Category Archives: Planning Skills

Act of Creation

From the Ask Tom mailbag –

Question:
I see the guidelines for creating a vision, but it seems a little far-fetched. Actually, I think most vision statements are far-fetched. They are too vague, or too warm and fuzzy. They describe a world that doesn’t exist.

Response:
Exactly, a world that doesn’t exist. Planning is about creating the future. And you are right, most vision statements are too vague. A vision statement should describe a specific point in time and should be detailed, rather than vague. Whenever I write a plan, my vision statement is often the longest part of the whole plan. It is detailed in its description of how things look and how things work. The more descriptive the vision, the easier the rest of planning steps flow.

What Gets You Out of Bed?

Question:
You said the first step in planning is NOT goal setting. But when we plan, we sit around the table and set goals. What did we miss?

Response:
The biggest problem in planning is the “shoot from the hip” goal setting exercise. Setting goals are important, and there are two critical steps that come first.

In my younger days, my alarm would go off at 3:30a. In a groggy stupor, I would sit up and reach for the clock. Something kept me from sailing it across the room. Something kept me moving, out of bed, lacing my shoes for a 15 mile run to the beach and back. It was NOT the goal of running 15 miles. In fact, the thought of running 15 miles at 3:30a was about as negative as I could think.

I was training for a marathon. And the one thing that moved me forward was NOT the goal of 15 miles for the day, not even the goal of completing the marathon. The only thing that moved me forward was the vision of me, crossing the finish line.

The first step in the planning process is to create a clear and compelling vision. It is the only tool, for the manager, to paint a picture of the future, to create enthusiasm and excitement in the team to go forward.

Yes, I was quite dapper, hair in the wind, tape across my chest, crowd cheering me on, slim in my running togs. Shoes laced, out the door, training for a marathon. The first step in planning is to create a clear and compelling vision.

Current Goal, Five Years Ago

From the Ask Tom mailbag –

Question:
It seems that long term goals are hard to articulate. In setting long term goals, would you agree that they are by nature more ambiguous? Should we worry less about being precise?

Response:
A long term goal, by its nature?

Five years ago, our one year goal was a five year goal. What has changed in the four years between?

The goal has taken shape, become clearer, better defined, more concrete. It has also taken turns and twists, met with contingency and unexpected, yes unintended consequences. It is now more certain, less left to chance. Murphy has less time to play.

It is the Time Span of Intention, the most important judgment for a Manager, to determine those things necessary in the future.

Ambiguous?

Precise?

Things Change

Krista had a sheepish look on her face when I asked to see her list of goals for the next three months.

“I don’t really have a list,” she said. “I mean, I know what I am supposed to do. I keep it in my head.”

“Then how do you organize your list, if you don’t have it written down? How do you share your goals with other people? How do you change and update them? Most importantly, how do you make decisions about goals?”

“Well, when I started this job, my manager explained things to me. I had a job description and I signed off on it. Is that what you mean?”

“How long ago was that?” I asked.

“About two and half years ago,” she replied.

“Your customers have changed, your market has changed, technology has changed, regulations in your industry have changed, your team has changed. Do mean that your goals have NOT changed in two and half years?”

Resolution or Commitment

“Goals. Who needs ’em?” asked Yolanda. “Every year, I set goals. It’s kind of like my New Year’s Resolutions. By the end of February, I can’t even remember what they were.”

“Oh? So, tell me about your resolution for this year.” Yolanda looked a bit uncomfortable.

“Well, I haven’t exactly worked it out, yet. Until I am sure, I would rather not go blabbing it around.”

“Have you thought, perhaps, that’s why your New Year’s resolution never works?”

“What do you mean?”

“Yolanda, your New Year’s resolution never works, because you never committed to it. You never clearly defined it. Did you ever write it down?” Yolanda was silent. “Here is the management skill. Goals work just like New Year’s resolutions. If you really want to make a change, write it down. Then say it to yourself out loud. Then say it out loud in front of a group of people. And if you really want to make it stick, give that group permission to hold you accountable for the goal. Take that written goal and post it somewhere public, where you see it every day, where others see it every day. You can start with a 3×5 card taped to your mirror.”

What is your resolution this year? What major thing do you want to achieve? Have you written it down? Have you shared it with your team? I am curious. What do you do to keep your goals visible throughout the year?

Translator Role

The planning session was almost over. The team energy was pumped up. Well, all except for Audrey. Her expression was only remarkable in contrast to the upbeat tempo of the rest of the team.

“Audrey, what do you think?” I asked. She was startled, the question was unexpected.

