PT Journal (Analytic)
AU Wolf, Ron A.
AU Gering, David T.
AT Making strategy work.
CT Journal of Business Strategy
CY 1998
DB General OneFile
XX Service Name: Gale
XX Date of Access: 1 Apr. 2009
IL
AB Strategic thinking and planning present businesses several opportunities for short and long-term success. Well-planned strategies help position firms to outperform their competition, furnish and enhance quality products and services, and develop employee morale and development. However, strategic planning initiatives also lead to changes in the organization. Companies are urged to adopt a vision statement concerning the future of their organizations to clarify questions concerning strategic plans. They are also recommended to adopt communications programs focused on alleviating employees' fears concerning changes. Moreover, management staff is recommended to encourage the empowerment of employees through a feedback and dialogue process.
DE Business planning_Analysis
DE Strategic planning (Business)_Analysis
DE Career development
DE Management techniques
DP March-April 1998 v19 n2 p11(4)
DP Mar 1, 1998
PB Emerald Group Publishing, Ltd.
RM COPYRIGHT 2005 Gale Group
SU Making strategy work.
SU Business planning_Analysis
SU Strategic planning (Business)_Analysis
TX
Very few companies operate with clearly identified strategies for
reaching long -term goals, yet strategic thinking and planning offer
businesses abundant opportunities for success. They serve as a road
map for navigating in today's competitive and rapidly changing
business environment. They help people act before problems crop up and
offer the best hope for companies that want to make the maximum use of
their time, money, and personnel resources. Carefully conceived
strategies help position companies to outperform the competition,
understand prospect and customer needs, provide quality products and
services, improve morale, and develop personnel. Yet far too many
companies seem to stumble along without well-defined action plans for
the future.
To best understand the process of strategic thinking, it might first
be helpful to understand what it isn't. Strategic thinking is not:
* A laissez-faire, "wait and see" approach - strategic planning is
active, not passive;
* A mission statement - that can be one component of strategic
thinking, but, by definition, it does not offer specifics on how to
carry out the company's purpose;
* A product - it is a process that continually undergoes review and
revision;
* Cut and dried - instead of absolutes, there are myriad possibilities
to review, shape, mold, evaluate, and select;
* Problem solving in a vacuum - strategic planning must take place in
context and be sensitive to the present and the near future.
There is both an art and science to strategic thinking and planning.
The process demands the ability to conceive, identify, and communicate
opportunities and future direction. Strategic thinking is always work
in process, continuous and ongoing.
Yet with all the talk about the importance and benefits of strategic
thinking and planning, many companies find the whole concept
intimidating. They may pay lip service to it, but in reality, they
avoid the process like the plague. Here are some of the reasons why
companies are averse to strategic planning, and what can be done to
overcome these obstacles.
Lack of Vision
Top executives who consider company performance only in terms of
revenue figures, profits, market share, and pricing, without
considering their internal and external customers - and the culture
needed to support their success - are in for a rude awakening. This
shortsightedness is the number-one impediment to businesses hoping to
succeed in the future.
The remedy: Clarify a vision.
A vision is a picture of what the organization will look, taste, and
feel like at some point in the future. Two to three years out makes a
reasonable target, but beyond that is nearly impossible to predict. A
good vision starts with a few simple phrases, sometimes only a few
words, provided they are the right ones. A vision is practical and
achievable, not ethereal and abstract. It can move people to come
together in an extraordinary alignment of purpose and a common goal.
Its power can (and must) resonate throughout an organization.
Federal Express has a clear vision. Its commitment is to "continually
improve quality to achieve 100% on-time delivery, 100% accuracy, and
100% customer satisfaction." That statement gives a clear and
compelling direction to employees.
Fear of Change
Strategic planning inevitably brings change, either subtle or
dramatic. In either case, change almost always produces some measure
of fear among those who may be affected. Why? Because change results
in either real or perceived loss of an individual's influence,
security, authority, respect, and prestige, not to mention his or her
job.
The remedy: Deal with fear directly.
To manage the fear of change, companies need to recognize its root
causes and deal with the issues head-on. Communicating what changes
are taking place and why helps individuals to let go of the status
quo. When employees know and understand that the company is sincerely
interested in their well-being and will help them plan for the future,
they are more likely to embrace change, recognizing that there is a
silver lining to what may seem to be a very black cloud. Although it
takes courage to risk that possibility, the leap is often less
stressful and more promising for employees than holding on to the way
things used to be.
