ValuExecBlog

In the pursuit of happiness

I was talking to the CEO of a prospect the other day about strategy and strategy execution and he said something that I thought so simple and yet was so wise. First some background. This gentleman has built his reputation on going into ailing companies and turning them around. He has turned around companies of all sizes and across a number of industries. Not once, he told me, did he ever go into a company and have to retrench people en-masse. Yes, he had got rid of people, but they tended to be incompetent managers/leaders.  

When I asked what his general approach to strategy was he said simply 'the pursuit of happiness'. People/employees want to be happy, he said, and in the main, they want others to be happy so in general they relate to discussions around happiness. If leaders could simply explain what would make them happy in simple terms, them employees would be more engaged. However, leaders tend to get consumed with measures and terminology that the majority of employees don't understand or can't relate to in terms of the overall pursuit of happiness of the organization. 

It is a simple concept for sure, but it is a wise one nevertheless and one that needs more thought. I wonder if when talking to our employees we started with the phrase 'It would make me happy if .......' and then outlined in simple terms what would indeed make you happy. Worth a shot I think.

Yours in execution.

ian

The 'War for Talent' ~ Truth or Fiction

We have heard alot about the 'war for talent' over the last 5 years, and I suspect that we will continue to hear alot about it in the year ahead. But, has there really been a 'war for talent' or has it been nothing more than an opportunity for the major consulting companies to sugar coat what has always been a dilemma facing companies - getting the best person to fill a role. I can only surmise that the reason for the sugar coated pill is so that the so-called top tier consultants can extendtheir usefulness beyond their use-by-date but mainly so that those executives who continue to fall short of targets can still pay themselves exorbitant salaries or bonuses under the guise of they're the best talent around. It wasn't long before we got the spin that financial institutions had to pay the vast pre-GFC bonuses again to those in charge because they were the best and that they couldn't afford to lose them. I mean - who the hell got us in the mess in the first place. But, I digress.

If there is indeed a war for talent, why are companies still falling short of strategic goals? Why are they still falling short of shareholder expectations? 

Let me suggest that there is a 'battle for talent' but the war being waged is not for talent but for employee engagement in the full sense of the word. We have seen 'talent' in roles unable to get results because they just couldn't muster the 'troops'. If employees are not committed, not engaged, disconnected - I don't care how good your talent - the results will not be forthcoming. It worries me how high the number is of people who hate their current job because if they hate their job, how can they be truly engaged.

Companies may well win the 'battle for talent' but still lose the 'war for employee engagement'.

Yours in execution.

ian 

Strategy Execution ~ More critical than ever

As we move into 2012, companies will find that strategy execution will become more critical than ever. The pressures on senior managers to deliver on their promises to their key stakeholders is going to be immense because they are going to find that there is no where to hide. This pressure will flow down through the organization ensuring that everyone will feel it regardless of what level in the organization they are. Those that don't execute well, will be moved to other pastures.

The chaos in world markets throughout 2011 bought senior managers time - time that they will find they don't have going into 2012. This is an exciting time for companies and I sincerely believe that those that execute well will be rewarded and those that don't will spend the next 5 years playing catch up. We will see a new pecking order emerging amongst companies. Companies will shed strategy execution tourists and embrace talent that want to contribute.

Yes, this is an exciting time for us all. Wishing you a wonderful and prosperous 2012.

Yours in execution.

ian

Strategy Execution from the heart

You might have guessed it by now, but I am passionate about strategy execution. I feel it every time I go into a company and am told that plans are not being met because of poor execution as a result of people, or processes or even customers. We know from research that companies lose about 40% of strategy in execution, so it stands to reason that there is so much to be gained if corporate leaders simply focused on the execution of strategy. But unfortunately, research again tells us that leaders tend to spend 85% of their time on operational issues, i.e., putting out fires, rather than on execution.

