"A Plan is Nothing: Planning is Everything"

President Eisenhower knew what he was talking about. As a general directing European operations during World War II, he understood the power of determining a plan of action and then constantly communicating it, evolving it and refining it as information came into his camp.

Are our business situations any less mission-critical today? I understand that we aren’t in armed combat (although it does seem like it sometimes) but when you run or own a business, it sure feels like bombs are being lobbed from all corners.

Really, nothing about the fundamental importance of business strategy has changed for 65 years except:

• Businesses don’t like to do it (“takes away from the REAL work”)
• It takes too long (“you don’t understand, things move too fast in our world”)
• Nobody seems to know what he or she are supposed to be doing (they got the email, the slogan and the mug but things dropped off fast after that)

I just finished a one-day strategic planning retreat for a client involving the senior team (yes, I did say one day). Part of the secret sauce in this recipe is doing work up front so I designed an online assessment that got at the heart of the strategic issues. All of the verbatim feedback was put into word clouds (www.wordle.com) so the areas of strongest commonality of thought were prominently displayed.

We used small group and large group activities to define Mission, confirm Values and design the five Big Rocks that became the positioning statement and strategy for the next 24 months. Because the word clouds so powerfully illustrated Opportunities and Challenges, we were not struggling throughout the day to agree on these items.

There is one more day to set 12-and 24-month goals and I use a simple spreadsheet that combines long- and short-term goals, action plans and metrics. It displays the Mission and Values so they never are forgotten in the planning process. This document is the North Star for the client: guiding strategy execution and ensuring that decisions are in line with Mission and Values.

The communication piece is so important -- and frequently not designed -- because everyone in the organization has to know what direction it’s going in for the foreseeable future. That is part of the second day goal-setting workshop. I believe we can boil the strategy statement down to “let’s get a man on the moon by the end of the decade” as President Kennedy did. That way, we lessen the risk of failure to execute.

Business strategy doesn’t have to be a 12-month cycle of PowerPoint presentations and number crunching. I don’t think either General Eisenhower or President Kennedy had that luxury of time. Both understood that planning is far more powerful than the plan and that communication is the trump card for execution.

What planning do you do in your organization? Is it a PowerPoint or a Word Cloud?

What Makes a Good Business Strategy?

That question was asked by Veena Houston at one of our recent Leading Engaged Companies webinars; it’s a good one. I’ve been an internal practitioner and external consult of strategy for 25 years and it’s interesting how strategy formulation goes in and out of fashion, seemingly more in vogue when the economy is tough. For me, business strategy is one of the CEO’s KPI’s and there is the additional responsibility for communicating it and for ensuring it is executed.

First, my definition of business strategy, as I see so many references to “strategy” in the blogosphere but their message is really about tactics (marketing strategy, CRM strategy, HR strategy, etc.). The late Peter Drucker defined business strategy as “Analytical thinking & commitment of resources to action and innovation. Making decisions today about an uncertain future. Taking the right risks while exploring opportunities.”

Back to the original question: good business strategy components. Here are my must-haves:

Foundation of Vision, Values and Mission. Strategy can’t tell you what you stand for or why you’re in business but it should guide you in how you’re going to be different, competitive and successful.

Thorough Understanding of the External and Internal Environment. Knowing where you are now in terms of competition, customers, economic and regulatory issues and creating a report card of internal resources are imperatives; otherwise, strategy and direction are built on hope or dumb luck.

Evaluating Options in the Context of Your Reality. Strategy is about moving in a new direction which means building capability (human, structural, financial and relationship capital) that will support these decisions. Because strategy is a 3-5 year look ahead, not everything can be or needs to be accomplished Year One. That’s why we love annual action plans and budgets.

Scenario Planning. I came across this tool while working in England in the 80s through Royal Dutch Shell and the concept was so blindingly obvious that I’ve never thrown it out of my toolkit. We don’t have a crystal ball to predict our future so strategy development is, by its very nature, imperfect. We mitigate the risk by assessing our assumptions and using those to create scenarios of “What Ifs” and responses to those. Scenarios can lessen the impact of a flaw in the original strategy by allowing rapid course correction.

