Improving Business Performance by Achieving Understanding: A Discussion

New and Developing ways of "Understanding" before you Act or Decide

Is Goal Setting and Strategic Planning your Achilles Heel?

The Problems with Most Organizational Planning Processes

 

Many organizations waste large sums of time and money because they do not  have all their key people on board with where they are heading.  Many think they do because they have communicated some specific financial or growth goals but there is little understanding of the why and the how.  As a result, execution is typically poor.

 

A critical success factor is to ensure you involve the appropriate people in the process to assess, understand and develop strategies.  Increasingly, you need, not only the key people inside your own organization, but you also need to involve those outside your organization who may be strategic business partners.  If you do not pull these people into the process, even if you have a detailed plan, they will rarely internalize the information needed to make effective day to day decisions to make your strategy happen.

 

So not only do you do need clarity on where you are heading, what success looks like and on the strategies for getting there, if you haven't involved the key "implementers" in the process so that they internalize an actionable understanding, then  a significant percentage of EACH person's time is spent working at cross-purposes to the others. 

 

Unfortunately as a recent Harvard Business Review article indicates, poor planning processes may be the norm.  In their summary of a study of goal setting and strategic planning processes, they indicate that nearly 80% of organizations that have a strategic plan, end up with the following which are all bad and wasteful (I think you'll agree):


  • Wrong strategy, Good execution
  • Right Strategy, Poor execution
  • Wrong strategy, poor execution.
    ...And as stated, this does not include those that have no real strategy in place at all.

 

If you see poor execution in your organization, take a look at the WHO (People) and HOW (Process)sections to address that. If it's wrong or non-existent strategy, then it's the WHAT(The Focus) you need with which you have to deal!

The Ultimate Management Tool, What is it?What if you could design the ultimate management tool - Would it help select / hire the best?What if you could design the Ultimate Management Tool? Would it help Engage and Motivate your People?The Ultimate Management Tool? Would it help you retain them?The Ultimate Management Tool? Would it help you Develop them optimally?What would your Ultimate Management Tool consist of?What would your Ultimate Management Tool consist of?If you accurately understand then you can...Execute Optimally with accurate understanding / Execute poorly with misunderstandingHATS: Perhaps, the Ultimate Management Tool

"The U.S. Department of Labor has estimated the costs to replace an employee to be approximately 1/3 their annual salary; but when you start looking at the impact of hiring the wrong employee and having to replace them, some studies say 2.5 times annual earnings, some 4 times and some even higher." AGILEdge