Management Fundamental

Insights Corner Management Fundamental Series

Why is Corporate Strategy Important?

It is common to find many senior leaders questioning the importance of having a Corporate Strategy. They question how practical it is to their current business and question the value it will create if they invest the time and resources required to develop and execute a Corporate Strategy.

This article will shed light on What a Corporate Strategy is, Why it is Important, and provide insights on How to execute a Corporate Strategy “Fit for the Purpose” of your Business.

“What is Corporate Strategy? Why it Corporate Strategy Important? How to execute a Corporate Strategy Fit for the Purpose of your business?”

What is Corporate Strategy?

In its most simple term, a Corporate Strategy is the Details and Specifics surrounding the Business’s Ultimate Goal, its “North Star”, its “Overarching Goal”; essentially, it is ultimately what the “Business wants to Accomplish”. It is more than ambitious statements citing a Vision or Mission that sounds great. It is the statements that inspire and guide the entire company’s actions.

There are many different formal and informal “versions” of a Company’s Corporate Strategy, “Fit for Purpose” acceptable Corporate Strategy could include:

  • The Business Vision & Mission, or
  • The Business Purpose Statement, or
  • The Business Value Proposition, or
  • The Founder’s Vision for creating the Business, or
  • The Leader’s Goal – what they would like to accomplish, or
  • The Business perceived Competitive Advantage and how they intend to win in the marketplace, or
  • Simply, the difference the founder wants to make through the Business;

each of which, provides management with guidance to ensure that they are optimizing their resources toward the same ultimate goals as their peers.

The Business Vision & Mission, or Purpose, are the formal versions of a Company’s Corporate Strategy, from which its Values, Value Proposition, Competitive Advantage, and Company’s Corporate & Annual Goals are defined. Goals designed to achieve the Company’s Corporate Strategy. While the last four are not officially formal Corporate Strategies, they each serve the objective of a Corporate Strategy by guiding the leadership of the Business toward common goals.

Reference: See our book, “Leadership Processes, elevating Critical & Strategic Thinking“, for our proprietary Leadership Process detailing how to unpack a Business Corporate Strategy, extracting actionable yet relevant strategies; business leaders can rally around as they aspire to achieve the Business’s Corporate Strategy. Check our product page for more detail.

Let’s look at each component of the Corporate Strategy in more detail.

The Business’s Vision Statement

The Business Vision Statement communicates the “Aspirational Goals” for the business.

The Business Vision Statement communicates the “Aspirational Goals” for the Business. Because the Vision Statement is aspirational, it is by nature non-specific. It is deliberately designed to be left open for leadership’s creative interpretations while being flexible to remain relevant despite forecasted changes in the micro and macro environment, simultaneously setting the overall direction for the Business.

Apple’s Vision Statement 2023: “To make the best products on earth and to leave the world better than we found it.“

Amazon Vision Statement: “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.” 

The leadership at both Apple and Amazon can interpret the Company’s Vision Statement to determine precisely what each phrase means. Apple left its Vision open to venture into any product area as long as it fits the “best product” criteria while executing the Business’s operations with ESG consideration. On the other hand, Amazon set clear guidelines for its leadership to create the most customer-centric company that can sell anything online. 

The Business’s Mission Statement

Mission Statement primarily communicates what the business does and for whom.

The Company’s Mission Statement cites more achievable, shorter-term tangible goals the Business can pursue that are aligned with its Vision Statement. It primarily communicates what the Business does and for whom. While there are more complex structures of a Mission Statement encapsulating more details of the Business, the two key characteristics of a Mission Statement are to define what the Business does and for whom.

Apple’s Mission Statement: “bringing the best user experience to its customers through its innovative hardware, software, and services.”

Amazon Mission Statement: “We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience.”

Apple’s Mission statement states clearly that Apple provides innovative hardware, software and services in their products for users who appreciate a good user experience, while Amazon’s Mission statement states that Amazon’s desire to make shopping online on their platform convenient while providing a wide variety of products at the lowest possible prices. Both Apple nor Amazon state in their Mission Statements the specific products or services provided, only what their customers can look forward to.

Apple promises innovative products and excellent user experience, and Amazon promises convenient shopping with the widest variety of products at the lowest possible price.

The Business’s Purpose Statement

The Purpose Statement communicates “Why” a business exists and how its products and services benefit their customers.

It’s a general observation that a business either has a Vision-Mission driven Corporate Strategy or a Purpose driven Corporate Strategy. The differentiating factors determining whether a company is Vision-Mission-driven or Purpose-driven often are 1: The Complexity of the Business and 2: The Persona of the Business.

The Structure of the Organization combined with its Operating Model and type of services provided often dictates whether a business will have a Vision-Mission Corporate Structure or a Purpose driven Corporate Strategy.

Apple and Amazon are often perceived as unreachable by their customer base, who do not need an intimate relationship with the company to reap the full benefits of their goods and services, while Insurance type companies often rely on a more personal connection with their customers to provide excellent services; resulting in Insurance companies opting for a Purpose driven Corporate Strategy.

Allstate Purpose Statement: We help customers realize their hopes and dreams by providing the best products and services to protect them from life’s uncertainties and prepare them for the future.

When planning the Business Corporate Strategy, most Small and Medium size businesses will benefit from a more straightforward Purpose Statement Corporate Strategy; it communicates to the staff and target market what the Business is and who it serves and provides ample information for the target customer to connect with the Business.

Whereas more complex organisations will want to evaluate the pros and cons of each structure before determining which format best fits the needs of the Business.

Corporate Strategy Details

Having established that the Business Corporate Strategy is either Vision-Mission-driven or Purpose-driven, clearly stating what the Business wants to accomplish, what it does and who it serves. The next step is translating the Business’s Corporate Strategy into smaller tangible goals, objectives and actions the Business can execute.

Think of it like this. The Business Corporate Strategy is the destination the Business is hoping to arrive at, why it needs to get to that destination, and the mode of transport it will use to arrive at its destination.

The Corporate Strategy Details – the Values, Value Proposition and Competitive Advantage – are the details necessary for the Business operators to work in lockstep to achieve its Corporate Strategy. Think of it like this; the details are the plannedrequiredcessary for the Business to get to its final destination as efficiently as possible, with the best possible experience for itself and its customers, while building trust and loyalty throughout the journey.

Values: 

Values are essential because values set expectations for the quality of the experience for staff and customers with every business transaction.

Theoretically, “Values” define how employees ought to behave in the daily execution of their duties and are the building blocks of the Company’s Culture.

Practically, “Company’s Culture” is the sum total of the collective behaviours of the workforce, whether the behaviours are sanctioned or not by management.

Realistically, “Values” listed in the Company’s Corporate Strategy alone do not determine Company’s “Culture” and often, in reality, the Company’s Culture is not a reflection of the Company’s Values.

Brand:

 

The Company’s Brand is a reflection of the general public’s judgement. It’s a “sum-total” of how the staff and customers feel about their interaction with the company.

Theoretically, “Brand” is the image the Business wishes to create for the public.

In Practice, “Brand” is the Public Image the Business has because of the experience its staff and customers collectively form based on their experiences with the Business.

Realistically brand isn’t determined by a branding exercise. A branding exercise will shed light on what Brand the company should curate, with insights on how to create the desired image. However, the Company’s Brand is formed by how well the operators of the business behaviours are aligned with the image it wants to project.

The reality is most businesses’ Planned Brands, and their Actual Brand are not aligned.

Value Proposition:

Theoretically, “Value Proposition” is the value leadership want the business goods and services to create for its customers.

In Practice, “Value Proposition” is the perceived value gained by the customer from the consumption of the business goods and services.

Realistically, the “Value Proposed” and the “Value Gained” often differ for most businesses, with the Business overestimating the value created and the customers underestimating the value gained. It is advisable for the Business to frequently seek and evaluate customer feedback to determine its true value proposition, incorporating relevant insights into the creation, delivery and follow-up of its goods and services.