Measures and Monitoring. Failure to execute is the single greatest reason for strategy failure. These days, with financial and business modeling, strategy maps, scorecards and the like, there is no excuse not to design short- and long-term measures. Good strategy also demands that it cascades into departments, regions, and functions; and, ultimately to the individual level through a performance management system. If KPIs and compensation are not tied to business strategy, there is no skin in the game and therefore no incentive to change the status quo.

Communication, Involvement and Celebration. Communicating strategy is not a one-time event; it needs to drip continuously into the organizational consciousness until it is part of the fabric of all discussions, meetings and reviews. Keeping the message simple makes it easier to weave it into everyday activity.

Involving the workforce is critical, not just so that they are engaged but also because employees are in a perfect position to immediately discern a problem, which, if diagnosed quickly, can avoid strategy disaster.

Yes, celebrate. Every success; every mistake as a learning experience; every time a goal is achieved.

What do you think makes good business strategy? Can you add to my “must-have” list?

Done Here, Felt Everywhere: Behavior Matters More Than Ever

The Gulf oilrig explosion and its aftermath is an example of how what we do (or fail to do) impacts others we don’t know in ways we haven’t even considered. Did the relentless push to drill, baby, drill faster to save money and to get the oil (revenue) flowing as quickly as possible compromise BP’s values? Lives have been lost; livelihoods are endangered; ecosystems and economies may never recover. Even my condo in Hilton Head has seen an increase in rentals because vacationers don’t want to risk a holiday on the Gulf coast. The ripple effect will be felt globally through many channels in very quantifiable ways.

We are so intertwined and so connected, thanks to technology and the Internet; we are so darned global that more of us have the power to impact other people’s lives than ever. So, how we behave; how we treat others and how we build trust with employees and customers have an exponential impact on them, on others we can’t even identify and on our own businesses.

Leaders: this is where you come in.

The CEO of BP can hug all the fisherman in Louisiana he wants but if he put profit before ethical behavior (by short circuiting safety for example), what does that say to his employees in terms of their own behaviors? How should customers react? What has this done to BP’s prized Brand? Judging by recent loyalty scores for Toyota, for example, customers and would-be buyers take time to recover when confidence is shaken.

BP’s Values are Progressive, Responsible, Innovative and Performance-driven. It looks good on a web site but do they influence behaviors and decisions? Time will tell and the whole world will be judging.

As a leader, Tony Hayward needs to demonstrate how he and his company will rise above PR, litigation and playing the blame game to behave in a way that inspires confidence and trust. That behavior will ricochet around the world in social media channels and news outlets as fast as the bad news is traveling. His recent performance on Capital Hill suggests that this is not a lesson Mr. Hayward has learned yet.

Dov Seidman, author of the book, How, says that we all now live in the “Era of Behavior”. He argues that too many of us are behaving by situational values or whatever the situation allows. Sustainable values on the other hand inspire us to do what should be done in every situation; they strengthen relationships for the long-term and reinforce our reputation in the global networks that drive our brand performance.

If how we behave doesn't match what we say on web sites, in annual reports or corporate communications, how successful do you think we will be with issues like employee engagement, customer commitment or organizational culture change? Behavior matters. End of story.

Five Things I Learned From the Men on a Submarine

A few weeks ago, I wrote a blog about customer (no)service during a recent buying experience and it prompted some interesting discussion with Adrian Bashford in Ontario. People who responded to the blog were unanimous in their agreement that leadership is accountable for the customer relationship. That led to the question: where do leaders learn skills other than finance, marketing and operations? Adrian suggested that the lack of military training in our leadership ranks over the past few decades might be at the heart of the problem. My first reaction, was “heck no” but it got me thinking about an experience I had a few years ago when I spent two days with the officers and men of the USS Nebraska at the King’s Bay Nuclear Submarine base in Georgia. Adrian might be on to something.

• Values Guide Every Decision: every man knew the Navy’s core values and the expectation that behaviors and decisions were guided by those values.

