The Dog Days and the Top Dog

Here’s a quick read you’ll like.  It’s perfect for what frequently are called “the dog days of summer.” Makes it a good time to talk about another dog: the “top dog,” and his or her role in driving successful Strategy Execution.

It’s an interesting post with good suggestions, yet, at core, based on a common (and major) misconception.  The author implies that CEOs (the “Top Dogs” referenced earlier) have the option of "relegating" (strange choice of word. Does he mean delegating?) strategy execution.  Not true - at least, not if the CEO wants to succeed.

How Smart Leaders Translate Strategy into Execution

http://bit.ly/MAThZU

One can use others to support the execution process.  The CEO must own and lead.

I’d be happy to talk through why CEO’s (or whoever the Top Dog is in the organization executing the strategy) have to own Strategy Execution, should you like. It’s one of the core principles at RedZone.

Enjoy your “dog days.”  Stay cool.  Let’s speak soon.

The Oyster, the Grain of Sand, and the Pearl

It’s funny how a metaphor suddenly appears and yet is so obvious you wonder what took you so long to see it.

Over the last month, I’ve taken to joking that the name of my consulting firm should be changed to Oyster Consulting, because “We’re the grain of sand that irritates the hell out of everyone, but when we’re done, you’ve got a pearl.”

It’s amazing how true that is. 

Significant strategic change is never easy.  People resist, no matter how clear it is that the change is needed and it’s the right thing to do.  People are more comfortable with the Status Quo.

And because of that, change won’t happen without getting people out of their comfort zone. It is only then that people will be willing to move in the new direction.  Thus, the need for that grain of sand.  That grain of sand is so irritating, it makes people uncomfortable – uncomfortable enough to change.

Being the grain of sand from within an organization is career threatening.  Once the process is done, people won’t remember the benefit you delivered – they’ll just remember that you were really irritating.  That’s why bringing in the grain of sand from outside can be so valuable.  That outside grain can help irritate people, make change happen, and then leave. All that’s left behind is that beautiful pearl.

Let your voice be heard!

Here's a link to RedZone Consulting's Successful Strategy Execution survey: http://xrl.us/bfy2tw. It's very brief - only 10 multiple choice questions.

The survey is anonymous - you don't need to provide any personally identifiable information. Please note that the survey is targeted at companies that have to execute important initiatives - if you're a consultant, put your "internal" hat on, please. (I'm well aware that many consulting firms suffer from "shoemaker's children syndrome.")

Please take the survey, and then come back here in a few weeks for the results. Even better, send an email to gregg.bedol@redzoneconsulting.com, and I'll send the results directly to you.

We've just opened the survey and, I can tell you already, the early returns are fascinating! Stay tuned!

Way Too Long

Have I been the only one who has dropped the ball lately (on my blog, that is)? Sorry! So, here are a few miscellaneous thoughts.

1. Do you still believe it's a crock that you can influence people in a designed way to change their behavior? Check this out: http://xrl.us/bfs44c.

2. Does performance in the Red Zone really matter? Take a look at the press surrounding yesterday's Atlanta Falcons/Chicago Bears game: http://sports.yahoo.com/nfl/recap?gid=20091018001&prov=ap.

3. A very smart person recently said to me: "I can change your behavior so that eventually you will change your mind much quicker and easier than I can change your mind so that you will eventually change your behavior." Think about it....

It's a roller-coaster out there. Hang on.

Blogger's Block

It happens to the best of us - and it certainly has happened to me. Blogger's Block - that state when it is impossible to find something to write. Interestingly, Blogger's Block is like a lot of other blocks - if you attack it when it first appears, it's pretty easy to knock down and get past. But if you delay, put it off, avoid - guess what happens? That block gets bigger and more intimidating. Next thing you know, it's overwhelming. Weeks go by. No blog gets written. And there's a chance that the block will become permanent.

Yes, this story has parallels in the world of Strategy Execution. (Now, there's a surprise). When working to accomplish your goals, it is inevitable that hurdles will emerge - unexpected, real, significant and challenging. And, just like with Blogger's Block, those hurdles need to be attacked and overcome. They won't go away on their own and, if you don't knock them down, they will keep you from reaching your true goals.