Competitive Advantage: 

Competitive Advantage is lessening its importance in business management primarily because it’s seen as extremely difficult to develop and execute, while the changes in technology and the economy make the information relatively obsolete relatively fast; there is little incentive for Businesses to invest the time and money to develop, and even less incentive for Small and Medium Size businesses. However, for a business to thrive and grow, it must manage a fit-for-purpose Competitive Advantage.

Theoretically, “Competitive Advantage” is how the Business differentiates itself from the competitors in a way that is more appealing to its customers than the competitors.

In Practice, “Competitive Advantage” is constructed by most using “Quality”, “Service”, “Price”, “Technology”, “Access”, and “Product” to create an offering that will win more often than the competitors.

Realistically, “Competitive Advantage” influences the target customer to believe that your products and service are more valuable than the alternatives available.

Corporate Strategy in Perspective:

The Vision – Defines Aspirational Goals the Business can eventually achieve.

The Mission or Purpose – Defines Practical Immediate Goals the Business can accomplish given its resources.

The Corporate Strategy Details – Defines the Strategies, Plans and Specific Details of how the Business will behave and operate to achieve its Mission or Purpose.

Why is Corporate Strategy Important?

In a nutshell, a business without a Corporate Strategy is synonymous with a Taxi driving without a destination.

Businesses, especially Small and Medium size businesses operate under the impression that as long as they are making money, they are doing ok; however, once the initial momentum has been exhausted, the Business begins to experience problems, and if nothing is done to solve the underlying problem correctly, it starts to decline.

The fallacy most businesses make is, believing that once a business begins to struggle, the solution is business process improvement, systems or tools, which rarely works. Why? Because any product, systems and tools layered upon inefficiencies will not resolve the underlying problem, only temporarily mask it resulting in the problems resurfacing only to frustrate management.

Dire Problem: I worked with a medium size organization citing dire problems with Professional Services, Product Development and Sales, a tangled web of weekly battles on whose fault it was that affected Sales. Product Development was forced to re-prioritize and modify its product roadmap, while Professional Services struggled to deliver on the promises made by Sales. A recurring nightmare. The Difficult Problems Leadership weren’t able to solve suddenly assigned to me. Problems that were blamed for the losses incurred monthly. Problems the traditional solutions failed to resolve.

The Solution: Clarity of the Business Corporate Strategy with relevant Corporate Strategy Details and a pivot of the Business In-Year Strategy, so the Business can resolve the root cause of the problems while redirecting its effort to focus on other revenue-generating opportunities. Only then did things truly turn around, and the Business was now able to move forward with its growth and value accretion plans.

Note: It is important to recognize that in addition to having a Corporate Strategy and the Corporate Strategy Details, EXECUTION is Key! And Execution is in the Business’s Operating Advantage, Operating Values, and Culture impact on its Brand. Reach out to us to learn more about Operating Advantages, Operating Values and Culture Impact on the Brand.

How to Start a “Fit for Purpose” Corporate Strategy?

Operating Business often falls into one of the following categories:

  • A functioning Corporate Strategy, or
  • An Ignored Corporate Strategy, or
  • A Dated Corporate Strategy, or
  • An Irrelevant Corporate Strategy, or
  • An Idea of what the Corporate Strategy is, or
  • A Wishful Idea of what the Business wants to do or achieve, or
  • No Corporate Strategy.

The challenge is for you, the leader, to determine if it is a Goal you can move forward with. Then develop the details to support the achievement of that goal. Then validate the Business’s ability to execute the activities necessary to achieve that goal.

If, however, you are either unclear as to what the Business’s Corporate Strategy is, or whether the Business Operations are strategically aligned with its written Corporate Strategy, or how to begin solving the Business’s dire problems. Start with gaining some clarity on why the Business exists and how it intends to serve its customers and ensure that you ask all the difficult questions.

Once you have clarity, communicate first to the team, then to the rest of the Business and be open to feedback on whether it’s feasible. Work through the Corporate Strategy Details and Execute!

With clarity on the Business’s Corporate Strategy and the details communicated concisely to the Business, you will begin receiving insights from your actions, decision and subordinates on where the daily activities of the business conflict with the Corporate Strategy; valuable Insights and Information you can then act on.

An idea without execution is only an idea that soon fades and dies. The same is true for a Business without a Corporate Strategy. The Business will ultimately be pulled into conflicting directions, consumed with how best to allocate its limited resources.

A simple test you can do today to help determine if the Business has an effective Corporate Strategy is to ask. Ask your leader, managers or supervisors what the business Goal is. If they are uncertain, then follow.

  1. Apply the insights provided in How to Start above, or
  2. Get our book Leadership Processes, elevating Critical & Strategic Thinking, and it will give the Leadership Process to develop a Corporate Strategy, or
  3. Contact Us, and we will help.

Final Thought: Having a Corporate Strategy (Goals) people understand is a sign that you are in control. At the same time, not having an active Corporate Strategy is a signal that the Business is reactive to the circumstances of the environment; they are being led, not leading. We understand that a business strives when the circumstances are favourable – getting lucky, and struggles when the circumstances are unfavourable. However, it is important never to take your business luck for granted; ensure that it is supported by a Corporate Strategy that serves as a lighthouse in periods of uncertainty. And DO NOT risk your Business on chances because regardless of the circumstances, with Strategic Management, you can create your own favourable circumstances.

Be Strategic! Nallanie Manick

Is it Me?

Have you ever wondered – Is It Me? Am I the reason good employees leave?

If your instincts question your ability to keep good employees, listen. It’s a sign that you have the potential to be a good leader because it is natural for good leaders to question their capabilities, their role or their contribution to any situation and take accountability. This is how they grow and how they strengthen their leadership skills. However, if, on the other hand, you believe that you are always right and never take responsibility for your Team, that’s a red flag, and it is highly recommended that you reflect, start with our Insights Corner Post – 3 Tell Tale Signs of Ineffective Management Practice. It should shed light on any blinders you may have. Then look at other articles we have on our Insights Corner blog page.

The Quote “Employees don’t leave their Jobs, they leave their Bosses! “ is harsh but true. Let’s explain. 

If we are genuinely conscientious, whenever valued employees leave. We will be curious and work to get to the root cause underlying their departure, questioning ourselves to determine if there was anything we could have done differently to prevent this employee from leaving. And, in case you were wondering, hearing how much the employee loved working with you and the company is no consolation because 1: you lost a valuable employee, 2: you were caught off-guard, 3: there is now a huge gap to be filled, and 4: you now have limited time to find a replacement. If you are lucky, your employee will stay on longer than the standard 2 weeks’ notice to help train their replacement. What’s even worse is that finding the right resource isn’t as easy or economical as it used to be.

While there are genuine situations when leaders are forced to strategically manage rogue employees out of the organization – for example, when the employee employment contract binds them. There are valid situations when leaders are expected to make the tough decision and let employees go when it threatens the business, such as when:

  • The employee’s performance is unacceptable; or
  • The boss-employee relationship with the organization or Team has broken down, or
  • The employee adopted the ineffective practice of doing only enough not to get fired – quiet quitting; or
  • The employee lacked interest in the organization, or
  • The employee lacked the capabilities and skillset to do the job; or
  • The employee refused to grow or improve with the organization, etc.

To a lesser extent, there is the situation when the decision to retire someone early is forced upon us, for example, when the business finances are at risk. Leaders are asked to either trim the fat – retiring roles that are no longer nice to have, absorbing their responsibilities; or to cut costs by downsizing – retiring a certain percent of the workforce. In both situations, there is an element of the least valuable employees being let go.

What if it’s Me, not them?

It is a common annual practice for leaders to engage in Strategic Planning – an intensive exercise of reflection, problem-solving and optimistic planning for the upcoming fiscal year. A Strategic planning process seldom questions the manager’s role in losing key employees. Instead, resource planning is done with planned actions on how to better manage the workforce, putting the responsibility on HR to improve employee engagement, correct company culture issues, and develop employment procedures and policies to correct “the attrition problem”.

Food for Thought! As a Leader, have you ever had a director, manager, or supervisor accept the responsibility for losing valued employees while being committed to improving moving forward? What about you? Have you ever wondered why someone you relied on suddenly up and left? What will you discover if you play devil’s advocate?