The Xerox Corporation helps its people deal with change on a regular
basis. The company discovered that employees adapt best to change when
they are familiar with its corporate goals, challenges, competitive
strengths and weaknesses. Through continuous training and
communications programs, Xerox believes its employees have become less
resistant to and fearful of change, and more motivated to find
positive, productive ways to deal with it. When companies recognize
the importance of helping employees understand the "what and why" of
change, they reduce fears, and increase the likelihood that employees
will accept the new ways, policies, and strategies of the future.
Lack of Leadership
Although the ability to think strategically and to lead an
organization go hand-in-hand, that combination of talents in one
individual is rare. Both strategic thinking and leading involve the
ability to see beyond today and communicate. Leadership must go one
step further, however, to engage others in recognizing the advantages
of achieving the vision.
The remedy: Learn and live leadership.
Leadership, like management, can be developed. But leaders must be
willing to act in ways that are consistent with their own
pronouncements. They must become actively involved with the new
systems and culture that they have created. They have to model
behavior and practice what they preach. They must strive for crystal
clarity of vision and gain the involvement of all individuals who have
a stake in the changes.
For example, at Banca di America e di Italia, the new CEO brought his
best performers together on a redesign team. When recommendations for
change were made, executives worked alongside employees to support new
policies and procedures. People measure effective leadership by action
far more than by the carefully worded statements that appear on
plaques, annual reports, or company memos. Working together created
and reinforced the perception of strong leadership, resulting in
greater productivity, fewer errors, higher job satisfaction, and less
employee turnover.
Opposition to Planning
It's been said that those who fail to plan, plan to fail - and that is
no less the case when companies fail to strategize for the long-term.
Instead of committing to this process, too many companies rely on
hunches, luck, or business as usual.
The remedy: Make the leap of faith.
What must change first is top management's attitude and their
willingness to tackle tough issues in a cooperative, unthreatening
environment that encourages participants to share their ideas,
concerns, and goals. People must be willing to risk being in uncharted
territory. Everyone involved must have faith that their thinking and
planning efforts will pay off in clearly tangible results and be felt
on all levels from marketing and sales to human resources, operations,
finance - every aspect of the organization. When this attitude
prevails, strategic planning can be readily mastered and phenomenally
successful.
One example of the consequences of the failure to plan is the lack of
growth experienced by a southern California-based vocational school.
The school has excellent credentials, a sound academic program, and a
good location, but has failed to plan and carry out an aggressive
marketing program to attract potential students and referral sources.
The administrator and staff do not recognize the importance of, or
take the time for, planning. They never ask themselves, "Who is our
target market, what do they need, what messages should we communicate
to our prospects and how often, how can we reach them, and what makes
us different?"
The Strategic Thinking Process - What Does It Take?
An aversion to strategic processes is often the product of an
unrealistic sense of what strategies look like on paper. This is not
unjustified. The results of many strategic planning efforts have been
documents that are much too long, lack problem-solving specifics, and
inevitably end up on the shelf, unread and not implemented. In
reality, a usable strategic plan can run a mere three or four pages.
Awareness of a need to change is the first step to developing (and
accepting) a new strategy. Since "business as usual" is no longer a
viable option, the realization that change will be everyone's constant
companion is critical. "Many companies don't recognize the need to
change or that their customers' needs have changed," says Cal Kirby,
corporate vice president for Hughes Electronics, in Westchester,
Calif. "They may be in an industry that changes slowly, and have had
success in the past, accustomed to operating the same way and they
haven't needed to be attentive to changes in their industry."
Many industries have found that changes in strategy are prompted by
market forces, most notably customers' current and future needs.
Executives must be receptive to customers' needs and finding ways to
meet them. A good strategy has competitive forces in mind, and places
satisfaction of customers in the forefront.
Here are the basic elements of every good strategy-setting program:
* Vision: A picture of the future. What will the company look like in
three years or beyond? How will the marketplace change? How will the
company meet the needs of its people? These are among many questions
that spur the crystallization of a clear vision.
* Leading by example. Leadership in thought, word, and deed sets the
tone for new strategies. That requires repeated demonstrations of
management's willingness to change old beliefs and methods of
achieving goals. Certainly, management cannot expect others to change
without also going through the process of transformation. As companies
struggle with change, their management teams will become more attuned
to what others are experiencing during that process. Their willingness
and attempts to use different methods of solving problems, encouraging
feedback and dialogue, and empowering people at all levels to become
more responsive and accountable indicate that the process of
transformation is underway.
* Communication. When confronted by changes that could have
potentially negative consequences, people tend to avoid discussion.
Yet, communicating effectively and honestly is basic to the process of
strategic planning. When communication channels are opened early and
kept open throughout, the results can be worth it in the end.
