Leadership In Action

Okay business people, I am going to step away from the normal focus on work and talk a little bit about my previous experience as a college football athlete and the way I was introduced to strategic formulation.

When I played high school football, my team had a lackluster win-loss record, but I still have dreams about how we could have been a lot better had our coaches implemented more strategic formulation and planning to prepare us for our competition each week. I also think it would have been beneficial if they could have spent more time teaching us how to be more strategic about the mental part of the game, versus just the physical part of the game.

With the risk of bragging, I’ll say that I was one of our top players on our High School team. I played several starting positions in all three phases of the game (offense, defense, and special teams) and it was rare that I was not on the field during any given play of a game. As such, I thought I knew a lot about the game of football, but when I made it to the college ranks, I felt like a first time player in my knowledge and understanding of the game.

Once I was introduced to this higher level of play, it was only a few weeks before I had learned more about the game at the collegiate level than I had learned in 3 years in High School. I was amazed at how much more there was to the game. We watched game films in high school, but we didn’t study the film or break it down like they do in Division 1A. I received a great deal of feedback about my skills and techniques, but more importantly, I was taught how to read the flow of the game, the management of the game, and the mental planning and preparation that was required to be the best we could be each week.

The coaching staff at the collegiate level focused on strategic formulation and developing winning plays. Information gathering and analysis allowed them to find some of the smallest, but yet the very important weaknesses of our competitor each week. This allowed the coaches to strategically formulate to play to our strengths and take advantage of our competitor.
The strategic formulation didn’t stop at game time. Rather, at quarters and halves, we would get into our position groups and discuss what was happening on the field so we could formulate new strategic plans and make adjustments for the remainder of the game.

It was a great experience for me to be a part of the living, breathing, strategically-minded organization. It was inspiring to see how fast a strategic plan could be formulated in a short time frame, and then executed on the field.

 

 Strategic Formulation [2:58m]: Play Now | Play in Popup | Download (1913)

This is a 2 part series. Go here for part 1: Strategic Planning is For Small Businesses Too – Part 1

If you’re a small business working toward a strategic plan and you commit it all to paper in a short two to five page plan, so much the better! You just moved ahead of many of your competitors. Invite your strongest employees to respond to your strategic issues, concerns and get them involved so they feel some ownership in this simple process. Have a strategy adaptation meeting with all hands twice a year for a couple of hours to clarify the direction, make adjustments and respond to questions.

Your strategic analysis should look at six aspects of the business.

1. Your customers: Figure out who your customers are now, who they will be in the future, how they are changing, and what they will want in the future.
2. Your people and talent: What skills and capabilities will be needed to address the threats and opportunities? How many people, what kind of new roles will be needed, how will people’s roles change in the future to handle the threats and seize the opportunities? Will the organization grow and are we developing the leadership to manage the changes coming?
3. Suppliers and Vendor: Can they give you what will be required to meet future challenges? Are there new offerings that can help you resolve your particular business issues?
4. Competitors: Who are the players in your market? What are the strengths they offer? How can you take advantage of their vulnerabilities with your unique capabilities?
5. Products and Services: Are you preparing something new, refreshing, and value added for your customers or users which enable them to be more productive?
6. Organizational infrastructure & technology: What will the organization need to do differently in the future to keep up with new and emerging customers? Are you using technology to improve productivity?

Strategy really isn’t rocket science; rather it is a common sense and a willingness to ask some challenging questions. Be willing to think it through, communicate with others, and solicit additional perspectives. Write down your conclusions and share them with your organization. Finally, issue a call to work on strategic action each day to compliment the routine tactical work that has to be done to pay the bills and meet current obligations. Help your small business stay ahead of the curve – starting today!

 

 Strategic Planning for Small Businesses [10:17m]: Play Now | Play in Popup | Download (2262)

This is a 2 part series. Go here for part 2: Strategic Planning is For Small Businesses Too – Part 2

Too many people falsely believe that strategic thinking, formulation and implementation is only for the big outfits…you know, the Toyotas, Microsofts, Honeywells, Nokias, and the Exxon Mobils. Our experience, working closely with people from all walks of life and from all sizes of organization, suggest the opposite is true — smaller organizations need to be more devoted to strategic thought and action as much or more than the big players out there.