The Truth

The truth is, when a steady stream of high-performing employees with great careers ahead of them leaves, it’s because they are leaving their bosses, not the job. Employees leave because:

  • They felt stuck and couldn’t see any solution in the organization; or
  • They have out-grown their role and do not see any exciting career prospects for them; or
  • They want growth, more responsibilities or a salary increase, and do not see the possibility of getting that growth or expansion; or
  • They felt unappreciated, unmotivated, or disenchanted with the role; or
  • They felt stressed or frustrated with the situation; or
  • They feel bullied or disrespected; or
  • You are aggressive, rude or disrespectful to them; or
  • You are continuously discrediting or unappreciative of their work,
  • Etc. The list goes on.

The A-Players

A-Players are employees who execute their duties exceptionally well, work well with others, and continuously go above and beyond to be valuable employees. Depending on which camp you are in, you see A-Players as either an asset or a threat.

Strong leaders value other A players in their Team because they believe that the more expertise in the Team, the stronger the Team and the better the Team will perform. The better the Team performs, the better they perform. Whereas, leaders lacking confidence in their capabilities often feel threatened when A-players join their Team. The adage of the employee vying for their boss’s job is built on the premise of an insecure boss. Followed closely by the ‘bad boss” cliche in which the boss does everything in their power to discredit the good work of their employees while taking all the credit whenever possible. The message is not to get pulled into the drama but to be mindful of any biases based on your own insecurity and to do something about it.

If by chance you’re a product of the so call ‘bad boss’, learn from the experience, learn from your ‘bad boss’ what NOT To Do! Chances are, if you’re reading this article, you are already a leader with the positional power to hire, fire and shape the careers of those reporting to you. Those above also look upon you to grow your unit in lockstep with the rest of the business. However, if you ignore your limitations, your good employees will ultimately leave you for better bosses, and you will end up with a team of employees with low potential or employees who are too afraid to leave.

What can be done?

It is understood that with the current economic situation, and the current state of the business, managers may feel as if there are limited opportunities to address some of the issues listed under “The Truth”. However, there are strategies management can use to increase employee satisfaction outside of a promotion or salary increase. Three Strategies to consider if any of the points discussed in “The Truth” exist in your unit:

1: Create Opportunities for employees to strive within your unit.

Condition:: Within every Team, there are employees seeking opportunities to showcase their capabilities, take on more responsibilities, or grow within the Team.

How:: Delegate – Managers can fulfil the employees’ desires by delegating.

  • Delegate special projects to your hard-working excited employees,
  • Delegate leadership opportunities to eager employees to speak on specific issues,
  • Delegate administrative opportunities to passionate employees to prepare presentations for the Team,
  • Delegate problem-solving opportunities to the consultant within the Team to find solutions for challenges within the Team, etc.

Opportunities which will satisfy your ambitious employee’s appetite for growth, more responsibilities, and recognition without increasing the unit’s payroll cost; with the added benefit of increasing employee engagement and improving productivity within your function. Not to mention the ripple effect of enriching the quality of your leadership within the organization because when your unit thrives, you thrive.

2: Improve Culture within your Team.

Condition:: A team is dysfunctional when team members display high levels of stress and frustration and are generally unhappy. There is a high attrition rate, and much of your time is spent managing team issues and complaints.

How:: Respect – at the core of a healthy team is respect. It is one of the most important building blocks of productivity and success because when people respect each other, they work better together.

  • When a manager respects their employees, their employees:
    • Feel safe enough to speak up, and they speak up more,
    • Take pride in their work, increasing productivity,
    • Contributes more, going above and beyond to help their bosses.
  • When managers practice respect they:
    • Seek feedback and input from their subordinates,
    • Listen to the ideas and feedback from their subordinates,
    • They lead as a team – less as a dictator.
  • When managers encourage respect among team members:
    • Team members learn to trust each other more and are more comfortable working together,
    • Team members collaborate more, and they feel safe sharing ideas and getting feedback,
    • Team members develop friendships and enjoy working together, improving morale and productivity,
    • A manager’s job is more manageable, less stressful and enjoys greater productivity.

Regardless of the state of the Team, Respect is one of the most impactful solutions any leader can implement to cultivate a healthy team culture. It has the power to transform any dysfunctional team into a high-functioning results-oriented team.

You see, several years ago, when I was introduced as the leader of a five-function team, my introduction was met with resistance. It was obvious that in this Team of experts, each expert believed that they were better than their peers and demonstrated very little respect for each other or each other’s work. We needed to leverage their expertise while putting their egos into check to succeed. A policy of non-negotiable respect was implemented, and within three months, we went from a dysfunctional combative work practice to a collaborative problem-solving one, delivering one successful project after another.

It wasn’t easy and will not be easy for you; however, the experience was highly rewarding.

3: Level Up Your Management Practice. 

Respect is fundamental to keeping high-calibre employees from leaving, but alone it is not sufficient. Managing a team of high performers, people who grow, and people who are continuously levelling up their skills and capabilities; demands managing all aspects of their employment. Our February Insights Corner Article –  Remote Management – Straight Talk  – provides tools, strategies and insights on how to level up your management practice so you develop a more holistic approach to managing the entire employee’s experience.

Read this article to identify gaps in the 6-core management duties, and use the 4-Pillars of Management Practice to develop your management practice to attract and retain the best employees.

Yes, It’s Me!

Why? Because ultimately, you are responsible for your Team, and valued employees don’t just up and leave if they are happy, heard or feel as if they are part of a team. Before they even think of leaving, employees will discuss their ambitious desires with you, giving you an opportunity to find an opportunity for them or to find and train a replacement to minimize the negative impact of their departure on you and your Team.

Every article you read, every seminar you attend, and every opportunity you seek to improve must end with action.

From this article:

  1. Make a list of improvements you would like to see in your Team,
  2. Understand what the employee engagement levels are,
  3. Identify gaps in your management practice and use your experience and knowledge combined with the insights from this article and the two additional reading references below to devise “Fit for Purpose” strategies for your Team.
  4. Read the two additional reading material references below.

Additional Reading:

  1. Insights Corner Article: 3 Telltale Signs of Ineffective Management Practices 
  2. Product: Leadership Processes, elevate Critical & Strategic Thinking

Be Strategic,

Written by Nallanie Manick, MBA, PMP, B.Sc.

 

 

 

Remote Management – Straight Talk

Remote Management – Straight Talk

The COVID-19 pandemic thrust organizations – via trial by fire – into managing the operations of the business remotely. While some managers thrived, others struggled, resulting in trust issues and resorting to micro-management in an attempt to maintain gain control over the situation.

So what exactly accounts for the difference between these two groups of managers, and what exactly should new managers hired to manage remotely be aware of so they don’t make the same mistakes as their less successful peers?

Management Duties:

There is an avalanche of information online on management: how to manage, management styles, and tools managers can use to manage more effectively, so it will not be beneficial for us to replicate that information here but to develop a baseline on which to build on, later on. To truly understand what differentiates effective remote managers from those who struggle, let’s look at the 6 core duties of a manager.

  1. Plan – plan the work needed to achieve the objectives assigned to the unit through its manager.
  2. Act – execute the plan by hiring and managing the resources needed to do the work required to achieve the unit’s objectives.
  3. Direct – direct subordinates in the execution of their duties to achieve the unit’s objectives.
  4. Control – control the progress and quality of work completed to achieve the unit’s objectives.
  5. Measure – measure how effectively the team worked to achieve the unit’s objectives.
  6. Lead – create an environment in which the unit function optimally to achieve the unit’s objectives.

It is undeniably much easier for any manager to execute their duties in the office. However, despite some managers successfully executing their responsibilities in the office, the fact that the pandemic highlighted remote management disadvantages such as an increase in lack of trust and more aggressive micro-management; remote management demands some intentional attention.

