It appears the economy is in for a wild white water experience through the rest of this year; and perhaps into 2012. Questions I’m hearing include: "What does this mean for my business?" And, "I was thinking of making some changes in 2012; does it make more sense to implement them now?" And, "How much longer can we afford to hang on?" What does the dialog with your leadership team sound like? What are you thinking about when you hear how your customers are reacting to these challenging times, and how their "adjustments" might influence your need to adjust?
As a business owner I too am concerned, trying to make sense out of where things are headed. The optimism of the first half of the year seems to have melted away, scorched by the heat of this unusual summer weather, leaving us with the familiar uncertainty of global markets, a lagging job market, Wall Street instability, unsuccessful political leadership (on all sides) and lots of hard-working individuals feeling high levels of stress and frustration about their jobs, careers and dwindling retirement accounts. But just as we do when confronted by other major issues, we have to take a step back to assess what we know and make decisions based on facts and research (90%) and then of course, integrate our decision with our expert judgment based on experience (10%). After that, it’s a matter of working the plan and continuing to modify it as time continues to change the global atmosphere.
We continue to hear that it will be small- and mid-sized businesses that lead us out of these troubled times. But these business owners can only take on so much debt and risk without customers lining up for their products and services. In order to assess the level of risk and determine reasonable next steps, management should gather the leadership team to take stock of what’s going on in the firm, with customers, and around the globe. The next six to nine months may not be as promising as the first half of the year suggested they would be, but with the right level of leadership and preparedness, strategies associated with operations, finance, and the workforce can be adjusted to make the ride through the white water up ahead more bearable.
5 Business Strategies to Incorporate
Today, looking through the consulting lens of Organization Effectiveness, I see a worthwhile need for incorporating these five strategies into a ‘Second Half Business Review and Planning Retreat.’ Would these work for you and your team?
Planning - Assess what’s currently going on in your industry and business community, and envision what the next 12 months will require. Engage your leadership team, as well as gather ideas from employees, customers, suppliers, etc. Your agenda should include, at a minimum, the following. After you conduct the planning retreat, modify your Strategic Plan as appropriate and communicate the near- and far-term expectations with employees.
- Gather and analyze feedback from customers about their plans for the next 6-12 months.
- Generate ideas from a variety of stakeholders about short- and long-term trends in marketing, technology, day-to-day operations. What does the organization need to keep doing, what can it let go of, and what should it add?
- Review the Strategic Goals previously planned for the 3rd and 4th quarter. What changes would you suggest?
- Examine the markets that are working, and others where investment may not be paying off at the moment. What changes might be useful here?
- Conduct a SWOT Analysis to identify organizational Strengths, Weaknesses, Opportunities and Threats/Risks, and analyze the data in order to develop themes that will aid future planning efforts.
Roles - Considering the jobs employees should be doing, are job descriptions and processes for communicating performance expectations up-to-date and effective? Has leadership communicated changes to the vision/mission/goals and specifically informed employees about what they are responsible for and how their contributions impact the success of the organization? Employees need to be engaged in order to produce the performance expectations that will drive the strategic goals. Is leadership satisfied with how engagement and performance management goals are articulated and implemented? If not, what changes should be made?
Performance - What does the scorecard look like? Do metrics reflect organizational goals and objectives? Are expenses reasonable for the growth and productivity you are achieving? Are there initiatives the organization should explore such as teleworking, volume buying, or consolidation of facilities that would make sense and save money? Are there ways to introduce technology applications to streamline processes and reduce costs? Can a variety of workforce solutions (full-time, part-time, consultants, temporary) help manage payroll and benefit costs in the short-term until workload is more stable and predictable?
Investments - What’s on the horizon to drive and support business growth that the organization should be considering investing in right now and down the road? What’s the plan for how these investments will be financed? Does capital need to be secured? What expectations does the organization have for how these investments will pay off and when?
So What’s Next?
A good project manager will tell you that planning is essential for success. As significant changes are taking place in the business and financial markets, leaders are well-served by taking a step back to objectively assess the impact of market changes on their organizations. And no successful leader would take on this type of assessment and planning without the participation and collaboration of thought leaders and stakeholders.
In order to improve the results of the leadership retreat, be sure to engage with a skilled facilitator who will partner with you to design the meeting agendas with a focus on full participation, strategic objectives and desired outcomes. The benefits of having a facilitator assist will be evident in the quality of the conversations, creativity produced from seemingly conflicting viewpoints, and outcomes achieved from collaborative brainstorming and open dialogs.
Often impartial facilitators are available internally. (Not to sound like a commercial, but if you don’t have someone available within your firm to assist with meeting planning and facilitation, please consider having us work with you.) The point is, a key stakeholder should not plan to design, facilitate and participate in the meeting. That’s too much to expect and usually negatively impacts the ability of the group to achieve quality outcomes.
I’m the eternal optimist. I see the events of the last few weeks more as a sad statement of what our political system has disintegrated into rather than what we are capable of achieving. My glass is definitely more than half full, and I’m hopeful that we’ll find a way to embrace solutions that will spur the growth and innovation I believe our country can achieve. For anyone in Washington reading my blog, please note that I’d be glad to work with you to facilitate some productive meetings focused on what it’s going to take for leaders to act as leaders. Call me (770.587.9032).
Now, my question for you -- What do you think? Do my five strategies resonate with you? What would you add or change?
I’m interested in hearing your thoughts. Please share your comments below.
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