Archive for December, 2009
By twelch in
Strategic Planning
Dec
17
Craig McIvor writes that over twenty years of crafting strategic plans for businesses, he has come to some conclusions. First, that modern leaders are drowning in detail and this is hampering the quality of their decision-making. Second, very few businesses understand the drivers of their business and what competitive advantage really means. Without a clear understanding of what the business does and what constitutes its competitive advantage, the task of developing a strategy becomes difficult. Finally, McIvor writes that our leaders’ risk-aversion is limiting the ability to change towards more sustainable business models.
Article Quote:
“Many large businesses succeed in spite of themselves. Over time they do accumulate competitive advantage, market share and great profits, but without understanding the reasons for this, their ability to sustain this position is unlikely.”
Link: http://www.nzherald.co.nz/small-business/news/article.cfm?c_id=85&objectid=10613436
The self-imposed information overload we put ourselves through only hampers the strategic planning process. In this information age, we have nearly infinite amounts of information at our fingertips. When sorting through what is important and useful, sometimes we need to take a step back to focus on what kind of decision needs made. Remember, information is only useful when it is relevant.
Once a strategic plan has been adopted, implementing it is the next step. Strategic planning software brings projects and people together in a collaborative effort that puts the strategic plan at the forefront of day-to-day operations.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
By twelch in
Strategic Planning
Dec
17
Summary:
This article offers definitions on widely used business terms. Miscommunication on key terminology creates havoc when it comes to implementing a strategic plan. Furthermore, this author explores the question of who should own the definition of terms like objectives, goals, strategies and tactics. Should it belong to the executive in charge or an outside agency?
Objectives, or high level achievements, should sit at the top of the strategic plan. Organizations should have no more than a handful -any more is an overload and may cloud what is really important to business success.
Article Quote:
“Most people use some form of objectives, goals, strategies and tactics for their plans, but get a group of 10 people into a room and you might have 10 different definitions of what those terms mean? That’s why agreeing on their meaning is vital to your plan. Term agreement is a lubricant to productivity.”
Link: http://sclohonet.blogspot.com/2009/12/planning-for-2010.html
Effective communication must start with a clear understanding of what terms mean. Who owns the term is not what is important. What’s important is that everyone understands what’s being said.
Once you’ve moved beyond term definition, and created your strategic plan, it’s time to put it into action. This is another area where clarity in communication helps avoid slip ups. Individual accountablity and follow-up improves with strategic planning technology. Management can have instant access to track projects and people.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
By twelch in
Strategic Planning
Dec
17
Summary:
Tips offered for successful strategic planning include: set up a solid planning and benchmarking structure, use a strategic plan to drive accountability and alignment, involve every associate in the planning process, obtain formal agreement from everyone involved in the process, and implement the three Cs: consistency, communication, and clarity.
In the fifth tip, the U.S. Postal Service attributes its success in part to some key factors such as consistency, communication, and clarity. Planning does not change with changing corporate leadership. They strive for constant, simple communication with the 700,000 employees and millions of customers and they emphasize clarity and focus by limiting the number of top-line goals.
Article Quote:
“Before, the organization focused on integrated planning, various units maintained their own planning cycles without any conscious effort to connect or integrate them. The current planning structure ensures alignment across the organization, and Six Sigma initiatives improve core processes and help Bank of America deliver consistent results year after year.”
Link: http://nikhils-nick18.blogspot.com/2009/12/5-tips-for-successful-strategic.html
These are good tips to follow when developing a strategic plan. While I don’t believe a formal contract is necessary, it might be that little extra nudge that gets individuals to participate. Focusing on accountability and listening to employee ideas are great ways to get results.
A good strategic planning software enables leadership and the entire organization to be involved and connected to goals. Drilling down into objectives and tracking progress will help keep the strategic plan from collecting dust on the shelf.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
By twelch in
Strategic Planning
Dec
17
Summary:
A few years ago, many HR executives developed workforce-management models with two main assumptions – droves of baby boomers will soon retire and entry-level workers will hop from job to job. Throwing a wrench into those models is the fact that neither group is doing as expected due to the economic crisis.
More that half of HR professionals reported that their workforce-planning models were “moderately effective,” and nearly a quarter surveyed reported “slightly effective,” according to a study conducted by the Institute for Corporate Productivity.