4-Pillars of Intentional Management

Intentional Remote Manager

Ultimately, outside of one’s education and technical knowledge, intentional action is what differentiates an effective manager from an equally qualified, less poor manager. They dedicate the time and effort to question what they are doing and why, deliberately considering all factors holistically before deciding how to act—developing their critical thinking skill by proactively seeking opportunities to improve.

Intentionality is one of the reasons one group of managers thrive while others struggle. A person taking on a new role as a remote manager can improve their chances of succeeding by executing their managerial duties within these 4-Pillars of Intentional Management.

Intentionality. The word intentionality is powerful because it embraces thought-provoking practices. It encourages someone to pause to consider their objective, their resources, and the task in front of them before acting. It’s satisfying when you experience a manager managing intentionally, and awkward or painful to observe a manager managing without intentionality. So how can a manager increase the chance that they will thrive by adopting a practice of intentional management? 

Pillar 1: Build Relationship & Trust:

The foundation of Effective Management is Trust, which cannot be manufactured but only develops through the relationships a manager builds with their subordinates. On the plus side, whenever we meet someone for the first time, we assign a certain amount of trust because we automatically assume that because of the trusting environment within which this connection was made, this person is to be trusted. However, trust needs to be nurtured and earned with every interaction, with their behaviours, communication, and interaction either strengthening or eroding their initial trust in someone.

In a work environment, trust exists in the form of managers trusting that their subordinates will get the job assigned to them done, managers, trusting that their subordinate will complete their tasks diligently, and subordinates trusting that their managers will support them in the execution of their duties. This trust though initially given, is reinforced by the relationships you build. Here are a few questions to get a new remote manager started:

  • Who are your subordinates, and what do they do?
  • What are they interested in, and why are they part of this team?
  • How do your subordinate want to contribute, and what are they passionate about?
  • What are their strengths and skill sets, and how is it being leveraged?
  • What are their weaknesses, and what, if anything, is being done to overcome them?
  • What are their concerns, and what, if anything, is being done to address them?
  • Which, if any, of your subordinates are disengaged and why?

When managers demonstrate an interest in the people reporting to them, it inspires them to work with their managers to achieve the unit’s objectives.

Pillar 2: Roles & Responsibilities:

Having clarity on one’s role and responsibilities, meaning what they are responsible for and how they are expected to deliver that responsibility, is fundamental for the alignment between a manager and their subordinate. It is even more critical for a remote manager not in the same building or location as their peers and critical for productivity, which is necessary for efficiency and a functional unit. Conversely, a lack of clarity on one’s role and what they are responsible for only leads to frustration, exasperating the challenges of a remote manager who can resort to micro-management to gain control of the unit.

A few questions to get clarity started on your subordinate’s role and responsibility:

  • What’s every subordinate responsible is?
  • What is necessary for each person to deliver on their responsibilities?
  • What is missing or impacting a subordinate from delivering on their responsibilities?
  • What are the Protocols for escalation when someone’s ability to do their job is impacted, and are your subordinates aware of these protocols?
  • What are the unit norms for resolving conflict, and is it effective?

It is highly recommended as you dive into the exercise above to:

  1. Seek to understand what they do and why, and ensure you gain alignment and consensus on each person’s role and responsibility.
  2. Listen first and only after developing the big picture of how everyone contribute toward your unit goals and objective, then manage.
    • It’s understood that your superiors expect you to execute your duties during the transition phase, so rely on your judgement and your team’s expertise to execute the unit’s day-to-day operations.
    • Don’t be one of those managers who join an organization; the first thing they do is tell everyone else what to do and how to do it without first understanding their point of view; this will only frustrate your subordinate, making your remote management task unnecessarily difficult.
  3. Develop your metrics and system to measure productivity, progress and performance while developing your system to motivate and support the team.

So when starting a new role as a remote manager, prioritize trust and relationship so you deliver your best and, in turn, get the best from your subordinates.

3: Communication Plan & Strategies:

Communication is the means and modes of sharing your plans and ideas with your team, seeking feedback, and instructing your team to act. The sad truth is that poor communication is often at the root of all dysfunction and managerial issues. Why? In Part 4 of the Strategic Initiative Miniseries, we highlighted that communication channels are generally open and functioning when things are going well. However, communication clogs begin forming with the development of issues, concerns, or the fear of being in trouble. It is safe for any manager to assume that when things aren’t going well, it is because of a breakdown in communication at one or many points in the transaction process.

Every manager’s communication style is unique and specific to their management style, management of sensitive information and the demands of their unit, so it will not be beneficial to recommend communication strategies in this article that are “fit for your purpose”. Three points a new remote manager should take note off:

  • Develop your functional system for relevant transparency and communication with the team, one meeting the needs and demands of individual team members as well as the demands of the combined team.
  • To minimize clogs, ensure that relevant and essential information reaches your desk promptly so you can act, and create avenues and opportunities for issues to be raised and discussed in ‘safe spaces,’ which encourages team members to reach out and share their concerns with you.
  • Keep all communication respectful, regardless of the stress, frustration or anger other parties demonstrate.

Effective communication is at the core of every successful manager’s ability to execute their duties, without which they lack the information to make informed decisions in a timely manner, impacting their ability to control and guide their subordinate to achieve the unit’s objectives. So prioritize effective communication if you ought to have a chance to thrive as a remote manager.

4: Plan & Growth:

Managers, in addition to directing and controlling the work necessary to achieve the current goals and objectives of the unit, are also responsible for developing plans to grow and improve their units to coherently grow with the business. In all my roles, I keep a diary of ideas, capturing ideas and thoughts that would make my duties easier and more efficient or with observations on how the organization can effect change in areas of concern. I developed this practice because creativity is spontaneous and likely triggered by ongoing activities and events. You see, not all creative ideas come to you during Planning or strategizing because not all aspects of the operations of the business are engaging during this activity. It is worthwhile to develop your remote management practice with the following considerations in mind:

  • Growth and Planning is a year-round effort: identifying, evaluating and curating information throughout the year.
  • Collect and Assess Productivity ideas and Feedback from your team year-round, extracting ideas and information during team meetings, one-on-ones and other communications with the team. Information that could supplement or rule out growth ideas during the annual planning activity.
  • Ideas or plan without supplementary data to support it is futile. Throughout the fiscal year, measure critical success factors and forecast to ensure that based on your current and planned activities, the unit is trending to deliver on its objectives while simultaneously using the information to plan for the upcoming year.

In Summary:

In the last twelve months, we have seen an increase in roles for remote managers, directors, VP and C-suite resources, with remote work not relating to the pandemic but a shift in business management. The benefits of this strategic shift include a reduction in the cost of office space, the organization having access to a wider range of qualified resources and even a reduction in the need for relocation costs to incentivize high-calibre candidates to join your organization. On the flip side, the increase in remote management has seen a reduction in productivity resulting from the corrosions of organizational culture, as managers and employees find ways to rebalance productivity and work remotely.

Strategic Human Insights Image

The bad news continues with an increased number of employees quitting their jobs, citing frustration, stress and disenchantment as the reasons for resigning. This reminds me of the popular saying, “Employees don’t leave organizations; they leave their bosses.” I recall telling my supervisor on our one-on-one, only a few months working under his leadership, that I was disenchanted. You see, he practically joined the organization as a remote manager and made changes without considering how the role was executed, which made executing my duties difficult.

Don’t make this mistake in haste because, despite your expertise, goals, objectives, and managerial style, you only succeed if your team succeeds.

Intentionally manage the 4-pillars as detailed in the 4 pillars of Intentional Management in the execution of the 6-Managerial Duties to deliver on your  Unit’s Goals and Objectives. 

What do you think? What other pillars of success can the savvy remote manager provide to help the up-and-coming leaders in their group?

Act:

For more information on individual topics to supplement your Intentional Management, check out our Insight Corner articles and videos here

And if you’re interested in Elevating your Critical & Strategic Thinking Skills – check out this book on Amazon. A game-changing handbook you will not want to lose.

I’ll leave you with this quote, and choose every day to be strategic!

Operating Cost Hidden in Plain Sight

Operating Cost Hidden in Plain Sight.

