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