The Advisor’s Corner – ‘Strategic Action’ is better than just a Plan

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‘Strategic Action’ is better than just a PlanQuestion:

My boss wants a strategic plan next month. It’s a really short window and I don’t know where to start. Any ideas?

StrategyDriven Response: (by Roxi Hewertson, StrategyDriven Principal Contributor)

Just saying the words, “We need a strategic plan,” often elicits a groan and eye rolls. This is the response because most strategic plans come to nothing or almost nothing.

I wish I had a dollar for every ‘Strategic Plan’ or ‘5 Year Plan,’ sitting on a dusty shelf in this country. Every one of those musty shelf-dwelling ‘Strategic Plans’ cost those leaders and their organizations a great deal of human effort and lost productivity. In fact, strategic planning has gotten such a bad name many people only do ‘it’ because someone tells them they have to.

And yet, everyone likes to have a clear sense of direction, a plan, and an end goal that they believe can and will be accomplished. That’s why we need to create a smart plan of action. I call it Strategic Action because it’s about doing, not just thinking about doing.

A plan is the precursor to the action to be sure. It can even be fun to plan. When done well, planning should engage people and generate fantastic ideas — and still it’s only half the loaf. So how do we get where we need to go?

I have walked many clients through this process and it works every time. It’s simple, makes common sense, and can be shaped to engage any and all stakeholders. This is a summary, but it will give you a good idea.

5 Steps to Strategic Action

Step One: The Mission, Vision, and Values of the organization must be clear, shared, communicated, and understood by everyone on the staff and with appropriate others (Board members, key stakeholders, etc.). Revisiting the Mission, Vision, and Values statements is essential to the process even if they are just being validated. If necessary, create new ones so a solid foundation is in place first.

Step Two: Test the Vision. For a vision to be effective over time, it must be inspiring, clear, credible, and create a strong commitment in everyone guided by it. Always test your vision to see if it meets those criteria well enough to be the overarching, driving force that a great vision needs to be.

Step Three: Identify those significant few (2-3) big strategies on which you will focus for the shorter term (1-3 years for instance) that are aligned with your mission, in harmony with your values, and most effectively advance your vision. In this step you may need to conduct a SWOT analysis and an Environmental Scan look at both the internal and external factors you should be considering. By engaging your stakeholders, you give them a voice in influencing the strategies that will ultimately chosen by you and your leadership team.

Step Four: Action plan the strategies! Once the strategies are established, ownership and accountability for each strategy must be determined and action plans must be put into place with deliverables and time lines. Good communication across the organization is an essential part of this step.

Step Five: Action plan the tactics! Determine what specific actions will ensure the 2-3 big strategies are accomplished on time, on budget, and with high quality. This work is led internally by those accountable for the execution of the strategies — individually and on teams. Pay attention to both the head and heart of this process, making sure the tactical goals are balanced with the impact on people.

If doing this well requires more time than suggested, try to bargain for more and explain why. When you follow all five of these steps you will have a ‘strategic action plan’ which should satisfy any boss!

About the Author

Roxi HewertsonLeadership authority Roxana (Roxi) Hewertson is a no-nonsense business veteran revered for her nuts-and-bolts, tell-it-like-it-is approach and practical, out-of-the-box insights that help both emerging and expert managers, executives and owners boost quantifiable job performance in various mission critical facets of business. Through AskRoxi.com, Roxi — “the Dear Abby of Leadership” — imparts invaluable free advice to managers and leaders at all levels, from the bullpen to the boardroom, to help them solve problems, become more effective and realize a higher measure of business and career success.

The StrategyDriven website was created to provide members of our community with insights to the actions that help create the shared vision, focus, and commitment needed to improve organizational alignment and accountability for the achievement of superior results. We look forward to answering your strategic planning and tactical business execution questions. Please email your questions to [email protected].

The Big Picture of Business – Community Relations and Cause Related Marketing Are Business Strategies, Not Sales Promotions: Determining the Right Kind of Tie-In Causes.

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Business marries the community that it settles with. The community has to be given a reason to care for the business. Business owes its well-being and livelihood to its communities.

I recently stopped for lunch at a franchise restaurant. Nobody was at the register. A crew member told me to wait, then later took my order. She started selling donations to some cause, which I declined. When the regular cashier returned, I saw her peddling donation sales. People were blindly making donations, without understanding what they supported. The sales of those promotional pieces caused the line to grow out of the restaurant door. People were just buying the promotion in order to get through the line.

