Three Ways Executives Stumble

Intention is everything when creating strategic and business plans. Too many executives use annual plans as a “snapshot” or “State of the Enterprise” presentation rather than a dynamic instrument of changestumble. AH Maslow is credited with developing the Cycle of Change which identifies three transformations to achieving change. They are: awareness that change is necessary, identifying what needs to change, and understanding how the change can be achieved. If managers are not deliberate with each step, much can go awry. These are my top three ways to stumble:

Failure to recognize how fast customers will evolve: Companies are sustained by learning to time product introductions to a market window. A proven process to capture customers’ future preferences and strategies is a given requirement. Even the best market intelligence, however, will only render a hazy outline of how your product offerings need to evolve. Understanding key material, tool, and process trends provides more clarity on product cycles. Intuitive customer understanding and the ability to predict schedules and cost, however, is the “secret sauce” for a winning product program. And while the biggest prizes are awarded to disruptive products that leapfrog the competition, ideas cannot be so innovative that customers fail to understand their value. Apple is recognized for the graphical computer interface and personal audio player; but was not the first to market either of these products.

Reluctance to lead change: I have seen executives who desire organizational change stumble when they did not factor how they need to change. When people are presented with a new idea, over half the population will respond by rejecting the idea until it can be proven to their satisfaction that it’s a good idea. While clear communication regarding what the change is, why change is needed, and how the organization will benefit is vitally important, leading by action is equally as important. Allowing employees to participate in planning change, working to build trust, and involvement in demonstrating the changed behavior will help achieve success.

Inadequate reallocation of resources: Executives worry how change in their business might unsettle customers’ willingness to buy. Businesses will often attempt to maintain both old offerings and services while the replacements are being developed and introduced. The decisions businesses make regarding capabilities, skill development, and capital are impactful. How often have we seen?

  • Acquisition of new systems while skimping on the necessary implementation training
  • Jobs eliminated while neglecting to resolve how responsibilities will be reassigned
  • Incumbent employees assigned to master new technology while restricting ongoing education

The ability to forecast capital requirements and cash flow is an invaluable skill. The discipline to release high-skill employees from marginal product lines without disruption will lower stress on the organization.

I have seen attitudes toward strategic planning jaded by these missteps. The rewards of management team learning to be proficient at planning, however, make learning worthwhile.

 

 

Please follow and like us:
Follow by Email
Facebook
Twitter
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.