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    Rockfellar

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    Rockfellar

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    © All Rights Reserved
    Download as PDF or read online from Scribd
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    12 views8 pages

    04 Chapter03

    Uploaded by

    Amit Phand
    Rockfellar

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 8
    28° Misrunna te Rockeraaen Hass to spit, The Sell circle splits into separate sales and! marketing func- tions, requiring different personalities to head up each. (AS aside note, the key measurable for marketing or business development is lead generation.) The Make or Buy citcle splits into separate opera- ‘ons and RED functions (or thei equivalents—all firms should have some form of R&D). And the Keep Good Records circle splits Into separate accounting and finance departments, On the left side of the ‘model, growing firms tend to develop more specific functional areas focusing on employees, (HR Is the old term); focusing on customers, whereby the organization starts to create customer-focused teams to ‘complement possible product-focused teams; and focusing on share holders where public firms develop specific shareholder relations departments In summary, the Right People Doing the Right Things Right model encompasses the fundamental decisions leaders must make to suc- cesfully drive any business. The rest of the book provides specific tools for addressing each ofthese areas, 3 MASTERING A ONE-PAGE STRATEGIC PLAN Keeping it simple keeps it clear! Executive summary: The bigger your company ges and he faster i's gow: tng, the harder i sto get everybody on the same page. The problem, of couse that there ina singe page round whch to align. Instead here se likely more than a dozen pages, actual and imaginary, alongwith memos and emai, each purporting to deseribe your company’ vislon, mission, and stategy, Further, many ofthese messages may be riddled with unclear and ‘ven contradictory statement abovt who your company i, whatit does, and ‘hom, Ths chapter wil introduce you othe Panning Pyramid and the One Page Statepc Plan simple yet powerful tol that elpsyou eit your vision and strategy downto a single, action-oriented page. Go to woewsazles.com, ‘download for free an English, Spanish, or encheitable Word version of the One Page Suategie Pan and a more comprehensive document called "One Page Sategi Plan: How to Complete” BBs vten you company was at ging tes ad 08 wee tugging o ge the ob Jone with thre or fur key People con ison erer the tion was unbeatd of verybody was sting and Sleeping te compen’ goals usta yu were, Your employes ne 29 i ati Td 30. Masremno mir Rockettien Hants as wel as you did whic task was ertical because they all were! Rarely {id people complain about communication problems. ‘ut with each new level of growth, and each new hire, your inli- lence over the organization necessarily grows more arm's-length. You begin to delegate low-level strategic decisions, and not surprisingly, some of the calls your associates make leave you scratching yout head. Pethaps misunderstandings have cropped up between assoc\- ates, each side believing they were doing what they were supposed to Maybe customers are complaining about mistakes, or—worse— neglect. The gly truth is plain: the vision and strategy that always Scemed so clea ta you, as the entrepreneusil brains of the company, have gotten muddled somewhere along the way. Where once you could relay an idea to a handful of close associates and have It under- stood and Implemented immediately, you now find i takes days oF ‘weeks to get the concept out laterally. Then it might take more weeks, ‘even months, to communicate the information tothe owes levels of ‘the organization. And when you're done, people will stil clamor for more and better communication, I you'r thinking, “Yes, but that’s just how it s when companies ‘get bigge,” you should know that there are tools for handling the Increasing complexity business growth generates. Maybe there was a ‘ime-when companies could rationalize their poor internal comm nication as just the unfortunate by-product of success. Maybe they could get by from yea to year, just resting on the laurels of respec fed name and a commanding marketshare. If50, those days are long, gone, Thanks to global competition, the rse of ecommerce and the feverquickening pace of innovation, cleat communication of an. effective strategy is absolutely essential to survival. To become and ‘emain competitive, your organization needs three things 1.4 framework that ientifies and supports your corporate strategy, 2. a common language in which to express that strategy, and, 53. a wellsdeveloped habit of using this framework and language to continually evalate your strategic progress ‘Most important, you've got to keep it simple, Who has time to read—let alone develop—packets and pamphlets of forgettable prose? You've got to boil your expression of strategic might dawn to one povverful, useable, post-able, and thoroughly