There are so many things that hold organizations back from
implementing strategic plans, and possibly as many that keep them from starting
to plan in the first place. Here are some reflections on how organizations sabotage
themselves from the very beginning—and some friendly advice on how to get off
to a good start.
The first principle: timing is key. Some people and some organizations
exist in a state of denial; they simply don’t want to see what is ahead of
them, whether it is a shifting competitive landscape, a changing policy
environment, or something equally significant that points to questions about
long-term sustainability. Some simply try to wait the change out. Others thrive
on crisis; they feel they do their best work when their backs are up against
the wall. Something about dire straits ignites them: they pull together, they
accomplish great things, they bond in and for the moment.
In the most extraordinarily dysfunctional organizations
(unless they are crisis management consultants, of course) a lot of each of
these behaviors goes on.
Leading to impediment
1. Waiting too long. The farther out one can get from the moment where
there is simply no choice, the better. The reasons seem obvious, but one in
particular is seldom considered: with few notable exceptions, most leaders and
managers are terribly stressed when their organizations (and jobs) are on the
line. And strategy questions that are quickly and inadequately framed lead to
poor process and bad decision-making.
Sound strategy requires investment, and the key success
factor is time. Organizations with
strategy questions need time to invest in data-gathering, analysis,
planning—and just plain talking. The leaders need to talk; the consumers need
to talk. Everyone needs time to listen.
Strategy needs a planned, agreed-upon runway, not a sand
timer. Waiting until crisis time is a huge disservice to all.
Denying the obvious
and putting off constructive discussion are counter-productive. Simply
acknowledging the issues begins to lead to creative solutions. Just do it.
2. Expecting (or
hoping for) too much. Consider the organization that for years has seen
declining sales and revenue, but does little but cut costs in order to stem the
tide—until the tide is a tsunami. The organization may, and frequently does,
have a base of loyal customers already, and it may (and frequently does)
consider that cohort to be its lifeline.
The organization may suspect that it needs to change;
nevertheless, leaders are convinced that while some things (products, services,
people) might need to be addressed and improved upon, its most loyal customers
can be counted upon to hang in. Those leaders may be right—or possibly not.
Likely not, actually. It’s a new world, where there are
physical and virtual options for almost everything. And consumers are not
prisoners. They have plenty of choices, and they feel more entitled than ever
to exercise choice.
Loyalty is a wonderful
thing, but it has to be earned. Every day. Complacency is the enemy of
strategy. Never assume.
3. Being easily distracted
by the new and different. The leaders embrace the “let a thousand flowers
bloom” mentality with a vengeance. They embrace interesting possibilities and are
seduced by the lure of potentially profitable income streams. They latch on to
the latest and greatest with good intentions; each new idea is both a
distraction from pain and a potential cure.
When great ideas and opportunities come along they may be
hard to resist—especially when new and immediate answers are needed. Or people
above us are interested, and want us to be interested too. The new ideas and
opportunities are consistent with our missions and our business strategies—and
if they’re not, we twist them into pretzels, or we twist ourselves into
pretzels, so that they are (or appear to be).
Most people are not aware that the “thousand flowers” quote
includes the phrase “and a hundred schools of thought
contend.” The quote and the intent of its author, Mao, have raised no end of
speculation about which I have nothing to say. However, I like the idea of contend. By all means raise the specter of the new—and
then consider the consequences before taking action. Contend.
More typically, organizations will take on the new with little
regard for the reality of having to deliver. But just because an idea is great,
or even if it fits with the mission, doesn’t mean that it should be acted upon.
Or, acted upon at this particular time.
Ask, “Do we have the
resources to devote to this, to do it really well … and/or does it merit
redeployment of our people/time/money?” And understand the potential
consequences before taking the leap.
3a. Following through
and creating new, potentially interesting products and services … but only on
paper, because in truth it is also doing so as a distraction: to impress
investors and analysts, to inspire employees, and/or to buy time until some
seen or unforeseen external occurrence (e.g., merger, acquisition, takeover,
resignation, etc.) forces its hand.
4. Putting the
organization’s needs first. There is a world of difference between the declarations “We need to strengthen our
organization” and “We must find out what consumers need now. Then, we need to
figure out how to build and deliver it.”
In the first case, the organization has put its own needs
first. In the second, consumer needs are at the center. When consumers are secondary
the first sacrificial lamb is quality. The market can absorb our price
increases with no expectation of an increase in value; cutting corners doesn’t
matter, the bottom line does. This is what the organization tells itself, and
it’s wrong more often than not. The downward spiral begins.
When consumers are at the center—when we analyze the data
about what they do and what they want; when we listen to their suggestions
without defensiveness; when we understand our competition and our own strengths
and weaknesses—we become more objective and make better decisions. This puts us
in a better position to find ways to grow.
Of course, there has to be a balance—because if consumers
always come first, it’s not always easy to find a way to sustainability. Note
the phrase “how to build and deliver it.” It’s not a question of giving
consumers absolutely anything and everything they want; it’s giving what we are
able to give, in a way that meets the goals and objectives of both parties.
Make the customer part
of every internal conversation. A concrete suggestion: have and use personas to
keep this awareness front and center.
Waiting too long. Expecting too much. Being distracted.
Being self-absorbed. All sides of the same coin; all classic impediments to
getting real, authentic, strategic, results-driven stuff done.
