Archive for the ‘Strategy’ Category

Agility: The Missing Link Of Corporate Success

Thursday, April 1st, 2010

istock_overheadkickWhen England won the rugby world cup in 2003, it was the culmination of six years of driven effort by the coach, Clive (now Sir Clive) Woodward and his squad. The team’s victory had built on a steady improvement in the performance of the team, and it seemed that English rugby would finally dominate the game for a decade or more.

However, it didn’t work out that way. Key players retired, the coaching staff changed and the mix of skill, determination and teamwork that had characterised the team’s success seemed to simply melt away. In fact, the last-minute drop goal from Jonny Wilkinson’s that defeated Australia signalled the decline of the England team as much as it defined the team’s greatest victory.

Contrast the English rugby team with the country’s leading soccer team, Manchester United. The manager, Alex (now Sir Alex) Ferguson has led the team since 1986, unprecedented in the modern professional game where the average tenure of a football manager is a couple of years. At the time of writing, Ferguson has led the club to two UEFA Champions’ League titles, 11 Premier League victories, five FA Cup triumphs and 16 other recognised titles and honours.

Where the English rugby team were able to climb the mountain once, before quickly returning to base camp, Manchester United have managed to stay at high altitude and repeat their success year after year.

I see the same differences in the business organisations I work with. Some, like the English rugby team, are able to achieve a certain level of success but simply cannot sustain it and quickly return to the pack of competitors that are pursuing them. A critical few, however, seem able to use their success as a launch pad for further growth, rather than as the end of their mission.

But what makes the difference between those businesses that are like shooting stars, shining brightly for a moment before disappearing from view, from those true stars that shine brightly every night?

There are many great business books that define what makes companies achieve breakthrough levels of performance – for example, In Search of Excellence by Tom Peters and Bob Waterman and Good To Great by Jim Collins. As we shall see, however, many of the companies quoted in these books subsequently fall from the pedestals on which they’ve been placed.

Massive differentiation and operating excellence – two critical drivers of success – are only relevant at a point in time. There is a third factor that is often overlooked by managers and writers alike, and that is agility. An organisation’s ability to periodically reinvent itself and to find new ways to grow is the missing link between companies that can achieve high levels of performance for a brief time and those that dominate their markets for sustained periods.

But even where writers recognise the importance of agility, there is precious little practical guidance as to how business leaders can take pragmatic steps to drive their company’s ongoing success.

We need to remove the mystery out of how to create a high-performing and agile business, and give our leaders practical tools and approaches to help them sustain performance. Agility, on its own, will not create success, but without it your performance will wane and decline.

Which sports team is your business most like – the England rugby team or Manchester United?

© Stuart Cross 2010. All rights reserved.

Strategy Execs: Stop Chasing Quick Wins

Tuesday, March 30th, 2010

Click on the link to read my article, Strategy Execs: Stop Chasing Quick Wins, which has just been posted on BNET.

© Stuart Cross 2010. All rights reserved.

What We Can Learn From Gordon and David

Friday, March 26th, 2010

istock_manonmountaintopIn today’s FT, Martin Wolf cogently argues that neither of the two main UK political parties – Labour and Conservatives – has a clear vision for the future of this country. Instead, both parties are focused on sorting out immediate issues and being seen as competent, hoping that voters’ assessment of their competence and toughness will be enough to see them into power when the election is called.

But it’s not enough; it never is.

Without a future vision people find it difficult to engage with the necessary actions you may wish to take. And what is true for nations is equally true for businesses.

Being competent, efficient, organised, capable, operationally effective, systematic, rigorous, consistent, relentless, persistent, tough, decisive, analytical and thorough are all admirable qualities.

But people need a sense of where all this good stuff is taking them. They want to understand and believe in the goals you are trying to reach and the future you are trying to build.

Without this critical element, your teams may comply with your requests, but a capable organisation that also has a clear, compelling and shared sense of direction and purpose creates its own energy and momentum that can dramatically accelerate its performance.

The party that will win the next election is likely to be the one that can craft and communicate the most compelling future vision. And, as we come out of the recession, the companies that will best succeed are those that understand where they’re headed.

Do the people in your organisation share and buy into a common vision of the future?

© Stuart Cross 2010. All rights reserved.

The CEO’s Strategy Handbook

Thursday, March 25th, 2010

ceo-strategy-handbook-coverI am delighted to announce the publication of my new booklet, The CEO’s Strategy Handbook. This 43-page booklet takes the mystery out of leading and managing strategy and gives you provocative but pragmatic advice to drive the long-term performance of your business.

For more details and to downolad the free PDF version, or buy the hard copy book, simply click here.