• It’s About the Mission: The purpose of each 3-month trip under the ocean was well understood by all men on the boat; it was the plan of execution.

• Train to the Mission: training was embedded in every task during a voyage and was reinforced during dry dock periods. Every training session included an After Action Review. Nothing long or drawn out, just What Happened? What Was Supposed to Happen? What Accounted for the Difference? What Will We Do Differently Next Time? During those days and nights at sea, the men were engaged in learning and studying for their exams to move to the next position.

• Only Warheads Exist in Silos: the men worked in cohesive groups, teaching their jobs to others and learning new jobs from more experienced men. The most dangerous element of a voyage is fire and each man not only knew what he was supposed to do but how to do another man’s job if necessary.

• Every Man is a Leader: rank did not preclude a man speaking up if he felt that a decision by a superior went against either the Navy’s Core Values or the Mission. This was an expectation that was constantly reinforced by the Captain and the Chief of the Boat.

It's a lot easier to run a business or manage one when people know what the expected behaviors are and act accordingly; understand why they are doing what they are doing; cooperate to achieve common results and are confident that if they speak up, they will be heard. If you’re aligned with Mission and Values, everyone is a Leader and everyone understands the accountability piece.

Isn’t it better to build the foundation at the front end instead of trying to fix things in the organization that should never have broken? Is your mission inspiring? Have your values retained their meaning over time? What do you do to learn the hard(er) skills of leadership?

Got a Game Plan? Dispelling Some Myths

What's your game plan? Do you have one? Despite the rumors that strategy is dead, it's never been more important to know where you're going and how you're going to get there.

First, let's dispel some myths about creating a game plan:

Things Move Too Fast - No Time: unless you have unlimited resources and access to capital, it's never been more important to get a handle on how you're going to be more successful.

It's Too Hard: The old process of a never-ending planning cycle has had its day. You can use just 5 steps to get from Purpose to Execution. That's it. Five steps.

We Do Fine Without One: Are you sure about that? If you can't draw a straight line from programs, initiatives and campaigns to the business results you want, you may seem fine but you'll do a lot better with some direction. Without a game plan, how do your employees understand where the company is going and how they can play their part?

In the video clip below, I outline the five steps to get a successful game plan:

As the Cheshire Cat said to Alice, ' if you don't know where you're going, any road will get you there.'

What process do you use to get your game plan? Are you actively engaging in strategic thinking or just bumping along?

Better. Faster. Cheaper: The Evolution of Competitiveness

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?

Values Matter: Is Your Compass Pointing to True North?

I read an interview the other day with the CEO of a major retailer who talked extensively about the impact of the company's values, called Foundation Principles, on how the company is run. I consult with clients on strategy, so I'm interested in companies that 1) have actually thought about their Values; 2) have articulated them; and 3) lead by them. Values can be the compass that guides business decisions, large and small and in my view are necessary precursors of a well designed strategy.

There are seven Foundation Principles according to the web site and each one is articulated in detail. It is interesting that the CEO blogs on the site, so at some level, he models the Leadership=Communication Principle. Job postings on Careerbuilder.com described the company history and its Principles, a departure from the usual list of job requirements. That seemed to follow the 1=3 Principle whereby one great hire is better than 3 good ones. The posting would attract those who feel a fit with the culture.

There are a lot of leaders who truly believe that their companies are run according to established values so I decided to do some research to find out if employee and customer comments mirror the Principles. Customer comments and reviews that I found were full of high praise and good reviews so the Principles of Creating Mutually Beneficial Relationships and an "Air of Excitement" seemed to be part of the customer experience. Then I looked for employee feedback and found quite a few recent ones that unfortunately were not all positive. On a 5-point scale, employees rated the company a 3.1 and gave the CEO a 47% approval rating. Why the disconnect with the other data?

Extreme views generally get posted but as there were as many 5's as 2's, the scores were not negatively skewed. Not one negative comment was about pay. Many mentioned a new scheduling system; others talked about their manager or losing a benefit or lack of a career path. They talked about how things "used to be". It's easy to dismiss disgruntled employees' rants except that sometimes, they are leading indicators of something amiss internally. Unhappy employees today; unhappy customers next week.

