mid-sized companies who want their companies to “stand out, attract customers & grow an incredible brand”

He’s had to deal with some hard knocks and tough times but now Jeremy is on the brink of success. I admire his focus and willpower.

Donna and Marcus are happily retired.

I love it when a good strategy is executed successfully.

 

If you enjoyed this post you’ll also enjoy Strategies That Get Results Are Developed By Thinkers And Doers

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Top Ten In 2014……

Monday, December 29th, 2014

The results are in!

Our top 10 blog posts in 2014 were:

1.   Adaptive Strategy – A Way To Profits In The New Normal? looks at an alternative strategy that is built on the 3 R’s (Responsiveness, Resilience, Readiness) required in a changing environment.

2.   6 Ways A Business Owner Can Influence Culture looks at the ways a business owner can develop a culture which will help increase operating profits and build shareholder value.

3.   6 Challenges Fast Growing Companies Face discusses the 6 challenges of execution which, if not dealt with, could prove fatal.

4.   3 Times When You May Need To Change Your Strategy explains when a company should review its strategy and what makes that review and any subsequent actions necessary.

5.   The Difference Between A Strategy And A Plan talks about the difference between strategy and planning and why it’s important to understand what these terms mean.

6.   6 Things We Can All Learn From Family-Owned Business puts forward 6 simple things business owners can implement to achieve better long-term financial performances.

7.  Use These 3 Tips To Make Your Next Critical Decision offers 3 things Ram Charan, co-author of “Execution”, says business leaders do when faced with a critical decision.

8.  5 Traits Effective Business Owners Share outlines some of the traits effective entrepreneurs have in common that contribute to the growth of their businesses.

9.  3 Reasons Why Consulting Assignments Fail and 3 Reasons Why Consulting Assignments Fail – Part 2 addresses the most common reasons why things can go wrong between consultants and their clients.

10. Strategic Planning – 3 Things That Are Wrong With It outlines how business owners make 3 mistakes that could destroy their company when they confuse strategy and strategic planning.

If you missed any of them, here’s another opportunity!

Santa Claus and VUCA

Monday, December 15th, 2014

The Holiday season set me thinking.VUCA and its impact on strategy

One of the traditions in our version of the Holidays is the letter/email from each child to Santa Claus, the determination if the child has been naughty or nice and, assuming the latter, the resulting delivery of gifts on Christmas morning.

To execute successfully, Santa manufactures or purchases the gifts then packages and delivers them.

These operations take place in his workshop and distribution centre, located at the North Pole and staffed by elves.

This much we know for fact.

This year, however, there’s a question around Santa’s strategy which is of fundamental interest to all strategy consultants.

What is the impact, if any, of VUCA (volatility, uncertainty, complexity and ambiguity)?

Academics and key figures in the consulting world appear to agree that VUCA exists. But that’s about it.

Because, while some say it has made strategy and strategic planning redundant, others argue it has no impact whatsoever on the need for an organization to develop and execute a coherent strategy.

It’s important at this point to determine Santa’s KPI’s.

The 2 critical performance factors are accuracy (the right kid gets the right toy) and on time delivery (the toys are delivered during the night on Christmas Eve). Quality is irrelevant because kids spend more time playing with the wrapping than with the presents.

It’s assumed that Santa has availed himself (I’m assigning a male orientation to the incumbent. A discussion of the suitability of other genders for the role is a topic for a future post) of all modern processes and technologies.

Lean manufacturing; warehouse management systems; mobile computing; performance-based compensation for elves; and video monitoring of child behavior, with NSA input on social media patterns; the use of ‘big data’ etc., etc., are all givens.

And Santa’s strategy is tried and tested over many years.

So the only variable is VUCA.

The only way we can be sure of the outcome is to wait until Christmas morning and conduct rapid research by monitoring social media trends and conducting structured telephone interviews with a representative sample of the population.

Now, I am not given to making predictions.

But, given the season, I am going to break this habit. I predict that Santa’s performance this year will be at least on a par with previous years.

Which means that VUCA will have had as little impact on his need for a strategy as it has on the needs of every other organization.

Happy Holidays!

