Showing posts with label Execution. Show all posts
Showing posts with label Execution. Show all posts

Wednesday, January 12, 2011

VISION -- Oops! There I go again!

I find I am not done with the vision thing!  So, this is a follow-up to my previous post!

Once we separate Stab (stating the obvious) visions and Real visions, vision and strategy become quite intertwined.  Yes, vision is still the distant objective; and strategy more the “how” of achieving that vision in the shortest, simplest way.  But without a strategy to match, your vision will remain on banners – whether on walls or online.  Conversely however, a clever strategy may not need a clear vision to take it forward.

It, of course, helps to have a clear vision as well.  But it is not a necessity.  In fact, when the future is not clear, especially in high technology spaces, or where popularity or standards are involved, many companies adopt a strategy of ‘flexibility’ or ‘spreading the investment’.  That’s a case where we have a clear strategy (we will NOT invest heavily in any one technology / platform), but not a clear vision.  Rather, we admit to ourselves that our vision of the future is not clear.  That understanding drives the strategy!

Of course, many fail even with a clear and powerful vision.  One cause, as we discussed above, is a weak strategy to execute it.  Another is having a great vision and even a great strategy, but no execution capability.

A key element of execution and something I see more often is the communication of the vision.  Most Stab visions are followed with a routine communication plan.  Posters, banners, website updates, or at best, town hall sessions.  Little emphasis is placed on the style of communication: the language, the content, the stories, the context… and perhaps most important of all, the leaders do not pack it with passion.

In fact, I have seen this so often that I’d like to make communicating the vision the real point of this post!  Yet, rather than re-invent what this should be like, permit me to quote from the best.  Here’s what John P. Kotter said in his landmark article “What Leaders Really Do” in Harvard Business Review, circa 1990.

“Good leaders… articulate the organization’s vision in a manner that stresses the values of the audience they are addressing.  This makes the work important to those individuals.”  (Emphasis mine)
The operative word is ‘values of the audience’.  We just said the vision should not state the obvious.  Yet, it has to be made clear to the organization.  The logical way of doing this is to link it to the pre-existing values of the audience.  That is the insight of Kotter.  When the vision statement speaks the language of the commoner – whether customer or employee – when it is able to engage them, invoke in them the passion felt by the leader, connect with what they value already, that is when it would have served its purpose.  The word “invoke” is operative.  The idea is the audience needs to be able to see the vision the leader is talking about.  They should be able to convert the words into a visual of their own.  That is when a vision can be said to be communicated.  That cannot be done without passion and commitment.
Unfortunately, too many vision statements are filled with cliché and jargon to be able to relate to the real audience.  Visions like that of The Body Shop or Air Asia (Now everyone can fly) resonate with their chosen audiences – both employees and customers – precisely because they ‘stress the values of the audience’.

So, we have the development of the vision, which, to be effective, tends to be product / service / market / customer focused.  We then have its communication, which needs to connect with the existing values of the audience.  This, of course, is not a one-off activity.  To quote Kotter again, “Leaders also regularly involve people in deciding how to achieve the organization’s vision (or the part most relevant to a particular individual).  This gives people a sense of control.  Another important motivational technique is to support employee efforts to realize the vision by providing coaching, feedback and role modeling…”
Let’s see vision in action.  I think Zappos.com offers a great example.

To start with vision is not a statement for them.  Its just that – a vision.  So, on its website we see two vision statements!
In it’s ‘About Us’ page  you see the following text:
“So here is the vision:
One day, 30% of all retail transactions in the US will be online.
People will buy from the company with the best service and the best selection.
Zappos.com will be that online store.”

Again, in a CEO letter dated 22 Jul 2009 , he says:
 “…our vision remains the same: delivering happiness to customers, employees, and vendors”!

That’s the beauty about real vision!  It is not about the words.  It is not a statement.  It’s the vision that is invoked.  That vision means several things.  Outstanding customer service?  Of course.  Happy employees?  Sure, that is what will make it happen.  But best selection also means engaging the best vendors.  So, you need happy vendors too!

So what happens to profits?  ROI?

Well, they have to wait!

Indeed, Zappos was passionate enough about the vision to stick to it all the way!  In July 2009, under pressure to deliver a return to Sequoia Capital and its other investors, the company announced it would be acquired by Amazon.com in an all-stock deal.  Tony Hsieh, Zappos’ CEO explained to his employees:
“…We plan to continue to run Zappos the way we have always run Zappos -- continuing to do what we believe is best for our brand, our culture, and our business. …it will be as if we are switching out our current shareholders and board of directors for a new one… We want to align ourselves with a shareholder and partner that thinks really long term (like we do at Zappos).”

We don’t get many stories like that.


Sri

Tuesday, October 27, 2009

Staying with Operations Excellence...