unforgettable page ‘Mest te statepe framevtork that works best fr emerging compa- nies I's called the Planning Pyramid (Figure -1) As a consultant to — Mastering a One-Page Static Plan 31 | The Planning Pyramid: A Strategic Framework 1% Vision, 99% Alignment {growing companies ofall stripes and types for more than 20 year, Tye seen what works in establishing an effective vision and I have ‘incorporated these best practices into a concise tool. The pyramid graphically conveys to everyone in Your organization how the var ‘us vision pleces—values, purpose, targets, goals, actions, schedules and accountabiitiesalign, establishing a common strategie la {guage that is easy to use and helps eliminate confssion, The One Page Strategic Plan (igure 3.2) provides the tool for geting it all, {down on paper. A sample completed plan (igure 3-3) can be found at the end of this chapter. From the gazlles.com Website you may download an editable ‘Word document; print it out and flit in by hand. When you print ‘out, place the Ist page to the left ofthe 2nd page, giving you a con tinuous, single page document on an il-by-17-Inch plece of paper Ifyou don't want to do this ight now, read through the rest of tis chapter to give you a sense of the language and process I suggest for ‘Sefining 2 whole vision, Avision is 2 dream witha plan, Without all, a 32. Masruane mez Rocker Haus owe 3.2 One-Page Strategic Plan rgiiaton Name: Your name: ‘Mastering a One-Page Strategic Plan 33 Tass Sym) | — Gat) ea nee 32 (ont) TRE ROR] oa aS as. Deva] 7] : tof seem | tee é ei Hi aa 5 som Se esas eoH| omntnone | setae < soar | sage i sno” | fe sa ei 34 Masreuno tHe Rocerrat Hats seven levels of the Planning Pyramid delineated, your vision will be Jess than complete "The One-Page Strategic Plan is essentially the Planning Pyramid turned on is side. The tool aligns both horizontally and vertically, providing a logical framework for organizing your strateglc vision land guaranteeing that you have all the pieces to make it whole. The physical structure ofthe tool forces prioritization, which is ke. "No organization or individual can focus on or accomplish more than five or six procties in a given time petiod. The One-Page Strategic Plan forces you to select what I call your Top $ and Top 1 of 5 priorities, And as You fil in the document, think of it as a giant Crossword puzzle, where figuratively speaking, seven across needs t0 align with three dovsn—thus, f you can't immediately determine ‘what should go in one box, lke the BHAG, then figure out your Core Purpose and your Brand Promise, then tiangulate into what your BHAG should be. Filling in the One-Page Strategic Plan Let's begin filling out the One-Page Stategl Plan (for a more exten sive explanation which includes how to structure your strategic plan fing session go to wwegazelles.com and download the free docu zment "One-Page Strategic Plan: How to Complete") lace the name Of the firm atthe top ofthe left page, This Isn'ta trvial matter mm, {amazed how offen there isn’t ligament around the name of the fm, ‘with some people wing acronyms or shortened versions ofthe name ‘Or the firm may have recently undergone 2 name change. The Organtzation Name line Is also useful in signifying whether the strategic vision applies to only a division or department within firm, ie, Gazelle’ Accounting Department, Finish the tile area by adding your own name and the date the document was filled out Opportunities and Threats ‘To the far upper ight (op ofthe second page, you'l note space ofl, in Opportunities and Threats, Many strategic planning sessions start with 2 SWOT analysis—Strengths, Weaknesses, Opportunities, and, ‘Threats. Use whatever method you like to conduct a SWOT analysis From the planning organizer's perspective, the Strengths and Mastering a One-Page Strategic Plan 35 ‘Weaknesses come to the surface as the body ofthe form Is completed. 4s forthe Opportunities and Threats, again, | apply the Top S rule. List. the five biggest opportunities and threats facing the organization over ‘whatever time period the planning session is constering—next quat- ter and the coming year if is one ofthe quarterly review sessions, or the next three to five yeas ifs an annual planning session. Core Values Going to the body of the form and starting with the left column {Gehich Is also the base of the Planning Pyramid in its vertical form) write in the core values of the fitm. These five to eight statements broadly define the shoulds and should that govern your company’s ‘underlying decisions, Think of them asthe Ten Commandments or {your constitution, the foundation upon wihich the rest ofthe vision {built My frm, for instance, has sx core values, which are listed on the sample One-Page Strategic Plan. For a more complete definition land process for discovering your core values, read Jim Collins’ October, 1996 Harand Business Review article entitled *uilding Your Company’s Vision” (go to wwwbzcom to download ‘copy for $6), ve chosen to align with our friend Jm’s language. jim. twas the co-author of Bult t Lat, which I consider to be one of the ten best business