The most important strategic thing a small organization can do is prepare to do battle with the future, which entails five steps.

• Step 1: Anticipate both threats and windows of opportunities for the vision and mission of the business.
• Step 2: Decide how to respond to these emerging threats and opportunities.
• Step 3: Identify the source which those risks and opportunities will come from.
• Step 4: Figure out when the risks will hit or if the opportunity is truly valuable.
• Step 5: Execute actions to mitigate the threats or take advantage of the opportunities.

Again, let us emphasize that for practical purposes you don’t need to create a doctoral dissertation when implementing strategy. Strategic planning for a small business doesn’t have to be as formal, as long, or as detailed as with a large company. The most important thing to do is strike up a dialogue with your customers, employees, vendors, investors, and do your homework about your competitors. It helps to talk about your strategy with a partner, advisor, or trusted consultant to bring some clarity and focus to your mind around the strategic issues that could affect your business in the future. The biggest disservice a small business leader can do for an organization is be unprepared or surprised by unfolding events. Even if you simply think things through in your mind and then briefly share your strategic ideas or decisions with your employees, you will be ahead of the curve and helping people to understand how they can connect with your strategy.

Look for a special extended podcast next in Part 2 that covers both parts of this 2 part series.

Have you seen the recent Arby’s restaurant advertisements where people are distracted from their activities because they are thinking about eating at Arby’s? I have always been entertained by these clever ads and recently got a good laugh out of the one featuring two boat drivers who run their water ski team into a ski ramp because they were thinking about food instead of being focused on driving the boat and watching the skiing team.

After seeing the commercial, I began to compare the drivers’ behaviors to that of my own when I’m at work. I realized that there times when my daily tasks and responsibilities are affected because I, too, am focused and thinking about something else — the future and trying to be strategic. And vice versa — there are times at work when my ability to think strategically and be ahead of the curve fails because I’m so focused on my daily tasks and responsibilities. I know that many other people can relate. When I came to this conclusion, I felt oddly connected to the scenario in this advertisement. This behavior, when not managed effectively, could have drastic effects and cause problems on the job, with relationships, and one’s overall ability to function and perform at the level desired and expected.

After referring to CMOE’s Strategic Management Model, I discovered that I could attribute these behaviors to my inability to break loose from operational tasks. Instead of an Arby’s sign over the top of my head, I had an 800 pound gorilla on my back.

I acted on one of the steps of the Applied Strategic Management Model, which we call TAME THE BEAST, and after a week of dedicated practice was already more disciplined in my thinking. While there are many ways to “TAME THE BEAST,” I choose to allocate fifteen minutes at the beginning of each day to spend thinking strategically, and to use the rest of my work day for business as usual. Additionally, I applied the following ways to make this time more effective:

• I moved away from my office to a quiet place.
• I silenced my cell phone.
• I began with trying to relax and clear my mind.
• I occasionally used mediums to inspire creativity such as books, magazines, notepaper, music, and a file of my favorite quotes.

Thanks to these simple strategic management practices I engaged in every morning, my shoulders feel free of the 800 pound gorilla I’d been carrying, and if I had an Arby’s sign over my head, that would be gone too!

 

 Strategic Management [3:01m]: Play Now | Play in Popup | Download (2446)

A strategic leader is good at developing and executing strategy, while a truly great strategic leader is able to inspire and guide their team members at thinking strategically about their own roles and responsibilities. Typically, we think of team members as the people who primarily execute tactical operations and complete pre-determined tasks and assignments. Yet, imagine what your team could accomplish if team members were not only fulfilling their operational responsibilities, but also be strategic within their own areas of contribution. I believe that some excellent strategic leaders may be operating under the notion that strategic thinking and planning is only for them to do. But, I believe that if everyone in the organization was thinking and acting strategically within their own roles and responsibilities—the results would be striking. Here are a few ideas that might help you lead and guide your team members into a mindset of strategic leadership:

• Discuss strategic topics in regular meetings.
• Encourage and reward challenging the status quo.
• Share your own strategic targets and how they align with the organization.
• When solving problems or making decisions, explain or discuss how it will impact the team or organization long-term and strategically.
• Help each team member set their own strategic targets that are aligned with your strategies and the organization’s strategies.