* New Selflessness. The future of any individual or organization is no
longer etched in stone. The old mind set of "putting in time" or
"punching the clock" is no longer acceptable. Keeping one's job will
require an expansion of selflessness to include the company at the
center of one's thoughts and concerns, forsaking the "every man for
himself" notion. Companies that put their people first reflect the
behavior and attributes that foster the same selflessness in their
employees.
* Empowerment. This is one of the most exciting concepts in business
today. The term means more than just giving people power; it also
implies enabling another to excel. Methods of training, motivating,
and retaining employees should have empowerment at the core. Some
company cultures are designed to attract and reward productive
employees who believe in teamwork toward the common goal of superior
service, and they have reaped the rewards.
One example of the successful outcome of empowerment concepts put to
practical application can be found at West One Bancorp in Boise,
Idaho. It entrusts employees with a sense of personal authority in
dealing with customer service and retention, and helps their
professional development. Now employees are better trained and can
provide a higher level of service. The results have been dramatic in
terms of improved customer satisfaction levels and overall
profitability.
Kick-Starting Strategy
If and when company executives decide strategic thinking and planning
have merit, the question is where and how to begin. Key executives
need to clarify their visions for the organization. This can include
input from the board of directors and stockholders. Executives will
need to consider what the organization should look like, how it should
position itself, and the best methods for future growth. Other
considerations might include laying the groundwork for creating the
ideal culture in which individuals in the organization will thrive.
Once a company has a clear sense of what is desired and expected, it
is time to define the specific strategies that will be implemented. A
steering committee can be assembled, with time set aside in an
environment that is conducive to a consensus-building process. This is
not an exercise conducted independently or within limited departments.
Choose people who are both team oriented and committed to results.
Take a look at what is changing. Very often a series of defining
moments or realizations cause individuals to recognize a need to make
a shift. If things have changed, begin to identify what the changes
are, what implications they have, and what to do about them. Asking
tough and broad-based questions at this planning stage forms the basis
of a strategy.
Focus on the clarity that comes from critical thinking, so that
everyone walks away with a clear understanding of that vision.
Strategic thinking is a sensible, logical process that gives drive and
focus to everyone involved.
Like any other challenge, recognize that getting help may be the first
step. Benchmarking against "best in class" or industry leaders should
become your starting point for every change program. Why reinvent the
wheel? Learn from others.
The cure for most strategy-aversions lies with the individuals who
will be most accountable for their implementation - the leaders. They
must truly believe the process will work for others to support it.
Then, the best people must be chosen, and empowered to make it work.
Patience, persistence, and tenacity are critical. Giving up too soon
is a common mistake. You must have faith that the long-term rewards
will be there.
ARE YOU STRATEGY AVERSE?
Are aversions to strategic planning jinxing your chances of success?
Answer "yes" or "no" to the following questions:
1. Do you believe that the organization must change?
2. Do you believe that the organization can change?
3. Are your company's products/services competitive?
4. Can you envision what the new organization should look like?
5. Are you willing to see your job changed or eliminated?
6. Do company leaders have the support of key people?
7. If necessary, are you open to getting help from outside the
organization?
8. Do you see the process as an expensive one without potential
reward?
9. Do you see the need to plan ahead?
10. Can you really identify a unity of purpose?
If you answered "no" to at least one, then you may be strategy averse.
Ron A. Wolf is a behavioral psychologist with a management consulting
practice in Santa Monica, Calif. David T. Gering is a certified
management consultant in Simi Valley, Calif.
ZZ
PT Journal (Analytic)
AU Price, Ron
AT Following strategies less traveled: originality and courage should not be used sparingly.
CT Industrial Engineer
CY 2009
DB General OneFile
XX Service Name: Gale
XX Date of Access: 1 Apr. 2009
IL
DP March 2009 v41 i3 p36(4)
DP Mar 1, 2009
LG English
PB Institute of Industrial Engineers, Inc. (IIE)
RM COPYRIGHT 2009 Gale, Cengage Learning
SU Following strategies less traveled: originality and courage should not be used sparingly.
TX
FOR ANY BUSINESS, STRATEGIC PLANNING IS A necessity. It's the key to
looking to the future and creating a direction intentionally as
opposed to simply reacting to the marketplace on a daily basis. In
today's fast-paced market-place, strategic planning helps company
leaders maintain their sanity and build a company based on the values
that matter most to them. By having a long-term view of why a company
exists (mission), what matters most in the way business is conducted
(values) and where the company wants to end up in five, 10 or 20 years
(long-term objectives), an organization can maintain perspective while
responding to the constant challenges and opportunities that rise and
fall with increasing intensity in today's world.
Historically, strategic planning meant going off-site for a few days
once a year and laying out the company's goals and direction for the