A friend asked me a really great question last week.
I was talking to him about the strategy development and execution processes. And he asked……………
“What about the people, where are the people in all of this?”
So I told him about the 5P’s. Of course – being the wit that he is – he immediately thought I was talking about my weak bladder. But I put him straight.
All of the companies that I’ve worked with, which are consistently Profitable, seem to have a focus on the same 4 things. Several years ago we began referring to them as People, Planning, Process and Performance. In the diagram they overlap because they are all in action at the same time – and they intersect because they interact with each other and form a continuous loop.
I always start with Performance which provides both clear direction for the company and the benchmark against which success is measured.
It spans having Vision, Values and Mission statements, through setting and communicating clear goals, to making sure every employee understands his/her role in achieving them. And it includes comparing actual results against the goals regularly, giving feedback and adapting where necessary.
Then I usually talk about the huge difference between Planning – which is a process – and a Plan or Plans– which are outputs.
There are very few occasions when it’s necessary to write a Business Plan, the most common one being when a company is looking for funding.
But Planning is ingrained in the culture in high performing companies. An effective Strategic Planning process will produce a strategy that will work. The Annual Business Planning process is the key to executing that strategy and turning it into results.
I told my friend that we focus on 3 types of Process.
Functional processes keep each area of the company – e.g. Sales, Marketing, HR and Operations areas –operating efficiently. Control processes monitor the key performance indicators – e.g. sales pipeline, product quality and lead times – and give the owner early warning of potential problems.Financial processes produce accurate and timely reports on the financial health of the company.
I always save People for last.
After spending 20 some years in corporations and over 12 years working with business owners there is no doubt in my mind that People is the single most important element in success.
The essence of leadership is finding, motivating and engaging the right People and creating an environment (culture) in which they can contribute fully.
A weak strategy in the hands of the right People will trump the right strategy in the hands of weak People – every time.
And that, I told my friend, is where people fit in………….
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Tags: 5ps, benchmark, business plan, companies, Culture, execution, Financial processes, goals, Jim Stewart, key performance indicators, Leadership, mission, People, performance, Planning, Process, profitable, ProfitPATH, strategic, strategy, values, vision