books ever writen. (For elp uncovering your core values, goto Chapter 4.) ‘Are you wondering your frm might be too yoting or too small to have wellestablished core values? Such thinking Is mistaken. Al firms have an unwritten set of values right from the beginning, and {you dont need to wait until you've reached $0 or 100 employees fo ‘commit them to witing. At Gazelle, we've known oar core values land used them right from the stat. Theyre especially valuable as 2 {foundation for many of the people processes that are so essential to busines Purpose (nce you've identified and internally ratified your core values, move ‘up the One-Page Strategic Plan oF tothe next column ofthe plan, to Purpose, It answers the very basic why questions: Why is this com- pany doing what its doing? Whats the higher purpose for why wee 36. Masrennc Te Roctstusn Haars In the business we're in? Why do T have such passion for what we're doing? “The purpose gives the company heart It also provides a clue as to ‘why certain seemingly small incidents send the CEO into a tirade, ‘while others that may be bigger and more costy in impact side by almost without comment. For example, my purpose revolves around the word “freedom.” A situation that challenges my freedom, such as unnecessary bureaueracy in my exganzaton of somiebody ese’, absolutely brings up the hair onthe back of my neck, Find what ran. es the CEO in your frm, and you'lt havea eg up on figuring out your company’s purpose. My persona favorite purposes Wal-Mart's ro give ordinary folks the chance to buy the same things a rch people.” Actions and BHAG {At the bottom of the Purpose column ofthe One-Page Strategic Plan You'll sce the sections Actions and BHAG, Quartey, you should take 4 look at your core values and your purpose statement. f your core values seem to be sagging, or your purpose isnt being fly realize, the action list affords you the opportunity to detail the specific Actions the firm needs to take to bring things into better alignment, ‘The BHAG Is your Big Hairy Audacious Goal. As the name implies, t's 410-0 25-yea, lofty goa, similar to Kennedy's legendary gol o pt 4 man on the moon. It the sot of goal that challenges the fle to sreatness. Again, look at Jim Collins’ Harvard Business Review article for more detail on defining a purpose and 2 BHAG. You can also g0 to www.jimeollins.com and work through his fee tutorials, Targets and Sandbox Next comes Targets. The tags level desribes where you want the firm to bein 30 5 years. Besides listening certain quaifable targets atthe top ofthe column, frm should define the sandbox in which rompany chooses to play a plce where it ean be #1 or #2, The sandbox defines the firm's expected geographical reach, produce of Service offering, and expected ath share within the chosen three 16 five year time fame. And yes, your sandbox can ad ffen does ‘Mastering a One-Page Soategic Plan 37 signify a change in Sandbox focus-rom being a copier equipment seller to document management, Brand Promise ‘Next, cleanly articulate the key need you're going to satisfy for your ‘eustomers—your measurable Brand Promise (often called a value added proposition or differentiator) I's important that it be measur- able, like FedEx’s 10 am. delivery promise or Sprint’s "pin drop” clar- ity, Its ffom this measurable promise that all other measures and processes derive, Chapter 9 wil focus on this important subject of Brand Promise. Key Thrusts/Capabilities Now define five or sx Key Thrusts/Capablties necesay for you to dominate your defined Sandbox, full your Brand Promise, and mest your quantal Targets What ar the five or six big things you need to do to each your three-to five-year targets? Easier sald than done, this pat of the process challenges you team to define the hand of stategic moves that wil put you ontop Goals and Key Initiatives ‘Wie'te halfway up the Pyramid and ready for the Goals level, the one ‘that tackles the allimportant issue of what your company needs to Achieve in the coming year to realize your longer-term targets Besides {quantifying your goals forthe year a the top of the column, is your five o six Key Initiatives forthe yea, smailar in strategic importance to, and aligned with, the Key Thrusts/Capabilities, Think ofthese int- ‘atives as your corporate New Yea’ resolutions, and plan to revise them each time you close the books on your fiscal yeat—or as the ‘marketplace demands while keeping an eye on the Targets column, Critical Numbers Another crucial part ofthe Goals level ofthe pyramid isthe designa- tion of one or two Critical Numbers—ideally, one from the balance sheet and one from the income statement. They should represent key raved its te line 19 “The Document Compare to 38. Misteave ni Rowse Hass weaknesses at the heart of your economic model or operations that, If addressed successfully, will have a significant and postive impact fon the business. A Critical Number could be the utilization rates of service delivery personnel, or fundralsing goals, or an increase in the ‘number of large accounts to reduce corporate vulnerability. The key isto drive