This article was prompted by some interesting meetings we have had in the last couple of weeks. One common theme was concern about sales in the months upcoming to the end of the financial year. Here are five cases from our meetings with new clients. Does your business fit with any of these scenarios?
When the strategy exists only in the leader’s mind.
A strategy may be a mental construct assembled within the mind of the business owner or leader. It may make perfect sense to the creator. However, there are no other people who know or understand the strategy. Without knowing, there is no chance of execution. The mind of the strategy creator will undertake the creation without any external input or consideration of internal biases that may make the strategy inaccurate or not aligned with the realities of the operating environment in with the organisation operates. There is a possibility that the solo creation of the strategy included some documentation in analogue or digital form, but unless this has been a shared experience, it will still reflect the biases of the creator and prevent full and clear understanding by those who must operationalise the strategy in the organisation.
When the strategy is not shared.
There is a possibility that the solo creation of the strategy included some documentation in analogue or digital form, but unless this has been a shared experience, it will still reflect the biases of the creator and prevent full and clear understanding by those who must operationalise the strategy in the organisation. To have any chance of successful execution, a strategy must be shared across the organisation and deep into the organisation without regard to hierarchy. All persons in an organisation must know the part they play in the execution of the organisation’s strategy. In my experience, full sharing of organisational strategy is rare. The knowledge and understanding of strategy dissipates in proportion to the separation between an individual and the source. In some experiences I have had, knowledge of strategy is held exclusively within the senior executive team. In a few cases I have personally experienced, there were differences in interpretation of the strategy when senior executives were asked to outline the organisation’s strategy in an interpersonal conversation.
When the strategy is not clear.
Some people love complexity. The perception some people have is that strategy must be complex to be any good. When a person has this perception they will spend a great deal of time creating strategy and while doing so lessen the chances of the strategy being understood and operationalised in the organisation. There are some elements of strategy that may be complex and this may be due to the type of organisation or the current circumstances impacting the operation of the organisation. I advocate for simplicity in strategy. I extend my advocacy for simplicity throughout the entire process of strategy development, communication, change management, execution and measurement. Maintaining simplicity is more difficult than succumbing to complexity. Reduction as opposed to expansion. Simplicity supports clarity. Clarity supports understanding. Understanding supports engagement. Engagement supports execution.
When the strategy is outdated.
There are two common scenarios when I ask a business owner or CEO about strategy. One scenario is obvious when the body language expresses a strong feeling of being uncomfortable and avoidance. In this scenario there is no strategy. Well, there might be a strategy somewhere but it is not something that can be pointed to, read, assessed or measured. The second scenario does not usually elicit something as obvious as the first since in this scenario the person sees no problem with the strategy being five years old. There might be comments such as, “nothing has really changed,” or “Its still working for us,” or “I have not seen a reason to change it.” I am not sure I have ever worked with a business that was not facing increasing competitive pressures, changes in their operating environment and challenges with people and sales growth. There are not many people in business that would argue the pace and scope of change has increased. If the pace of change has increased and the scope of change has broadened, it is advisable to have a strategy that is as dynamic as the impacts affecting your business.
When the strategy is not operationalised in the business.
A strategy is not a shelf dweller. A strategy is embedded in the daily pulse of an organisation across every facet of its operations. A strategy does not exist separate to the work that each person does every hour and minute while they are engaged in work. I would take it so far (and I have), that I should see your strategy reflected in the calendars, task lists, emails, learning programs, financial systems and everything else that is used to operate your business at every level including invididuals.
