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Strategic Planning Blog

How to Create Strategic-Minded Employees: The POP Method

Posted on October 28th, 2011 by Anne Marie Smith

Today, competitive organizations have cultures built around innovative leadership, where workers are encouraged to be both strategic and tactical in everything they do. Companies that coach their employees to go out on the proverbial limb–and stay there–will time and again outperform and outlast their competitors.

But how do you teach tactical-minded employees to think strategically? How do you turn “we’ve always done it that way” automatons into “we can do it better” creative thinkers? I recommend the POP method. It’s easy to remember and teach.

  • Pause:Take a time out. Many of us go about our daily routines day after day without taking the time to evaluate why we’re doing what we’re doing. We often mistake being busy for being productive. Before starting any new assignment, stop for a moment and evaluate what you’re doing and why. Does it provide value to the business? Who is the beneficiary of your output? How is it making the business operate cheaper, faster, or better? If you’re asked to do something, ask “Why?” rather than “How?”
  • Outcomes:Strategic thinkers focus on possible end outcomes. Ask yourself if what you’re doing impacts the organization and its mission and vision. In what way? Keep an eye out for threats, obstacles, and problems areas that may be lurking in the shadows before they hit turn into crises. Likewise, what opportunities can you take advantage of that may prove valuable in the future?
  • Plan: Once you know what you’re doing and why you’re doing it, break the project down into deliverables and then into tasks required to complete each deliverable. Delegate to yourself or others who does what and by when.

The idea is to challenge and encourage employees to function strategically while still getting things done. When employees begin to think more strategically they become more responsive to changing customer needs and market conditions. They become problem solvers instead of problem creators.

2 Questions to Help You Decide How Much Strategic Risk to Take

Posted on October 27th, 2011 by John Johnson

Question 1: What have I got to lose?

As a youth, I learned about change in strategy and risk on the sports field when the opposition started gaining the upper hand. When it seemed obvious this would continue, we threw everything at them. Our thinking? There just might be a turnaround with a new, more radical strategy. Of course, the key to strategic change is timing (i.e., when to pull the plug on what you are doing and try something else). In most cases, the plug is pulled too late.

What have I got to gain?

What you have to gain, strategically, can range from survival to Kaizen (Japanese for “improvement” or “change for the better”). The former is a heck of a lot more serious than the latter. If enterprise survival is the strategic issue then a successful outcome is paramount. The consequent risk factor will escalate since you must attempt to do things you have never done before–mainly because what you have been doing simply isn’t working anymore.

10 Ways to Tell a Strategy is Likely to Fail

Posted on October 25th, 2011 by John Johnson

It is an unfortunate fact that about 80% of strategic plans never get implemented. Here are some warning signs to heed:

  1. It is not in writing.
  2. It takes too long to explain.
  3. The people responsible for implementation do not fully understand its intent.
  4. It is not adequately financed.
  5. It is not endorsed and enforced by leadership.
  6. It fails to provide rewards for specific task completion.
  7. It fails to communicate project progress.
  8. It is not routinely followed up on.
  9. It does not produce measurable deliverables.
  10. It fails to anticipate never before encountered problems.

 

6 Steps to Confront and Modify Bad Employee Behavior

Posted on October 24th, 2011 by John Johnson

No one wants to lose a valuable employees because of occasional or habitual bad behavior on their part. But if ignored, like a cancer, it will spread to those around them until you have no choice but to terminate the individual’s employment and then clean up the collateral damage. Before going to that extreme, try working with the employee. Face to face, try this technique:

  1. Describe the person’s behavior without judgment. I see, I hear …
  2. Give your interpretation of this behavior. My assumptions about this are …
  3. Describe the current or potential impact. As a result I or others experience …
  4. Get commitment to the issue. Can we agree this behavior causes problems?
  5. Describe what you need. What I need in the way of behavioral changes are…
  6. Get agreement to a plan of action. What are you prepared to do and when?

Then, of course, follow up. It would not only be an error not to follow up but an abdication of your role as leader. Believe me, your people know what is going on–particularly when it comes to defiance to your leadership.

