Posted tagged ‘Long-Term’

Managing by Priority

October 29, 2008

A little more than ten years ago, when I began to actively study business process redesign, I came across a book titled Managing by Priority: Thinking Strategically, Acting Effectively. The book’s author, Giorgio Merli, introduced me to a concept called time “horizons” and its role in decision making.

There are a number of ways to understand this concept. On a personnel level, think of it in terms of a typical departmental organization. A customer facing employee (sales reps, customer support staff) operate in an immediate time horizon. There job is to address whatever issue the client or prospect puts in front of them. A departmental manager typically has a longer time horizon. Their thoughts are more focused on a year or two down the road. A general corporate manger is focused typically on a three to five year plan.

From an initiative perspective, to be successful, a company has to effectively pursue objectives with three different time horizons (short, medium, and long) and at the same time manage emergency situations. If they are effective at doing so, the results of their efforts will be seen at different times.

Emergencies are typically problems to be solved or opportunities to be capitalized upon. A work stoppage or the ability to deliver a product or service caused by a “trigger” in the environment is a common example. Success rests on quick reaction times, improvisation and rapid deployment.

Short-term objectives are usually aimed at operational performance. Examples include issues related to quality, cost, processes, and financial results. Corporate leadership will typically frame these as annual objectives.

Medium-term objectives are those that concentrate on assuring that the business will still be competitive two to three years down the road. Leaders would focus on organizational capabilities after assessing where they think the competition will put the company at risk and market trends. Think new product development, retooling and significant technology improvements at this level.

The long-term objectives are more closely aligned with a five to ten year horizon. This point of view looks at where the company must be in terms of its organizational and cultural shape. It is for this reason that the word “vision” is commonly associated with long-term thinking.

If you look for it, you’ll find this pattern of time horizons appearing a lot and in places such as business process redesign, portfolio analysis and – you guessed it – strategy.

Does your mix of initiatives address all of these time horizons? More important, is your leadership team evaluating all of these time horizons when building your strategic plan?

Preparing a Strategy: So Much More Than a Task

September 2, 2008

Preparing a strategy is not a task. It is also not a deliverable, such as a document or a book.

When a strategy has been created and delivered, it will alter an organization’s focus, and allow its leaders to determine what to do, when to do it, how to do it, and who will be responsible for key elements of the strategic program. A strategy is core to an organization’s identity and a roadmap for creating its future.

Not surprisingly, it is the dialogue and the exchange of ideas that really matters. These ideas, filtered by facts and perceptions and synthesized by a healthy debate, will produce a worthwhile result.

In order to create a well rounded, comprehensive approach, one needs many different perspectives represented in the room. Each person will bring her / his talents, experiences, personal marketing strengths and weaknesses, and biases into the discussions.

The first step in the process is then to inventory the talents and perspectives, and then determine who needs to be added to the conversation to compensate for any weaknesses without compromising strengths. In essence, the intention is to determine what we “know we don’t know.”

There are ten perspectives that should be included when we plan our strategy. They may be sufficiently present in a few people or they may require a body of fifteen, twenty, or more.

1)       Vision. Who has an ability to envision a new enterprise and how it will be marketed?

2)       Creativity. Who can see and avoid conventional approaches and envision and design the unconventional?

3)       Sense of timing. Who understands sequencing and timing? Who can implement steps that will achieve the desired result? The “whens” are as important as the “whats.” This would include choreographing the approach.

4)       Ability to spot key trends. Who understands current social, cultural, and political trends? These are NOT trends within the industry. Rather they are trends in our society at large.

5)       Penchant for details. Execution, execution, execution… Who is the master of details?

6)       Ability to change. Who sees trends within the marketplace and can lead the organization to make the necessary adjustments?

7)       A long-term viewpoint. Who takes the long view? Who’s looking to the future? While successful selling looks short-term, in the here and now, successful marketing requires one to look three to five years out. A completely sales-oriented personality will often have a problem putting together a marketing plan as s/he usually lives in a short-term, tactical world.

8)       Focus. Who can maintain her / his concentration on the steps required to move from the beginning to the end? Entrepreneurs are often tempted to go after more markets than they should. Because it is so difficult to understand a single market well, understanding several well enough to succeed is often impossible. Highly focused entrepreneurs tend to go after markets sequentially.

9)       Passion. Who is the product or service evangelizer? Who feels strongly about your products or services and can express how they will make a difference to our customers? Who believes in our goods and services and their value? Who enrolls others in that excitement?

10)    A technology and information orientation. Who understands technology and information systems? This person must understand what systems can be developed that will have an impact on the organization. Successful marketing increasingly depends on the leader’s ability to make effective use of marketing data and information.

With the right perspectives present, the likelihood of the success of your strategy will grow exponentially.


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