“What do you mean?” she said.

“You are a senior member of this team. You have been around. We have been working on this plan for a couple of hours, what are we missing?”

Though Audrey had been thinking, she had not prepared herself to share these thoughts.

“You are right. I think we are missing a big step here,” she finally said. “I have seen plans like this fail before. Here. In this company. The plan sounds good. It is a worthy target, but we have to get there. We can get all excited, give stump speeches to all of our work groups, but until we translate.” She stopped. “Yes, that’s the word. Translate. We have to translate this plan into the things we do every day to make this happen. If we don’t figure that out, time will go by and we won’t see the progress we expect. We have to connect our everyday disciplines to this larger plan. If we don’t the plan will fail.”

Whose Plan?

“You have a team meeting,” I describe. “Someone has to talk and it’s not you, because no one listens to you. So, who talks?”

“My team?” Gordon answered slowly.

“Yes,” I nodded. “You describe the essence of the vision and the performance Standards. The team sets out the action plan.”

“But my team may not know what steps to take and besides, it will take too long to get them all to agree,” Gordon protested.

I nodded and smiled. “I didn’t say that your team would get there quickly. Sometimes you have to go slow now, so you can go fast later. You need your team, involved, engaged, thinking, solving problems and making decisions. You are not going to get there by telling them what to do.”

Gordon was skeptical, “But, what if I am not getting what I want?”

“If you are not getting what you want, then you are asking the wrong questions.”

Willie Sutton Strategy

Why did Willie Sutton rob banks? Legend says Willie robbed banks because that’s where the money was.

We’ve talked about strategy over the past couple of weeks because many of you are engaged in strategic planning. Successful companies bring their (right) product or service to the right market at the right time in the right way.

Strategic planning is not to create tactical goals for the following year, but to examine those external systems that will have an impact on your long-term success. Willie Sutton may lack moral turpitude, but he knew where the money was.

The Trend is Your Friend

“But these regulations are designed to stifle business,” Rory complained. “The government rules that we play under are political initiatives designed to drive us under.”

“Then, what are you waiting for?” I asked.

“What do you mean?” Rory replied.

“Are you waiting for the next political election, hoping for a new regime that will return your operating climate back to the way it was?”

“That would be nice,” Rory’s face lit up.

“Nice is like hope,” I said. “Ain’t gonna happen. Even if you do win a political victory, the likelihood of a return to the good old days will not happen. Instead of fighting or waiting, figure out how to take advantage. The trend is your friend.”

External Systems that Impact Internal Systems

From the Ask Tom mailbag –

Question:
When I look at our strategic plan, it is mostly a mathematical increase in revenues over last year and some projects to cure some of our operational problems. If that is all it is, why is there such a focus on strategic planning?

Response:
Unfortunately, for most companies, your observation is correct. Most strategic plans are not strategic, they are tactical. Tactical planning is important, but it is rarely strategic.

Your question is why plan. If we were successful in identifying our competitive advantage and effective efforts to operationalize that advantage, why pow wow to come up with a new plan?

We have to periodically pow wow because of this one factor, change. Change requires us to reexamine our assumptions, understand our marketplace, revise our thinking, adapt our internal systems and track our progress in the face of that change.

Most planning is an attempt to resolve operational issues with our internal systems, that is still a noble goal. Strategic planning is an examination of those external systems that have an impact on the way we organize and operationalize our internal systems. Here are five important external systems you might consider –

  • Market (external system). This external system includes your best customer, different customer segments, your best competitor, second tier competitors, vendors and suppliers.
  • Regulatory (external system). This could be financial regulation, like taxes, environmental regulation, tariff regulation, permit regulation.
  • Finance (external system). As companies grow beyond the resources of stockholder investment, reliance on external sources of capital becomes more important. This includes simple revolving lines of credit, institutional term debt, private equity. All come with strings that have an impact on the way you internal organize. Banks call these covenants. Access to capital markets is seeing an extraordinary shift with increased interest rates depending on market risk.
  • Labor (external system). We used to look at unionization and unemployment statistics to get a handle on our access to labor. Now we have to include governmental intervention, student loan forgiveness, cultural impact on employment conditions (unlimited vacation, virtual roles) and accountability in those conditions. It’s all part of your business model.
  • Technology (external system). Technology has changed the way that we work. Meaning, technology has changed the way we make decisions and solve problems. Every business model is shifting to incorporate technology and make it effective with a constant eye to the next technology which will bring the next change to the way we organize.

It is these external systems that will have the most impact on your change in strategy. This is where I always start. What’s changed?