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Help
your business get out of its own way
by
Pamela S. Harper
Today’s
roller coaster business climate is filled with enough twists and turns
to make some amusement park rides look tame. As a result, companies in
nearly every sector mirror this state of affairs, launching a variety
of strategies and initiatives in order to respond to the economy’s
highs and lows. They may take simultaneous actions like laying off
hundreds of workers while they outsource non-core functions and hire
hundreds of others with different skills to start up a new product
line. Or, they may concurrently undertake a management reorganization
while doing a push for quality improvement. These and other rapid
shifts in direction often leave companies spinning in circles.
While
every leader needs to be flexible in order to move a business
forward, often even the best strategies or initiatives can throw your
organization for a loop if they’re planned in a vacuum and executed
in a way that clashes with an organization’s unique and
multi-faceted reality.
When this occurs, persistent problems pile up
and can grind progress to a halt, in what I call “strategic
gridlock.” Minimizing this situation starts with systematically
thinking through and planning strategies and initiatives in a way that
takes into account your organization’s current circumstances,
capability, willingness and relationships.
Before
you commit your company to a plan of action in response to a business
challenge, here are key questions that you need to ask in order to
determine whether a particular strategy or initiative that should work
actually will work for your organization.
How well does the strategy or initiative advance the company’s
business objectives, relative to competing strategies and initiatives?
In
some cases, gridlock builds because an organization tries to absorb a
large number of equally
important goals. At these times, even the most rational and well-sequenced plans stall as all of the priorities blur together.
One of
the best ways to break these jams is to review each alternative
against your company’s vision, mission and business objectives.
This can help you select the few
key strategies and initiatives that offer the best blend of short- and
long-term benefits along with the fewest acceptable risks.
How complementary is the goal with others?
In
other cases, gridlock builds because organizations adopt plans that
pull everyone in different directions. One way to resolve this
conflict is to run goals in parallel that use different resources, or
by “piggybacking” goals that can take advantage of the same
infrastructure.
For instance, one company designed a new manufacturing
facility that was capable of making multiple product lines, which made
it easier for them to enter into multiple new markets at once.
What other strategies/initiatives/goals compete for the same
resources?
One
of the most difficult things for leadership teams to anticipate is how
seemingly different strategies or initiatives can tie up the same
resources. This is because conflicts often happen far down the road
and can’t always be seen from the executive suite.
One way to better
anticipate and plan around such gridlock is to leverage any insights
you can gain from conversations with those who will be implementing a
plan. This includes (but is not limited to) employees, alliance
partners and outsource providers. Since many of them are much closer
to the action, they can become excellent sources of intelligence about
resource conflicts as well as other matters.
What politics are involved?
These
days, our decisions impact and are impacted by more than employees on
the payroll. Organizations of all sizes have structures, alliances,
supply and outsource relationships that make them increasingly fluid
and interwoven. Because of this, keep in mind that overlooked or
underestimated stakeholders (such as regulatory agencies), who
suddenly flex their political muscle, can also advance or block your
strategies and initiatives.
Using your insights about the power various stakeholder groups have in
relationship to the plan that you’re considering can help you
anticipate this and react accordingly when choosing priorities.
What trade-offs make sense?
Sometimes
organizations run into gridlock because leaders focus purely on the
strategic fit of an opportunity and underestimate their
organization’s current capability and willingness to execute the
plan. Testing your assumptions about your organization’s reality
along with fact-finding efforts can help you decide what to advance and what
to hold back when your organization can’t effectively manage
everything at once.
In some cases, the trade-off may be timing; in
other scenarios, short-term profits or product launches that initially
seemed to be good opportunities are better off being placed on hold in
favor of plans that offer a higher long-term payout. The better you
understand your organization’s reality regarding these issues, the
easier it will be to make these decisions.
Keep your
organization moving forward
As
the business environment continues to evolve, no organization can
sustain long-term growth without shifts in direction along the way. To
maximize the benefits and minimize the risks of encountering strategic
gridlock, it’s vital to systematically think through your execution
plans in a way that incorporates these often overlooked or
underestimated issues of your organization’s reality. By doing so,
you can balance what should work with what will work to accelerate
your company’s progress despite the economic terrain.
Pamela
Harper is president of Business Advancement Inc., a firm that helps
leaders transform their business strategies into high performance
results. She is a nationally known speaker and is the author of the
new book Preventing Strategic Gridlock (Cameo Publications, 2003). For
more information, call (201) 612-1228 or go to www.businessadvance.com.
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