Posts Tagged ‘resources’

Business Stategy

Long-term strategy is a roadmap to a desired vision of a future state.

Long-term strategies in business are ubiquitous; everyone has them.  Just ask a business owner to tell you about his strategies and they will give you an earful.  With such a focus on these strategies, why do so many of them fail?

The primary reason many strategies fail is that they are disconnected from the environment within which they must play.  In effect, they are not designed to be clearly understood by those who must implement them.  They are often filled with buzzwords, an over inflated goal/objective, and a lack of clarity.  It sounds great, but it is hard to get your arms around.  They are devoid of elaboration, so it is up to the individual to figure out what they mean.

Long-term strategies must be both precise and broad in scope.  They are precise enough to enable the implementers to clearly understand the objective and broad enough to enable the implementers to journey beyond customary limitations; they have to be able to make adjustments to resources (time, people and money) based on what they are learning during implementation.  They must have some flexibility.

Successful long-term strategies:

  • are designed from a future perspective. You must develop a clear vision of that future state, and then design the path to get there.
  • are carefully chosen from a list of possible strategies. It is a selection process; it is choosing the most important strategies that will have the greatest chance of being successfully implemented.
  • require buy-in by senior management; i.e., commitment. Commitment must be observable.
  • require providing direction and the distribution of responsibility.
  • have a reasonable time frame; e.g., three to four years. In most businesses you cannot be precise enough in a six to ten-year strategy.
  • require making difficult choices, specifically resource decisions (time, people and money). You must make decisions without prefect data and weigh the consequences of those decisions; both to the current state and to the strategy.
  • are measurable; they have metrics.
  • are executable living documents.
  • are communicated to the proper levels of the organization.

Long-term strategies can simply be a great idea with limited action, or they can be a game plan with players on the field.  Only the latter keeps score.


Read Full Post »

Outside the Lines

Have you ever watched a small child who was learning to craw go exploring?  They move about three to five feet, stop, look back to see if you are still there, and then take off again.  The more comfortable they become, the less they look back.  Somehow, many of us as adults, have lost that drive to “explore.”  Why?

Obviously, a young child doesn’t know when they are moving toward something that will cause discomfort.  Over time, they will learn, and become more selective about what to explore.  In any case, during the maturation period, they will lean toward exploring, and not worrying too much about discomfort.  They will grow up in a world riddled with rules, limits, and restrictions; even so, they will continuously test the rules.  By the time they are adults, they know where the lines are and have a predilection to stay within them.  –  Whoa, I better not go there.  It’s comfortable here.

From a business perspective, we need to operate more like an exploring child, than someone who lives within the lines.  Often the ‘fear of failure’ is the deciding factor in trying something new.  However, if you want to survive, you must go outside the lines.  And believe me, from a resource (time, people, and money) perspective, it is much better to choose to explore, than to be forced by outside forces to cross the lines.

While there are many processes that business owners use to play outside the lines, most can be narrowed down to a few simple steps.

  1. You must understand your comfort zone, AND why you are comfortable there. This is your first line to cross.
  2. Determine the best and worst-case possibilities for your journey. What is the best thing that can happen to your business and what is the worst thing that can happen to your business?  This is your second line to cross.
  3. Visualize what success looks like. This is more than a glossy picture, or sketch, of your business.  You must identify the most critical attributes of that visualization.  It’s like, being able to describe your (future) business to a new acquaintance.  Mentally, spend time there.  This is the third line to cross.
  4. At every step of the journey, you must capture the learning process.
    – What resources do you need? (time, people, and money)
       – What did you try? Did it work, or not work?  Why?
    – What competencies and capabilities are you building?  What are you going to
    need when you get there?
    – What is happening to your base business as you move along?
    –  In other words, craw three to five feet, stop, look back, and then take off again.

To create that future business, you must play outside the lines.  Successful businesses who succeed in this transition will be those that follow a plan that enables them to manage risks and seize opportunities along the way, while continuously pushing their organization forward.

It is an exciting journey; enjoy the trip.