 

If you enjoyed this post you’ll also enjoy 3 Techniques For Removing Bias From The Big Decisions

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Lists That Last

Tuesday, November 25th, 2014

It’s funny how 2 unrelated events often come together to produce a completely unexpected outcome.Stay focused on the list of your company's set principles to maintain consistent success

In this case, the first event is that we recently decided to undertake a long overdue revamp of our web site. As a result, I’ve been thinking about the changes we need to make to our content.

The second is that I’m re-reading Jim Collins’ book “Built To Last” which employs his now familiar technique of contrasting Visionary companies with less successful Comparison companies.

One of the differences between them is that the Visionary companies all had a well-articulated core ideology.

Collins credits that core ideology with keeping the company focused on a set of principles that it practiced consistently through the decades. That focus was a major contributor to the Visionary companies consistent success.

That set me thinking.

When I started ProfitPATH 12 years ago, I had 2 reasons for doing so.

One was to share the tools and techniques I’d learned working for some remarkable companies, on 3 different continents. This didn’t mean I knew more than other people. I just knew different things.

The second was to do things differently to traditional consulting companies.

In fact, I made a list of all the things the consultants I’d hired over the years had done that had annoyed me and said – we’ll do the opposite.

I’ve often spoken about that list to colleagues and clients over the years, and I try very hard to live by it every day.

But, apart from the original scrap of paper I scribbled it on, I’ve never actually written it down or publicized it.

Now I’m going to change that.

That list is going to replace the outdated content that inhabits one of the pages on our current web site.

There are, of course, a couple of challenges.

Those of you who know me will agree that I have really bad handwriting. So, even if I could find the piece of paper on which I wrote the list, I probably wouldn’t be able to read it.

Fortunately, I remember most of the items quite well as I have verbally shared them often. The others will come back to me as I’m writing down the former.

I’ll share the list with you next week. And you can tell me what you think before I put them on the web site.

 

If you enjoyed this post you’ll also enjoy The Elusive ‘Silver Bullet’

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Can Strategic Planning Pay Off?

Tuesday, November 18th, 2014

“The most fundamental weakness of most corporate plans today is that they do not lead to the major decisions that must be made currently to ensure the success of the enterprise in the future.”Key factors to make strategic planning pay off

It sounds like something I might have written in one of my blog posts because the point applies equally to owner-managed businesses.

But, regrettably, it wasn’t.

It’s from an article written by a 31-year-old, who then goes on to say:

“…..Nothing really new happens as a result of the plan, except that everyone gets a warm glow of security and satisfaction now that the uncertainty of the future has been contained……”

Does that sound familiar? The author goes on to say:

“……too many managements fail to…….recognize that the end product of strategic analysis should not be plans but current decisions.”

He then lists the reasons why decisions aren’t made:

• It’s risky – a bad decision could jeopardize the company.

• It’s difficult – “Strategic planning….deals with the most complex questions facing a company……synthesizing critical issues and strategic options to resolve those issues….is fundamentally a creative process. Many…..find it an elusive, uncomfortable task.”

• It requires leadership – making controversial decisions requires a willingness to be tough-minded.

• The value system works against it – owners often emphasize short-term results, which have little to do with long-term strategic success.

Next the author points out that “Many planning systems simply….produce forecasts of financial results, or statements of objectives”.

This is “….momentum” planning as opposed to dynamic planning that is attuned to the realities of external change……..

To deal with this, emphasis must be given to 3 things – evaluating the external environment; thorough evaluation of competitive strategies; and developing contingency plans.

Finally, the author provides 2 recommendations for motivating the people who can make or break a strategy. Involve those who will actually have to execute the strategy and adapt reward systems to recognize longer-term performance and the achievement of strategic goals.

So, which of today’s leading thinkers wrote the article? None of them did.

An up-and-coming member of the McKinsey team called Lou Gerstner (of IBM fame) wrote the article in 1973.

I like the article because it addresses all 4 of the Risks we believe growing companies face – having a Clear Growth Plan; linking it to Action; getting Buy In and holding people Accountable.

You can find the full article here.

 

If you enjoyed this post you’ll also enjoy Strategic Planning – 3 Things That Are Wrong With It

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

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