toa oot cause and to change the Critical Numbers at least Annually to focus energy on different part of the organization. I's Similar to rotating your workouts to focus on different muscle groups Actions and Rocks [Next come the quarterly action steps. This is the how stuff. Here's ‘where you break dovn your annual goals into the quarterly action, steps that lead to achieving your yearly goals. Think of them as a series of five of six simultaneous 13-week missions that provide pr- forties to your entice organization as you drive to achieve the quar. terly missions. I label these quarterly missions Rocks to align with Stephen Covey’s use of the term. Rocks are the priorities that need 10 stay out front, ahead ofthe firefighting and pebble moving we do on, day-to-day bass. As was the case atthe Goals level, you also need, to figure out your Critical Numbers—this time, the quarterly Celtic ‘Numbers. ‘Theme, Scoreboard Design, and Celebration/Reward Looking at your Rocks, Critical Numbers, and Goals forthe year, establish a quarterly or annual Theme to bring adlitional focus to everyone’ activities. Decide where to post a scoreboard that wil Keep everyone apprised of your progress toward achieving the measurable target ofthe theme. Don't forget the celebration either. You should state ahead of time what fun and exciting reward or event will occur When the measurable target isi Looking Ahead 'Now, before moving on to the next level ofthe pyramid, get out your corporate calendar and identify the dates of the next quarterly meet- ing. That’s when you'll reconsider your theme and se-stablish Your Mastering a One-Page tategic Plan 39 ction steps for & new quarter. Block in a full day foreach of these (quarterly sesions. Determining the appropriate action steps isnt as easy a t may sound, For most companies, they're the equivalent of funning a mini-marathon, They take los of preparation beforehand, fnd they burn up lots of time and managerial energy—that i, if youre doing them right. So, plan ahead! Schedules “The second-to-ast level of the Planning Pyramid is devoted to sched- ules and is represented in the last column of the One-Page Strategic Plan as a due date. Here's where the ation steps from the previous level get elaborated into a more detalled chronology. Looking across the entire organization, you need to determine when things will ap pen, What happens fist? What happens next? Which activities ae Tinked cross-functionally, and what impact wil these shared activities, have on your ability to get things done? Take all ofthat into account when establishing your schedules. tart by having each executive ‘who has accountability for a specific initiative or rock come back ‘with @ one-page outline of the steps—with dates—necessary to com> plete the tasks. ‘While straggling through the detals involved in completing this pit ofthe pyramid, remember: Nothing ever gets done in any orga ization unti it shows up on somebody's weekly To Do list—and I do mean vieekly! Quit thinking in monthly increments and deve all measurements, deadlines, and deliverables down to weekly incte- ‘ments It may be painful in the doing, but it needs to be done, Accountability ‘ Last and most important, we cap ovt Planing Pyramid with some ‘necesay accountability. This the who level, were your company identities specifically which person is accountable for which particu lar actvty on your plan. ease note tht {dd say yu should identiy who's “respons ble," because responsibilty and accountability are to quit lifer et things. Many’ people ae likely esponsile for necting 9 certain foal or cating s product but there should never be more than one perio who ls secountale t doesn't mean this peson has to do 40° Masten ne Roce Hass j Mastering a One-Pae Srateic lan 41 Figure 3-3 E 4 Figure 3-3 (cont) One-Page Strategic Plan & eee ete ibe Organzaton Name: Caz, ne i [se cmats YourName: Yeme Homi a bie Sec 199 : ‘Core Vales/Baets] Purpose Target (Sym) | Gowls (Tye) i "Ration Theme "Your Account “Ghoudioueny uty ‘he iat) ~— (@tr/Anmualy one } texte cama | rndr—Our ace ree at 2204| ng 1231200 mee lee eee racecar nth las $50.ton | Re $25 on . eae ag) | Tbidayttrt | re |r \scay_sntan ey ce Sear incranatre |S boven taco [cen «ahead woken st J ean set "Ian ae opie | Sas mee me Dp peceneeeen Sty mee Sic slit, | scemeenm | Kzitate ee | fect | ccm ne oe oreae rraiaesr | Tn seer ae ress 2Biacrgen [site semsacmprnye | “Taba se parca en ee chm get en roar econ eegromte gp ew areca are ‘dept ther ; ‘ia » = aoe loascammer : sie ens 7 Torzcmiea'ts | sid00bom | jsetireect* lace. 42. Masrunn me Rocker. Hants everything or be the smartest or be the most senior It simply means hae or she isthe one to give the activity a voice—to cate that some- thing Is happening relative to the speciic deliverable. Remember, if ‘everyone's accountable then no one's accountable Doing the Right Things Right: Your Completed One-Page Strategic Plan Congratulations, you've completed the One-Page Strategic Plan! AAgun, see my sample completed plan at the end ofthis chapter. One

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