The Best Laid Plans, IV
I have had a bunch of good comments from readers about the three posts in this series about creating strategic plans (input phase, analysis phase, output phase). Many of them are leading me to write a fourth post in the series, one about how to make sure the result of the plan isn’t shelfware, but flawless execution.
There’s a bit of middleware that has to happen between the completion of the strategic plan and the work getting done, and that is an operating plan. In my observation over the years, this is where most companies explode. They have good ideas and capable workers, just no cohesive way to organize and contextualize the work. There are lots of different formats operating plans can take, and a variety of acronyms to go with the formats, that I’ve heard over the years. No one of these formats is “right,” but I’ll share the key process steps my own team and I went through just over the past few months to turn our strategic planning into action plans, synchronizing our activities across products and groups.
- Theme: we picked a theme for the year that generally held the bulk of the key work together – a bit of a rallying cry
- Initiatives: recognizing that lots of people do lots of routine work, we organized a series of a dozen “move the ball forward” projects into specific initiatives
- Communication: we unveiled the theme and the initiatives to ALL at our annual business meeting to get everyone’s head around the work to be done in the upcoming year
- Plans: each of the dozen initiative teams, and then also each team/department in the company (they’re different) worked together to produce a short (1-3 page) plan on a template we created, with a mission statement, a list of direct and indirect participants, important milestones and metrics
- Synchronization: the senior management team reviewed all the plans at the same time and had a meaningful discussion to synchronize the plans, making edits to both substance and timing
- Scorecard: we built our company scorecard for the year to reflect “green/yellow/red” grading on each initiative and visually display the most important 5-6 metrics across all initiatives
- Ongoing reporting: we will publish the scorecard and updated to each initiative plan quarterly to the whole company, when we update them for Board meetings
As I said, there’s no single recipe for success here, but this is a variant on what we’ve done consistently over the years at Return Path, and it seems to be working well for us. I think that’s the end of this series, and judging from the comments I’ve received on the blog and via email, I’m glad this was useful to so many people.
Book Short: Wither the Team
I keep expecting one of his books to be repetitive or boring, but Patrick Lencioni’s The Five Dysfunctions of a Team held my interest all the way through, as did his others. It builds nicely on the last one I read, Death by Meeting (post, link).
I’d say that over the 9 1/2 years we’ve been in business at Return Path, we’ve systematically improved the quality of our management team. Sometimes that’s because we’ve added or changed people, but mostly it’s because we’ve been deliberate about improving the way in which we work together. This particular book has a nice framework for spotting troubles on a team, and it both reassured me that we have done a nice job stamping out at least three of the dysfunctions in the model and fired me up that we still have some work to do to completely stamp out the final two (we’ve identified them and made progress, but we’re not quite there yet.
The dysfunctions make much more sense in context, but they are (in descending order of importance):
- Absence of trust
- Fear of conflict (everyone plays politically nice)
- Lack of commitment (decisions don’t stick)
- Avoidance of accountability
- Inattention to results (individual ego vs. team success)
For those who are wondering, the two we’re still working on at the exec team level here are conflict and commitment. And the two are related. If you don’t produce engaged discussion about an issue and allow everyone to air their opinions, they will invariably be less bought into a decision (especially one they don’t agree with). But we’re getting there and will continue to work aggressively on it until we’ve rooted it out.
There’s one other interesting takeaway from the book that’s not part of the framework directly, which is that an executive has to be first and foremost a member of his/her team of peers, not the head of his/her department. That’s how successful teams get built. AND (this is key) this must trickle down in the organization as well. Everyone who manages a team of group heads or managers needs to make those people function well as a team first, then as managers of their own groups second.
At any rate, another quick gem of a book. I’m kind of sorry there’s only one left in the series.
So far the series includes:
I have one or two more to go, which I’ll tackle in due course and am looking forward to.
The Best Laid Plans, Part I
One of my readers asked me if I have a formula that I use to develop strategic plans. While every year and every situation is different, I do have a general outline that I’ve followed that has been pretty successful over the years at Return Path. There are three phases — input, analysis, and output. I’ll break this up into three postings over the next three weeks.
