Measuring Strategy – Why Less is More

Tools and techniques can help accelerate and measure strategic execution.  The Balanced Scorecard (Kaplan & Norton), Strategy-on-a-Page (Childress) and others are useful when applied in the proper context.  However, don’t become enamored with a tool at the expense of your results.  I’ve seen organizations lose focus on outcomes because they blindly embraced a specific tool.  The tool became the focus instead of performance.  Sometimes, the simplest (and most obvious) approach is more effective.

Organizations are like the human body.  Each body has a unique chemistry and responds to a treatment differently.  While diagnosis may prescribe certain types of treatment, the treatment must be tailored to an individual to ensure proper care.  Use your strategic execution tools with the same caution.  If a specific approach doesn’t address the underlying symptoms, adapt or abandon it.  You can do more harm than good if you use a tool ill- suited for the need.  Doctors live by the Hippocratic Oath “first do no harm” - consultants should do the same.

Strategic execution tools, like medical instruments and methods, are designed to address specific circumstances.  When you use an approach that is not designed for its intended purpose, you can make a situation worse.  You may also mask the underlying organizational symptoms and issues, making it more difficult to discover a root cause.  Organizations are a complex system of interrelated components that affect each other.  Making a change in one area impacts others.  I’m reminded of the challenges faced by physicians when prescribing medication.  Each person’s genome  and body chemistry is different and responds to medication in unforeseen ways.  Using combinations of drugs to address different symptoms can potentially create new problems.  That’s why doctors consider side effects when combining different treatments and adjust those treatments accordingly.  This holistic approach treats the entire system, not just one organ.  Likewise, organizations must be viewed holistically so that measures taken in one area don’t create negative effects somewhere else.

As consultants, we must exercise the same caution as doctors.  We have to constantly assess the overall health of our clients as change is applied.  We also need to be mindful of our limitations and seek a specialist when necessary. I can say from experience how frustrating it can be when the wrong tool or technique is crammed into a situation.  If your preferred method isn’t right for the situation, be honest with the client and recommend another path even if it’s not your own. 

I’m reminded of Occam’s Razor where the simplest explanation is usually the most appropriate.  Only when simpler methods are shown to be insufficient do complex tools and techniques have a place in analysis and change initiatives.  One model I frequently turn to is David Snowden’s Cynefin framework.  This tool can be used to frame and analyze the situation one is dealing with.  From a critical thinking perspective, the Cynefin framework succinctly lays out guidelines that allow you to categorize and approach problems.  Below is an example I often use with groups when addressing the topic of framing and analyzing a problem.

Rural villages were experiencing high levels of infant mortality.  Many of these villages suffer from poor prenatal nutrition.  Low birth weight newborns were found to suffer from hypothermia.  Most villages lack reliable electricity and incubators are far too expensive. Is this problem, complex, complicated, chaotic, or simple?   How would you address this problem? 

For many groups I work with, they seek answers in the areas of nutrition.  Some explore means to improve access to electricity through solar or other means.  Others seek solutions to drive down the cost of incubation.   These approaches all suggest a complex or complicated approach.  However, the problem is simple.  Babies need to be kept warm when born.  The solution was found in what is known as Kangaroo Care where babies are swaddled in a blanket taking advantage of the mother’s own body heat.  While the other issues are important, the fundamental issue is one of preventing hypothermia.  Many of us over-complicate a problem too early in the analysis process.  For those of us who are engineers, it’s second nature to view each situation through a lens of complexity – it makes it more challenging.  However, by doing so, we often overlook the obvious.  The key point – start simple.  Don’t jump to a complex or complicated approach until you’re sure it’s the most relevant path to a solution.

 

I have experimented with many tools and often adapt them to address specific conditions.  In all cases, the first step in using a tool starts with an organizational analysis to identify the driving issues, objectives, strategies, and operating conditions.  This analysis doesn’t require an exhaustive review – a focused approach will quickly uncover the most relevant issues.  Getting to a good diagnosis doesn’t require months of work and hours of reviews.  A simple tool such as the Prana Business PBLine-of-Sight™ diagnostic can rapidly uncover drivers affecting organizational performance.  With a good diagnostic baseline in place, it becomes possible to pinpoint areas where change will have maximum effect.