5 Qualities of Strategic Thinkers

Posted on October 14th, 2011 by Anne Marie Smith

Strategic thinking involves analyzing opportunities and problems from a big picture perspective and understanding the potential impact of an action. Essentially, it’s about looking before you leap. What does it take to be a strategic thinker? Five qualities I believe strategic thinkers need to have are:

  • Curiosity – Strategic thinkers are lifelong learners. They ask “why?” rather than “how?” They question everything. This can be as frustrating as a 2-year-old and sometimes you just want to answer, “Just because!” But curiosity often leads to better alternatives or solutions.
  • Long-Term Orientation – Strategic thinkers understand that it’s about the long term. It’s not about today, tomorrow, or next week. They are adept at envisioning the possibilities and payoff.
  • Open Minded – Strategic thinkers are open to new ideas and welcome feedback. They are continually seeking out ways to improve and perfect. They also challenge their own thinking. You will never hear a strategic thinker say, “That’s impossible.”
  • Zoom-Out Ability – Strategic thinkers have the ability take the helicopter view and keep the overall corporate strategy or company mission in their mind’s eye in every decision they make.
  • Analytical – Strategic thinkers analyze the pros, cons, and possible consequences and make fully informed decisions based on the data available.

What other characteristics do you associate with strategic thinking?

Customer Service: The New Marketing

Posted on October 10th, 2011 by Anne Marie Smith

I read an article recently in which the author, Barry Moltz, stated that customer service has become the only sustainable competitive advantage businesses have and the only way to ensure long-term profitability.

I think Netflix found this out the hard way. Today, CEO Reed Hastings announced that Netflix will keep its DVD and streaming services as one company. “It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs,” Hastings wrote.

The lesson here for any business is to ask if what you’re offering—whether it’s a new service or product, or a change in how you’re serving the customer—will make your customers’ lives better or easier in some way.

It’s no longer good enough to ask, “How was your experience with us?” You must ask, “How can we make your experience better?” Understanding and solving customers’ problems shows, more than anything else a business can do, that it really, truly cares about its customers. And customers that feel cared about can become a business’ most ardent fans. Conversely, as the Netflix debacle illustrated, customers that feel mistreated can quickly become an organization’s fiercest mortal enemies who will not hesitate to tell anyone and everyone, “They suck!”

In essence, customer service is the new marketing.

Sharing a Bit of my iSadness

Posted on October 6th, 2011 by Anne Marie Smith

Where were you when you heard? I was in my kitchen putting dishes away when my husband walked in and told me. Without thinking, I picked up the iPad sitting on the kitchen counter and starting reading the breaking news articles. As I read, sadness and depression washed over me in waves.  

Now, I didn’t personally know Steve Jobs, but he’s been a part of my life since 1984. I had just graduated from college and scored my first professional job at a semiconductor manufacturing software company as a technical writer. One day, a technician plunked a Lisa computer on my desk. The Lisa was the first commercial computer with a Graphical User Interface. I immediately saw the mouse and asked, “What the heck is that?” Within an hour, I was enchanted.

In 1989, my husband and I bought our first Apple products–a Macintosh computer with 4MB of RAM and a LaserWriter. From there it was the iPod, then the iPhone, and now the iPad. It may sound strange, but I actually, truly love my iPad. Not as much as I love my dogs, but it’s close. Steve Jobs was passionate about his innovations. His passion inspired us to be passionate about them too.

So, in my mind, Steve Job’s was my friend. And my “friend” died way too early. So long, Mr. Jobs. I will miss your genius. I will miss your passion.

 

The Best Interview Question Ever

Posted on October 5th, 2011 by Anne Marie Smith

My husband and I went out to dinner last weekend to celebrate my birthday. We took a cab there and back so we both could enjoy wine with our meal. On the way home, we chatted with our cab driver. He told us he was writing a book about casino corruption. As it turns out, he had been “86’d” (his word) out of every casino in Reno and Lake Tahoe and he wanted to expose how dirty the casinos are. I asked him if he’d ever read a book by author James Swain, who is an expert on gambling cons and swindles. The guy was quiet for a moment. Then he said, “I don’t read books.” That told me a lot about him.

