3 things to get your Frontline staff to execute your company Strategy

Even the most brilliant strategy is worth nothing if it isn't executed well, especially by your front line — the employees who interact daily with your customers. Unfortunately, these employees are regularly asked to execute strategies that others developed and that they may not understand, never mind feel committed or connected to. In fact, according to Robert Kaplan and David Norton, the founders of the Balanced Scorecard, only 5% of employees understand their company's strategy. This makes successful execution nearly impossible. So how can you help frontline employees not only understand but get behind your company's strategy?

The Harvard Business Review recently published an article on Making your Startegy Work on the Frontline where theyou can read the full article and the case studies.

We often see a clear separation between the processes of strategy creation and execution. Strategy is created by a small set of executives and then passed down through the organization to be translated and implemented, this separation is often responsible for poor execution.

The most succesful way to Engage all of your company is to take strategy creation out of the board room and bring people from all parts of the organization together, regardless of level, to think about the company's future.

For managers in orgnisations that continue to create strategies at the top of the organization and cascade them down here are three approaches to rally your frontline employees to take ownership and feel accountable for the company's future.

1. Communicate and Clarify

If employees are involved in creating the strategy, they are already bought into it, making execution both easier and smoother. When that's not possible, however, the strategy needs to be communicated across the organisation.

Managers need to relay it to their employees so that it feels real, achievable, applicable to their part of the company, and valuable to the customer. Being able to communicate this strategy on a single page execution plan that is visible to all of your people every day

Strategy communications should always be accompanied by metrics, which help frontline employees take ownership over their roles in the execution. The message should be two-fold: this is what we are trying to achieve and this is how we will measure if we are achieving it. Of course, some jobs will be more naturally connected to the strategy than others. For example, it is easier for a sales representative to understand how the strategy affects her job than an account receivables clerk. Yet, all employees should be bought into it. The role of managers to explain how the strategy creates value for the companies customers and help them integrate it into the work they do - regardless of how direct their relationship is to the customer.

2. Don't Dictate How

Leaders often over-define the specifics of how strategy should be executed. Leaders and managers can set the vision and targets but they shouldn't dictate how employees achieve them. More specificity may make frontline employees' jobs easier, but it eliminates their need to think and diminishes their sense of ownership.

By asking frontline employees how they can achieve thier objectives will often uncover new appraoches to execution that senior management hadn't thought of. New ideas pop up from the pressure of trying to solve a problem for the customer. Therefore often the best strategies comefrom the frontline staff.

3. Use Core Values to Guide Execution Decisions

Since you aren't telling your frontline employees exactly what to do, you need to rely on your company's values to help drive their decisions and actions. Thousands of execution decisions are made every day in an organization: a sales rep decides whether to give a large customer a deal on their next order; your researcher decides whether to explore a new feature for your product. It's impossible for any executive to create a strategy that dictates all of these decisions.

That is were core values come in. They help guide actions but also help employees make tough choices, especially when the choice pits employee, customer, and stakeholder interests against each other.

Core Values are best communicated through stories. If managers cannot tell stories about how the core values relate to their work, then the values aren't core. Find examples of employees using values to make decisions aligned with the strategy and then take opportunities — in staff meetings, over coffee, during weekly one-on-ones — to tell those stories.

It is likely that some of your frontline employees will voice objections to the strategy. If they do express concerns - listen to them carefully - as they are where the rubber hits the road. It is the managers role to allow these concerns to be communicated to the top of the organisation. Once the concerns have been heard and dealt with then people need to get on board with the strategy regardless of their opinion.

Principles to Remember

You should:

•Involve your frontline employees in strategy creation when possible.
•Share stories about employees who used values to guide strategic decisions.
•Ask for input about how the company can achieve its goals.

You shouldn't:

•Be overly specific about how to execute the strategy.
•Communicate the strategy without explaining how success is measured.
•Stifle objections to the strategy.

Here is a link if you want to understand more on how to be more effective in the execution of your company strategy from the Business Execution Experts

How the Recession has changed your Consumers Views

One thing we know is that the Global recession has changed much about how we need to interact with our customers. What you may not know is how much.

Euro RSCG Worldwide has just published its new research in a white paper called "The New Consumer". The research shows how the recession has given consumers an added reason to think about the way they buy things. (Read the full white paper here).

The study -- which included responses from 5,700 adults in Brazil, China, France, Japan, Netherlands, England and the U.S. -- found that across the board, people are looking for ways to add meaning to their lives, and are fed up with many aspects of consumerism.

Here is a brief summary of some of the main points (full summary is available here)

Consumers are smarter, more empowered, and more demanding than previous generations of shoppers. They make full use of online tools to connect with others and score the right buys.

• 62% do lots of consumer research online—e.g., seeking out product info, reviews and ratings, price comparisons.
• 79% read consumer product feedback/reviews online before making a purchase.
• 57% trust customer reviews more than “expert” reviews.
  

People have resolved to change the status quo and take greater control of their present lives and futures. A primary way in which they will do this is through their consumption choices—their strongest means of power and influence. We are seeing the advent of “proactive mindfulness”:

• 72% are shopping more carefully and mindfully than they used to.
• 54% are paying more attention to the environmental and/or social impact of the products they buy.
• 51% are more interested today in how and where products are made.
• 45% are willing to pay a slightly higher price for products that are socially or environmentally responsible.
  

They are eager to reduce their negative impact on the environment and on other people:

• 64% say making environmentally friendly choices makes them feel good.
• 72% feel good about reducing the amount of waste they create.
• 54% are making an effort to buy fewer disposable goods.
• 65% believe they have a responsibility to censure unethical companies by avoiding their products.
• 51% avoid shopping at stores that don’t treat their employees fairly.
• 57% say it makes them feel good to support local producers, artisans, and manufacturers, and 45% say it is important to buy locally produced goods.
  

Consumers seek to align with brand partners who share their personal values:

• 50% say it is more important to them today to feel good about the companies with which they do business.
• 57% prefer to buy from companies that share their personal values.
• 49% prefer to do business with companies that have a reputation for a purpose beyond profits (e.g., Newman’s Own, The Body Shop).
• 54% believe the most successful and profitable businesses in the future will be those that practice sustainability

Naomi Troni the CMO of Euro RSCG Worldwide says "It's bigger than just environmental concerns -- it's really about a more meaningful way of life, and it's more widespread. Even five years ago, things like organics were seen as more of a fringe movement. Now, more people are looking beyond the impact of things on their own bodies and health, and on the global impact of their purchases."

Another clear change, she says, is that consumers are enjoying many of these cutbacks, not suffering through them. In the U.S., for example, 87% say saving money makes them feel good about themselves.

"It makes them feel smarter," she says, "and they enjoy feeling one up on the brand."

Question is now how do you improve your brand in the mind of the new consumer. For many businesses it requires a transformational change and this can only occur if you are prepared to change the way you you see, think and act - both as individuals and as a company.

Click here if you are interested in exploring how to transform your business potential into extraordinary results

6 reasons to be cautious when hiring an MBA

I just read an interesting article from Productivity501 called never hire a MBA. While the title might seem severe it does highlight several downsides of hiring a MBA graduate - Here is my summary (for the full article read here)

There are a lot of people who overvalue an MBA. A master’s of business administration might look attractive when hiring a new employee but here are some points to be careful of when hiring them.

If someone has a master’s degree in running a business, why are they coming to you for a job? Years ago, it made sense. It was very expensive to start your own business. That isn’t the case any more. So if someone with an MBA is coming to you there are several possibilities:

1. They can’t run a business. - If they can’t make it on their own, do you want them working for you? Is it possible you can find someone better without an MBA? If you need a particular part of their skill set, maybe it is a good fit. Just be aware that if you need someone with a really good skill at running a business, you need to understand why you should trust their skills more than they do.
2. Want real world experience. - This is a valid reason, but just make sure you aren’t paying someone for their MBA experience if they are coming to you because they don’t really have anything beyond their diploma. Someone with an MBA who says they want real world experience could be an excellent find and become a very passionate employee. However, as we’ll discuss later, one of the drawbacks of many MBAs is that they often over-estimate their skill set.
3. No ideas of their own. – Not necessarily a bad thing if you just want someone to execute your business plan, but make sure you aren’t paying a premium for them to have good ideas. If they can’t come up with a good business idea on their own, they may not be able to come up with good ideas for you.
4. Too specialized. - Someone who specialized in one specific area may not have a wide enough skill set to run their own business. If their expertise fits well with your business then it can be a great fit for both of you. However, usually the idea of an MBA is that it is a general education in all aspects of business.
5. Lack of Experience - Someone with a fresh MBA looking for a job, may not come with much real experience. This isn’t necessarily a bad thing if you understand that having an MBA doesn’t automatically make someone good at their job. A large number of people are going back to school to get an MBA after having worked for a number of years. On one hand, you may find someone who has a great deal of real world experience that they can apply to your business problems. On the other, you may be dealing with someone who is making a significant career change. When you look at someone’s experience make sure you aren’t throwing them into a situation that goes well beyond what they are capable of doing. It is easy to tweak a resumé to showcase skills in the past to align with the jobs they want in the future. If their resumé says they have “management experience” don’t automatically assume they possess the skills to handle having 40 people reporting to them. Make sure you understand exactly what they managed, the extent of their authority and the results they achieved. If their only experience with leadership is being under the leadership of others, they are likely to emulate all of the bad habits without picking up on any of the good ones. If you need a manager, don’t give someone this position based solely on their MBA. Make sure they have real experience with good results in management either before or after getting their master’s degree.
6. Overconfidence- This is more of an issue with people who have had very little real work experience. While most MBA programs offer good content, simply being exposed to a lot of great ideas doesn’t say much about your ability to implement those ideas in real life. Just because someone took a class in negotiations doesn’t mean they are any good at it. Worse, they may think they are good at it and blindly cause a number of problems. Confidence is good, but not when it blinds you to your inability. For an MBA, the pretty piece of paper they have hanging on their wall can make them less careful. It can encourage them to jump into things that they have no preparation for. It doesn’t take too much life experience to correct this, but you may or may not want to be their employer during this learning experience. Further, the value of the MBA is quite a bit lower if their real skill set is developed on the job at your expense.

Conclusion

If you are looking to hire someone, don’t overlook them simply because they have an MBA, but at the same time don’t over-value their degree and let it blind you to their actual real-life skills.

But, if you have no skills in running a business today, getting an MBA isn’t going to change that.


Read more: http://www.productivity501.com/never-hire-an-mba/7918/#ixzz0rG6JgqIQ

Four reasons why good Strategies fail

Every week I recieve the Growth Tips from RESULTS.com and the recent one really resonates with most large businesses.

If you do not recieve the Growth tips already take a few minutes to log on and have a look.

In their latest post COO Stephen Lynch identifies the top three reasons why good strategies fail?

1 - Execution
2 - Execution
3 - Execution

In the words of the immortal Tom Peters he forgot the fourth one - Execution

In the book “Making Strategy Work: Leading Effective Execution and Change”, MBA trained managers know about planning, but they know very little about how to execute a plan.

A survey of senior executives at 197 companies showed that firms achieve only 63% of the expected results of their strategic plans. The key reason is they don’t know how to execute effectively.

Here is the insights from the Business Execution Experts on the causes of execution failure:

1 - Lack of strategic focus.
2 - Resistance to change.
3 - Poor communication.
4 - Incentives not aligned with strategy.
5 - Not paying attention.
6 - No cadence.

Read the full article here

Talking to a company over the past week their summary of the Strategic Plan was 34 pages long. The full version was well over 100 pages!

Most of the people who worked where the rubber hot the road did not understand or know how the work they were doing fitted into the big picture. As a consequence they continued to work on the biggest enemy of execution - Business as usual.

Simplifying your strategies are essentials if you want to win.

Michael Porter the Harvard University Professor of Management and Economics says “Many managers simply do not understand the importance of having a clear strategy. Strategy is about making trade-offs. The essence of strategy is choosing what not to do”

Jeff Imment who succeeded Jack Welch at the head of GE says “What is strategy but resource allocation? When you strip away all the noise, that’s what it comes down to. Strategy means making clear cut choices about how to compete. You cannot be everything to everybody, no matter what the size of your business or how deep its pockets. You have to figure out what to say NO to”

Jack Welch, the former CEO of GE says “Strategy is not a lengthy action plan, you should be able to fit it on a single page"

Here is a link to a document from the Business Exection Experts for simplifying your company strategy onto a single page so all of your people can see the strategic priorities - everyday.

If you would like assistance on understanding how to use it they often have free workshops accross New Zealand, North America and the United States Click here to find one near you

How to get referred more often

Firstly there is nothing new here it comes from Entrepreneur and founder of The Strategic Coach, Dan Sullivan. In his book he talks about four referability habits that are the building blocks of great relationships.

Why I have decided to post this blog is that we are seeing a new generation of people and many seem to have never been exposed to these simple habits or forgotten them.

These habits are very simple

1. Show up on time
   
2. Do what you say you will do
   
3. Finish what you start
   
4. Say please and thank you
   

Here they are in a bit more detail

1. Show up on time
It's sounds pretty basic doesn't it? But respecting someone else's time shows that you value them. Most smart business owners show up on time when they are meeting a prospective client. People appreciate it when you value their time. That's why strategies that incorporate this habit into a brand promise is often quite compelling. Driving down south this weekend I was reminded of this seeing a plumbing van with the word's "I will turn up when I say I will" on the side. When you are next calling a plumber, who are you likely to call? The plumber that's done a standard letterbox drop - or the one that says "I will turn up when I say I will or it's free!"?

2. Do what you say you will do
Again, so simple. Yet so many people don't seem to be able to stick to this. If you say you're going to call to follow up, do so. If you promise to deliver a product or service by a certain date, do everything you can to fulfill your commitment. Don't promise anything that you aren't going to be able to deliver.

I have found that the best promise to offer someone is " I promise I will do my best". Often we see Salespeople making promises that service simply can not deliver, none more obvious than software sales people

3. Finish what you start
This shows you have commitment and that you'll see things through to the end. Sure, I know that some projects or jobs blow out because of unexpected circumstances. And, therefore, the time you allocated to the job isn't going to be enough to cover the original brief.

This is a delicate situation. If the blow-out is because of a miscalculation on your part, my advice is to wear it. Treat it as a learning experience so that you estimate better next time. However, if the variation is due to increasing demands from your customer, then it might be time to renegotiate delivery or payment in a diplomatic way.

Most Entrepreneurs fail miserable at this habit. Fantastic at starting projects but fail dismally at following through. If you make the commitment to start it either see it through personally or make sure you have a team around you that can – and make sure they do

4. Say please and thank you
Basic courtesy is a winner.

Next time you are standing in a line with parents with children. Listen to the way they order. My experience is that they will emphasis to the children the value of this habit and then not do it themselves. It is just simple common courtesy and we miss so of of it in today's society because people are just too busy.

Are you likely to refer business to someone that doesn't take the time to say thank you?

So when was the last time you thanked a key relationship

Ultimately, we all like doing business with people who do what they say they will, when they say they will - and who are nice to deal with!

Simple, really.

The 6 things you need to do to take advantage of an economic recovery

History tells us that the biggest shift in market share happens in a recovery cycle. Unfortunately history also tells us we are terrible at learning from history.

Consider your industry you work in right now and ask yourself if there will be some companies that do better out of the recovery than some of their competitors. The answer I hear almost unamiously is yes. If you agree then ask yourself this – do you think they will have planned it?

Having a great strategic plan is just a start, if you don't have one you lose. Armed with a great plan and all your knowledge you're still only a small way to succeeding. Jim Collins says it is 1% of success and Tom Peters says it is 2%. Bottom line doesn't matter how good your strategy looks on paper, it means nothing if it doesn't get applied.

Keeping everyone focussed on getting the right things done is everything. One thing the past economic climate has shown the business community is how high the price is of not doing it. Actually it's the key to success in all times, the price of not doing is just higher now.

Here are the 6 biggest lessons I have learned over the past 18 months in my business;

1. Start with "why?" – if you want people to go above and beyond in their role them a bigger purpose. Your company's purpose and vision need to be something alive that everyone knows how they are contributing to. If your team aren't capable of achieving the goals get a new goal or a new team
   
2. Hire for fit to values – if you want to build a team that pulls together and delivers for the company – and for each other – then make sure you have articulated your companies values, and that you hire people who align with them and demonstrate them. Start with yourself always.
   
3. Transparency – Make sure that people know the numbers, the targets and who is expected to do what, the more "real time" the data the better
   
4. Make many mistakes fast and learn from them – Encourage people to have a go and learn from what works and what doesn't. Don't give them all the answers (your team will come up with better ones only if you don't give them one first) and don't persecute those who try things that don't work, it is those that don't try things that stop you moving forward.
   
5. The enemy of Execution is Business as usual - Get everyone to commit to a weekly task that is not business as usual but is moving the company towards it's longer terms goals. Make sure that they understand that they are helping the company achieve it's vision by contributing. Do this as part of your weekly meetings and review the following week.
   
6. Hold people accountable – The hardest thing to do gets easier when you've done all of the above. If there is transparency on numbers and also completion of tasks and goals, when your team understand why you are all working towards your vision, when people share a common set of values with each other and the company, then you have permission to hold people accountable for their results. The funny thing is, if you do all the other bits, you won't need to. They will get it done for the company, and for each other – and not because they had to. Make sure that as the leader, you front up every week with your task completed and your numbers met.
   

As you can see, there is a mix of the soft and the hard to get a culture working that is about performance and delivering RESULTS. You need to be prepared to do the work on both having the big picture vision – and measuring and managing activity and effort. The two area's can't work in isolation and the sum of both is far greater than the whole.

So you know how I asked the question about a company in every industry benefiting more than their competitors? – Why can't that company be you?

Finding clever ways to get to Key Decision Makers

This is a video on an experiment Alec Brownstein did for a job interview

Technology is now allowing us to be more inventive than ever before and the possibilities this creates for businesses trying to connect with key decision makers is exciting.

The question for you is how are you going to use it?