Strategy made simple ....

Over the years I have had many queries and questions on how to do a high level strategy.  It appears that it has become a complicated science!  Well in my mind it is not!

I don’t believe in overcomplicating things.  The answer always lies within the simple not the complex.  So what about strategy then?  My view on most of the critical components to complete a high level strategy are captured below.

1. Start with the picture

What is it that you are trying to create?  A good analogy here is a jigsaw puzzle that you are about to put together.  Do you have the picture in front of you?  Do you know what it is you want to build?  Have you got a clear view on what this is going to be?

2. Build in the critical elements for your business

Once you have the picture sorted then decide what are the critical elements you want to ensure are managed along the way.  A good example here are the elements within your business that are critical drivers to its success.  Some examples are below but these are by no means exhaustive:-

o   Your People:  What is in it for your people?  Why will they want to be a part of this? What organisational capabilities will you need to build this?

o   Your Customers:-What are you going to do for your customers?  What will these elements mean for them?

o   Your Community and Shareholders.  Are these elements important?  If so don’t forget to build them in also.

o   Your service offering.  What is this going to look like as you create your picture?

o   Third parties or alliances that you may want to include.

o   Technology.  Is this a critical element to create your picture?

3. Create your stepping stones (your projects and initiatives). 

Now we have our critical drivers, what are the elements or projects that we need to get underway that will help us create the picture that we are building? Our stepping stones!  How do we want to put this together?  What is the timing to do these things?

Now as you work through this a few thoughts to the wise.  If you follow De Bono ... don’t put the black hat on first!  Start with a clear board and create all the possibilities.  This enables more creative flow and thinking.  Think of it as a brainstorming type session. 

4.  Timings and reality check

Once you have all your possibilities you can start to work through the critical elements that need to be considered around why you may or may not be able to conduct these activities now or in the future.  This may be due to funding, regulations, economic environment or any other elements that you feel appropriate to your business. You could employ a methodology like a PESTLE analysis.

5.  Create a visual one page map. 

A visual depiction of what you are creating.  Plot your initiatives on this map so you can see what you are creating.  One page is great.  This is your map of how you are creating your future!

6.  Congratulate yourself

Now give yourself a pat on the back.  You have a high level strategy of what you want to create and how you will get there, along with critical elements that you want to manage on the journey.  Yes there is more detail that will come after this but for now .... Well done!!  You have a high level strategy on where you are heading!  You are already a step ahead of most!

The soft stuff that's really the hard stuff!

Wow, I don’t know about you but I am so over hearing people talk about the ‘soft stuff’! Of course what they are referring to is the people element of business.  The reason I believe it is often referred to as the soft stuff is because in actual fact it’s the hard stuff!  It’s the element that is often left out, or actioned at the last minute when it comes to major projects or programs.  It’s the element that is often referred to the HR team ...  why because it’s the soft stuff the People piece!!  When I hear people talk about the soft stuff the first thing I know is that they actually don’t know what to do with it or how to address it.  It has become an easy line to use to make an excuse for ignoring it or getting someone else to manage it!

Well I am here to tell you that the soft stuff is actually really the hard Stuff.  Why hard?  Because you’re dealing with people and all the emotional elements that come with this.  Get it right though and this is often the difference between a change that works and a change that doesn’t!  We know most change programs fail!  Why because this is the element that is not well managed. 

It is really time for business to stop referring to the people element of business as the soft stuff.  People are at the heart of business.  If you don’t get it right at this level, whatever you are doing will never really be sustainable.  It is people that actually make our business run.  It is people that interact all day long with customers.  It is the results of the actions people take that determine our overall business performance.

Most of the top performing companies around the world now understand this.  The people element has become one of the most critical measures that they now monitor.  This is what Thomas H. Davenport from the Harvard Business Review had to say “Organizations that have used data to gain human capital insights already have a hard-to-replicate competitive advantage.”

It’s time to move on from referring to the ‘soft stuff’ and acknowledge that this is the stuff that will make a difference to whether your business is here in a few years or not!

Good Luck.

True Value ...What is that?

True value .... what is that?  With the recent devastation around the world I couldn’t help but sit back and consider what is true value and who decides what things are worth?

Take property prices for example.  Banks like to value your property and then decide how much they will lend against that.  But then let’s take a step back, it is Valuers that value the property for the bank.  They base their values on a set of assumptions and market data.  Well where does the market data come from?  Well of course from people buying and selling their houses.  Well what drives these prices?  Is it the Real Estate agent who tells you how much he thinks your property is worth?  Or is it the media, who tell you when the market is having a major price rise, or plummeting due to interest rates.  What do you think your property would be worth if there was no media to cause speculation around what is happening in the market?  How would you value your property?  What would you decide were they key aspects that you would measure the value of your property against?  Is it lifestyle?  Is it location?  Is it status? 

When we look around the world and see the devastation you can’t help but sit back and say what is value?  For those that have been in earthquake affected areas.  Many of whom have lost everything ... what is it that they now value?  How would you prioritise what is of value to you and what is not?  If I look at Christchurch in New Zealand, what has happened to the property prices there?  What about all the so called experts that have valued properties at certain prices.  What do their values now mean to those that owned these properties?  Someone else’s value does not equate to the value you place on it.  The question is, in these situations should the value even be a monetary value.  Is it not more about a home and shelter?  As more of the world continues to unravel, value as a whole is being called into question.

True value resides with the owner.  Whilst others may give us opinions, thoughts and their views at the end of the day it really comes down to what value we place on things.  What does it mean for us?  No one else can really answer that question.