ValuExecBlog

Look internally for 'best practice.'

I have never been a fan of 'best practice.' It's a personal thing but I have never been comfortable in the belief that those who push 'best practice' have actually reviewed every single organization, analysed what ever 'best practice' they are pushing and finally that all the stars are aligned so that what works in one organization will work in another. That is not to say that I don't believe in taking what works in one organization and adapting it for another - I do. It's just that I don't like to call it 'best practice.' But as I say, it's a personal thing. 

But what has amazed me is the number of times I have seen 'best practice' operating inside an organization. All you need do is look for those departments, business units, Divisions or teams that are getting results consistently and nine times out of ten, they are doing something differently. They are 'best practice.'

So before looking outside, look internally and you may be surprised by what you find.

Yours in execution.

ian

The Strategic Principle: Why you need it!

A challenge that confronts every company at some point is: How do you give employees clear strategic direction whilst at the same time inspiring flexibility and risk taking?

Successful companies do this through a strategic principle which is an actionable phrase that distills a company's corporate strategy into its unique essence that is then able to be clearly communicated throughout the organization. A strategic principle is not a mission statement. It drives the company's strategy; it is action oriented and it enables frontline employees to act quickly by giving them explicit guidance to make strategically consistent choices.

In their article "Transforming Corner-Office Strategy into Frontline Action" (Gadiesh.O; Gilbert. J.L; Harvard Business Review; May 2001), the authors suggest that a strategic principle has 3 defining attributes:

1. It forces trade-offs between competing resource demands;
2. It tests the strategic soundness of a particular action; and
3. It sets clear boundaries within which employees must operate while granting them freedom experiment within those constraints

Examples of strategic principles from well-known successful companies are:

• Dell : Be direct
• eBay : Focus on trading communities
• GE : Be number one or number two in every industry in which we compete, or get out
• Wal-Mart : Low prices, every day

And then there is our own at Valufacture Solutions which is to 'Create outstanding value.'

Now, more than ever where competitive advantage rests with a company's talent, the creation of a strategic principle and then communicating it throughout the organization is crucial to a company's success. So, how clear is your strategic principle to your employees?

Yours in execution.

ian

 

 

 

Work-life-Strategy Balance

Unashamedly I have been a believer in the work-life balance movement. However just when I think that my life is in balance - disaster strikes. One aspect of my balanced wheel suddenly takes on my undivided attention to the detriment of all others and throws everything out of balance. And so the quest to get my life in balance starts again.

Recently, I started looking at the lives of people who have made a difference in this world and from what I can see, very few of them had their lives in balance. Most, if not all of them, were consumed by one burning passion; one burning drive that seemed to take over all other 'balanced' aspects of their lives. So, my question is this - does this whole work-life balance thing strip us of our ability to make a huge difference in this world?

How does it apply to strategy? I am in two minds. First, we have seen in organizations that people try to balance what is required in their day-to-day jobs with what they are required to do in executing strategy - they try to get the balance right; but in the majority of cases, they fail and strategy execution takes a back seat to what they are comfortable with, namely what they have been doing daily. Secondly, perhaps one of the most exciting times that I have had is when I worked for a small advertising agency and we were pitching for the business of potential clients. The passion and energy in the agency was electric. We were 100% consumed in getting the business. As a result, some of the day-to-day activities took a back seat.

The task is to know what is important and what to give up and then have the support that allows you to do so. What are your thoughts?

Yours in execution.

ian