Strategic Leadership-No. 4: The Role of Planning in Leadership
How the heck do you plan in today’s environment? And yet, without a plan, how to marshal the troops and allocate resources? The answer isn’t to keep all options open. That is chaos.
While today may be one of the most uncertain markets in which any of us have ever planned, planning is no less important—in fact, maybe never more important. When resources are scarce, knowing what is essential to get you to the future goals is invaluable.
This economic environment will be a catalyst for a great divide—some companies will take full advantage to separate themselves from the pack. Others will wither, as they hold themselves back from commitment to anything.
What we WILL see are smart leaders taking a longer-term perspective and looking at a the current business model for sustainability, while asking more penetrating questions about how we not just survive, but thrive in the future. As Herb Kelleher of Southwest Airlines asked, “How do you manage good times to be prepared for the bad?”
The key to planning the future is confronting reality today. Banks must understand consumers are not likely to continue to support the current fee structure and develop new services that consumers see as value-add. The healthcare industry will become more consumer-driven (if it isn’t taken out of their hands to make personal healthcare decisions). The publishing business will adapt—there will always be readers, but it will be one channel of distribution, which impacts books, newspapers and greeting cards alike. Too few companies invest in understanding the current market reality and identifying the trends that will impact them moving forward.
Confronting reality doesn’t just apply to the market. What practices does your company perform that get in the way? Does your culture match your goals? Have you fostered a family atmosphere, which has led to a comfortable place to work, but failed to produce a sense of accountability? Are you doing work that is non-productive (i.e. requiring too many non-productive reports or meetings) instead of using that time to advance new ideas? Does your organization lag trends or lead them, and why?
Another challenge for most companies is the time devoted to planning. If your senior meetings are focused on operations as opposed to strategy, who is working on your future? If you aren’t, chances are, nobody is. Not to say operations aren’t important, but if you don’t have a plan for where you are going, you are a bit like Alice in Wonderland, any road looks good. When I ask new clients, I usually hear that less than 20% of their time (and many say 10%) is devoted to future planning. That simply isn’t enough. There is no magic right number, but here is a guarantee. The more definitive you are about your future, the easier it is to solve operating questions today. The reason is, you know what is critical for future success and can spend the appropriate time on the right operational issues. Some don’t matter, because they are not a part of your future. Some will be critical to success. Wouldn’t it be great to know the difference?
Communication and transparency are keys to strategic implementation. If no one has a complete picture of what you are thinking, how can they help? “The only way to address uncertainty is to communicate and communicate. And when you think you’ve just about got to everybody, then communicate some more,” Terry Lundgren, chairman, president and CEO of Macy’s. There is no such thing as too much communication. In fact, most of you have heard that a person has to hear something at least 7 times to remember it. And even then, is it the domain of senior management to fix things? Or have you communicated your expectations of your employees and what you need from them—personal growth, accountability, etc.? And is that documented in the performance review system with appropriate rewards and consequences?
Don’t stop with employees. You have a number of stakeholders. Be sure they all understand what you are doing and why and what their role is. That includes suppliers, customers, analysts and investors. They can get behind you when they are part of your team.
Finally, lead with passion. You are the role model everyone follows. The strength of your enthusiasm will build bridges for others to follow behind. Even in the tough times. Be realistic about where you are, but be a believer in where you are going. There is a reason Jim Collins wrote about passion being an essential ingredient in his book “Good to Great”. Without it, even the stouthearted give up in times of adversity. With it, you inspire others, find alternative courses to overcome obstacles and achieve your goals. There may be times when you have to re-think something that just isn’t working. As Rosabeth Moss Kanter says “change is hardest in the middle”. That is when self-doubt and double guessing occur; when you realize it is going to be harder than you thought. However, if you confronted reality and the reality hasn’t changed, if you scored some quick wins as you started down this path, if you have secured partnerships internally and externally who are still optimistic, stay the course. As Kanter says, “those who master change persist and persevere.”
Let Reynolds Consulting, LLC help you define your goals and establish your plan for a future consistent with reality. We have tools to help you do just that and a track record of client successes. Read them on our new website at reynolds-consulting.com, then give us a call.