"Slipping up on their own skins" - Revisited

Ok! So I got it wrong. In a previous blog I posted entitled 'Slipping up on their own skins,' I wrote 'If Chiquita management believes that their restructuring plan and their management changes are the answer to implementing their previously announced strategy, then they may well slip up on their own banana skins. Only time will tell. But from what I have read, I wouldn't hold my breath.' Well, fourth-quarter results are in - net sales rose about 6% year-on-year and full year net sales have risen 4%. So, I admit it - I was wrong.

The concern that I had previously, was their admission that the execution of their strategy had since 2005 slowed down as a result of market dynamics and the competitive landscape; and that it had taken them up to 2 years to do something about it. But do something they did and to his credit, Chairman and CEO Fernando Aguirre has got his company focused on 3 priorities - no more. That in itself is positive and the results are showing.

I have no doubt that the activities and behavior of the employees of Chiquita at every level are now aligned with the strategic direction that Aguirre has in place. There is a very simple test that you can do to see how well your employees are aligned with your strategy. Next time you see them ask these 3 questions:

1. What is the strategy of the organization (or department/SBU)?
2. What do you (the employee) do?
3. How does what you do support the strategy?

It is the answer to question 3 which may astound you. They are 3 very simple questions but powerful nevertheless in telling you whether your employees are aligned to your strategy.

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