The last time we were here, I said, "The surprising thing about execution is that it is very, very simple. Any one can do it.  And that is the problem! It is very, very boring."  So how does one handle this situation? 
The first - and simplest - is when an 'activist board' takes control to decide whether the company needs an 'Operational CEO' or a "Visionary CEO" (yes, they are different people).  They then go about hiring the right kind of CEO.  The Operational guy does not get bored with the execution stuff.  S/he revels in it.  They love going to the shop floor, getting involved, meeting the people there, motivating them with coffee or beer.  They pour over reports and ask questions.  They are thinking next quarter, next product launch - and if they really need some visionary thinking, they call in McKinsey - or is it Bain? - whoever.

What if the Board decides they want a "Visionary CEO"?  Well this guy comes up with a new vision, is hopefully charismatic and manages to rally the troops around their vision.  Should the time come for execution, he hires a Chief Operations Officer.

But then a few CEOs manage to do both, i.e., the vision thing as well as getting hands dirty.  How do these people do it? 
Great companies like GE have developed a mantra for this.  They use two broad tools:
  1. Dashboards
  2. Calendars
Dashboards are standard reporting formats, typically graphic.  They tell the operations story visually and do not take a lot of pages.  They come in slides, instead.  The page layout and orientation shifts from portrait to landscape.  You see less text and more bullets, arrows, graphs, pictures and colors.  You think visually.  This brings the detail more in tune with the visionary's bias for the visual.

Dashboards are not easy though.  They take a lot of time to design.  Even more, to bring to shape.  The CEO needs to sit with her team and be able to identify the vital few metrics s/he wants to track.  They need to be few and yet comprehensive enough.  A Balanced Score Card kind of approach is very helpful here.  It then takes a smart six sigma kind of person to design the actual dashboard templates.  The scene then moves to IT to come up with a system to generate the required data and massage it to fit the template on a periodic basis. 
The good news is that this can be done. 

Calendars.  This is the "Financial Year" kind of rhythm, you find in the Finance Departments of most multinationals.  "If its September, its time for Budget Blues", "February is Performance Review month", etc.  You set up a detailed, enterprise-wide process for key functions and ensure it works like clockwork. 
The idea is to eliminate the 'clutter' of unplanned work taking over your day.  (You never succeed 100%, but you can still do a good job). 
So, there are cycles for all key processes.  The work for them starts on a particular date every year and concludes on a particular day every year - typically by way of a presentation to the CEO or to the Board.  This enables this CEO to stay on top of operational issues, while focusing all the time in-between to his vision thing.

I bet there are more.  Can't think of them right now, though!  If you can, please add here.


Sri

Tuesday, September 15, 2009

"Operations Excellence"

Nice buzz word, that! Never fails to capture the interest of the CEO! Every one seeks Ops Excellence. However, most managers have no clue on how to achieve it. The real reason is, they haven't really explored its meaning in detail. A quick search for the definition of the term on Google reveals thousands of pages and as many approaches! One model I liked took the Malcolm Baldrige National Quality Award as a reference point. That is definitely a good place to start. However, the award considers over a thousand points - way too much for the business we meet with every day. (I have not yet begun consulting with the CEOs of the Fortune-100). To me Ops Excellence has two elements:

  • Satisfactorily meeting the requirements of ALL stake holders
  • Continuous improvement.
That's it!


So, who are our stake holders?

I think of four:

  1. Share Holder
  2. Customer
  3. Employee
  4. Community
Not necessarily in that order. The priority depends on where you are messing up!
I would recommend most businesses should start with this simple model and move forward.

The next question is: "what does each of these stake holders want?"

Often, they know what they want. Sometimes we have to tell them. Let’s start with areas where the stake holder knows what s/he wants. We then check the data to see if we are able to give them what they want. If yes, we go beyond toward 'delighting' them. If not, we identify the gaps and plug away.

Looks simple enough, but this is where the gap between knowledge and execution widens. Up to this point, most business leaders have no difficulty. In fact they know the gaps intuitively. The challenge lies in the next steps.

Most CEOs have not listed out the gaps explicitly. Those who have done that, lack the ability to strategically prioritize them. And finally, even assuming they (or a consultant) did manage to prioritize well; few know how to pursue the chosen priorities simultaneously.

At this point, managers need several skill sets / tools:

  1. Ability to identify, measure and set KPIs for each area that stake holders are interested in
  2. A performance management process that tracks and measures all round performance
  3. A methodology for initiating and establishing a continuous improvement culture, and
  4. A determined and consistent management focus on monitoring the process… call this execution.
Items 1 to 3 can be bought. Item 4 cannot be bought and cannot be delegated. It is THE JOB of leadership. This is also the most common point of failure.
The surprising thing about execution is that it is very, very simple. Any one can do it.
And that is the problem! It is very, very boring. It does not challenge your intelligence. It does not get you in to the front pages.
No wonder most leaders hate to do this. They either delegate this or else do it in an inconsistent manner. No wonder Ops Excellence fails.
In upcoming posts, we will look at how some great companies manage to do this…. And how smaller businesses can aspire to learn and practice this.


Sri