This author asserts that a model should consist of a basic dashboard that clearly outlines the economic assumptions the company has made to support its model, and make sure it can be easily changed if the economic atmosphere changes in the future.
Article Quote:
“Strategic planning can help identify likely scenarios that the organization should be planning for; finance understands the labor costs and financial requirements for each likely economic scenario; and HR, of course, knows the labor market and the skill levels of the organization’s people.”
Link:http://www.hreonline.com/HRE/story.jsp?storyId=305177010
Incorporating work-force planning into the strategic planning process will keep it dynamic and adjustable to change. Models are only good if the assumptions built into them are accurate. Strategic planning technology can save frustration and provide clarity on objectives and their performance by incorporating scenario planning with the ability to track results. This allows businesses to remain flexible when factors change.
For more information on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
By vgoodwin in
Strategic Planning
Dec
17
Summary:
The article speaks about how a business can be ran by illiterate management, but will never grow or become competitive within their market without the study of business management. The author points out that a successful company still needs intellectual executives, finance managers, and HR managers to remain competitive.
Article Quote:
“Some people wonder, why should someone study Business Management, since illiterate people own good businesses without even having any proper knowledge about it? A small and limited business run by an illiterate businessman may make profits and may sustain for a longer period, no doubt at this, but it will never grow and expand its branches to the other parts of the country and international markets which is the ultimate goal of an intellectual businessman. “
The various products developed by talented people around the world that facilitated the life of all millions of human beings are the results of professionalism and education. Performance technology is among these products that can literally change the way you do business.
For more information about strategic planning technology, see http://www.performancesolutionstech.com/category/strategicplanning/
By vgoodwin in
Strategic Planning
Dec
17
Summary:
I liked the article because it highlights the importance of the “human” in management. Finding and keeping talented employees that mirror you company’s beliefs and goals is not an easy thing to do. The author points out the importance of flexibility and recognition in increasing morale. He also adds that large corporations need, either on a contract basis, or as a permanent addition to your team, an expert in HR strategy because it will ultimately save you time and money.
Quote:
“Believe it or not, it is not your product, nor is it your enormous brain or fantastic location – it’s your workers! Without them nothing happens – you can’t do it all! Without strategic management, retention of your staff can be difficult. Going through the ordeal of replacing an unhappy staff member can cost up to three times their original annual salary. Couldn’t that money be better spent on trusted, loyal employees that reflect your business values? “
Link: http://syamhrfiles.blogspot.com/2009/11/hr-strategy-to-keep-your-workers-happy.html
Effective communication will not only create emotional satisfaction, it will translate into increased productivity. Any which way you look at it, an investment in your workers happiness via quality strategy planning, will reap major rewards for your overall business performance. Strategic planning technology wrapped up into one application can be the communication bridge between executives and employees.
For more information on strategic planning technology, see http://www.managepro.com/executestratplan.html
By vgoodwin in
Strategic Planning
Dec
17
Summary:
This article examines the phenomenon of bounded awareness – when cognitive blinders prevent a person from seeing, seeking, using, or sharing highly relevant, easily accessible, and readily perceivable information during the decision-making process. The article uses Merck, (makers of the drug Vioxx – which now is known to have caused cardiovascular troubles in over 14% , and “serious problems” in another 2.5% of patients), as an example of how decision makers often overlook the obvious and suffer terrible consequences in the process.
Quote:
“Social science research has shown that without realizing it, decision makers ignore certain critical information. The information that life serves is not necessarily the information that one would order from the menu,” notes Dan Gilbert of Harvard University’s psychology department, “but like polite dinner guests and other victims of circumstance, people generally seem to accept what is offered rather than banging their flatware and demanding carrots.”
Link: http://strategic-management.bestmanagementarticles.com/a-34396-business-strategy–decisions-without-blinders.aspx
This article reminds me of the phrase, “I can’t see the forest for the trees.” Why do we sometimes sit idle when the information is right in front of us? Perhaps it was a break-down in the strategic plan. I wonder if the executives at Merck ignored their quality controls, or had poor controls in place. Was there effective management software in place, or was it simply a case of intentional misrepresentation?