Blogger's Block - attacked and conquered. At least for today... Stay tuned.

Quality Counts

I had a great conversation with a client this week about Quality.

A team was given a task - to provide new technology to the field organization - by the company's CEO, and she wanted it done fast. The CEO had a clear vision of what she wanted and described it in detail to her team. She made clear what resources would be available to the team. And she gave them the deadline by which she wanted it in place and operating.

The team sprang to work. It knew it had a tremendous challenge on its hands. The time frame was extremely tight - call it too tight. The resources were extremely limited - call them too limited. And the CEO's vision of what she wanted was clear and ambitious - call it too ambitious. Something had to give. And in this case - it was Quality.

The team delivered on time - the technology got out into the field. The cost was within budget - there was no tolerance (nor availability) for anything more. And the scope - well, the technology was designed to do everything the CEO wanted.

You know the punch line: It didn't work.

You've probably seen the Scope-Resources-Time triangle. Many organizations have adopted it, with the mantra: Pick any two. The concept is simple. Management can fix any two of the three components, so long as the third can flex. Try it:

• Scope and Resources are fixed - The project may take longer than planned
• Time and Resources are fixed - The project may have less scope (functionality) than desired
• Time and Scope are fixed - You may need more resources to get the full functionality complete on time.

The triangle is very valuable - but as you can tell from the story (oh, and the title of this blog), it's not complete. The missing ingredient is Quality.

The fact is, you can fix three components: Scope, time, and resources. But what gives then is the quality. It's not tested, it's not right, it doesn't work.

Here's a simple example you can try on for size: Cooking a gourmet meal. (Have you ever watched one of the reality cooking shows?) Requirements (scope) are fixed - 3 courses, including certain key ingredients. Check. Time is fixed - one hour. Check. Resources are fixed - one chef plus kitchen equipment. Check. So, are the "True Goals" of a great meal always met? Of course not. The missing variable is Quality.

There are plenty of examples of failed execution because of failed Quality. Quality is hard to protect, frequently because it is "expected" and therefore not made explicit nor monitored and measured. We know what happens when something isn't measured, don't we? Right. "You want it respected? Then inspect it."

What happened with this CEO and her challenge? Well, it's in clean-up mode. More dollars (lots) and resources (ditto) have been thown at the problem, trying to fix it. Even worse, putting bad quality out in the field has major, long-term ramifications. You lose trust and credibility. The next solution will be looked at with skepticism and suspicion ("Hah, you think that's going to work? Don't you remember...?"). Fortunately, this was an internally focused initiative. Could you imagine the problems created if this had been client-facing?

It's not pick any two - it's pick any three. Quality is not a given - it is a choice. The commitment to Quality needs to be explicit. It needs to be monitored and measured. Otherwise, Quality can fail, like any other unmeasured metric. And if quality fails, you (and your initiative) will never Reach its True Goals.

True Goals

I spend a lot of time talking to people about "reaching (their) true goals" - but what does that mean?  

There are 4 components to reaching true goals:

1) Accomplish the objective.  Do what you want to do.  Get it done.  Succeed.  Reach the finish line.  Anyway you want to define it, it's all about figuring out what you want to do and doing it...

Umm - hey, Gregg.  You said there were 4 parts to "reaching true goals."  But number 1 seems to sum it up pretty well.  What are the other pieces? 

Easy:

2) On time.

3) Within budget.

4) And with the right level of quality.

It's a constant struggle.  True goals, done right, is defined in the context of all four quadrants:  What you want to accomplish, by when, at what cost, and with what level of quality.

Accomplishing any subset of those - by my definition - means you haven't reached your true goals.

Let me belabor the point for a minute to, well, make a point:

• I got what I wanted, but later than I needed.  True goals?  No.
• I didn't quite get what I wanted.  TG? No.
• Got it - but it cost more than planned.  Nope.
• Well, I got it, on time, within budget - but it wasn't as good as it should have been.  Strike 4.