It is without a doubt that the pandemic has changed the operating landscape in most businesses; whether this change is short-term or has longer-term implications is yet to be seen. However, the pandemic cannot take all the credit for the extent to which high operating costs are hidden within the business’s daily operations. As businesses ride the tail end of the pandemic as well as enter into a new year plagued with uncertainty – a war threatening Europe, unstable economies in most countries around the globe – it is highly recommended that leaders become more mindful of the high operating costs hidden within the business operating activities; and manage it.

This article will look at a few examples of ‘operating costs hidden in plain sight’ and provide recommendations to better manage them.

“Action & Consequences” .

“How we do Anything is How we do Everything”.

We were raised to believe that action has consequences. If we do what we are supposed to, we are rewarded; if not, we forego the reward. Then life became more complicated, and rewards were no longer linearly linked to our actions but to a series of actions executed successfully, in a particular sequence, over a period of time. Still, we were able to see the link between our actions and rewards; we will persevere, learn and grow.

However, when we make poor decisions, waste time, procrastinate, do shoddy work, or avoid doing what we know we must do, the results are less than favourable, we are disappointed, we are disciplined, and we are not happy. This is quite simple to recognize and isolate in our personal lives. “I dear you, try forgetting your significant other birthday and see what happens. The consequence will not be favourable.”

“Action & Consequences in Business”.

“Everything is Connected”.

How do Product Defects Increase the Business Operating Cost?

Similarly, in business – Action or Inaction has consequences which can be difficult to identify, quantify and forecast; because business is a complex web of interconnected and interrelated activities. An example of this is extracted and demonstrated in the diagram: “How do Product Defects Increase the Business Operating Cost?”

Inaction: It is understood that businesses – Managers and Leaders – have limited resources, are busy, and seldom have the liberty to redirect limited resources to immaterial, low-priority items. So what is the long-term consequence of inaction? A subtle yet noticeable trend of unexplained increases in the business operating cost. What can be done about it? Let’s start by looking at two examples of how high operating costs can be hidden within normal business activities to better understand what actions can be taken to manage it.

Examples of Operating Cost Hidden in Plain Sight.

Example 1: Tardiness.

Tardiness is an acceptable cost to running a business, is quite common and comes in many forms. Such as arriving late to work, leaving early, having extended lunch and taking multiple long breaks during the work day. Managers accept that their staff will sometimes arrive late and take an extended lunch or require more frequent breaks when undertaking stressful tasks; they would account for these exceptions when planning their budgets. However, when tardiness shifts from normal to abnormal, from budget to excessively above budget, it becomes an extra cost to the business—becoming in excessive operating cost hidden in plain sight when its flexibility is abused, misused or allowed to continue unchallenged or corrected.

What do the Numbers Say?

Scenario: Arriving 10 minutes late to work consistently.

  • Assuming the annual average salary is $50k, the operator is a billable staff who bills over 80% of their time.
  • One person arriving at least 10 minutes late daily increases the operating cost of the business by over $1080 a year.
  • Two persons arriving at least 10 minutes late daily are estimated to cost the business over $2160 annually.

The opportunity cost of inaction is $1080 for one person or $2160 for two persons, and the risk that other employees within the organization will soon follow suit. Also, it is worth mentioning that the greater the staff’s annual salary, the greater the cost of tardiness is to the business. Further, increasing the operating cost of the business simply because it increases the number of people required to get the same job done, increasing its headcount without an equivalent increase in output.

Caution: I’m not recommending that leaders clamp down unreasonably on every minor tardy infraction. No! Absolutely Not! That will be cruel and brutal, and before you know it, you will have created an unhealthy work environment filled with underachievers. The recommendation is to be mindful of any changes in tardiness, understand the reason behind it and act. Either adjust the employee work arrangement so there is win-win agreement between you and your staff or reinforce the business employment policies.

The Purpose of this example is to connect the dots between deliberately abused tardiness and the operational cost to the business, and increasing leaders’ awareness of the consequences of inaction against tardiness to the business. If tardiness is becoming a noticeable issue, SMBs leaders are encouraged to work with their staff to better understand what is causing it and find win-win solutions. Solutions that benefit the organization and the employee without inadvertently allowing tardiness to increase the business operating cost. 

Example 2: Meeting Distractions.

It is not surprising, that meeting distractions made the list of activities, unnecessarily increasing the business operating cost. In a 2019 article by Chuck Murphy, which stated, “We’re bombarded by distractions every day. Whether a notification on our phones, a ping on our desktops or a vibration on our Apple watches, endless distractions shift our daily routines.” The article continued, “In fact, a study by Microsoft concluded that the human attention span has dropped to eight seconds – shrinking nearly 25% in just a few years.” He cited in the article that one of the main reasons for this drop in our attention span is the need for instant gratification.

This need for instant gratification is front and centre in the meeting room. Attendees regularly checking their messages, email, and not-so discretely scrolling through social media while someone else is speaking. Justifying their inefficient practice with the increasingly popular excuse of having to stay on top of things. Gone are the days when most meetings were short, concise and successfully concluded with minimal disruptions – conducted efficiently. 

So what are the consequences of today’s meeting distraction?

  1. One possible outcome of meeting distraction is longer meetings.
    1. One reason meetings are longer is because attendees spend time rehashing information previously discussed while they are distracted.
    2. A second reason meetings are getting longer is because the meeting organizer is catering to distractions without, realizing that the reason for the long time is because of distractions.
  2. Another possible outcome of meeting distractions is more meetings.
    1. One reason for having more meetings per subject is because most attendees do not have the luxury to stay in meetings longer than scheduled, and as such additional meetings need to be scheduled to complete the items on the agenda.
    2. A second reason for having more meetings per subject is because the attendees cannot spend more than a certain amount of time in a meeting without disrupting their day, or having to push other items on their agenda.
    3. A third reason for having more meetings per subject is because of reworks, changes or incomplete work. When attendees are distracted during a meeting, important information is missed and this can impact the completion of any action items assigned to them.

What are the Numbers?

Example one provided context on how inefficiency increases the operating cost of a business. The same applies for the additional time spent in meetings. Regardless of whether that additional time is spent due to additional meetings or longer meetings, the opportunity cost of the time spent in meetings is time spent on other productive items.

A rough estimate to calculate the additional time a team spends in meetings a year is equivalent to:

  • Number of additional hours a month spent in meetings:
  • * average hourly rate of all attendees
  • * number of attendees
  • * 12 weeks

As part of a business case I once prepared for a medium size company with a relatively large leadership team, the hidden conservative annual operating cost embedded in the business management meetings was over $70k a year, and this excluded the other unquantifiable impacts on the business.

The Purpose of this example is to raise awareness of how easy it is for businesses to burn cash in meetings. In an increasingly digital world, with the increasing demand for a person’s time, it is quite easy for leaders not to question the amount of time meeting attendees are distracted during a meeting when the only reason for their attendance is their attention and contribution. If this is a concern, then encourage practices that minimize distractions during meetings.

Misconception.

There is an argument to be made; if all staff is salaried, then the examples discussed above bear no additional operational cost to the business. This, despite being simplistically true, is not entirely correct because of the Opportunity Cost of doing business. The opportunity cost of time spent unproductively or inefficiently is time spent productively executing revenue-generating activities for the business.

Leaders don’t have to be cruel slave drivers to run efficient organizations; efficiency doesn’t always have to cost extra in the form of a business process improvement project. There are cost-effective strategies a business can implement if it is aware of where inefficiencies lurk within the normal operating activities of the business.

Inaction & the Real Consequence.

As a Consultant, Project Manager and Growth & Transformation Specialist, I’ve seen how micro-inefficiencies accumulate over time, compounding and increasing the operating cost of the business. I’ve also seen how micro-inefficiencies can morph and spread within a business. How one small indiscretion encourages other minor indiscretions to develop, compounding over time into an ineffectively run organization with high operating cost, low profitability, building competitive disadvantage and a diluted brand. The long-term effects are even more detrimental to the business than anticipated.

We may assume that these problems only apply to medium to large organizations because they hire more expensive staff; and the average hourly cost to the business is material. Whereas in SMB, the average hourly cost to the business may not be significant enough for the president to invest the time necessary to correct small insignificant infractions.