The funny thing about values is that when you talk about them, institutionalize them and use them as key differentiators, people tend to take them seriously. Especially employees and customers. They think you'll really do what you say. This company's values don't need to change. That's the point of values: they are enduring. They guide and are the foundation of culture, strategy and engagement. They are a bulwark against lapses of judgment. A couple of thoughts:

• Listen to your employees. Let them talk and be involved. If they are involved in a dialogue internally, it's less likely they will be ranting externally.
• Walk the talk. At all levels. Middle managers are accountable, too.
• Clear, credible communication. Communicate the tough decisions in a way that employees understand the "why".
• When your employees describe your values as "Kool-Aid", it's time to take a long look at your culture. It could be broken and that is hard to fix on the fly.

Is your company built on a foundation of values? Can your customers sense them in their interactions with your employees? Do your employees believe that your values are more than a plaque on a wall?

The Wisdom of Strategy

In his Wisdom Manifesto, Umair Haque shreds the idea that strategy development is anything other than a wallet grabbing scam for consultants. I'm trying not to be hurt by this sentiment, but it's hard. The author suggests that strategy be replaced by organizational "wisdom" and goes on to offer some rather pithy contrasts between the two concepts. My question is: why is it either/or? Why can't strategy design and wisdom co-exist? I don't believe they have to be mutually exclusive. In fact, where would strategy be without wisdom and vice versa?



Let's start with some definitions to establish whether strategy and wisdom are exclusive. Wisdom is the ability to discern or judge what is true, right or lasting; insight. Strategy is a plan of action designed to achieve a particular goal. Logic dictates that applying wisdom to a business opportunity is absolutely correct. An example of strategy without wisdom is the Dot Com bubble, when a sock puppet could appear on television to persuade you that buying pet food over the Internet instead of the grocery store was an idea whose time had come (RIP, Sock Puppet).



Umair Haque suggests that wisdom ignites, energizes and channels. Maybe, but to what end? As Walter Kiechel, author of The Lords of Strategy suggested recently in a Harvard Business Review interview, "If you don't think strategy is important, look at what happened to GM and Chrysler when they forgot about their customers and how to meet their needs." And then there's Toyota, who seemingly abandoned a 60-year strategy that frankly had been working well, and pursued a growth-at-all-costs strategy (and what a cost) without bringing its considerable wisdom to the opportunity. Strategy without wisdom is not confined to the auto industry, sadly.



Strategy allows businesses to think about their people, operations, customers and opportunities in an integrated way. It doesn't have to be painful or drawn out or rely totally on numbers. As Walter Kiechel suggested, a new way of thinking about strategy design today is bringing together people and analytics in a systematic way to be more granular and to become adaptive.



A process I've used for twenty years, adapted over time because of shifts like globalization and prcess engineering and the like, strongly relies on organizational wisdom.

• Values: know your Purpose and what you are about. In a crunch, do you stand by your Values or jettison them?



• Know where you are now: your competitive environment, your market(s), competitive advantages, customer base and internal resources including debt structure and access to financial capital.



• Frame the opportunity(ies) that are present. Assess the risks to your existing environment that each opportunity presents and the rewards that could accrue.



• Close the gaps so that your existing business is not strained beyond it capacity to absorb the inevitable change that new opportunties bring with them.



• Develop scenarios ("What if...") Changes in strategic direction never happen in a vacuum. Assumptions should be documented and become the source of a Plan B, Plan C, etc. Scenarios allow swift course correction when necessary.



• Use action plans to execute the strategy and metrics/scorecards to measure the reality against expected results.



• Keep on keeping on. Strategy design should be on the agenda of every Executive Committee and Board of Directors meeting. This is not a once a year project.

Does your business engage in systematic thinking about your future? Do you apply organizational wisdom or fly by the seat of your pants? Or, do you think the environment is too complex to design a long term strategy?