The Input Phase goes something like this:
Conduct stakeholder interviews with a few top clients, resellers, suppliers; Board of directors; and junior staff roundtables. Formal interviews set up in advance, with questions given ahead. Goal for customers: find out their view of the business today, how we’re serving them, what they’d like to see us do differently, what other products we could provide them. Goal for Board/staff: get their general take on the business and the market, current and future.
Conduct non-stakeholder interviews with a few industry experts who know the company at least a little bit. Goal: learn what they think about how we were doing today…and what they would do if they were CEO to grow the business in the future.
Re-skim a handful of classic business books and articles. Perennial favorite include Good to Great, Contrarian Thinking, and Crossing the Chasm.
Hold a solo visioning exercise. Take a day off, wander around Central Park. No phone, no email. Nothing but thinking about business, your career, where you want everything to head from a high level.
Hold senior staff brainstorming. Two-day off-site strategy session with senior team and maybe Board.
Next up: the Analysis Phase.
The Best Laid Plans, Part III
Once you’ve finished the Input Phase and the Analysis Phase of producing your strategic plan, you’re ready for the final Output Phase, which goes something like this:
Vision articulation. Get it right for yourself first. You should be able to answer “where do we want to be in three years?” in 25 words or less.
Roadmap from today. Make sure to lay out clearly what things need to happen to get from where you are today to where you want to be. The sooner-in stuff needs to be much clearer than the further out stuff.
Resource Requirements. Identify the things you will need to get there, and the timing of those needs – More people? More marketing money? A new partner?
Financials. Lay them out at a high level on an annual basis, on a more detailed level for the upcoming year.
Packaging. Create a compelling presentation (Powerpoint, Word, or in your case, maybe something more creative) that is crisp and inspiring.
Pre-selling. Run through it – or a couple of the central elements of it – with one or two key people first to get their buy-in.
Selling. Do your roadshow – hit all key constituents with the message in one way or another (could be different forms, depending on who).
The best thing to keep in mind is that there is no perfect process, and there’s never a “right answer” to strategy — at least not without the benefit of hindsight!
People have asked me what the time allocation and elapsed time should or can be for this process. While again, there’s no right answer, I typically find that the process needs at least a full quarter to get right, sometimes longer depending on how many inputs you are tracking down and how hard they are to track down; how fanatical you are about the details of the end product; and whether this is a refresh of an existing strategy or something where you’re starting from a cleaner sheet of paper. In terms of time allocation, if you are leading the process and doing a lot of the work yourself, I would expect to dedicate at least 25% of your time to it, maybe more in peak weeks. It’s well worth the investment.
The Best Laid Plans, Part II
Once you’ve finished the Input Phase (see last week’s post) of producing your strategic plan, you’re ready for the Analysis Phase, which goes something like this:
Assemble the facts. Keep notes along the way on the input phase items, assemble them into a coherent document with key thoughts and common themes highlighted.
Select/apply framework. Go back to the reading and come up with one or more strategic frameworks. Adapted them from the academic stuff to fit our situation. Academic frameworks don’t solve problems on their own, but they do force you to think through problems in a structured way.
Step back. Leave everything alone for two weeks and try not to think about it. Come back to it with a fresher set of eyes immediately before starting on the final outputs.
Reality check. Go back to one or two of the constituents you originally met with to begin laying out your thoughts to them – “try them on for size” – and get the unfiltered visceral reactions.
Next up: the Output Phase.
Book Short: Bringing it on Home
Silos, Politics and Turf Wars: A Leadership Fable About Destroying the Barriers That Turn Colleagues Into Competitors wasn’t Patrick Lencion’s best book, but it wasn’t bad, either. I think all six of his books are well worth a read (list at the bottom of the post). And in fact, they really belong in two categories.
The Three Signs of a Miserable Job (post, link), The Five Temptations of a CEO (post, link
), and The Four Obsessions of an Extraordinary Executive (post, link) are all related around the topic of management.
Death by Meeting (post, link), The Five Dysfunctions of a Team (post, link), and Silos, Politics and Turf Wars, on the other hand, are all related around the topic of leading a team and healthy team dynamics. This latest book, which is the last of his six books for me, rounds out this topic nicely, in a fun “novel” format as is the case with his other books.