Enjoy!

Eight Simple Rules Of Strategy

Tuesday, March 16th, 2010

Click on the link to read my article, Eight Simple Rules Of Strategy, which has just been posted on BNET.

© Stuart Cross 2010. All rights reserved.

The 3 Levels Of Business Agility

Tuesday, March 2nd, 2010

Click on the link to read my article, The 3 Levels Of Business Agility, which has just been posted on BNET.

© Stuart Cross 2010. All rights reserved.

Take The Strategy Scorecard Test

Monday, March 1st, 2010

istock-magnifyHow effective is your strategy? Why not take my quick strategy test, and see where your strategy management approach is working and where there is further work for you and your team to do.

Simply score yourself and your organisation from 0 to 5 for each of the statements below, where ‘0’ means you strongly disagree with the statement, and ‘5’ means you strongly agree with the statement.

After completing the survey sum up your total score and find out what it means for you and your company by comparing to the summaries below.

1. Do You Have A Compelling Strategic Intent?

  1. Core purpose. We have a purpose that speaks to us over and above the task of making money.
  2. Ambitious goals. We set demanding goals for our future performance which are a constant focus for everyone in the business.
  3. Future intent. We have a clear view of how the company will meet our customers’ needs and deliver great results in the future.
  4. Distinctive advantages. We understand what drives value for the business and how we can develop further advantages over time.

2. Do You Have Clarity On Your Big Issues?

  1. Performance Assessment. We know where we make money – and where we don’t - across the business.
  2. Market Assessment. We understand our markets, their likely growth and profitability and their key trends and dynamics.
  3. Competitive Position. We recognise our current competitive position and know what we need to do to succeed in the future.
  4. Organisational Capabilities. We appreciate which capabilities drive our success and where we have emerging or critical weaknesses.

3. Do You Have A Focused Agenda For Action?

  1. Addresses the big issues. We have a strategic agenda focused on the big issues and opportunities shaping our long-term performance.
  2. Delivers the strategic intent. Our agenda will move us closer to achieving our major goals and objectives
  3. Clear themes. The agenda is broken down into a few core themes that everyone in the business can get to grips with.
  4. Prioritised initiatives. Our strategic initiatives are based on a few priorities that will best drive current and future success.

4. Do You Have An Effective Strategy Management Approach?

  1. A consistent Executive focus. The strategy is the Executive’s constant focus and their decisions are consistent with it.
  2. Organisational engagement. Our strategy is understood across the organisation, and our people actively support our direction.
  3. Decision-making. Our people have the freedom to make decisions in line with the strategy, and are held accountable for them.
  4. Ongoing strategy management. Strategy is managed on a continuous basis and is not a one-off exercise.

WHAT YOUR RESULTS MEAN

Your score is less than 40

Your company is probably struggling to make real progress in delivering a winning strategy. Your people and your stakeholders may be confused about your future direction and your key priorities, and senior managers may find it difficult to achieve alignment around decisions with a long-term impact. As a leader of the business you may find many low-level decisions are being passed up the chain for your approval and new initiatives may struggle to gain traction across the organisation. You are likely to find yourself being forced to compete on price rather than product/service quality or effective customer relationships.

Your score is in the range, 40-65

You have a reasonably effective strategy, yet you may find that you struggle to make it stick. Strategy is likely to be seen as something that is worked on once the “real” work has been done, and you may find it difficult to balance long-term goals with short-term demands. Strategic initiatives may be viewed as being distinct from business-as-usual, and you may have problems in persuading your best people to lead and drive these programmes.

Your score is more than 65

Your company is set up to develop and execute an effective strategy. You are likely to have set a clear direction, alignment around the strategy is likely to be high and your people understand their role in its delivery. The key watch-out going forward is to ensure that your strategy remains relevant in the context of fast-changing business environments. Remember, nothing fails like success, and you must ensure that you continue to be proactive in raising the bar and driving future growth.

© Stuart Cross 2010. All rights reserved.

Strategy Tweets (Part 1)

Wednesday, February 17th, 2010

For the past couple of months I’ve been posting strategy insights on Twitter. You can follow me at https://twitter.com/stuart_cross.