Too many organizations take the easy way out.  They don't fully identify what they're trying to accomplish up front, defined by all 4 attributes of the Challenge.  That way, it's easy to claim that you've succeeded... even when you really haven't.

The best result?  Know exactly what your True Goals are before you start - defined as reaching the desired result, on time, within budget, and with the right level of quality - and then go get them.

Driving the Car, Changing its Tires...

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: 

1. Motivate the team
   
2. Convince the team that it's the right thing to do, and
   
3. 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.

There Is No Try

The best insights may come from the most unlikely places.  

This morning, on a National Public Radio show that I rarely hear, was a conversation about fortune cookies.  (Did you know that fortune cookies are Japanese in origin, not Chinese?)  As part of the conversation, the author mentioned that the source of many fortune cookie sayings, in the early 1900's, was Confuscious.   Made up and inaccurate sayings, yes, but attributed to Confuscious.  

One hundred years later, a more relevant source was needed.  Who is it? Yoda.  Yes, George Lucas's/Luke Skywalker's Yoda.

So, as I prepared to turn off the car and walk into the Men's Breakfast, I heard this reference.  In many ways, it reduces the entire science of Strategy Execution to eleven words (click here to get the quote directly from the Jedi master himself):

 

"No. Try not. Do or do not.  There is no try."

Simple, direct, and oh, so right.  Successful Strategy Execution has nothing to do with effort or good intentions.  Yes, there are times when effort and desire may be as if not more important than results.  But rarely in Strategy Execution.  In Strategy Execution, it is about results.  Reaching your true goals.

I had not realized, before this morning, that Yoda was a Strategy Execution master as well as a Jedi one.  But it is now so obvious:

• Sponsorship & Consequences:  "Always two there are, a master and an apprentice."
  
• Realistic Communications: Luke: "I'm not afraid."  Yoda: "Ohh... you will be, you will be."
  
• Commitment: "A Jedi must have the deepest commitment, the most serious mind."
  
• Clarity of Vision & Focus on the True Goal: "If you end your training now, if you choose the quick and easy path, as Vader did, you will become an agent of evil."
  

Strategy Execution is a discipline.  It requires commitment, leadership, a realistic understanding of the challenges, clarity of vision, a focus on achieving the ultimate goal - and unwillingness to accept anything less.  

When executing a critical business strategy, Yoda knows:  "Do. Or do not.  There is no try."

Thank you, master.

It's Time to Finish the Job.

Welcome to 2009. Sitting at my desk a few days before the end of 2008, I find myself fully and unapologetically looking forward to the start of 2009.

I won't spend much time dwelling on 2008. The press and the holiday parties have that responsibility well in hand. My conclusions fall in line with others:

• The economy is bad and will get worse before it gets better;
• Consumers don't have money to spend. We will continue to see the impact in housing, automotive, and retail which, in turn, will impact nearly every other industry;
• We're in a downward spiral that will require significant government intervention and spending to break.

Yet, for all the negative news, I go into the new year remarkably optimistic. I'm not being a polyanna, nor ignoring facts. I continue to believe, however, in the ambition, drive, dedication, and determination of us.

RedZone Consulting is all about helping organizations "reach (their) true goals." To do so, we use a structured process, a methodology. And a critically important part of that process is at the very end. We call the activities: "Finishing the Job." It's a set of activities that you don't see in most (if any) other methodologies. And the concept behind "Finishing the Job" is what makes me optimistic about 2009.

You know the story. The first 80% is the easiest. The last 20% is the tough part. That's the "red zone" - the 20 yards before the end zone. But getting into the red zone isn't the goal. It's getting into the end zone. It's scoring. It's winning the game. It's finishing the job.

We use "Finishing the Job" in our methodology as a reminder, as an opportunity to revisit and confirm our original goals. And, if those goals are still valid, to re-focus our efforts on achieving those goals.

"Finishing the Job" is something we (collectively) do. Sometimes we need prodding or reminding. Thus, the activities in the RedZone framework. But, when reminded, we rarely say, "naw, I don't want to do that..." We get up and we finish the job. We get it done.

