How is it possible for senior management and boards to stretch their thinking and uncover bolder strategies?
The answer is simple: Involve others in the process.
In the past, senior leaders met to define long-term goals, then pushed them down throughout the organization for daily execution. Unfortunately, new and bigger ideas can be constricted by comments like “this is how we’ve always done it” and “the CEO isn’t going to buy it.”
Marketing guru Regis McKenna has said, “Ten percent of the people in the world influence the other 90 percent.”
Now, many purposely consider other influences – both internal and external – to expand their strategic thinking. In today’s uncertain, fast-moving economy, organizations need absolute clarity in the planning process to ensure finding the right direction. Bringing people together from different disciplines, industries and experiences can fuel innovation and creativity, as well as enhance effectiveness.
Here are four possible approaches to incorporate other influences into the strategic planning process: cultural sparkplugs, cross-industry field trips, red teams, and community influences:
Cultural sparkplugs
People will generally support what they help to create. Surveys and interviews are straightforward ways to involve employees in setting goals and generating new ideas. After all, employees are closer to the customer; CEOs need to hear customer service and salespeoples’ ideas for solving problems with customers at the center.
Once strategy is formed, senior executives can call town hall forums to explain the vision to all employees and appeal to individual contributions in support. Additional influence comes when this presentation is not “cast in stone” and includes their perspectives. A strategic plan presented as a “draft” demonstrates that executives are open to honest feedback and additional input.
Out of these forums, it’s possible to discern those employees who provide forward-thinking ideas and ignite the activity needed to move strategy forward. These “cultural sparkplugs” are important to identify and involve because they have the talent, personality or ability to influence other employees. If they get excited about the strategy, they can make things happen because they are highly respected; others listen to them.
When changing strategy, senior leaders want these key players on their side for they are the “glue” to make ideas stick within the organization. Yet they also may not buy into the party line. The challenge is to pick a few ideas, align people and projects, and guide sparkplugs to light the engine that drives the message and its importance to other employees.
Cross-industry field trips
The American adviser to leaders Tony Robbins has stated: “If you do what you’ve always done, you’ll get what you’ve always gotten.” That’s one reason why learning from other well-run companies can positively influence strategy. Cross-industry field trips help leaders think outside the four walls of their conference room.
For example, senior managers from a consumer products company visited Chicago’s Magnificent Mile to explore how major retailers in different industries were living out their mission and values.
They personally compared their research with their own customer experiences at North Face, Apple, Cheesecake Factory and other well-known brands. As a group, these leaders discussed how to incorporate key findings into their own values. This stretched their thinking into how to create a new experience for their own customers.
This approach demonstrates that breakthroughs can come from outside one’s own industry. It’s possible to learn new ideas about customer service from the likes of Nordstrom, or clean, colorful environments from the likes of Disney.
In today’s world, leaders need to intentionally get “out there” and see what’s happening in the marketplace – or risk missing out on a trend that others are capitalizing upon.
Red teams
The opportunity to learn from the unique perspective, experience and mistakes of outsiders is another way to influence strategy. Those who know little to nothing about an organization or its industry can provide fresh ideas and feedback.
Sometimes referred to as “red teams,” these bright, creative outsiders – executives from other industries, community leaders, trusted advisers and even kids – can offer powerful opinions on an organization’s plan.
For the CEO who seeks candor, rather than “tell me what I want to hear,” the beauty of the red team is the ability to disagree with no strings attached. Outsiders don’t usually hold back punches. Based on honest feedback, management makes the final decision.
For example, one health care firm invited an attorney, venture capitalist and CEO of a complementary business to critique its strategic plan and related organizational structure (after signing a confidentiality agreement). These credible outsiders provided a pure exchange of feedback about what they liked or didn’t like, with solid rationale on recommended changes. This information guided the health care CEO to make critical revisions to the plan.
Community influences
There has been an increase in companies recognizing communities as an outgrowth of their mission and core values. Community leaders and residents where companies operate or employees live are now being invited to the strategic planning table.
Examples of community-based initiatives – tied to values and strategy – range from giving back financially and volunteering to preserving the environment. Therefore, communities can actually influence strategy and be integrated into it.
For example, a health care system was building a new hospital and conducted focus groups with local businesses, nonprofits, prospective patients, physicians and community leaders to ask: “What do you like, love or hate about health care?” The idea was to help transition people’s thinking from “hospitals are only for sick people” to “hospitals can be an integral part of the community.” A clear theme of “keep me healthy” grew out of these focus groups that allowed the company to weave clearer messages into its strategic plan.
If organizations are serious about finding new and compelling strategies, they need to stretch their thinking by inviting inside and outside influences into the planning process.
Mike Felmlee,
Prouty Project:
952.942.2922
mike.felmlee
www.proutyproject.com
Grayce Belvedere Young:
612.331.5977
grayce.belvedere.young
www.proutyproject.com