The book hammers home the theme of an executive team needing to first be a team and then second be a collection of group heads as a means of breaking down barriers that exist inside organizations. It also lays out a framework for creating high-level alignment inside a team. The framework may or may not be perfect — we are using a different one at Return Path (the Balanced Scorecard) that accomplishes most of the same things — but for those companies who don’t have one, it’s as good as any.
The most compelling point in the book, though is the point that teams often make the most progress, change the most, and do their best work when their backs are up against a wall. And the point Lencioni makes here is — “why wait for a crisis?”
At any rate, another good, quick book, and absolutely worth reading along with the others, particularly along with the other two closely related ones. I’m definitely sorry to be done with the series. We may try the “field guide” companion to The Five Dysfunctions and see how the practical exercises work out.
The full series roundup is:
How to Get Laid Off – an Employee’s Perspective
One of my colleagues at Return Path saw my post about How to Quit Your Job about 5 years ago and was inspired to share this story with me. Don’t read anything into this post, team! There is no other meaning behind my posting it at this time, or any time, other than thinking it’s a very good way of approaching a very difficult situation, especially coming from an employee.
In 2009 I was working at a software security start up in the Silicon Valley. Times were exceedingly tough, there were several rounds of layoffs that year, and in May I was finally on the list. I was informed on a Tuesday that my last day was that Friday. It was a horrible time to be without a job (and benefits), there was almost no hiring at all that year, one of the worst economic down turns on record. While it was a hard message, I knew that it was not personal, I was just caught up on a bad math problem.
After calling home to share the bad news, I went back to my desk and kept working. I had never been laid off and was not sure what to do, but I was pretty sure I would have plenty of free time in the short term, so I set about figuring out how to wrap things up there. Later that day the founder of the company came by, asked why I had not gone home, and I replied that I would be fine with working till the end of the week if he was okay with it. He thanked me.
Later that week, in a meeting where we reviewed and prioritized the projects I was working on, we discussed who would take on the top three that were quite important to the future of the company. A few names were mentioned of who could keep them alive, but they were people who I knew would not focus on them at all. So I suggested they have me continue to work on them, that got an funny look but when he thought about it , it made sense, they could 1099 me one day a week. The next day we set it up. I made more money than I could of on unemployment, but even better I kept my laptop and work email, so I looked employed which paid off later.
That one day later became two days and then three, however, I eventually found other full time work in 2010. Layoffs are hard, but it is not a time to burn bridges. In fact one of the execs of that company is a reference and has offered me other opportunities for employment.
Book Short: On The Same Page
Being on the same page with your team, or your whole company for that matter, is a key to success in business. The Four Obsessions of an Extraordinary Executive, by Patrick Lencioni, espouses this notion and boils down the role of the CEO to four points:
- Build and maintain a cohesive leadership team
- Create organizational clarity
- Overcommunicate organizational clarity
- Reinforce organizational clarity through human systems
Those four points sound as boring as bread, but the book is anything but. The book’s style is easy and breezy — business fiction. One of the most poignant moments for me was when the book’s “other CEO” (the one that doesn’t “get it”) reflects that he “didn’t go into business to referee executive team meetings and delivery employee orientation…he loved strategy and competition.” Being a CEO is a dynamic job that changes tremendously as the organization grows. This book is a great handbook for anyone transitioning out of the startup phase, or for anyone managing a larger organization.
I haven’t read the author’s other books (this is one in a series), but I will soon!
The Advantage: Why Organizational Health Trumps Everything Else In Business is Patrick Lencioni’s newest book. Unlike most or all of his other books (see the end of this post for the listing), this one is not a fable, although his writing style remains very quick and accessible.
I liked this book a lot. First, the beginning section is a bit of a recap of his Five Dysfunctions of a Team which I think was his best book. And the ending section is a recap of his Death by Meeting, another really good one. The middle sections of the book are just a great reminder of the basic building blocks of creating and communicating strategy and values – about driving alignment.
But the premise, as the subtitle indicates, is that maintaining organizational health is the most important thing you can do as a leader. I tell our team at Return Path all the time that our culture is a competitive advantage in many ways, some quantifiable, and others a little less tangible.
A telling point in the book is when Lencioni is relaying a conversation he had with the CEO of a client company who does run a healthy organization – he asked, “Why in the world don’t your competitors do any of this?” And the client responded, “You know, I honestly believe they think it’s beneath them.” Lencioni goes on to say, “In spite of its undeniable power, so many leaders struggle to embrace organizational health because they quietly believe they are too sophisticated, too busy, or too analytical to bother with it.” And there you have it. More examples of why “the soft stuff” is mission critical.