If you would like more information of strategic management technology, see http://www.managepro.com/executestratplan.html
By twelch in
Strategic Planning
Dec
17
Summary:
In this article, the author uses the analogy of receiving a new bike (and not knowing how to ride it) – with developing a new website and not knowing how to use it effectively. Given are three tips for optimizing your website for profits, including Search engine submission, Email Marketing, and Link exchanges.
iProspect estimates that about 85% of Internet users use search engines to find solutions and vendors. That said, targeting your prospective customers becomes the goal and to do that you need to produce a relevant and useful website.
The most important email marketing strategy to remember is it is only effective if the prospect asked for the information, otherwise it is perceived as spam and will only serve to annoy the recipient. Finally, link exchange programs, a relatively new way to market your website online, delivers on two fronts: a better ranking in the search engines if your site is perceived as “popular,” and when exchanges are set up correctly, you get targeted traffic from the websites linked to you.
Article Quote:
“When the research shows such market potential it is hard to imagine that a web site could fail to meet its objectives. However, without marketing your website to really compete online and offline, your site will not meet your company goals and objectives.”
Link: http://fix-email-errors.com/featured/your-strategic-web-plan
Creating a website will not, by itself, bring in the customers. Successful online marketing involves a strategy that must include targeting and communicating to your ideal customer. Finding your ideal customer requires a complete understanding of what they need/want and that they are willing to purchase.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
By twelch in
Strategic Planning
Dec
17
Summary:
The first tip offered in this article and the one highlighted as the most important step, is to straighten out your mindset. By celebrating the past and our baby steps taken to get us where we are, we can look positively towards the future. A plan is a declaration of a future event with a roadmap on how to get there. Coming from the right frame of mind allows a plan process that is not impeded by fear of catastrophe.
Working backwards from the desired goal, using a calendar to schedule progress, and creating visual displays to keep motivated are other tips offered. One example of using visual displays is taping a list of goals to your desktop to have a visual reminder.
Article Quote:
“Without knowing where we want to go and what the end result looks like, it’s pointless to make a plan to get there. Once we have determined where we want to be, we can work backward to build the steps.”
Link: http://xmyz.com.ru/2009/12/11/top-five-tips-for-strategic-planning/
Coming from the right frame of mind is much like creating a self-fulfilling prophesy. If you believe you will fail, then you probably will. Working backward from your goal can be useful in planning the next step and when it needs to be accomplished. The calendar and visual tips are great tools to assist in reaching your goals. These are a daily reminder of the next step. Performance software can provide these tools by having the goal in front of you, a calendar and to-do list to keep working towards, and most importantly – the ability to track progress. Tracking progress lets you know exactly where you are in accomplishing your objectives.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
By twelch in
Strategic Planning
Dec
17
Summary:
It is not an issue of strategic planning vs. strategic thinking, according to this author; it is a matter of doing both simultaneously. Previously, strategic plans forecasted 5-7 years into the future. Today’s strategic plans only look 2-3 years ahead. Furthermore, strategic plans were nicely packed into binders that sat collecting dust until the next planning meeting between leadership.
Strategic planning should be updated and regarded as a work in progress, not a static document that no one in the organization thinks about – that is until the next planning session.
Article Quote:
“The common sentiment—“you don’t plan to fail, you fail to plan” embodies the reasons behind a strategic plan. But Boards and management, who spend countless hours and dollars on a plan and then don’t continually use it, cannot say that “the plan on the shelf” is truly planning.”
Link: http://centerfornonprofitmanagement.blogspot.com/2009/12/strategic-planning-vs-strategic.html
The economic turmoil felt by organizations and the changing global business environment has changed the way we think of strategic planning. No longer can we create the plan only to “shelve” it until the next planning session. Today we really do need to “think strategically”, and not only at the leadership level. I recently read an article by Keith Coats titled “Back to the Future: Rethinking Strategy,“ in which he writes that a good strategic planning process is one that involves a wider group within the organization, a group of diverse individuals that can generate different perspectives, thoughts, and ideas.
While I agree that diversity provides fresh ideas and will most likely add value, it still doesn’t address the issue of getting the strategic plan into action – and off the shelf. To be successful at implementing any strategic plan, everyone in the organization needs to be working toward objectives on a daily basis. The use of performance technology puts the plan, projects, and goals in front of the eyes and minds of the group, providing a daily reminder of what needs to be done next.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/