The end game is positive results for the organization.  Any tool or technique that is not focused on that outcome is wasted time, money, and organizational energy.  With a good diagnostic baseline established, you can then apply the Pareto Principle and identify the 20% of change that will deliver the 80% of improvement.  The client’s return on investment is the most important metric for a consultant.  Deliver that ROI and your clients will keep on coming to you for help. 

Remember, it’s not about the tools it’s how you use them.  Apply the right tool in the right way and you’ll serve your client better.  In the end, the ROI results will speak for themselves and you’ll earn your client’s respect and trust.

Duane Grove is the founder of Connect2Action, a strategy execution specialist at the intersection of employee engagement and executive leadership, igniting innovation as a lever to accelerate your growth.  Follow Duane on Twitter @connect2action and connect with him on LinkedIn, Facebook, and Google+.  Learn more by visiting www.connect2action.com.

Strategic Alignment & Employee Engagement - Live Spreecast

Prana Business is excited to invite you to join our latest Spreecast live!

Duane Grove, experienced strategist and Principal with Connect2Action, will be our guest as we dive into the topic of business strategy and what drives smart execution.

We’ll discuss the importance of communicating strategy inside of a company, how leadership makes it happen, and how to ensure employees are engaged and aligned with a common direction.

WHEN: May 21st at 1pm to 1:20pm (Mountain Time, 3pm Eastern)
 Host: Joe Clark – CEO, Prana Business

http://www.spreecast.com/events/join-the-chat-biz-strategy

Unlock Engagement – the Secret Combination

Many companies have employee engagement initiatives.  Resources and tools are proliferating at blinding speed.  A simple search on the topic yields millions of results.  With so much information it can be daunting to sort out what is right for your company.  One approach can be found at the intersection of strategy and first-line leaders.  Spin the dial with that combination and you can unlock your workforce.  Let me outline how.

I’ve worked with many organizations designing and implementing employee engagement initiatives.  Despite industry and organizational differences, they all have a few things in common.

1.              Employees express dissatisfaction in understanding the organization’s strategy.

2.              An employee’s relationship with their immediate manager has a far greater impact on engagement and performance than any other factor.

3.              Employees lack sufficient line-of-sight between the work they perform and the unique value the company delivers to its customers.

The secret to unlocking engagement in your workforce is at the intersection of these factors.  The golden key is in the hands of your first-line leaders.  Engage this group and magic begins to happen.

Now what is our strategy?

One of the most common mistakes executive teams make is assuming a strategy presentation to employees is sufficient.  If that approach were effective why do most employees report a lack of awareness?  An organization’s strategic plan is generally written in C-suite terms not easily translatable into work-unit relevance.  I’ve personally experienced employees leaving a strategy presentation or finishing a webcast saying “did you understand a word they said?”.  You can’t assume employees will connect the dots between their work and your strategy.  If you believe that employees should know and understand the strategy, you have to express it in terms they relate to.

Here’s where first-line leaders can make a tremendous difference.  Help these leaders connect the dots and they become ambassadors with far greater influence than the front office.  Strategy at this level has to be localized.  This effort may appear to be more tactical than strategic, but strategy itself is a matter of perspective; what is strategic at one level may be tactical at the next level up.  Help supervisors appreciate how their team’s effort aligns with key elements of the strategy.   Work directly with this group and if necessary iterate until you find messages that resonate.

First-line leaders are the tipping point

The adage “employees don’t leave companies, they leave managers” has been supported by studies.  I have numerous personal examples where a manager’s relationship was the critical factor in a decision to leave or stay.  Just recently, a colleague shared that his recent decision to change companies was driven entirely by his relationship with his manager.  In his case, he had been heavily recruited by a competitor for nearly two years but stayed because of the great relationship with his manager.  He reluctantly decided to leave after it became clear that leadership above his manager was unwilling to acknowledge his value.  I personally left a position years ago because my manager failed to keep a commitment then lied about it when confronted.  I’m sure you can recall similar situations.

If the evidence is so compelling, why are first-line leaders one of the most neglected in so many companies?  What often happens is a high-performing individual contributor gets rewarded with a team lead or some other supervisory role, then is left to figure out how to lead.  In the absence of leadership training and positive mentoring, they look above for examples.  Unfortunately, the examples they may emulate are not setting the best example.  This new leader assumes that the behaviors and skills of those ‘more accomplished’ is what it takes to succeed.  Ever consider how a poor senior manager became that way?  Look no further than their first leadership assignment.  Chances are, they received little or no training or support.  Since these first-line leaders have such profound impact, make sure they receive training and support consistent with the leadership culture you want.  Invest as much or more in these leaders as you do those above them.

I Can See Clearly Now …

Employee engagement accelerates with a laser focus on first-line leaders.  These people are closest to the work and have the greatest impact on employees.  First-line leaders should have a clear line-of-sight to the company’s strategy and the right tools to effectively communicate its relevance to their team.  Employees can then identify the importance of their individual efforts to the company’s objectives.  A sense of affiliation and ownership can develop that leads to higher levels of accountability and engagement. 

What about mid-upper level management?  What should their role be in employee engagement?  Why not start at the top and flow initiatives down through the organization?  These are typical questions and reflect the traditional command-n-control management style.  You do want to engage these leaders and work directly with first-line leaders at the same time.  You want to focus on improving visibility and alignment between first-line leaders and the strategy.  You work with mid-upper level management on exercising consistent behavior in alignment with the strategy and in supporting their first-line leaders. 

Making the Combination Work for You

When I work with clients on improving employee engagement, I encourage them to focus on the connection between their strategy and their first-line leaders.  I don’t ignore other layers of management entirely but work to simplify and localize strategy in a way readily consumable and applicable at the work-unit level.  In other words, light an engagement fire in the basement, and let the heat rise.  Surround your first-line leaders with examples and tools aligned with your strategy and consistent with the leadership culture you value.  Listen intently to what these leaders are saying and show a preference to addressing their needs.  Recognize teams at the lowest possible level that are engaged and aligned.  Make positive examples of them.  It’s hard and tedious work, but the rewards are worth it.

Looking for additional tips on strategy and employee engagement?  Browse through Duane's blog.

Duane Grove is founder of Connect2Action, a strategy execution specialist at the intersection of employee engagement and executive leadership, igniting innovation as a lever to accelerate your growth.  Follow Duane on Twitter @connect2action and connect with him on LinkedIn, Facebook, and Google+.  Learn more by visiting www.connect2action.com.

You’ve Got a Great Strategy – Now What?

Over the last 12 months, you led your team through a significant revamp of your strategy.  The economy and changing customer habits forced a ground-up review and restructuring.  Buying dynamics shifted substantially, loyal customers started experimenting with other solutions, and years of cost containment measures have taken a toll on employee morale.  You invested nearly $500,000 with a marque consulting firm to guide you through the process.  After all that time and energy, you now have a new strategic plan and you’re ready to launch.  How confident are you it will work and return your company to growth?

You’ve done all the right things along the way.  You involved your leadership team in the strategy formulation process.  After long evenings and weekends, they say they’re 100% committed to the new plan.  You took great pain to develop action plans and establish new performance metrics.  The new strategy requires significant change, some restructuring, and revisions to the tried and trusted culture.  You feel ready to deploy.  Employee meetings have been scheduled and each executive has a communication package to explain the new strategy.  With all this preparation, you feel ready to launch, but are you?

Does this story sound familiar? 

Across the business world, companies facing significant disruption are engaged in this kind of exhaustive strategy renewal process.  Most will fail to achieve the rates of growth and change envisioned in the plan.  In fact, the investment in strategy consulting, market analysis, and change initiatives will likely yield disappointing returns.  Why does this happen?  Great executives and leadership teams exercising sound business logic and measured decision-making routinely face a litany of disappointing results.  What are they missing?

Great strategies absent exceptional execution will fail to deliver every time.  Instead of achieving the planned high rates of return and accelerated growth, most settle for marginal growth and continued disruption from competitors.  But the key to strategic execution doesn’t rest in the executive team or the plan.  Execution happens when an organization gets into alignment from the bottom to the top.  Alignment requires that employees have a clear line-of-sight between the work they do and the strategy.  Alignment doesn’t occur by briefing employees on the strategy or change program.  If that’s the extent of your plan, you’re on the path to failure. 

Employees must not only understand the “what” of the strategy in practical and relevant terms, they must also embrace the “why” and “how”.  And when it comes to “how” in particular, you can accelerate change by actively engaging employees.  When employees are involved in shaping how change is implemented, they accept and implement it at a faster rate.  Engagement at all levels is critical; don’t just rely on your leadership team to cascade the strategy through layers of the organization. Use as many means as possible to communicate and keep it concise.  Simplicity enables the key elements of the strategy to be clearly communicated on a consistent basis leaving no room for interpretation.  This means boiling down your detailed strategy into imperatives to which employees can relate

If you’re committed to your strategy's success, the best investment you can make is to focus on alignment.  To start, you need to understand the current state of alignment in your organization and then routinely reevaluate as its execution unfolds.  There are numerous tools available that measure engagement and alignment.  I use the PBLine-of-Sight™ developed by Prana Business.  I’ve used many tools over 25 years leading strategic development and employee engagement initiatives.  I prefer this tool because it provides rapid results in a simple form.  Spotting misalignment early will keep the plan on the right track.  Measuring progress enables you to anticipate and predict future performance.  Regardless of which evaluation tool you use, it’s imperative that you not only have an alignment baseline, but have ongoing progress measurements and make adjustments based on quantifiable outcomes.

To learn more about successful strategic alignment, contact me or visit the Connect2Action Assessment page.

Duane Grove is the founder of Connect2Action, a strategy execution specialist at the intersection of employee engagement and executive leadership, igniting innovation as a lever to accelerate your growth.  Follow Duane on Twitter @connect2action and connect with him on LinkedIn, Facebook, and Google+.  Learn more by visiting www.connect2action.com.

When Things Get Tough, Discard the Shovel

When leaders face tough situations, they often decide to dig in and shelter.  The recession and most recently sequestration have caused more than a few leaders to take out their shovels, dig a bunker, and hunker down.  They cut budgets, pull back from investments, and focus on protecting their existing business.  But is this a strategy for long-term success? 

When you take your team underground, they may at first be relieved to be out of danger.  However, over time, relief turns to frustration, boredom and atrophy. Companies that have dug in, cut costs, and sought protection lose.  Morale suffers and competitive muscles get weak.  When you finally pull your team out from the hole, the landscape is completely different and you have a team ill-prepared to journey on.

Let me paint this picture...

There’s an ominous storm approaching.  It has the potential to wreak devastating harm on you and your team.  The path of the storm is uncertain.  The threat could move away, be less damaging, or could be disastrous.  There’s simply no way of knowing.  The storm stands between you and your destination.  Instead of taking on the approaching menace, you dig a hole for protection.  Safely in your bunker, you realize you can’t see as far – you have no way of knowing what is going on outside.  Because you’ve expended tremendous energy digging, you no longer have the strength to repel the potential onslaught if it arrives.  Instead, you rely entirely on the shelter you’ve constructed and hope it doesn’t fail.  Finally, you’re in a hole.  When you decide to leave, you have to crawl up and out.  When you get your head above ground, you may no longer recognize your surroundings.  Depending on the length of time you spent underground and the effects of the storm, you may no longer recognize the way ahead.  In fact, you may wonder if your original objective still exists.

Trench warfare was the strategy during World War I. Sheltered inside ditches, underground bunkers, and tunnels, soldiers spent days, weeks, and months without ever getting a glimpse above ground.  When they did, what they often found before them was a wasteland.  The protection afforded by their fortifications saved lives, but at a horrible cost.  Those effects included trench foot, disease, atrophy, and limited escape from gas attacks.  During World War II, the German Army simply maneuvered around the bunkers constructed by the French.  While holed up safely underground, the Germans conquered.  In both wars, many having been stuck underground for so long, lost their mind. 

What do bunkers and trench warfare have to do with your company’s strategy?  Consider the following phrases and ask yourself if you’ve heard or spoken any lately.

• We need to protect the core.
• We will reinforce the franchise.
• We’re pulling back to carefully allocate resources.
• We simply need to weather the storm.
• We have to conserve our strength to live and fight another day.
• Everyone else is digging in too.

Some use the approach of withdrawing behind seemingly impregnable walls to wait out the assault.  In ancient times, a siege rarely worked well for those barricaded inside.  A determined adversary could surround the fortress and starve those inside of supplies and reinforcements or simply go around leaving them isolated.  Companies can become insular with this strategy.  They starve themselves of great talent (the company is not presently hiring) and cut themselves off from strategic opportunities.  Venturing from the secure gates of their existing strategy is deemed too risky.  And when the siege is finally over, their competitors have moved on and secured new markets.  Why would you choose to barricade yourself when opportunity and growth lie beyond the company’s walls?

We all possess a tendency to protect ourselves when danger emerges.  It’s wired into our brains as part of our ‘fight or flight’ defense mechanism.  So it’s natural to seek shelter in a storm.  Leaders however know that digging in has its limitations.  When you take your team underground, you have foreclosed options in lieu of perceived protection.  While remaining on your path has perils, staying put is more treacherous.  There are times when seeking temporary shelter is prudent, but too often, people are lulled into a false sense of security and stay too long. 

"This time, like all times, is a very good one, if we but know what to do with it."

Ralph Waldo Emerson

During tough times, there are always companies that emerge stronger and better.  They prevail in spite of the storm because they deliberately choose not to dig in.  Instead, while everyone else is hunkered down, they seize the initiative to capitalize on open territory left unprotected while competitors are holed up.  They face into the storm and press forward.  They are able to maintain a view of the obstacles ahead and maneuver around them.  And in the end, they are the ones who are able to execute their strategy, seize their objective, and win.  Standing on the high ground, they look around and find their competitors nowhere in sight – they are still waiting for the storm to pass.

I’ve worked with numerous clients facing significant challenges.  Some are already stuck in bunkers or behind walls while others have chosen to brave the elements and press on.  Looking at declining quarterly numbers, slipping opportunities, and shrinking market can create concern or even panic.  It can be confusing and fearful.  But digging the hole deeper or adding another layer of rock to the wall won’t change the course.  If you aren’t moving forward, you’re losing ground.  These times call leaders to courage and creativity.  Finding a way may require letting go of the perceived safety and taking on some risk.  You may have to abandon what has proven to be successful in exchange for something different and potentially better.  These are hard decisions to make.

When facing tough times, companies that will prevail are the ones who choose to press on.  They use creativity and ingenuity to find a better way.  They invest wisely, deploy their resources to meet the challenge, and maneuver their way through the minefields.  Adjusting their strategy to meet the approaching storm, they chart a new path.  Companies that choose to shovel themselves into a shelter may be able to weather the storm, but they emerge weaker.  Having kept their teams underground they suffer from maladies of discontent, discouragement, and atrophy.  Their competitive muscles are weakened by months of living in the dark. 

If your company has decided to “protect” itself and its business, can you be sure it will truly survive to fight another day?  Why not reexamine your strategy and decide to take your team forward?  With discipline and innovation, you can craft an approach that keeps you moving and allows you to capitalize on the timidity of your competitors.  Darwin had it right – in business as in nature, it’s survival of the fittest.  You can’t stay fit sitting in a bunker.  Embrace the challenge!

Duane Grove is founder of Connect2Action, a strategy execution specialist at the intersection of employee engagement and executive leadership, igniting innovation as a lever to accelerate your growth.  Follow Duane on Twitter @connect2action and connect with him on LinkedIn, Facebook, and Google+.  Learn more by visiting www.connect2action.com.

Measuring Strategy – Where Less is More

You get what you measure – this axiom drives most businesses.  But, when it comes to strategy, too many organizations mismanage this rule.  Over the years, I’ve been involved with companies that take strategic measurement to a point of absurdity.  Measurement becomes a religion, which leads to the establishment of a small army of people to enforce compliance.  The greater the number of objectives, the more policing is required.  It becomes a perpetual motion machine.

Does the following process look familiar?  

•        Corporate sets overall objectives.
•        Business units absorb these objectives to ensure nothing from corporate is left off and adds objectives from their own strategy.
•        Lines of business then append their requirements to the list to ensure their “unique” needs are included.
•         Project and team leads amplify the growing list to address their specific areas.
•         Finally, employees are presented with a master list containing dozens of “strategic” objectives. 

The process is designed to pay homage to the layer above.  Rather than translate and localize relevant objectives (and discard irrelevant ones), new objectives are appended to the growing list. This “me too” approach blocks employees from a clean line of sight to the corporate strategy.  Is it any wonder that employees have difficulty making strategic decisions in their work?

This cascade of objectives is laziness.  If your organization tolerates this approach, then you are choking the life out of your strategy.  Objectives should be progressively simpler and increasingly focused as you descend into the organization.  How can a project lead, software engineer, or customer service representative execute strategic intent, when the list of objectives they are accountable for is lengthy and complex?  Worse, many of these objectives are irrelevant to their jobs, outside of their control, and in some cases, contradictory. 

When it comes to strategic objectives, the rule is ‘less is more’.  Correctly setting objectives allows employees to have a clear line of sight between the work they do and your company’s strategic intent.  It starts with clarity of purpose.  Your employees should be able to identify the most impactful actions that will drive your company success.  For example, at the top, many of the strategic measurements are financial.  How every employee impacts financial performance will differ based on their role.  Increasing revenue may mean that a sales representative focuses on up-selling or account expansion.  An improvement in margins might focus an engineer on operational efficiency to reduce overhead costs.  Simple objectives will have an impact as they multiply across numerous employees.

There are interesting parallels to the medical profession.  Each situation should be treated as being unique.  The tests and measures used to diagnose health must be appropriately matched to the symptoms and desired outcome.  While techniques and tools may offer relief or even a cure, you can’t assume that is true.  You’re less likely to successfully assess the situation if you measure or test something not relevant.  For companies, each strategic diagnosis should be undertaken with the same care and attention you expect when seeking help from a doctor.  If the diagnosis isn’t curable with the tools you have at your disposal, be honest enough to change course or recommend a specialist.  Don’t insist on a particular approach if it isn’t applicable.  ‘Do no harm’ is the mantra.  Insisting on a prescription or treatment may make the situation worse if you’re measuring the wrong thing.  Apply Occam’s razor in your strategy and work toward simplicity.  Here, sophistication is the enemy of progress.

Measuring strategic execution in your company is not an exact science.  Each case will be unique and every situation should be examined and explored with that recognition.  Whether you’re an executive, a corporate strategy lead, or a consultant, the ultimate objective is strategic alignment and positive execution.  Choose measurements that are relevant and applicable.  Less is more.  When you take the time to focus on what matters most to your company, you’ll find you can identify the metrics that matter.

Duane Grove is founder of Connect2Action, a strategy execution specialist at the intersection of employee engagement and executive leadership, igniting innovation as a lever to accelerate your growth.  Follow Duane on Twitter @connect2action and connect with him on LinkedIn, Facebook, and Google+.  Learn more by visiting www.connect2action.com.