The consequence of this ill-advised-thinking is that it prevents the SMBs from developing a growth environment.

All actions, regardless of how small have consequences. Sometimes the consequence in isolation is not material to the operating viability and profitability of the business. However, compounding over time can be the silent killer that may just cost you the business. 

Contact Us to find out more about other strategies tips and insights to help you transform your business for growth; or just to figure out those hidden challenges camouflaged within the normal operation of the business, eroding your profitability.

 

Be Strategic!

Written by Nallanie Manick!

“You know when a business isn’t performing as expected and the leadership team hasn’t quite figured out why, this is where we come in. We can help with affordable solutions even SMBs have the capabilities to execute.”

Practical Competitive Advantage for SMBs

Introduction.

When we think about Competitive Advantage; we automatically think of Michael Porter, Market Research, TAM, SWOT, Five Forces, Competitive Analysis; or some intensive, expensive project only a few or large organizations can afford. Projects that are both intimidating and overwhelming for SMBs – small-and-medium size businesses.

Competitive Advantage can be intimidating and overwhelming for SMBs.

This article dives into a Practical Competitive Advantage Solution specifically for SMBs.

As Founders, Entrepreneurs, when we start a business, we start it with a certain Dream or Vision in mind. Something fundamental we would like to achieve through the business. Then as time passes and we get caught up in the day-to-day struggles; fighting to win that customer, competing against the competitors, building a team, and adjusting so we can keep up with the changes in the environment; our Dream or Vision fades. The Vision fades because, during the Survival Stage of the business, SMBs are forced to choose between pursuing their Vision and pursuing Sales, meaning going where the money is—an obvious decision for SMBs in survival mode.

Steve Jobs – iDownloadBlog

This struggle isn’t unique to just SMBs. It is present in all businesses with very few exceptions. Even large organizations like Apple struggled in the first decade of its existence to decide how best to achieve its ‘Founding’ Vision while deciding on how best to operate the business to gain a Competitive Advantage—resulting in Apple losing sight of its Vision over time, due to the compounded effect of None Strategically Coherent Competitive decision.

By 1997, Apple Inc., having gone out of sync with its Vision, resulted in the Historical Pivotal Point in Apple’s History. Despite being advised against it, Steve Jobs made the well-debated decision to cut over 70% of Apple Product lines, streamlining its Product and Operations in line with Apple’s Founding Vision.

Since this decision, the Pivotal Point in Apple’s History, Setting a Strategically Coherent Operating Mandatory Precedence for Apple moving forward, it can be argued that this was the reason behind Apple’s success and why Apple is “The World Most Valuable Company today – 2022.”

Capacity to Execute.

An Organization Capacity to Execute resides in the Leaders’ resourcefulness. Resourcefulness in utilizing the business’s resources to execute Competitive Advantage Strategies to win in the market. To win against the competitors. Not all businesses are created equally, and regardless of a business’s size and resources, all businesses have limitations that constrain business competitiveness in one way or another. Limitations such as:

  1. Leadership Capabilities,
  2. Staff Skillset,
  3. Organization Access to Funding or Money to pursue Competitive Advantage Strategies,
  4. The Market Access,
  5. Environmental / Governmental Factors,
  6. Technology.

Despite the constraints and limitations constricting the business, leaders are responsible for making the best decision for the business, Strategically Coherent Competitive Decision which; Hopefully the Business is Able and Equipped to Execute. The reality is that Leaders are often juggling multiple competing priorities, assessing Opportunity Cost, Cost- Benefits, and Prioritizing what can be compromised without compromising the business’s overall health.

Often, it leads to making decisions with Limited Insights, Limited Knowledge of its Limitations and Constraints, resulting in decisions that the Business may not necessarily have the Capacity to Execute. When the Business’s Capacity to Execute is overestimated, and the business decides to pursue Competitive Advantage Initiatives, it does not have the Capacity to Execute. The business is forced to reassign valuable resources from its Priorities to Initiatives of Lesser Importance. Compromising the Business in one way or another, which, when compounded over time, widens the Strategic Gap and erodes the Business’s Competitive Advantage.

Competitive Advantage.

In today’s ever-evolving environment, Leaders are shifting the conversation from Complex Competitive Advantage to; the more manageable Value Proposition. Given that Value Proposition is only a small subset of Competitive Advantage, Value Proposition should not be considered by any means necessary a comprehensive Competitive Advantage Strategy. Also, it is important to note that the more resources and capabilities organizations have, the more comprehensive their Value Proposition or Competitive Advantage Strategies will be.

Technology Disruption is another factor that justifies the shift from Competitive Advantage Strategy to the more economical Value Proposition Strategy. It only makes sense that given the fast pace with which technology is changing the competitive landscape, businesses have opted to NOT invest significant time and money just to develop short-lived strategies.

However, Businesses and SMBs do not have to compromise the business Competitive Advantage, but instead SMBs can adapt their Strategy from executing the Traditional Competitive Advantage Strategy to executing a more Modern Competitive Advantage Strategy.

Modern Competitive Advantage.

Modern Competitive Advantage is a shift in Competitive Advantage Strategy to one that is Executable, Flexible, and Adaptable to the changes in the micro-and-macro environments. Modern Competitive Advantage comprises

  1. Fuelling your Target Market with Immediate Gratification, while
  2. Fuelling the Business with Insights to Develop and Maintain Relevance in the Market, and
  3. Taking Decisive Action.
Fuelling your Target Market with Immediate Gratification.

To Fuel your Target Market with Immediate Gratification means to serve your Current Customers so they experience feelings of Gratitude towards the SMB or Appreciation for the Products/Services purchased. This strategy is based on the fact that everyone loves Recognition and to be Appreciated. This is true regardless of their job, status or position. I have worked in many organizations, and the best and most influential strategy is to genuinely recognize people for their contribution. To Appreciate Their Effort. To Demonstrate Gratitude for their Patronage.

However, it is critical that the strategy you adopt to Fuel your Target Market with Immediate Gratification; is genuine, not fabricated or does not come across as manipulative or disingenuous. If your customer walks away feeling manipulated, it will have the opposite effect, thereby creating a Competitive Disadvantage for the business.

Say My Name.

“Say My Name” is a perfect example of how Starbucks Fuel its Target Market with Immediate Gratitude.

Starbucks appeals to what is most important to a person, their name. With every order, the Starbucks representative is trained to gleefully request the customer’s name for the order, then repeat their name to ensure that they got it right. An act which immediately triggers a feeling of importance in the customer, a sense of being recognized in the most fundamental way; by their name.

The psychology behind this strategy is quite simple, within three seconds or less, the customer went from being unknown to someone with a Name, the Best Name, their Name! This simple act of actively acknowledging someone’s name appeals to the person’s sense of importance, their identity; leaving them with a feel-good feeling. Someone whom people in the immediate vicinity now know by name. Genius, isn’t it? Most people cannot walk away from this experience without feeling a few inches taller.

Now compare the Starbucks ordering experience with that of other Coffee Shops, where the person behind the counter asks what they want, sometimes repeating their order to confirm that they got the order correctly, followed immediately with the price of the order. Regardless of the level of service, the courtesy of the person behind the counter, or the quality of coffee, the Starbucks experience is by far superior to that of the other Coffee Shops; simply because it is personal to the patron.

What is even more impressive with the Starbucks Strategy is that it COST Nothing and is SIMPLE and EASY to Execute. There is no additional training required, no additional material required, and no significant delays to sales turnaround. It can even be argued that it could potentially slow down the line; however, it can also be argued if it slowed down the line, based on the experience and the Starbucks ambiance, the slowed-down line is not noticeable to impact the patrons’ experience.

The Gift.