With all the doom and gloom that we are reading about in the world press today, it is easy to become like the proverbial rabbit caught paralyzed in the headlights of an on-coming car, and it will take every effort to move out of the glare of the headlights and into the safety of the unknown. And that is what makes it all the more exciting. Safety can and will be found in the unknown and not in the known. Safety will be found not with what makes us comfortable but with that which makes us uncomfortable.

If companies want to survive, they will need to improve their execution. And for those of us who are passionate about execution, we will need to find alternative ways that we can bring to companies to help them execute better and faster; ways that are not complex, but are customized to suit the particular company, its people, processes and its customers. One-size will not fit all.  

Yes, Siree! I am looking forward to an exciting 2012.

Yours in execution.

ian 

Strategy Execution is like Golf

Executing strategy is like playing golf. One day, you can have a great game and the next day, just when you think you are mastering the sport - you can have a shocking round. What makes golf the ultimate experience is that no two rounds of golf are ever the same. Natural elements change; what happens between your ears changes; where your ball lands on the fairways or on the greens is never the same and your approach to the flag is never the same. But you do the best that you can with the skills and tools (your clubs, etc) that you have on the day. And so it is with strategy execution. Nothing is ever the same from one day to the next let alone from one year to the next. And so you make do with the skill sets and tools that you have. 

 Before you hit a shot in golf, you have to be aware of every element that might impact how you hit the ball and where it might land. It is the same with strategy execution. Know the course you are playing; which way the wind is blowing; which elements will come into play, what clubs are in your bag and make sure you get yourself a great caddie.

Yours in execution.

ian

Service Mojo ~ A Lost Art

It has been a long time since I have experienced excellent customer service. I mean - exceptional customer service. It is hard not to generalized but I was truly beginning to think that 'exceptional customer service' was a lost art; that companies had lost their service mojo. And then - along comes Victoria's Secrets. Now before you wonder what I have to do with Victoria's Secrets, I must quickly point out that it is my daughter that has shared this story with me and which I now pass on to you.

My daughter had hoped to purchase a particular eye shadow which she had seen in makeup tutorials on the Victoria's Secrets (VS) website. Unfortunately it was not available from their on-line store. So, she enquired as to whether it had been renamed or was out-of-stock. Her expectation was to get a reply within 48 hours detailing where she can purchase the eye shadow. The reply came within 48 hours with the expected details so nothing exceptional there - but it was what else was said in that reply that has won over my daughter for life which, as she is only 18, translates into alot of money for the Company. One simple e-mail is all it took. Here is what they wrote:

 'Thanks, so much, for taking the time to get in touch with us. I understand you are looking for our eyeshadow, Between the Sheets. It's my privilege to respond to you personally.

Regrettably, this eyeshadow, #242781-L80 is no longer featured online, however it is still available. Please call us at 1-800-888-8200 or 1-937-438-4200 (outside the U.S. and Canada) to order this item. If you need further assistance, please reply to this email or call anytime.

(My daughter's name), you've chosen Victoria's Secret. We think of that as a privilege. So, if there's anything more we can do for you, please e-mail or call us any time.

Happy Holidays,

Paige

What won my daughter over was the personal touch; that Paige obviously had to find out the information about a product that was no longer featured on the website but particularly, here was a company that saw it as a privilege to have her business and that shines through on every single line of the response.

Well done to Victoria's Sectrets. I know where I will be buying my wife's next gift.

Yours in execution,

ian    

Look internally for 'best practice.'

I have never been a fan of 'best practice.' It's a personal thing but I have never been comfortable in the belief that those who push 'best practice' have actually reviewed every single organization, analysed what ever 'best practice' they are pushing and finally that all the stars are aligned so that what works in one organization will work in another. That is not to say that I don't believe in taking what works in one organization and adapting it for another - I do. It's just that I don't like to call it 'best practice.' But as I say, it's a personal thing. 