Consider 2008 our reminder. 2008 was the wake up call. 2008 was the kick in the pants.

So we head into 2009. Heads high. Determined. Focused. It's time to finish the job. It's time to get through the red zone to the end zone. It's time to score. It's time to win.

Happy New Year. Now, let's get it done.

What if you gave a party....

....and nobody came?

That's what it feels like right now. We're sitting smack dab in the middle of "tough stuff." (I refuse to say "bad economy" or "worst economy in 40 years" or "Dang, what the heck is going to happen next?!?") And during tough stuff like this, every company should be very actively doing things - i.e. making changes! So where is everyone????

I can't believe it's just the holidays. "That's okay, I know it's a crisis and my business is on the cusp of failing - but we've got a Christmas lunch to attend. I'll deal with the business stuff after the first of the year."

C'mon people! Almost every assumption people made about business growth and the economy at the beginning of 2008 have been proven WRONG. And what are you supposed to do when your core assumptions turn out to be wrong? (Remember your lessons from Strategy Execution 101!).

That's right - you need to update your assumptions, assess the new assumptions impact on your goals, reset your goals, and then develop a new plan of attack based on the new goals. And what happens after the new plan is established? That's right - you EXECUTE! You start doing things differently - immediately! "Don't do ANYTHING that is not fully aligned with reaching your goals." Period. (That's also from Strategy Execution 101).

So, with all of our assumptions turned inside out, I would expect this huge buzz of activity, of companies changing direction, taking on new activities, eliminating others. Instead, what do I hear? Layoffs.

Layoffs! People losing jobs. In some cases layoffs are an appropriate and necessary activity, required to align a company to its new goals. But layoffs are NOT the full answer. That's a short-sighted, knee jerk approach.

Instead, companies should be using this market weakness as an opportunity. Since expectations are so low right now, companies should be using this time to invest, change, reposition for the future. And the future will come. The question is simply who will be ready to take advantage of the future the minute it shows its face - and who will just be starting... I'll bet you know who the ultimate winners will be...

Happy Holidays, everyone. May 2009 be a year of health, happiness, and success - in all senses of that word - for you and yours.

Survival of the Fittest

Those of you following the markets - stop!  Those of you concentrating on your business - continue.  One of the core precepts of Strategy Execution is to focus on those things you can impact directly.  I won't say ignore those items you cannot affect, but you certainly shouldn't do anything more than monitor them from a distance.  

I tried to take my own advice this week - No shoemaker's child here!  (Ask me if you don't know that reference....).  I have always talked about two kinds of strategic changes - those a company chooses to undertake, and those forced upon it.  Over the last ten years, most companies have had the luxury of focusing on the former.  Today, almost everyone is dealing with the latter.

If you take a look at the RedZone Consulting web site (www.RedZoneConsulting.com), you'll see some pretty significant changes.   RedZone has always focused on helping companies successfully execute major change.  And we still do.  Historically, most companies we worked with were those that chose to undertake a new direction.  Not now.  Today, I'm seeing that most companies are being forced to change their strategy and operations to reflect an entire new economic reality, one that had not even been considered. 

There are few, if any, companies that today's economy isn't impacting. As a result, every company has one primary focus:  Cash.  With credit tight, customer behavior's unpredictable, business assumptions and projections thrown out the window, the first place every business must focus is survival.  

It's a pretty simple question:  Do we have enough cash?  It's one of the "let's pretend" scenarios that we walk clients through:  Let's pretend you have absolutely zero sales over the next six or twelve months.  How much cash will you burn?  What are the levers that allow you to save (or gain) cash if needed?  This exercise has very little to do with what the business is trying to accomplish, and more with a foundational issue:  If the company has no cash, it cannot survive.  If it doesn't survive, successfully executing its strategy is both impossible and meaningless.

Survival of the fittest today is all about cash.  Do you have the cash to deal with the unexpected twists and turns driven by this new, unpredictable economy?   If you can use discipline, clarity, focus to monitor and maintain your cash position, you'll give your company the opportunity to succeed in the future.