The Gift is another Common Strategy Organizations use to create a sense of immediate gratification in their customers for their patronage. Recently I had to change my eyeglasses because one night after working on my bed, I rested my glasses on the case with the handles hanging out and managed to accidentally slam shut the case on the handle, damaging the frame. This is my fourth purchase of eyeglasses but my first Appreciative Experience. In all my other experiences, I felt rushed, as if I was at the mercy of the salesperson, and the business rules and regulation designed to make their customers uncomfortable. I left my previous Optometrist feeling slightly deflated, a few hundred dollars short, and a piece of paper to come back within the next few weeks to collect my eyeglasses.

In my last purchase from Optical Connection, the minute I walked in I was greeted by a well-dressed individual eager to serve me, while the entire visit was engaging and attentive to my needs when I walked out, even though a few hundred short with a piece of paper to collect my eyeglasses within the next two weeks, I also walked out with a brown paper gift bag containing items to help me take care of my new eyeglasses. No glasses but a pleasant appreciative experience. Did I feel Gratitude? Most definitely. I was so pleased with Optical Connection service, I decided to move my family over to their practice and tell anyone willing to listen of their exceptional service and Free Gifts.

Fuelling the Business with Insights to Develop and Maintain Relevance in the Market.

An Organization Competitive Advantage Relevance is the business’s ability to continuously improve its Products & Services while evolving the business to continue to survive in the Ever-Changing Competitive Environment.

Traditional management thinking led us to believe that in order for SMBs to transition to a high-performing competitive company, SMBs needed to invest in some expensive transformative project. A project studying the market, identifying what wins and then investing in the People, Resources, Tools, Systems, and/or Partnerships before they can effectively compete. This is not necessarily the case. SMBs can shift their management practice to one which builds insights while executing Small Impactful Strategic yet Competitive Actions that are designed to win customers over while strengthening the organization to win in the short-, and medium; and positioning the business to win in the long term; By Shifting to a Competitive Advantage Management Practice.

A Competitive Advantage Management Practice achieves two things:

  1. The business adopts a Listening, Learning and Serving Management Practice.
    • The leadership Listens to the feedback from their Staff, Competitors and Customers,
    • The Leadership Learns from Past Experience, and
    • The Leadership adopts a Service Mentality. Serving the needs of their Customers and Staff.
  2. Management makes continuous Micro-Competitive Improvements to its business.
    • The Listening, Learning and Servicing Operating Practice unveils Valuable Competitive Insights that signal exactly what the business must do to be more competitive while staying on its Strategic Path.

Effectively, SMBs cannot compete the way larger organization competes; they lack the capabilities, resources and access available to larger organizations. SMBs must think Economically Strategic, Stay True to their Vision and be willing to Serve at a Higher Level than their competitors are willing to serve.

Taking Decisive Action.

The Harsh Reality is that Businesses that Struggles, more likely than not, Struggles NOT with Strategies but, WITH Execution.

There is an avalanche of reasons why, and often it is not a lack of resources or capabilities but, the perseverance and determination to take Decisive Action. Taking action in the face of uncertainty and taking the next right step.

In my expert opinion, this is often because SMBs are competing in an aggressive and ever-changing environment where information is limited, and SMBs are forced to make decisions littered with uncertainty. A deterrent that causes less risk-averse leaders to hesitate, to procrastinate until they are more assured of their actions. Some assurance that their efforts will lead to some level of desired results, missing out on the opportunity in the process. What is the saying?

“The Early Bird catches the Worm”, the SMB that acts first is more likely to win than the SMB that is waiting for guarantees.

SMBs are interested in becoming more competitive; to Develop & Maintain a Sustainable Competitive Advantage; Listen, Learn, Serve and Take Decisive Actions, making micro-competitive transformational changes to the business. So, the business Products & Services Wows, Wins and continues to Win in an Ever-Changing Competitive Market.

SMBs Capacity to Execute.

It is important at this time to differentiate SMBs’ Capacity to Execute a Sustainable Competitive Advantage from that of larger organizations with the resources, to invest in the relevant Management and Strategy Consulting services to develop a Comprehensive Competitive Advantage Strategy it can execute.

Our recommendation for SMBs and any organization interested in effecting change is to Start with the Organization’s Capacity to Execute. All businesses, regardless of their size are limited in one way or another, and because of this fact, have restrictions that affect the Organization’s Capacity to Execute. An Adaptable, Flexible, Economical Strategy any business can utilize is to Start with Intentionality. The intentions to:

  1. To Understand the SMB Limitations & Constraints,
  2. To Understand the SMB’s Capacity to Execute,
  3. To Develop a Competitive Advantage Management Practice, and
  4. To Take Decisive Action.

Intentionality comes when the Leadership considers all elements of their Unique Business while focusing on Purposely Developing and Leading a Competitive Business.

Practical Competitive Advantage.

The saying Go Big or Go Home is a convenience only few can afford.

Competitive Advantage Strategies that are based on an intensive study of the business, industry, its trends, competitors, new entrants etc. are all great, but not practical for most SMBs. What is top of mind for most SMBs is survival. How to manage the business to make a profit, retain customers and if they are lucky increase sales. A business, whether an SMB or larger. If the business is consumed with its survival, the SMB isn’t focusing on achieving market dominance, or on weeding out the competition. Survival and that next Sale is Top of Mind.

If the SMB is not on the Decline to the Death Stage of the BLC (Business Life Cycle) and has some room to maneuver for a few more years, then it is NOT too late for the SMB to turn things around. In addition to adopting a Competitive Management Practice, a Practical Competitive Advantage, Capacity to Execute must include “Respect”

  1. Respect for Customers: After all Customers; pay the bills.
  2. Respect for Staff: After all Staff is the Face and Personality of the business and The Staff’s collective behaviour and practice determines the business Culture and Brand; NOT the Business “Values” defined in its Corporate Strategy.
  3. Respect the competitors. Odd I know! Competitors are your Competitors because they have Earned That Right. Their performance attracts the customers you would like.
    • When SMBs respect their competitors, they are able to see clearly what their winning Competitive Strategy is, and how they differentiate.
    • I strongly recommend that SMBs avoid Playing Second Fiddle Strategy. Do not copy the Competitor’s Strategy, simply because the SMB is not privy to the insights into the Competitor’s Capacity to Execute. As such, the SMB may not necessarily have the Capacity to Execute if it decides to copy the Competitor’s winning strategy.

With Respect for Customers, Staff & Competitors, SMBs have equipped their companies with the utmost Capacity to Execute Competitive Advantage Strategies; which will:

  • Strengthen the SMBs Brand,
  • Win New Customers, 
  • Improve Proactiveness,
  • Increase Sales,
  • Increase Insights & Resources, allowing the SMBs to get to the next level of Competitive Advantage, Micheal Porter’s level. 

Summary.

Instead of going after the Big Fishes, our Recommendation is that SMBs find out what is Unique & Specific about their business, the Reasons Why Customers are attracted to the business, and leverage those Insights to Develop and Execute a Competitive Advantage Strategy; the SMB has the Capacity to Execute.

At NMCS we have the Tools and Strategies – Services SMBs can afford – to help SMBs get to their Capacity to Execute Competitive Advantage. SMBs have options when it comes to becoming more Competitive, however, the SMBs cannot compete the way the medium-to-large organizations do. SMBs have to take a more Modern Competitive Advantage Approach and Execute their Competitive Advantage within a “Respect” Framework to compete effectively.

Plant the Seed: Focus on the Vision, Start Small, and Start with What you have! 

Nurture the Plant: Honour your trade, Honour your Customer, Honour your Staff, and Honourable Practice! 

Reap the Fruits of your Labour: See how these Simple Strategies Slowly, Steadily and Stealthily Improve the SMB Competitiveness.

 

Be Strategic!

Compete Strategically!

Strategic Initiative Part 6: Operationalize Strategic Initiatives

Finally, the final instalment in this 6-Parts Strategic Initiative mini-series, with over 2 hours of information-packed content, including strategies, tips and valuable insights to help businesses Identify, Develop, Execute and Operationalize the correct Initiative for their business. Strategic Project aligned with the business Corporate Strategy –  its Vision, Mission, and Values.