Just in case you’ve missed them, here are the first 50 insights:

  1. Many companies fail because they’re great, not bad, at what they do – it’s just no longer valued, eg Kodak.
  2. Don’t let planning kill strategy. Focus on the what, not the how.
  3. Raise the bar and focus on your real priorities. What 3 things will really drive your long-term performance?
  4. Innovation is more valuable than problem solving. How do you split your time and effort?
  5. Don’t be mindlessly customer led. Innovation means that you must lead not follow the customer.
  6. Nothing fails like success. Even the best strategies erode, so you need to refresh it constantly.
  7. The #1 reason for top entrepreneurs’ success is the ability to ‘experiment fearlessly’. How fearless are you?
  8. Strategic success happens when you’re the first to profitably exploit a change in your external environment.
  9. The essence of great strategy = informed choice + timely action.
  10. Separate objectives from tactics. Be fixed on the vision, but flexible on the route.
  11. Your ability to deliver your strategy is directly proportional to the quality of your relationships.
  12. Who owns your growth agenda for the next 2-5 years? If no one, then you’ll always have incremental plans.
  13. Strategy is as much about what you’re not as it is about what you are. Are you clear what’s off-strategy?
  14. Avoid developing strategy within your annual planning process. It only leads to incremental change.
  15. A great strategic vision is specific, focused on outcomes, and gives a sense of how it will be made real.
  16. The top 3 threats to ongoing success? Arrogance, defensiveness and inertia. Focus on the future, not the past.
  17. If you’re not leading, you’re not succeeding. In what ways is your business a market leader?
  18. Successful strategies rely on serendipity as much as analysis. In what ways are you open to opportunity?
  19. A great strategy process starts with these two words: “What if…..”
  20. The 3 characteristics of sustainable business success: distinctiveness, operating excellence and agility.
  21. Which of these do you lead on – Best Product, Low Cost, Most Convenient, Best Service or Bespoke Solutions?
  22. The secret of great strategy is action. Only when you are doing stuff can you learn, grow and succeed.
  23. It’s better to be great in a poor market, than poor in a great market. Focus on your advantages.
  24. Ideas are the currency of strategy. Be a big spender in giving your ideas away to others in your business.
  25. When it comes to strategy, disruption is mandatory. Be bold. Sometimes you need a little dynamite.
  26. Having an effective organisation is more important than a great strategy. How capable is your organisation?
  27. The best strategies tend to be pretty simple. A simple solution is easier to understand, explain and deliver.
  28. Strategic success is far more about dogged, persistent action than it is about brilliant thinking.
  29. Failure is inevitable in any new venture. The secret is to fail quicker and cheaper than the other guy.
  30. A good strategist is a good storyteller. You need to tell a great story over and over again.
  31. Expect to communicate your strategy 6,000 times: 3 years x 200 working days per year x 10 meetings per day.
  32. Many busy, successful executives resent the time they spend on strategy. Find ways to engage, not bore them.
  33. Strategy is about choices and trade-offs. These require useful data, not ungrounded opinions.
  34. You can only succeed if you focus on a few – say 3 – key areas of the business. Dabbling drives failure.
  35. You must face into the real issues. Challenge assumptions and conventional wisdoms, and tell it straight.
  36. Always develop more than one possible solution. Robust alternatives give you clearer choices and trade-offs.
  37. Avoid long strategy reports. Instead of pages of analysis ask, “What are the five key issues we need to focus on?”
  38. Profitable growth is the benchmark of strategy. Don’t just fix current problems; deliver new growth.
  39. You must bring your “high level” strategy down to “ground level”. What specifically do you want to achieve?
  40. The 3 characteristics of great strategic leaders: passion, rigour and persistence.
  41. It’s fine to use opinions to develop strategy, but be rigorous in testing that they’re valid.
  42. Don’t fear competition. You need competition to create a market. Even Apple needs competitors to reference against.
  43. Shop your business. What does it feel like to be a customer of yours? What frustrations do you have?
  44. Don’t just ask customers, observe them. Customers are poor predictors of their own future behaviour.
  45. Ask different work groups to develop their ideal strategy for your business. What ideas do you get from new starters, retirees or suppliers?
  46. Discuss companies you admire in other sectors. What excites you about them, and how could you translate their benefits for your business?
  47. What will happen if you carry on with your current strategy? In the next 5 years, 2 years, 6 months?
  48. What are your internal barriers to growth? The biggest one is fear, masquerading as intolerance, of failure.
  49. Be prepared to cannibalise your sales. If you don’t do it your competitors will. Look at Gillette for inspiration.
  50. Invest in strategies, not initiatives. Ryanair could profitably add first class seats, but it ruins the strategy.

© Stuart Cross 2010. All rights reserved.

What Market Are You Really In?

Wednesday, February 10th, 2010

Click on the link to read my article, What Market Are You Really In? , which has just been posted on BNET.

© Stuart Cross 2010. All rights reserved.

7 Strategy Pitfalls

Wednesday, February 3rd, 2010

Click on the link to read my article, 7 Strategy Pitfalls, which has just been posted on BNET.

© Stuart Cross 2010. All rights reserved.