I support cause related marketing and have advised many corporations on setting up such programs. However, peddling sales to some ‘foundation’ that is named after your product and which supports only one cause is not appropriate. The store was littered with stickers. The process of selling the stickers made the waiting line longer. As a result, the iced tea had run out, and nobody checked it.

I went to their website, where franchise chains allege they want customer comments. I stated, “Having a foundation to support the community across the board is great. Who is to say that a sales promotion tied directly to your products is right? I say it is not, and I’m an expert on cause-related marketing. You people need to revise your service lines. Peddling the sales of stickers in a tackily littered store is inappropriate. I’m gravely concerned about this practice of badgering customers in support of some phantom charity; how this store does it is not right.”

The franchise owner later called. He talked all over me in a defensive manner. His voice was high-pressure, probably the result of sales training classes. Rather than addressing my concerns, he rifled over them and questioned my ability to assess community relations. I asked if he had ever heard of Thousand Points of Light. He said no. I explained what it was and that I was an adviser to the President of the United States in fostering the program. Still, he questioned my interest in community relations.

“We’re a franchise,” he admitted. “This was dictated to us by corporate. I’m sorry that you feel that way because we do so much good. You’re invited to attend when we present the donation.” I replied, “No, I’m not going to be a prop in your photo opportunity, for you to sell product.” I reminded him that it was customer donations that enabled the attention, not a corporate initiative for which they were taking the credit.

He was not listening. He was simply rationalizing a corporate marketing initiative. So too was the corporate person who later called to argue with me for daring to state my opinions. Sadly, people like that don’t care or even get that re-thinking their strategy is an option.

There are many wonderful ways where companies support the community:

  • Give percentages of sales to approved charities.
  • Offer certificates for product when people make legitimate donations.
  • Coupon book activities with schools.
  • Allow non-profit groups to present on their premises.
  • Advocate community causes in their advertising.
  • Sponsor noteworthy community events.
  • Recognize that executive time spent in the community is good for business.

No company can cure community problems by itself. Each company has a business stake for doing its part. To prioritize which spheres or causes to serve, business should list and examine all of the community’s problems. Relate business responses to real and perceived wants/needs of the community. Set priorities. There can never be a restraint upon creativity.

My advice to companies as they create charity tie-in, cause-related marketing and community relations activities includes:

  • Don’t say that you want customer input unless you are prepared to hear it.
  • Franchisers should not sell sure-fire promotions to build sales as part of the worth of the franchise.
  • Community support is not a one-cause (vested interest) matter.
  • If you seek customer comment, do not talk over the customer.
  • Do not keep rationalizing flawed strategies to your customers.
  • Realize that customers’ opinions matter and that they have more buying choices than just your store.
  • If you purport to have a foundation, it cannot or should not be named directly for your product.
  • Do not run your “foundation” out of a corporate marketing department.

Every community relations program has five steps:

  1. Learn what each community thinks about the company and, therefore, what information needs to be communicated to each public. Conduct focus groups. Maintain community files. Organize an ongoing feedback system.
  2. Plan how to best reach each public… which avenues will be the most expedient. Professional strategic planning counsel performs an independent audit and guides the company through the process. Get as many ideas from qualified sources as possible.
  3. Develop systems to execute the program, communicating at every step to publics. All employees should have access to the plan, with a mechanism that allows them to contribute. If others understand what the company is doing, they will be part of it.
  4. Evaluate how well each program and its messages were received. Continue fact-finding efforts, which will yield more good ideas for future projects. Document the findings. When planning, reach for feasible evaluation yardsticks.
  5. Interpret the results to management in terms that are easy to understand and support. Provide management with information that justifies their confidence.

Companies should support off-duty involvement of employees in pro-bono capacities but not take unfair credit. Volunteers are essential to community relations. Companies must show tangible evidence of supporting the community. Create a formal volunteer guild, and allow employees the latitude and creativity to contribute to the common good. Celebrate and reward their efforts.

Community relations is action-oriented and should include one or more of these forms:

  1. Creating something necessary that did not exist before.
  2. Eliminating something that poses a problem.
  3. Developing the means for self-determination.
  4. Including citizens who are in need.
  5. Sharing professional and technical expertise.
  6. Tutoring, counseling and training.
  7. Promotion of the community to outside constituencies.
  8. Moving others toward action.

