I've been getting ready for a webinar on how to design a winning strategy, which meant some research to emphasize the point that strategy isn't dead or even on life support. It's just that for some, the last decade meant getting real big (and rich) real fast; and strategy seemed so yesterday. Who had the time? Maybe if those responsible for two bubbles in the last ten years had taken time to figure out how to really create wealth and not play shell games, the global economy wouldn't be in a shambles.When I first started in strategy development, it was called "corporate planning" and while it was valuable for decision-makers, it also had such a long cycle that the plan was out of date before it was bound (yes, we had nice binders). So, the planning part had to go away but in the process, the real substance of strategy got lost for a while.
I put my research into a timeline (see below) and it was impossible to lose sight of the enormous changes in the business climate since WWII. During each major cycle, lasting about twenty years, companies adapted to the forces shaping the economy and the climate for business. Each cycle was created by unique circumstances and the successful companies developed new strategy as well as tools and techniques that not only ensured survival but in many cases, created a unique advantage and wealth. Businesses were getting Better. Faster. Cheaper.
As the business climate entered a new cycle, what was a competitive advantage or a winning strategy had become at best, the cost of doing business and at worst, a commodity.
As we enter the 21st century, we've wrung the efficiencies from process reengineering; we've de-layered and downsized people; off-shored jobs and invested in the same technology everyone else has. Now what? Where is growth coming from?
I think companies will set themselves apart by living up to their Mission (Purpose) and by standing up for their Values. Their real competitive advantages will be people, even though the traditional workforce may not exist. Ideas will be the new currency and innovation the new capital. Even economists are using tools called "Behavioral Economics" to explain market forces instead of relying on traditional financial tools. Companies that develop strategies for this new cycle before anyone else will be Better. Faster. Cheaper. Then, I had an epiphany: this is what the Engagement Thing is all about. It's not a program or slogan or campaign. It's about design: integrating elements that are unique to you and creating a company that Engages. This could be your winning strategy for 21st century growth and business results.
Or, if you think it won't happen, sit back and watch what all of the burned out employees, self-starters, young entrepreneurs and Boomers looking for an encore career do with Engagement.
Is your business ready for this new cycle? How are you going to be Better.Faster.Cheaper. Is your company Engaging?
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Barbara, an excellent post. If you are truly a strategic HR pro you already need to be anticipating what is next and you give a great reason to do so. Nicely done.
ReplyDeleteMike,
ReplyDeleteThanks for the feedback. I truly believe that HR's role in the Engaged Company is potentially so huge that if I had that kind of job, I'd be all over strategy. Why do you think some HR practitioners shy away from it? When so many of their tasks have been outsourced, why aren't more HR people stepping up?
Well you know i have to weigh in on this one. I believe we are at an HR crossroads and I am seeing more and more movement in the strategic direction. This recession and jobs situation has really made our profession step back and take a breath. Do I want to stay in HR? And if I do, what does that look like. We are on the verge of HR 2.0, I think, which means we will do what finance and accounting did years ago, the strategic arm (finance) split from he transactional arm (accounting) so roles were clear. Same thing happened with Sales and Marketing. Stay Tuned, it is going to be a fun ride!
ReplyDeleteCathy and Mike,
ReplyDeleteI know you both teach HR professionals so what are you seeing out there? Are there more practitioners who are keen on analytics, metrics and such? Is the curriculum in universities and professional certification programs keeping up with the shift?
I'd love to see more HR practitioners roll up their sleeves to design strategy with their C-Suite and other key functions. The one thing I do see in the HR people I've met (including you two) is your passion for your work. That's what companies are going to need to execute Purpose & Ideas. We just need a legion of them!