The Random Thought Generator (RTG)

During economic meltdowns like the one we are currently experiencing, it is tempting for organizations to turn all attention to tactical execution, dropping any activities that are not expected to specifically generate short-term revenues.  Take strategic planning, for example. Even during “good times,” many managers view strategy development with a high degree of suspicion . . . and for good reason, I might add! 

I can recall many instances in my own experience where, after being instructed to spend quality time crafting a strategic direction and setting stretch goals to grow my division’s business, I ended up receiving what felt like a predetermined budget that totally ignored all the energy my team had put into analyzing the market and articulating a specific strategic plan of attack. So, it is not surprising that when the economy is at a generational low point, many managers are even less inclined to spend any cycles thinking strategically.

However, this is precisely when strategic planning is most critical, because only by preparing for an uncertain future will organizations be positioned to successfully ride the next set of waves that are not yet visible on the horizon.

Am I advocating that managers take their eye off the ball of running the current business and just “go think big thoughts” instead?  Certainly not!  Planning is not an either/or proposition and does not have to be an arduous and long process. But, it does require some concerted energy. The good news is that the slower pace of today’s marketplace provides a perfect opportunity to carve out some time to look beyond the daily grind of making a quick buck.  

To keep the process of planning from mushrooming into an all-consuming exercise, here are a few key principles I have found to lead to successful planning outcomes:

• Simplicity.  Although setting strategy in the 21st century depends on an increasingly complex set of variables, it is still possible (and desirable) to complete the planning cycle in a short period of time, so that more of the organization’s energy is spent on executing the plan, not just thinking about it.
  

• Focus.  In my experience working inside leading Global 100 high tech companies, this seems to be the hardest rule to follow.  It is so tempting to fall into the trap of thinking, “We have the best and brightest executive team, thus our company can successfully execute on all 28 of our breakthrough objectives.”  Yeah, right. That may sound good when it is spun to a group of market analysts, but just try to find an employee or channel partner who can remember that many “critical” objectives, much less act upon them! Winning organizations articulate a crystal clear vision of the desired future, and then a handful of critical objectives to get them there.
  

• Agility.  This was the mantra of the last decade, yet most companies still have no process to accommodate a change of strategy mid-stream.  If you want to test the agility of your company, just ask the following question, “What is the process to reallocate significant resources to a new strategic priority after budgets have been distributed for the fiscal year?”
  

• Alignment.  This principle takes the most effort, but can also result in the biggest payback. Alignment starts with being absolutely in tune with your target customers, understanding their critical business problems, and how you help your customers solve them. (Somehow, you knew I would get around to my baseline mantra of being focused Outside->In™, didn’t you?) Once each organization is aligned with its set of customers, the next step is to drive alignment within the company, across the silos. This is where the real magic occurs. By driving alignment around a focused set of objectives across disparate functional organizations, you put all the wood behind the arrow, which can differentiate your organization from the rest.
  

There are several effective approaches to building a strategic plan, so my recommendation is to find a methodology that includes many of the attributes discussed above, and that is compatible with your company culture and decision making process.  But whatever you do, make sure you don’t miss the opportunity to use planning as a strategic weapon to lead your organization out of the recession at the front of the pack!

If you have discovered a planning process that you found particularly useful, I would love to hear from you.  Just post a comment.

For readers in the Bay Area, I would like to alert you to a great opportunity to learn more about planning and innovation from thought leader and best-selling author Geoffrey Moore*, on Tuesday evening, January 26, 2010, in Menlo Park, CA. Hosted by the Association for Strategic Planning (ASP), this interactive discussion will include Mr. Moore’s latest thinking on strategic alignment and the dialog that needs to take place at every level of an organization for success in the current economic environment.  Don’t miss this rare opportunity to spend time with Geoffrey Moore in an intimate setting.

Register here.

*Best-selling author of:
Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution,
Crossing the Chasm,
Inside the Tornado,
The Gorilla Game,
Living on the Fault Line