March 20th, 2012
Everybody wants to develop the next iPad app. Inventing things is a great way to impress your friends. But sometimes crafting strategy is more tepid. One needs to balance their need to disrupt based on positioning, industry stage, resources and a myriad of other factors.
I have always viewed the exercise of strategic planning as a blend of revolution and evolution. It is important for companies to fully bake their last innovation before they can move on to the next. The inability to fully develop an idea can be futile. As the old saying goes, a man with two watches may not know what time it is.
Some companies have the chops to work on multiple disruptions at once, but they are usually the ones with an abundance of resources. For most, execution can require the attention of several executives and their underlings. Such work is both exhilarating and exhausting and it is not for the faint of heart.
One critical constraint is that the people who dream up such ideas are in the C-Suite, and they are the ones with the most limited bandwidth. It is for that very reason that the most senior people need to delegate operational responsibility so that they can keep their eye on the ball. It is extremely challenging for CEO’s to focus on revolution as they manage evolution. They may have the vision for evolution, but it is the job of the COO (or similar of a similar ilk) to see through incremental change.
That is not to say that incremental change is not valuable. It is more than valuable; it is the cost of admission in a business culture where customers expect Nordstrom quality and Wal-Mart pricing. Customers will not accept the status quo for very long, so continuous improvement is a required business practice.
Some companies are particularly adept at overcoming this resource dilemma. They create opportunities for innovation in their interactions with customers (by asking the right questions of the right people) and in the way that they manage their planning. Some environments are far more ripe for revolution than others, based on how their managers show up. Others execute vision by using outside resources (outsourcing) or task forces of employees who can focus on improvement. One way to develop mid-managers is to task them with tasks and initiatives that may expand their role and stretch their thinking.
So pick your battles wisely. Find a way to manage both your disruption and continuous improvement in parallel.
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Posted by Marc Emmer - President - Optimize Inc.
February 8th, 2011
At the current rate of job growth, it would take 20 years to return to the level of employment before the downturn[i]. Over 2% of Americans have been out of work for a year or more, and with the gradual elimination of their unemployment benefits, their future looks bleak. It is believed that another 10% of the U.S. workforce is “underemployed”, surviving on part time work, and under the table side jobs. Unlike past recessions, it is not only the factory workers and retail employees who have been cut back, vast numbers of white collar (skilled) people, find themselves seemingly unvalued. What a tragedy.
Things are not much easier for the fully employed. They have been bludgeoned over the last two years, as their salaries, overtime, and pensions have been cut. A recent study revealed that amongst employers, “work life balance” slid from 4th to 16th in a ranking of employer workforce priorities. Measuring workforce performance rose from 9th to 4th (don’t ask me how it was ever 9th) reflected the move to more bottom line business results. American employers have a bit of a hangover, as 28% predict further salary reductions and 52% expect lower retirement plan contributions to continue. [ii]
As the promise of lower costs is now flowing through to the bottom line, many business owners are returning to prosperity. We all need to be mindful of the sacrifices made by our employees. Lost in the health care debate is the fact that health care inflation is rising twice as fast as wages. It has been a two year grind, and people who have not taken vacations and are fighting pay check to pay check are becoming physically and emotionally exhausted.
At the very least, employers should consider reinstating lost benefits and being more proactive in completing performance reviews and the like. Just because business is sluggish is not a good reason to stop giving feedback and honoring the work of people who have given themselves to their employers.
In fact, if your business has only posted modest results, the very best thing you can do is to communicate with employees. They know business is bad, and their fear is often worse than the reality. Exuding confidence is extremely important, and asking for employees to participate in the success of a company creates unity and teamwork. As business improves, sharing the fruits of your labor with the people who got you there is just good business.
[i] The Kiplinger Letter November 5
th, 2010
[ii] New Priorities for Employers-Bloomberg Business week September 13th, 2010
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Posted by Marc Emmer - President - Optimize Inc.