Business is Unforgiving. Get Used to It

“Life isn’t just about what you want to be. It’s about what you are.” I read this quote from John Rowe, the CEO of Exelon, a Chicago based energy provider in a recent BusinessWeek. His comment got me thinking about how important it is in strategy development to know your starting point.

I’m a right-brained thinker so big ideas, conceptualizing and embracing change are my natural starting points. Nothing is more exciting than new flip charts, fresh white boards and eager faces, ready to brainstorm the heck out of the future.

But wait…that’s a ready/fire/aim approach and because business owners and leaders are more risk averse than ever, it’s essential to use a structured process for evaluating strategic issues in the right sequence to give equal prominence to all aspects of thinking about the present and the future.

1. Frame the issue(s): this first step includes asking the “where are we now” question as well as understanding why we are considering a change in direction (what we want to be).

2. Generate ideas that answer the above questions.

3. Evaluate the options based on facts (resources, competition, etc.)

4. Consider the options based on perceived level of organizational change required and amount of buy-in necessary to be successful. (Do we really want to change and can we sell it to others?)

5. Develop “what-if” scenarios for each option to refine the degree of difficulty and to assess the risk management/risk mitigation challenges. (Where are our back-up plans?)

6. Agree on best course of action based on Steps 1 through 5.

7. Create an action plan designed for implementation, that is, one with timelines, accountabilities, ownership and success metrics.

In the current business climate, we can be too timid, because the future has so many unknown variables OR too bold because our strategic process doesn’t start with "what we are now". Being clear about our present doesn’t diminish our ability to generate innovative ideas for our future; being grounded in reality actually ensures that ideas become more than dreams.