That conversation got me thinking about people and books. I read somewhere once that one of the best questions you can ask candidates during the interview is:

              What were the last three books you read?

You can also ask this question with a little more specificity: What was the last book on <insert topic> you read? (The topic being related to the position the candidate is interviewing for.) When I began asking this, I typically received one of three reactions:

  • “I don’t remember.”
  • “I don’t have time to read.”
  • A listing of popular fiction novels.

If the candidate had been out of school for at least ten years, another related question I asked was, “What was the last training course you took since college?”

What I was always on the lookout for was the individual who loves to learn. I found that knowledge-seekers are, in general, more creative, thoughtful, and interesting—the type of people I enjoy spending time with and want on my team. Learners also tend to be far more strategic in how they think and work.

Of course I’d ask other questions as well, but I always found a candidate’s answer to the book question very telling and predictive about the type of performer he or she would be.

What questions have you found work well for you?

Have You Lost Your Vision?

Posted on October 4th, 2011 by John Johnson

I venture to say that every business is started with a vision. The vision may be in the mind of the founder or it may be in writing, but it is there. Once a business is started, however, there is a mile-high pile of tactical distractions that can lead you astray from the original vision. The struggle for cash flow, getting and keeping clients, managing employee productivity, and a host of other issues can easily cause one to lose sight of the strategic horizon. Often, for many small businesses, the original strategic vision is replaced with a new vision: Making it through the day or month.

I suggest you carve out a small amount of time at least once a week to reacquaint yourself with your original vision, determine if it’s still the right one, and create strategic initiatives that focus on achieving your dream. As a leader, visioning is unique to your job and vital to the strategic growth of your company.

Three Anti-Customer Words

Posted on October 3rd, 2011 by Anne Marie Smith

Here are three of the most anti-customer words I can think of: “That’s our policy.”

I’ll always remember the time when I purchased an internal drive for my computer at a big computer chain called Computer City.The drive wouldn’t fit inside my tower so I brought it back to the store to look for something that would work. I found an external drive that cost $20 more. When I went to the return desk to make the exchange, I was immediately told that I’d be charged a 15% re-stocking fee on the returned item. I explained that the device didn’t work in my computer and that I was purchasing one that would. “I’m sorry, ma’am,” the clerk said. “That’s our policy.” She turned the purchase receipt over and pointed at a bunch of words printed on the back of it.

Astounded, I asked to speak with the manager. I stood at the front of that store and waited for 45 minutes. As you can imagine, I wasn’t a happy camper but I was determined to behave professionally and rationally. Finally, the manager appeared and reluctantly brought me into his office. I explained what happened. Again, I was flipped the three-word bird: “That’s our policy.”

Still calm, I explained that I wasn’t aware of the policy. I told him that I understood a store’s need to have policies, but exceptions should be made if it makes business sense. I said, “A policy is only a policy. It’s not law. I’m planning on buying something else that costs more. Do you not want my money?” After 15 minutes of discussion the manager said, “I usually don’t do this, but I’ll make an exception this one time.” And here’s the kicker: He ended the conversation by saying, “But don’t ever try this again.” Oh. My. Goodness.

Although I really wanted to ask the dude what kind of car he drove so I could slash his tires and then lay rubber out of the parking lot, I nodded and kept my mouth shut. I had achieved my goal. But you can bet I never went back to that store again. And you can bet I told everyone I knew about my experience. This was back in the late 90s, well before social media. If Facebook and Twitter had existed then, I would have told the world. I would have been merciless.

When that company’s management created its “15% Re-stocking Charge-No Exeptions” policy they were clearly not thinking strategically. They came up with a tactical solution to a business problem (reduce the costs associated with product returns) but did not consider the long-term impact on customer satisfaction and, thus, repeat business.

The company was out of business less than a year later. Go figure.

When you create your policies, it’s always a good idea to keep in mind that customers have policies too. One of a customer’s unwritten policies is to never do business again with someone that punches you in the nose, takes your money, and then scolds you like a naughty child.

I still wish I had asked that store manager about his car…