While operational pressures will certainly divert the attention of team members—getting them to think and invest in the future will begin to make a remarkable difference for you and the team as a whole. Buck Rodgers said, “Leadership is the ability of a single individual through his or her actions to motivate others to higher levels of achievement.” I believe that strategic leadership requires a leader not only be good at strategic execution, but also at helping others reach higher levels of achievement by thinking and acting strategically in their own way.

 

 Strategic Leadership [2:41m]: Play Now | Play in Popup | Download (2343)

The notable author Peter Drucker said, “No executive has ever suffered because his subordinates were strong and effective.” I firmly believe that this is true and one of the ways I have tried to get my team members to be stronger and more effective is creating the expectation that they too need to operate in a strategic way. I have found great success in not only being focused on executing strategy, but also in leading others to be more strategic about their individual roles. Strategy and leadership must go hand in hand at all levels.

In my immediate team, each member is expected to have at least two strategic targets that they are focused on in addition to their regular operational responsibilities. They outline the strategic targets on a worksheet we have developed that guides them through conducting a SWOT analysis, exploring scenarios, and then build on a strategic plan of action. While I provide some guidance to ensure alignment, I let them develop their own strategies based on what they know and are experiencing. This way, they have ownership for their strategies. To continue leading their strategy, I check in regularly to track progress and offer my help as needed.

These individual targets are also shared with our collective team so there is accountability while giving other people an opportunity to become aligned and share ideas. When we discuss the strategic targets, we try to stay strategically oriented by eliminating operationally focused discussions. I have found that engaging my team in strategy within their own roles and responsibilities helps us focus team energy on activities that will have a positive impact on the future. The present becomes linked with the future; there isn’t an unknown gap between where they are now and what they need to do in order to be prepared for and effective in the future. It’s truly amazing to see what a little strategy and leadership can do.

 

 Strategy and Leadership: Leading the Effort From the Top [2:28m]: Play Now | Play in Popup | Download (2252)

Some businesses have a brand worth billions of dollars, others are worth very little. What is yours worth? Regardless, a brand is invaluable asset that every organization needs to take seriously and branding is easier that you think. By applying a good image, name, and a little effort, you have just moved yourself ahead of much of your competition.

Not long ago, I was driving to work and noticed a large storefront sign promoting a small shopping center caught my attention. As I was waiting for the traffic light to turn green, I thought to myself, “the owner of this shopping center really needs to put up a revamped store front sign for the tenant businesses.” In fact the only good looking sign up there is a standard Allstate insurance sign. The rest looked like they were printed out using a computer text font found on any computer and slapped up with minimal effort. As I continued to scan the list of stores, I noticed that one of the businesses in this complex was named Signs to Succeed. I thought to myself, “surely that is not a business that creates signs as its core offering.” If so, they are either out of business or barely in business. I didn’t give it a second thought. The next day, as I was stopped at the same traffic light, I couldn’t help but notice the sign again. That same question was nagging in the back of my mind – “Surely this isn’t a business that sells and customizes signs as its core business.” I immediately pulled into the shopping center (curiosity killed the cat). I had to reassure myself that they were not really selling “signs”.

It was early in the morning when I pulled in front of the store. The blinds were pulled, the lighting was off, but sure enough they make business signs, stickers, banners on vinyl and other types of printing. As I looked at this store and its offerings, I was caught off guard. How in the world are they attracting customers? How are they in business? Who would buy a sign from this business when their own sign looks like it was printed on a clear sticker stuck to a piece of plexi-glass? As I drove away, I felt bothered that this business had absolutely no brand recognition and conveyed such a poor perception to its customers or potential customers.

So here I am, writing about strategy development for small businesses. As a business person, your strategy must include a concept of branding. It is especially important for small to medium sized businesses to ask themselves, “Does my business have a brand or is it just plain ordinary text on a sign? Does your sign or brand say “I’m ordinary, regular, and just another commodity in the market?” Branding needs to reflect a unique promise of value or a commitment to do something special that results in a positive buying experience for customers. The perception, image, or promise your brand sends to customers should set you apart and make you distinctive.

Reflect on the first thoughts that come to mind when you read the following brands:

• Wal-Mart: Great values and “always low prices.”
• Four Seasons Hotels and Resorts: Unsurpassed customer service, a home away from home, every demand gladly fulfilled.