Lencioni’s “Recipe for Organizational Health” (the outline of the book):
– Build a Cohesive Leadership Team
– Create Clarity
– Overcommunicate Clarity
– Reinforce Clarity
And his recipe for creating a tight set of “mission/vision/values” (the middle of the book):
1. Why do we exist?
2. How do we behave?
3. What do we do?
4. How will we succeed?
5. What is most important, right now?
6. Who must do what?
While there are lots of other good frameworks for doing all of this, Lencioni’s models and books are great, simple reminders of one of the CEO’s most important leadership functions. We’re recrafting our own mission and values statements at the moment at Return Path, and we’re doing it using this 6-Question framework instead of the classic “Mission/Vision/Values” framework popularized a few years back by Harvard Business Review.
The full book series roundup as far as OnlyOnce has gotten so far is:
Startup CEO “Bibliography”
A couple people who read Startup CEO: A Field Guide to Scaling Up Your Business asked me if I would publish a list of all the other business books I refer to over the course of the book. Here it is — I guess in some respects an all-time favorite list for me of business books.
And here’s the list of books in Brad Feld’s Startup Revolution series other than Startup CEO:
Book Short: Vulnerability Applied to Leadership
Getting Naked: A Business Fable About Shedding The Three Fears That Sabotage Client Loyalty (book, Kindle), is Patrick Lencion’s latest fable-on-the-go book, and it’s as good a read as all of his books (see list of the ones I’ve read and reviewed at the end of the post).
The book talks about the power of vulnerability as a character trait for those who provide service to clients in that they are rewarded with levels of client loyalty and intimacy. Besides cringing as I remembered my own personal experience as an overpaid and underqualified 21 year old analyst at how ridiculous some aspects of the management consulting industry are…the book really made me think. The challenge to the conventional wisdom of “never letting ‘em see you sweat” (we *think* vulnerability will hurt success, we *confuse* competence with ego, etc.) is powerful. And although vulnerability is often uncomfortable, I believe Lencioni is 100% right – and more than he thinks.
First, the basic premise of the book is that consultants have three fears they need to overcome to achieve nirvana – those fears and the mitigation tactics are:
- Fear of losing the business: mitigate by always consulting instead of selling, giving away the business, telling the kind truth, and directly addressing elephants in the room
- Fear of being embarrassed: mitigate by asking dumb questions, making dumb suggestions, and celebrating your mistakes
- Fear of feeling inferior: mitigate by taking a bullet for the client, making everything about the client, honoring the client’s work, and doing your share of the dirty work
But to my point about Lencioni being more right than he thinks…I’d like to extend the premise around vulnerability as a key to success beyond the world of consulting and client service into the world of leadership. Think about some of the language above applied to leading an organization or a team:
- Telling the kind truth and directly addressing elephants in the room: If you’re not going to do this, who is? There is no place at the top of an organization or team for conflict avoidance
- Asking dumb questions: How else do you learn what’s going on in your organization? How else can you get people talking instead of listening?
- Making dumb suggestions: I’d refer to this more as “bringing an outside/higher level perspective to the dialog.” You never know when one of your seemingly dumb suggestions will connect the dots for your team in a way that they haven’t done yet on their own (e.g., the suggestions might not be so dumb after all)
- Celebrating your mistakes: We’re all human. And as a leader, some of your people may build you up in their mind beyond what’s real and reasonable. Set a good example by noting when you’re wrong, noting your learnings, and not making the same mistake twice
- Taking a bullet for your team, making everything about your team and honoring your team’s work: Management 101. Give credit out liberally. Take the blame for team failings.
- Doing your share of the dirty work: An underreported quality of good leaders. Change the big heavy bottle on the water cooler. Wipe down the coffee machine. Order the pizza or push the beer cart around yourself. Again, we’re all human, leaders aren’t above doing their share to keep the community of the organization safe, fun, clean, well fed, etc.
There’s a really powerful message here. I hope this review at least scratches the surface of it.
The full book series roundup as far as OnlyOnce has gotten so far is:
