Here's the challenge: The division is having a great year, even with economic challenges all around. Revenue is up; expenses are down; margin is improving. It's hitting its numbers and, for the most part, hitting on all cylinders. Yet, it has been tasked by corporate headquarters to make some aggressive changes, including cutting expenses and (perhaps) rethinking its entire business model. How, if you're division management, do you:
- Motivate the team
- Convince the team that it's the right thing to do, and
- Make it happen, especially in the midst of "good times"?
Fortunately, RedZone has a client that sets a great example. Here are some suggestions, in brief, based on experience:
1) Consistent and clear messaging. Management has made clear its opinion that the best time to make challenging changes is when times are good, when it has control over the situation and when it is not in "crisis" mode. Management is right. Making changes when times are good may be difficult from a motivation standpoint, but the absolute best from a strategic perspective.
2) Challenge the team. A company that is performing well is doing so for a reason. In most cases, it's because there is a talented and committed management team driving performance. So how does one get a well-performing team to change and do even better? Challenge them. Challenge them to use their imagination and energy, to think differently about the business. Challenge them to identify what's wrong with the current business (trust me, they know!), and to identify how to fix it (they know that, too). And listen. There are details about the business that only those on the front-lines know. Management perspective is important, but the details from the field can make the difference between success and failure. And then align rewards with success. Make sure the team achieves personal benefit from making difficult changes work.
3) Don't take "no" for an answer. Sometimes, when things are going well, there is great hesitancy to make big changes aggressively. That's the time when management has to step up and say, "Sorry, that's not good enough." Management makes the goals clear, and makes it clear that the goals are non-negotiable. And then, it keeps up the gentle pressure. Yes, it says, we know this isn't easy. Yes, it says, we know this is a higher level than we've ever reacher. Yes, it says, we know this will require some big changes to the way we operate today. And yes, it says, we're willing to make those changes. So, it says, think big, think broad, think different. You come up with the right answer. We'll (all) come up with how to make it happen.
What’s the Problem?
That’s what our client does, and does well. So, why is RedZone involved? This well-run organization, like so many others, struggles with execution. Not everyday, continual improvement, keep-the-business-running execution. No, its struggle is in strategy execution – the challenge of making big changes while still keeping the operation humming.
An analogy you may have heard is that of “driving a car while changing its tires." In other words, the organization is focused (as it should be) on keeping the day-to-day running smoothly. But it’s also tasked, at the exact same time, with making significant changes to how it does business.
That’s where RedZone comes in. Our focus is Strategy Execution – helping organizations successfully execute significant strategic initiatives. And part of our advice – always – is to isolate the team working on the significant change from the daily execution of the business. You know the reason – our client does, too. The challenge is making it happen.
Running the day-to-day business means constant adjustments, monitoring, fire-fighting. Much of that is unpredictable and urgent in nature: When an issue occurs, it must be handled right now. That means other activities get put to the side. And if one of those other activities is working on a strategic initiative, it gets put to the side, too.
Focused, Dedicated, Separated
One key to successful Strategy Execution is to segment the resources: Making sure those involved in “driving the car” aren’t the same as those trying to “change the tires.” Think of it this way: Running the day-to-day business is pretty much a straight, fast line – slight adjustments, tweaks along the way, but, for the most part, straight forward. A strategic change is not just a little shift. It’s a sharp curve in the road, a change to take the company in a different direction. The team responsible for driving the company forward as fast and hard as possible is rarely the same team that does a good job taking the sharp curve. The focus is different, the skills needed are different, the entire process is different. So make the team different. Let one group drive the company straight-line forward while another team sets the company up to take the curve. Take it. The company is on a straight-away again (at least, for a while!), and the operational team is now perfectly capable of taking over the wheel.
But, the argument always goes, we don’t have the resources, time or budget to do that. And our response, always, is yes, you do. If you’re staffing strategic projects right now with people responsible for running the day to day operation, you have got the people and budget. It just takes hard work to find it. Here’s why: By staffing a strategic initiative with operational leaders, you’re making an assumption that each person will spend, let’s say, 80% of their time (4 days a week) running the business and 20% (one day each week) on the strategic project. That means you have budgeted 20% x the number of people involved on getting the project done. But it never quite happens as desired or planned.
So – and here’s the really tough part – separate the people. You’ll need to move around responsibilities, perhaps make some people stretch, but figure out how to take the 20% of 5 people’s time and turn that into 1 person at 100%. Use the others as resources, to answer questions, participate in review and design sessions, provide guidance and support. But task someone else to get the work done as their full-time job. The end result is that strategic projects will get done on time, within budget, and with goals fully met.
A simplification? Yes, but not by much. RedZone’s experience proves assigning a focused and dedicated team to the execution of strategic initiatives has a huge impact on their ultimate success.
It’s always a pleasure to work with well-managed clients. But it also creates a unique set of problems. “We’re doing a great job of running the business. What can you teach us?” Well, in terms of day-to-day running the business, nothing much. But RedZone’s expertise is not daily operations – its expertise is in the unique and not-as-common processes needed to implement strategic change. Strategy Execution requires a different set of skills, tools, and management techniques. It’s in the successful execution of strategic initiatives where RedZone adds value – even to the best-managed of companies.
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