To conclude, everything from packaging, to business cards, to advertising on the internet conveys your brand. A brand says something about who you are and what you’re about. Some small businesses may argue the point that they don’t have time to worry about branding or strategy; “we’re just trying to survive, make payroll, or cover our rent. We suggest that if you’re a leader working on strategy development for any small business to periodically have a “strategy conversation.” Try the following:

• Include your key players in every part of your business in this discussion.
• Talk to them about your brand. Discuss how it’s being portrayed, (ordinary or something special).
• Challenge them to enhance your brand.
• Help them communicate your brand in any form with potential customers.

Remember branding is more than just a fancy sign – it’s the sum total of who you are. And remember, you only get one chance to make a first impression.

 

 Strategy Development [5:12m]: Play Now | Play in Popup | Download (2349)

A wise person once said: “Nothing is constant except for change; it is the only constant we can count on.” If the statement is so true and accepted as such, why is change so difficult to deal with, anticipate, and plan for? If it’s such a certainty, then why does it always catch us off guard and upset or ruin our plans?

Recently, while on vacation (yes, a beautiful beach), one of my projects experienced a big change of plans (yes, while I was on the beach). This involved an event with a large number of clients in Canada. Fortunately, I work with a wonderful team of individuals who stepped up to the plate and made the necessary modifications to allow for a successful event, regardless of all the last minute changes.

Now that I can pause to reflect and evaluate what occurred, I wonder if there was anything I could have done to anticipate this scenario and the amount of team involvement that would be required to handle the change. I should have known something would change, right? It’s constant; the only constant we can count on.

As I look more closely about what happened, I can see that strategic planning was not used appropriately. The visible signs prior to my vacation would have called for a contingency plan. Yet, I didn’t take note. A different more strategic approach would have indicated that a contingency plan was needed and would have caused fewer headaches.

Contingency plans are good and necessary in many things we do, but I think that the most important lesson to be learned is that you must to flexible. Anticipating what change(s) will occur is one thing, but you also need to use strategic planning for the changes. We obviously don’t always know what changes are coming so we need to be able to step back, review the situation, and alter our strategy. If we are too rigid in our thinking and planning, we will fail to seize those unforeseen opportunities that change can bring.

In my opinion, developing clear contingency plans that anticipate change is a central part of strategy and the strategic planning tools that can be used.

I would like to link my comments to what Matt Fankhauser discussed in his blog entry titled “The Strategic Business Travel” and using strategy on a daily basis. Over the years, I have read, studied, and learned a lot about strategic leadership and how great leader execute strategy for themselves, their team, and the organization. In fact, I think I have done a pretty decent job with strategic formulation and the strategic goals that I set for me or that my teams set. But when it came down to my daily tasks and responsibilities at work and at home, I caught myself saying very “un-strategic” things like: “I should have…” or “If I had thought about it I would have…” or “Why didn’t I think about…”

It primarily happened with the little things I would do. But one day it hit me—why couldn’t I think and act more strategically with day-to-day tasks too? I get great results with strategy at a higher level but why couldn’t I be strategic about everything every day? After trying it out, I discovered that if I step back and look at things with a more strategic mindset then I was less likely to wish I had thought about or done something else.

After some time and effort, it has become a habit and part of how I operate. Now I quickly envision scenarios for my operational actions and tasks and find myself better prepared for contingencies that pop up unexpectedly. An example: I was recently preparing handouts for a regular staff meeting. I was told that there would be 10 participants. As I thought about the upcoming meeting, I remembered that from time to time extra people would voluntarily show up for these sessions just to listen and observe because of the content and topics covered. In the past others who came in unexpectedly would have to share handouts. So in my attempt to improve my strategic leadership, I decided to include a few extra copies anticipating extra people who might show up. Sure enough, two extra people came and instead of wishing I brought more material, I was able to appear prepared and more credible. You might be thinking, “Isn’t this common sense? This blog entry is a joke and I can’t believe I’m reading it!” Well it may be, but if you are like me and you get so caught up in the whirlwind of tactical action it is easy to lose sight of the bigger picture or patterns that have emerged.

This simple effort to apply strategy didn’t take a lot of work and it is not as if I changed the entire process of how I do things. It’s just now I look “up” and “out” to see what I might be missing that could open up opportunities and lead to enhanced operational success.