Publicity and promotions should support community relations and not be the substitute or smokescreen for the process. Recognition is as desirable for the community as for the business. Good news shows progress and encourages others to participate.

The well-rounded community relations program embodies all elements: accessibility of company officials to citizens, participation by the company in business and civic activities, public service promotions, special events, plant communications materials and open houses, grassroots constituency building and good citizenry.

Never stop evaluating. Facts, values, circumstances and community composition are forever changing. The same community relations posture will not last forever. Use research and follow-up techniques to reassess the position, assure continuity and move in a forward motion.

No business can operate without affecting or being affected by its communities. Business must behave like a guest in its communities… never failing to show or return courtesies. Community acceptance for one project does not mean than the job of community relations has completed. Community relations is not ‘insurance’ that can be bought overnight. It is tied to the bottom line and must be treated accordingly…with resources and expertise to do it effectively. It is a bond of trust that, if violated, will haunt the business. If steadily built, the trust can be exponentially parlayed into successful long-term business relationships.

About the Author

Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.

Where your company is headquartered makes a big difference to your bottom line

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Where a business is headquartered can make a huge difference in the skill level of your employees, raising capital and attracting customers. This time of a year is an important reminder that where your company is headquartered also can have a significant impact on your bottom line.

For startups deciding where to establish roots or for growing companies looking to relocate, these factors should be top of mind when deciding on home base, since corporate taxes differ greatly by state. As the Tax Foundation notes, for example, some states have no traditional corporate income tax (like Texas, Nevada and Colorado), while Alaska collects a whopping $993 per capita.

And while taxes are not the only consideration a company should give when deciding where to locate, the significant variance can affect the bottom line by a substantial amount and has led to an influx of companies moving into lower-taxed locales.

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About the Author

Craig CasselberryCraig Casselberry is the founder and president of Austin-based Quorum Public Affairs, Inc., where he has managed more than 100 strategic communications projects for half of the Fortune 50 companies, issue coalitions, and federal, state and local public policy campaigns for corporate clients of all sizes. As a 20-year-veteran of the Texas political and business communities, Craig is a sought-after speaker and consultant, advising firms like AT&T, FedEx, Dell and Ford as well as early-stage companies on their growth strategies in Texas.

A Budget Does Not A Strategy Make!

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Let’s see how many of us have been involved in this type of conversation:

Strategy Consultant: “Do you have a Strategic Plan?”

C-Level Client: “Absolutely!”

Strategy Consultant: “Oh, great! May I see it?”

C-Level Client: “Of course! Let me get it… Here you go.”

Strategy Consultant: “OK, thanks.”

(30 seconds pass)

Strategy Consultant: “Umm, this isn’t a strategic plan.”

Strategic Planning is one of those things that every leadership team claims to do, but, few actually perform.

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About the Author

James M. KerrJames M. Kerr, Partner, BlumShapiro Consulting, is the author of The Executive Checklist (Palgrave Macmillan, 2014). As a management consultant and organizational behaviorist, Jim specializes in strategic planning, corporate transformation and project & program development. He can be reached at [email protected]

The Big Picture of Business – Yesterdayism… Learning from the Past, Planning for the Future

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This Annual Report issue celebrates the year, as basis for helping business people to prepare for the future.

People are interesting combinations of the old, the new, the tried and the true. Individuals and organizations are more resilient than they tend to believe. They’ve changed more than they wish to acknowledge. They embrace innovations, while keeping the best traditions.

When one reflects at changes, he-she sees directions for the future. Change is innovative. Customs come and go… some should pass and others might well have stayed with us.

There’s nothing more permanent than change. For everything that changes, many things stay the same. The quest of life is to interpret and adapt that mixture of the old and new. People who fight change have really changed more than they think.

The past is an excellent barometer for the future. I call that Yesterdayism. One can always learn from the past, dust it off and reapply it. Living in the past is not good, nor is living in the present without wisdom of the past.

Trends come and go… the latest is not necessarily the best. Some of the old ways really work better… and should not be dismissed just because they are old or some fashionable trend of the moment looks better.

When we see how far we have come, it gives further direction for the future. Ideas make the future happen. Technology is but one tool of the trade. Futurism is about people, ideas and societal evolution, not fads and gimmicks. The marketplace tells us what they want, if we listen carefully. We also have an obligation to give them what they need.