But what has amazed me is the number of times I have seen 'best practice' operating inside an organization. All you need do is look for those departments, business units, Divisions or teams that are getting results consistently and nine times out of ten, they are doing something differently. They are 'best practice.'

So before looking outside, look internally and you may be surprised by what you find.

Yours in execution.

ian

The Strategic Principle: Why you need it!

A challenge that confronts every company at some point is: How do you give employees clear strategic direction whilst at the same time inspiring flexibility and risk taking?

Successful companies do this through a strategic principle which is an actionable phrase that distills a company's corporate strategy into its unique essence that is then able to be clearly communicated throughout the organization. A strategic principle is not a mission statement. It drives the company's strategy; it is action oriented and it enables frontline employees to act quickly by giving them explicit guidance to make strategically consistent choices.

In their article "Transforming Corner-Office Strategy into Frontline Action" (Gadiesh.O; Gilbert. J.L; Harvard Business Review; May 2001), the authors suggest that a strategic principle has 3 defining attributes:

1. It forces trade-offs between competing resource demands;
2. It tests the strategic soundness of a particular action; and
3. It sets clear boundaries within which employees must operate while granting them freedom experiment within those constraints

Examples of strategic principles from well-known successful companies are:

• Dell : Be direct
• eBay : Focus on trading communities
• GE : Be number one or number two in every industry in which we compete, or get out
• Wal-Mart : Low prices, every day

And then there is our own at Valufacture Solutions which is to 'Create outstanding value.'

Now, more than ever where competitive advantage rests with a company's talent, the creation of a strategic principle and then communicating it throughout the organization is crucial to a company's success. So, how clear is your strategic principle to your employees?

Yours in execution.

ian

 

 

 

Work-life-Strategy Balance

Unashamedly I have been a believer in the work-life balance movement. However just when I think that my life is in balance - disaster strikes. One aspect of my balanced wheel suddenly takes on my undivided attention to the detriment of all others and throws everything out of balance. And so the quest to get my life in balance starts again.

Recently, I started looking at the lives of people who have made a difference in this world and from what I can see, very few of them had their lives in balance. Most, if not all of them, were consumed by one burning passion; one burning drive that seemed to take over all other 'balanced' aspects of their lives. So, my question is this - does this whole work-life balance thing strip us of our ability to make a huge difference in this world?

How does it apply to strategy? I am in two minds. First, we have seen in organizations that people try to balance what is required in their day-to-day jobs with what they are required to do in executing strategy - they try to get the balance right; but in the majority of cases, they fail and strategy execution takes a back seat to what they are comfortable with, namely what they have been doing daily. Secondly, perhaps one of the most exciting times that I have had is when I worked for a small advertising agency and we were pitching for the business of potential clients. The passion and energy in the agency was electric. We were 100% consumed in getting the business. As a result, some of the day-to-day activities took a back seat.

The task is to know what is important and what to give up and then have the support that allows you to do so. What are your thoughts?

Yours in execution.

ian

Asking 'Why' a Company Exists

When we start working with a company on closing the strategy-to-performance gap, the very first question we now ask is "Why does the company exist?' Very few companies are able to articulate the reason clearly. Most will say that they exist to make a profit, or create shareholder value; some will even provide their vision statement. The point is that people be they employees, consumers or investors tend to gravitate towards those companies with very clear definitions of why they exist.

The importance of understanding "why a company exists' was once again brought home to me when I took time out and asked it of our consultancy business Valufacture Solutions. We had lost sight of the 'why' we exist and had got caught up on what we offered our clients which was impressive or so we thought. In other words in selling to prospective clients we would start with our offerings, how they could help the prospect which was after all why we were there. We got it back to front. Starting with the reason 'why' we existed was so much more inspiring both for ourselves and for our prospects. Now I remind myself every day 'why we exist' and make sure that our work reflects that.

So, if you haven't done so, take time out and ask yourself 'why does your company exist' and see if your answer is truly inspiring.

Yours in execution.

ian