Operationalize Strategic Initiatives

Operationalization of a Strategic Initiative is transitioning the output produced by the Strategic Initiative Project from the Project team to the Operations of the Business. In the Process to Operationalize a Strategic Initiative, we consider not just the product itself but the transfer of:

  • Ownership – While the Product is being developed in the SI Project, the ownership resides with the project team; not just the SI Product but the accountability for its proper functioning, its maintenance, pilot operations, the ownership for operational use and training, and the ownership of the output generated. All of these must be transferred from the project team to the operations of the business during the Operationalization step of the SI process.
  • Accountability – The person Accountable is the single person who oversees the entirety of the product created by the SI Project; including its functional and cross-functional applications, to deliver on its Purpose, as well as to ensure that it continues to deliver on its Purpose throughout the life of the product.
  • Work Instruction – Initial Used-Case, Scenario, Application, and Standard Operating Procedure developed by the project team is handed over to the Operations of the business, who then assumes ownership and accountability for its maintenance to ensure that it correctly guides the product’s users.

The Transition Insights were discussed individually for each type of Strategic Initiative introduced in Part 1 of this series – The Create Strategic Initiative, The Fix or Repair Strategic Initiative and the Discontinue Strategic Initiative – This was intentional because even though the overarching themes are similar, because the devil is in the details, the actual Transition Insights differs according to the type of Strategic Initiative.

Execute Strategic Initiative Process

There is a stark difference between executing a Project, a Strategic Project, and the Process to Identify, Develop, Execute and Operationalize the right Projects to bridge Strategic Gaps. Projects are already perfectly defined with details on what to accomplish, instructions on how to measure success, a budget and a timeline. Despite Strategic Projects being difficult, risky, expensive undertakings with an inherent amount of unknowns, they are founded in the known. Whereas the Strategic Initiative Process starts with a statement or two, logical yet vague statement(s), and you have to develop the rest. Strategic Initiative Process is founded in the unknown with the opportunity, flexibility and responsibility to determine the future direction of the business, based on the guidelines provided in the business Corporate Strategy Statement(s). The leadership team is tasked with determining from the Corporate Strategy Statement(s) what to accomplish, what success is, what the challenges or obstacles are and what to do about it based on the current state of its micro and macro environments. This is either a privilege or a burden. It all depends on how comfortable you are with this responsibility and the Strategic Planning Process. This series was carefully crafted to transform this chaotic process into a logical, organized one you and the future team can follow confidently.

In this the final episode in this series, we discussed two groups of assumptions made as well as shared our insights on what you must consider when executing a Strategic Initiative Process; ending the series with 10 benefits of the Strategic Initiative Process, the benefits gained by the business when they apply NMCS Strategic Initiative Process.

Full details here:

 

Reference and Links

Check out our NMCS YouTube channel, for all videos published by us, including the Strategic Initiative Playlist for all 6 Strategic Initiative episodes.

Links to the rest of this series:

We hope this Special Strategic Initiative mini-series help you to help grow the business.

 

Be Strategic!

Cheers!

 

Strategic Initiative Part 3: Design, Evaluate and Select Strategic Initiative.

Design, Evaluate & Select Strategic Initiative

Part 3 of the Insights Corner Strategic Initiative miniseries continues our Strategic Initiative conversation; discussing a Structured, Organized process to Identify, Develop, Execute, and Operationalize the right initiatives to effect the transformational changes necessary to grow the business, while simultaneously furthering the achievement of the Business Corporate Strategy.

Now Think of Strategic Initiatives like this:

You would like to build your dream house. You have almost everything you need – money, the perfect design, builders, everything BUT NO LAND on which to build your dream house.

Apply this scenario to our Strategic Initiative Discussions

  • The Corporate Goal is to Build your Dream house
  • The Strategic Gap – is Not having the land on which to build your Dream house. Because according to our Strategic Gap definition. It does not matter what you do; you ABSOLUTELY, POSITIVELY cannot build a house without first having the land to build it.
  • The Strategic Initiative is the task “to find and acquire the perfect land” on which to build your Dream house.

In Business:

Similarly, in Business, there are Strategic Gaps, Gaps that must bridge or resolved before the Business can begin working on the activities necessary to achieve one or more of its business goals.

The challenge:

In Business, identifying Strategic Gaps and defining Strategic Initiatives is a Complex Process, hence the reason for this Special Insights Corner miniseries.

Design, Evaluate and Select Strategic Initiatives Topics:

  1. Discussed the Challenges leaders experience as they transition from the dreamlike, exciting stage of the S.I. process to the reality stage. While discussing how this transition impacted the Design, Evaluation, and Selection of Strategic Initiatives for the Business.
  2. Performed a Business Limitation Analysis to determine which limitations the leaders would choose to resolve and which they would accept.
  3. Evaluated Strategic Gaps to identify which Strategic Gaps the Business is equipped and able to bridge, and
  4. Evaluated Strategic Initiatives and Supported the Decision Makers in their efforts to Approve Strategic Initiatives that were best for the Business.

“This is Corporate Strategy, so it is important to recognize that there is never a straight-line between Possible Strategic Initiative and the Business Corporate Strategy. It is Littered with Complex Decisions, Capabilities & Resources restrictions.” This is Why! We created this Special miniseries for You!

Click on the video for full detail.

 

If you missed Part 1 and Part 2 of this miniseries, the links are included below.

Part 1: Strategic Initiative Part 1: What is Strategic Initiative?

Part 2: Strategic Initiative Part 2: Clarify Corporate Strategy & Identify Strategic Gaps 

Insights Corner- Strategic Initiative miniseries roadmap.

Insights Corner- Strategic Initiative miniseries roadmap.

We must mention, this special miniseries was designed to help avoid expensive strategic errors plaguing organizations. The types of  errors that widens the Strategic Gap between the business and its Corporate Strategy.

We end every episode with Be Strategic!  Because the series contains immense value for businesses.

The simple truth is, it is much more expensive for a business to get back on track than it is to invest the time and resources initially in identifying, developing, executing and operationalizing the right initiative for the business.

Be Strategic!

 

 

 

 

 

 

 

 

 

How to do More with Less, with the Resources you have!

A common misconception is that in order to do more, you need more resources. Not True!

In this video we discussed 2 Low Involvement, Minimally Disrupted strategies on how to do more, execute strategically aligned tasks, without acquiring new resources.

Strategies:

  1. Identify Strategically coherent goals your team buys into.
  2. Build Employee Engagement the right way.

Note of Caution: Don’t despair if you encounter resistance when effecting change. This is normal, so persevere, and your team will adopt the changes. 

 

3 Strategies to Execute High Risk Projects.

Pursuing Growth & Transformation initiatives in uncertainty, when faced with limited information, limited expertise and the unknown, Is Possible. 

This video discussed in detail the following 3 Practical Strategies that allow businesses to confidently pursue high-risk projects. 

Strategy 1: Define Success Principles

Strategy 2: Measure Progress of you most critical activities

Strategy 3: Manage Deal Breakers.

The secret to the successful execution of high-risk projects is NOT to get hung up on the Numbers but to get Obsessed with Progress. 

This episode dives into detail on 3 strategies that allow you to pursue high-risk projects with confidence, providing the insights necessary to control the 

Tip: When executing high-risk projects, monitor progress regularly and be prepared to make micro-adjustments as new insights are unveiled. 

 

Operationally, Measure what Matters

Business Operation is the epicentre of an organization.

The successes or failings of an organization, its growth or shrinkage will dependent on how the organization approaches and manage the operations of the business.

How well you deliver on your Operations Mandate to deliver the goods and services of the business and do your part to contribute towards the growth & transformation will depend on how you manage each of the three achievement areas:

  • The Operations Achievement – operations activities to deliver the goods and services of the business
  • The Competitive Achievements – operations activities that are necessary to compete effectively in the marketplace
  • And the Growth Achievements – operations activities that are necessary to grow and expand the business as planned

This video discussed a 2-step strategic approach to help effectively achieve your operations mandate. 

Copyright © 2020 NM Corporate Strategy Inc. All Rights Reserved.

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Copyright © 2020 NM Corporate Strategy Inc. All Rights Reserved.

Follow us on:

Linkedin