In olden times, people learned to improvise and ‘make do.’ In modern times of instantaneous disposability, we must remember the practicalities and flexibilities of the simple things and concepts.

Things which Made Comebacks…

Ceiling fans. The jitterbug and swing music. Hardwood floors. Stained glass.

Things the Economy Has Exempted…

Penny arcades. Five-and-dime stores. Full-service gas stations. Free car washes at gas stations. Towels in boxes of detergent. Mom-and-pop stores. S&H Green Stamps and other redemption programs.

Things which the Marketplace Has Eclipsed…

  • Ice delivered in blocks via a horse-driven carriage by the ice man
  • Milk delivered in bottles via a horse-driven carriage by the milk man
  • Going downtown to do all of your shopping
  • Drive-in movies
  • Stores closed on Sundays

The Old Became the New Again…

The original speed for phonograph records, as invented in 1888, was 78-RPM, which engineers determined to be the most ideal for sound quality. In the 1940s, technology brought us the 45-RPM and 33-1/3-RPM records… adding up to the ‘mother speed’ of 78-RPM. The 1980s brought us compact discs, which play at a speed of 78-RPM.

Station wagons of the 1950s went out of style. They came back in the 1980s as sport utility vehicles.

Midwives were widely utilized in previous centuries. In modern times, alternative health care concepts and practitioners have been embraced by all sectors of society. Herbal ingredients and home remedies have gained popularity, and cottage industries support them.

Telephone party lines went out of style in the 1920s. They came back in the 1990s as internet chat rooms.

Corporations have become extended families, thus embracing dysfunctionality, changes, modifications and learning curves.

Schools started out as full-scope community centers. As the years passed, academic programs grew and became more specialized, covering many vital subject areas. Today, with parents and communities severely neglecting children and their life-skills education, schools have evolved back to being full-scope community centers.

7 Levels of Yesterdayism… Learning from the Past… Sources of Insights:

  1. Think They’ve Been There… Haven’t Yet Fully Learned from It.
  2. Saw It Happen… Understand It.
  3. Participated In It.
  4. Been There… Learned from It.
  5. Teach, Understand and Interpret It.
  6. Innovated It… and Teach You Why.
  7. Innovative Then and Now… Still Creating.

7 Applications for Yesterdayism… How to Shape the Past Into the Future:

  1. Re-Reading… Reviewing… Finding New Nuggets in Old Files.
  2. Applying Pop Culture to Today.
  3. Review case studies and their patterns for repeating themselves.
  4. Discern the differences between trends and fads.
  5. Learn from successes… and three times more from failures.
  6. Transition your organization from information down the branches to knowledge.
  7. Apply thinking processes to be truly innovative.

Apply History to Yourself. The past repeats itself. History is not something boring that you once studied in school. It tracks both vision and blindspots for human beings. History can be a wise mentor and help you to avoid making critical mistakes.

7 Kinds of Reunions… obtaining perspective:

  1. Pleasurable. Seeing an old friend who has done well, moved in a new direction and is genuinely happy to see you too. These include chance meetings, reasons to reconnect and a concerted effort by one party to stay in the loop.
  2. Painful. Talking to someone who has not moved forward. It’s like the conversation you had with them 15 years ago simply resumed. They talk only about past matters and don’t want to hear what you’re doing now. These include people with whom you once worked, old romances, former neighbors, networkers who keep turning up like bad pennies and colleagues from another day and time.
  3. Mandated. Meetings, receptions, etc. Sometimes, they’re pleasurable, such as retirement parties, open houses, community service functions. Other times, they’re painful, such as funerals or attending a bankruptcy creditors’ meeting.
  4. Instructional. See what has progressed and who have changed. Hear the success stories. High school reunions fit into this category… their value depending upon the mindset you take with you to the occasion.
  5. Reflect Upon the Past. Reconnecting with old friends, former colleagues and citizens for whom you have great respect. This is an excellent way to share each other’s progress and give understanding for courses of choice.
  6. Benchmarking. Good opportunities to compare successes, case studies, methodologies, learning curves and insights. When ‘the best’ connects with ‘the best,’ this is highly energizing.
  7. Goal Inspiring. The synergy of your present and theirs inspires the future. Good thinkers are rare… stay in contact with those whom you know, admire and respect. It will benefit all involved.

About the Author

Power Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flameis now out in all three e-book formats: iTunes, Kindle, and Nook.