Read Full Post »


Last year, the Future of Jobs Report developed by the World Economic Forum identified the Top 10 Skills in 2020.  The top six were:

  • Complex Problem Solving
  • Critical Thinking
  • Creativity
  • People Management
  • Coordinating with Others
  • Emotional Intelligence

Finding this very interesting, I did some research to see if I could identify critical skills identified in 2007 to see what has changed in just ten years.  Here are a few:

  • Communication Skills
  • Honesty and Integrity
  • Strong Work Ethic
  • Computer Skills
  • Teamwork
  • Analytic Skills

While there is some connection between these two sets of skills, the change is telling.  Let’s look at a few:

Complex Problem Solving.  According to the World Economic Forum report, complex problem solving is defined “as the capacity needed to solve new, poorly defined problems in complex situations.”  It is the ability to solve real-time problems that are not clearly defined in a dynamic and complex world that cannot be addressed by routine actions.  Whoa!

Critical Thinking.  According to the Foundation for Critical Thinking, critical thinking is defined as “… that mode of thinking — about any subject, content, or problem — in which the thinker improves the quality of his or her thinking by skillfully analyzing, assessing, and reconstructing it….”  The focus is on objectively analyzing a problem by assessing evidence (data), patterns, relationships, etc. in order to arrive at an informed decision.

While the skill definitions seem overwhelming, in the simplest of terms, both are ‘mind sets.’  It is how we think about the problems/opportunities we are facing.  In other words, recognizing that many of the problems/opportunities facing business are not only below the observed surface, they are also complex, dynamic, and often obscured by fuzzy signals.

Compare these two to the 2007 skills, which are important, and think about how we have been educating and training our workforce for the last ten years.  Interestingly, the number one challenge I hear from business owners is that they cannot find qualified workers.  So, how does someone acquire these skills?  How does a company even begin to interview for this talent?  Where does it begin?

It begins with the leadership of the company “challenging the conventional thinking” within the organization.  It is a new mind set; it is a culture.  The first step is recognizing you will often have to dig below the surface of the observed problem/opportunity in order to grasp the substance/complexity of what you are dealing with, ‘before’ applying resources (time, people, and money) to act on it.  The descriptions say it all, we live in a more challenging environment than we did just ten years ago that requires a different skill set to survive and prosper.  Your move.

Read Full Post »


Recently, I was talking to a business owner about his strategic perspective of the future of his growing manufacturing business. As expected, we got into a discussion about how difficult it is to plan with so many uncertainties in Washington (D.C.), coupled with the tendency of our government to over regulate all aspects of our economy. He said, “they are like helicopter parents hovering over our every move waiting to intervene”. The past six years have been some of the most challenging times for businesses, especially small businesses. First the collapse of our economy, followed by a dysfunctional Washington.

Businesses, for the most part, are resilient in times of economic crisis. They get knocked down, shoved to the side, tripped up, mulled over, and sometimes destroyed. But they never stop fighting for their survival. They do without, sacrifice things the rest of us take for granted, and put more of their capital at risk; they do whatever it takes to survive and prosper.

The sad part is that it is not just economic conditions they are fighting. A good part of their effort is dealing with the uncertainties being touted by the town criers of Washington. It is not my purpose to get into a political debate; I’m not looking for who did what. Regardless of why certain things happen in Washington, businesses have to make decisions about how they run their organizations in response to what is happening, or what they think may happen. Business decisions involve resources, which are time, people, and money. This is not a game or political jousting; it’s real. They know that the survival of their business depends on good decision-making.

“So, how do we factor in the multitude of political perspectives on healthcare, immigration, minimum wage, energy, taxes, climate debate, foreign trade, sequestration (debt limit), Middle East, etc., etc., etc. into our decisions, when there is a lack of earnest debate or compromise amongst the parties” he asked. “Where are we headed?” “What should I bet on?”

As we were wrapping up our conversation he said something thought-provoking; “Just give us a fighting chance to run our businesses. We can improve the economy, provide jobs, benefit our communities, and pay our fair share of taxes. All we want is a fighting chance.”

Just give us a fighting chance. – Are you listening Washington?

Read Full Post »

%d bloggers like this: