Posts Tagged ‘strategy’

The biggest problem I’ve noted with strategy is not formulation, but implementation. Companies develop a great strategy and then fail to communicate it or aren’t sufficiently aggressive in pursuing it. Here is a checklist of questions you can ask to assess the implementation aspect of your strategy.

  1. Have the intent, mission, vision and strategy been communicated throughout the company?
  2. Have clear objectives and responsibilities been assigned all up and down the organization so everyone knows what their tasks are within the new strategy?
  3. Have leaders and managers with key responsibilities conducted their mission analysis to properly determine their distinctive roles and missions within the company?
  4. Has a full implementation plan with milestones and metrics been created at all levels of the organization? Have key execs and managers’ terms of reference or performance review process been suitably modified to incorporate these?
  5. Is there a customer communication plan in place and have you assessed the initial impacts on them?
  6. Are your organizational structure, processes, and systems well aligned with the new strategy and goals? What measures and plans do you have to assess and modify these as you implement the strategy?
  7. Do all of your people, especially execs and managers, have the requisite skills to do the planning and operations to execute on this strategy? Do you have plans to provide this?
  8. Do you have a regular review process in place with weekly/bi-weekly (if needed), monthly, quarterly meetings?
  9. Have you conducted a quarterly after action review to assess progress and, more important, to identify lessons learned as you make the planned changes?
  10. Is your initial assessment that the strategic changes you’ve undertaken are working? What are you and your senior leadership team doing to adjust and assess as you implement?
  11. How are your customers reacting to the changes? Are they enthusiastic, blasé, engaged and willing to help, hindering?
  12. How is your entire company and management team reacting? Are they fully engaged and onside, or are there areas where they don’t want to cooperate or get on board?
  13. Are there key execs or managers who need specific coaching to help them raise their performance in line with their goals and missions?
  14. Have you looked at your competitors’ reactions? Have you considered how you can shape the competitive landscape to your advantage?
  15. What plans do you have in place to look at the next 6 months, 12 months, 18 months and beyond?

© 2013 Richard Martin. Reproduction and quotes permitted with full and proper attribution.

Brilliant Manoeuvre
Intelligence is everyone’s business.

Discussion
Often, the best intelligence comes from ‘troops in contact’ with the enemy. They can see what’s happening and can provide ‘ground truth’ to corroborate or validate the opinions and assessments made through the intelligence estimation process. The same applies in business. All companies, even small ones, have sales people, customer service agents, and field service reps out in the marketplace. They can see things and hear things that might be highly significant from a competitive standpoint. They need to know and understand the company’s basic strategy, vision, mission and goals, as well as those of their own unit or division. Managers and supervisors must also brief them and debrief them on a regular basis to ensure that they are aware of the latest developments and goals, and so they can bring back critical competitive intelligence.

Tip
Managers and employees have to be on the lookout for opportunities and threats. They are the eyes and ears of the entire company, not just their own little part of it.

© 2013 Richard Martin. Reproduction and quotes are permitted with proper attribution.

Brilliant Manoeuvre
No one can predict the future, much to the chagrin of many economists and financial theorists and their media acolytes, who prefer assumptions of perfect knowledge and decision-making in all circumstances.

Discussion
I’m breaking my deliberate policy of not commenting on political issues this week in order to comment on reactions to the Boston Marathon bombings last Monday. My personal opinion is that the response of government and law enforcement agencies at all levels has been brilliant in the circumstances. However, there are already Monday Morning Quarterbacks saying that the government overreacted by shuttingn down Boston on Friday and part of Saturday. The problem is that the ones responsible for making these decisions can only plan and act based on information available at the time and the factors they felt they needed to consider. Just throwing out there that they overreacted without knowing those things is pure speculation based on specious counterfactuals or a personal hobby horse. If there is something I learned from a 26-year military career and my study of military strategy and history, it is that decisions that can look sub-optimal in hindsight may have been the best at the time given the circumstances of friction, uncertainty, and the fog of war. In this particular case, only a full after-action review will permit the systemic learning to occur. Saying it was an overreaction is nothing but pure hindsight bias.

Tip
The more complex and risky the undertaking, the more likely that friction will wreak havoc. We must compensate by building robustness, resiliency and redundancy into our plans and systems.

From the Vault
A Superb Example of Crisis Leadership in Action

By the way…
My ideas were featured in the March 25th Globe and Mail: A military approach to business.

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© 2013 Richard Martin. Reproduction and quotes are permitted with proper attribution.

Data was published yesterday that PC sales are plummeting throughout the world.

It is obviously a result of a move to mobile communications and computing. Most people don’t need a powerful desktop or laptop computer for everyday tasks. Email, messaging, reading news, talking on the phone or through video conferencing, scheduling activities, budgeting, etc., they can all be done on mobile devices. Even the occasional memo or report can be produced on a tablet.

With the rise of ubiquitous voice recognition, artificial intelligence, and cloud based services, there is really a limited market for desktop computing. What we’re seeing is the realization of universal computing machines that can act as a multitude of useful devices. Most people can get by in their personal and professional lives without a dedicated computer.

There are still mainframe computers, but they are now highly specialized or focused on truly high powered applications. The desktop computing model will remain, but it will be increasingly marginalized to specialized applications and uses. Everything else will be mobile, always online, multimedia and multichannel, with embedded specialized AIs and interaction facilitators such as voice dictation, field of vision tracking, and various other forms of man-machine interfaces.

Microsoft, Dell, HP, etc., they all have business models that rely heavily on the desktop computing model. They’re trying to make the transition to cloud computing, mobile interactive online living, and various other manifestations of the universal computing machine model. But, it’s not easy.

This just shows how even the most successful companies can see their business models undermined. The only way to overcome this is to shape the future yourself. To take the initiative and to try to create the new business models, rather than just react to them. Microsoft, for instance, has been singularly unsuccessful at adapting to, and shaping, new business models. The company was highly successful at riding the wave of democratization and decentralization of computing, and even created it to a large extent by offering cheap and reasonably effective and usable operating systems and productivity software. But then it just stopped really innovating.

There are only a handful of companies that have operated in highly changing competitive markets that have been able to evolve and adapt, and even shape the changes around them. IBM is one, HP in its previous incarnations was another. Who will be able to adapt to, and shape the future business environments? Who will have the offensive mindset to seize and maintain the initiative? I’ve written about this extensively in my book, Brilliant Manoeuvres: How to Use Military Wisdom to Win Business Battles.

© 2013 Richard Martin. Reproduction and quotes permitted with full and proper attribution.

 

The more I work to bring military wisdom to businesses and executives, the more I see the power of mission analysis in action. In fact, I find this so important, that this month’s newsletter is adapted from my book, Brilliant Manoeuvres: How to Use Military Wisdom to Win Business Battles. I want to offer this powerful tool of motivation and alignment so as many people as possible can benefit.

In standard military terms, a mission is a clear, concise statement of the task of the unit and its purpose. The interesting thing though is that the mission doesn’t come directly from the superior commander’s orders, but rather as the result of a process of analysis by the subordinate commander. The easiest way to apply mission analysis in business is to answer the following questions.

  1. What are the vision, mission, and intent of the whole organization?
  2. What are my immediate superior’s vision, mission, intent, and concept of operations for our part of the organization?
  3. What explicit tasks, roles, and functions within the greater concept of operations has my immediate superior given me?
  4. Are there implied tasks that are required to support these assigned tasks?
  5. What are the limitations on my freedom of action? In other words, are there constraints (musts) and restraints (must not’s) I must follow?
  6. What can I observe, infer, and assume from the foregoing?
  7. What is the most concise statement of my mission?
  8. How has the situation evolved since the last time I answered these questions? Has it changed, or is it similar to the previous round of analysis?

From these questions, anybody can formulate a mission that fits into the bigger picture of the organization they are part of. In other words, you can’t formulate your mission statement and make your own plan of action, statement of intent and end state, without first determining how you fit into the puzzle.

To illustrate the application of mission analysis to business, let’s imagine that you are a sales manager with a small manufacturer of custom packaging for cosmetics and generic pharmaceuticals. The packaging is similar for both types of products as are the suppliers, production, and warehousing. The sales and distribution channels are completely different as are the nature of the buyers, marketing, merchandising, and promotion. The CEO, also the company’s majority shareholder, wants to double the company’s size within four years, expanding the customer base to all of North America from its current concentration in eastern Canada and New England. The vision is to become a leading producer of quality packaging for the entire pharmaceuticals and cosmetics industries in all of North America. The new strategy entails an expansion from generic pharmaceuticals manufacturers to all pharmaceuticals companies, particularly those providing over-the-counter drugs because it’s felt that the packaging is similar to that of cosmetics. There are also many similarities in distribution and merchandising. The company’s mission, therefore, is to provide integrated, quality packaging solutions at reasonable cost for the pharmaceuticals and cosmetics manufacturers in all of North America. It will do this by providing a complete packaging solution. All the pharmaceutical or cosmetic manufacturer need do is ship the product to the company’s facilities and it will do the rest, including sourcing inputs, designing the packaging and instructions, doing the packing and warehousing, shipping to distributors, etc. In other words, they are aiming to provide an end-to-end solution for manufacturers of generic pharmaceuticals and cosmetics.

The senior team has developed a strategy based on three major business thrusts: grow the pharmaceuticals business; grow the cosmetics business; grow the capabilities to provide end-to-end packaging solutions to these customer groups. The company has traditionally had only one sales team, but with the new strategy, the CEO decided to split the company into three groups to focus on each thrust. There is therefore a VP for each of Pharmaceuticals, Cosmetics, and Operations, and each has been given wide freedom of action to execute the strategy within his or her area. You are now part of the pharmaceuticals group, responsible for developing the over-the-counter drug segment. VP Pharmaceuticals’ intent and concept are shown in the table below, as is your mission analysis.

1.    CEO’s vision and intent
Vision: Become a leading producer of high quality packaging for pharmaceuticals and cosmetics manufacturers in all of North America
Objective: Double size within four years and expand customer base to all of North America from current concentration in Eastern Canada and New England.
Mission: Provide integrated high quality packaging solutions at reasonable cost for both markets.
Concept: Provide an end-to-end solution for manufacturers of pharmaceuticals and cosmetics. Separate sales groups with one production and operations group servicing sales in both markets. Use mass customization approach for tailored customer solutions while optimizing efficiencies and economies of scale.

2.    VP Pharma’s intent and concept of operations
Vision: Preferred supplier of integrated packaging solutions for all major pharma manufacturers in North America wanting high quality packaging.
Objectives: Maintain generic pharma clients; reach all OTC drugs manufacturers as customers within 2 years; reach all other pharma manufacturers within 4 years.
Mission/Intent: Provide integrated packaging solutions so the pharma manufacturers can focus on developing and marketing their products, and not worry about packaging logistics.
Concept: Three sales teams focusing on three distinct client groups; generic sales team to expand to North America; create OTC sales team and build on existing client relationships in current clients to offer OTC packaging solutions, then extend to other companies; expand from OTC clients into other areas of pharma manufacturers and build sales team for proprietary pharma manufacturers as required.

3.    Assigned tasks
Develop the OTC manufacturers clientele.

4.    Implied tasks
Build a sales team; leverage existing relationships in generic pharma companies that also have OTC products; lay the groundwork to extend the same model to pharma companies that focus on proprietary drugs.

5.    Limitations
Must reach all OTC manufacturers within 2 years and all other pharma companies with OTC products within 4 years. Can go faster as opportunities arise.

6.    Observations, inferences, and assumptions
I infer from the foregoing analysis that the OTC sales effort is the critical one for the company, because it provides the bridge from existing relationships in current generic drug manufacturers to all other pharma companies. While OTC clients will be a major revenue source in and of themselves, the companies with proprietary pharmaceuticals form the bulk of the sector and that is where our company’s major future growth will come from. I therefore assume that the OTC sales team will be a priority for growth and resourcing over the next 2 years.

7.    Mission statement
Our mission is to expand existing client relationships in generic pharma to OTC drugs with a view to transferring this expertise to the proprietary pharmaceuticals manufacturers, first through OTC products, and then in support of all their other pharmaceutical products.

8.    Has the situation changed?
As the situation evolves in the next few years, you sit down with your team on a regular basis, or as needed, and redo this mission analysis to confirm that you’re still on the right track.

This notional illustration of mission analysis leads to a few critical observations. The first is that mission analysis is a dynamic process. Whether it is at the corporate, divisional, or team levels, the situation must be constantly assessed to determine whether the mission and goals are still relevant and, more importantly, still within the bounds of the superior manager’s intent and concept of operations. The second point is that the mission statement for any particular executive and sub-organization tends to flow of necessity from the analysis. Once the first five steps of the process have been done, the mission statement tends to be obvious. The final and most important point is that mission analysis is the glue that holds the whole framework of nested hierarchical planning together. Mission analysis enables managers and employees at all levels of the organization, no matter what their role or tasks, to fit into the big picture and know their mission. This empowers everyone to exercise initiative to achieve the vision and mission of the organization.

© Alcera Consulting Inc. 2013. We encourage the sharing of this information and forwarding of this email with attribution. All other rights reserved.

Brilliant Manoeuvre
Leaders must know when it’s time to lead from the front and when it’s time to let others take the reins.

Example
German general Erwin Rommel was one of the most effective and respected commanders of World War II. He was renowned for leading from the front and knowing when it was time to exercise his influence and authority at the decisive point of battle. During the crossing of the Meuse River in 1940, he was at the front and realized that a window of opportunity had opened. Without dithering, he took command of two additional regiments from neighbouring divisions (he was commanding the 7th Panzer Division) in order to secure the river crossing and press the advantage of the German forces on the western bank of the river. During his command of Afrika Korps in North Africa, he was often caught behind enemy lines because he was so far forward. He would also fly over the battlefield to reconnoitre in his Storch plane. Both of these were necessary to stay in touch with the fluid manoeuvring in the desert, but they also demonstrate the risks that must be weighed to be effective in leadership. Rommel was willing to take those calculated risks because he wanted to be at the point of decision and exercise his leadership in person. All great military commanders have demonstrated this talent throughout history. The same applies in business. You have to know when and where to exercise your leadership. Leading from the front is needed to set the example, the tone, and the pace of an operation or project. On the other hand, once things are fully underway in the right manner, it is time to pass the baton to a trusted subordinate to continue with the project so the leader can focus his or her efforts on another strategic initiative.

Tip
A leader must be an example of professional competence, good conduct, and probity to earn the full respect, loyalty, and confidence of the people under his or her responsibility.

By the way…
My ideas are featured in today’s Globe and Mail: A military approach to business.

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© 2013 Richard Martin. Reproduction and quotes are permitted with proper attribution.

http://www.theglobeandmail.com/report-on-business/careers/management/a-military-approach-to-business/article10197913/

Brilliant Manoeuvre
Let your competitors focus on their existing customers and products. That creates opportunities for you to manoeuvre around them.

Example
In the 1950s, Fairchild Semiconductor left the vacuum tube manufacturers to focus on their existing customer applications such as TVs and radios and went after the more demanding and much more lucrative defense and space applications markets with their solid state transistors and integrated circuits. Canadair (and then Bombardier Aerospace) didn’t try to build major jetliners but instead went into businness jets, water bombers, and small regional jetliners. Microsoft didn’t try to go directly up againt the IBMs and didn’t get into hardware, but instead offered low cost, reasonably effective operating systems and applications to individual users and small businesses. Google initially just offered search based ads to advertisers, leaving mass media companies to continue focusing on large accounts. Apple left the corporate and institutional markets to Research in Motion when it introduced the iPhone and went after the consumer market.

Tip
Use your competitors strengths against them.

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© 2013 Richard Martin. Reproduction and quotes are permitted with proper attribution.

Brilliant Manoeuvre
Use technology to move faster and make decisions faster than competitors.

Example
Technology has always been a key factor in warfare. The side that is better able to exploit a new technology and do so faster and in greater numbers than potential or actual enemies will tend to prevail. The same applies in business. Technology is evolving at an accelerating rate. Visionary inventor and entrepreneur Ray Kurzweil calls this phenomenon the Law of Accelerating Returns. As an example, the speed and quality of genome sequencing basically doubles every year while the cost continues to drop rapidly. IBM’s Watson supercomputer, which last year won Jeopardy by beating the two best ever human competitors (with a score that surpassed their combined scores), is now being turned by IBM to the development of AI-based medical diagnosis. It is conceivable that within a few years we will have access to our own medical records and biometric information in a continual manner as well as near instant health monitoring and diagnosis. How will this change medical and healthcare practice? What does this mean for doctors, nurses, hospitals, pharmacies, pharma companies, and health and life insurance companies? If I were in these fields, I would be developing scenarios and finding ways to be at the forefront of technology and innovation so I could be in a better position to preempt competitors and occupy the rich economic terrain that will open up. I would be actively looking at the impact of technologies in all fields, even outside of my own, because new threats may arise or, more important, new opportunities WILL arise. I would want to be on the winning side by setting the conditions and shaping the battlefield to my advantage.

Tip
Be on the lookout for evolving technologies in all spheres of endeavour and seek ways to incorporate them into your business or to leverage them for competitive and strategic advantage.

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© 2013 Richard Martin. Reproduction and quotes are permitted with proper attribution.

Brilliant Manoeuvre
Explain your plans and intent to your followers, as well as those of your immediate and higher superiors, and even the organization as a whole. Involve them in the planning and determination of your objectives. Get them to understand the criticality of their contributions and what they need to do to achieve the mission and vision.

Example
Bert Hoffmeister is recognized by historians as one of the most effective senior Canadian officers of the Second World War. He rose from the rank of Major and the job of company commander all the way to Major General and division commander in a few short years. He commanded during the very difficult and costly Italian Campaign, as part of Montgomery’s 8th Army. Whereas most Canadian generals tended to be aloof and overly analytical in their approach to command, Hoffmeister was able to communicate directly and on a gut level with soldiers of all ranks. He would involve his subordinate officers in the estimations and planning for operations and encouraged them to do so with their own subordinates. He would command from the front and keep everyone in the loop, usually by direct face-to-face contact. He was a master of motivation; his officers and NCOs would often do extraordinary things because they knew what was happening, why it was happening, and what their role was in implementing the plan and achieving the mission. Even more important, though, was that they had had a key role in the planning, so it wasn’t just something imposed from on high, but a mission that had grown organically with their input.

Tip
Keep your followers informed of the mission, the changing situation, and the overall picture.

Richard Martin is a consultant, speaker, and executive coach. He brings his military and business leadership and management experience to bear for executives and organizations seeking to exploit change, maximize opportunity, and minimize risk.

© 2013 Richard Martin. Reproduction and quotes are permitted with proper attribution.