While standing in the Home Depot (a home improvement store) check-out line, with a pile of supplies in my cart, I heard a repeated announcement over the speaker system informing the store associates that “Power Hour” was beginning. This message was given three or so times in the space of five minutes that I spent checking out, and so my curiosity was piqued by the seemingly importance of this broadcast.
Later that day, I conducted some research into what “Power Hour” was all about. I came to learn that the concept of “Power Hour” was initiated by Marvin Ellison, a division president at Home Depot. Ellison’s key objective for his division is to win back customers during a time when many people don’t want to spend. He believes this is so vital to Home Depot’s long-term success, and ultimately survival, that he asks team members to dedicate a specific time period during the day, and their complete focus, to customer service. For Ellison’s Home Depot stores, “Power Hour” is initiated during the hours of 10 am and 2 pm on weekdays and all day on Saturdays and Sundays. But for you, “Power Hour” could be at any time, any day, and with any focus.
I believe that the concept of “Power Hour” can also make a difference for you and your organization. While customer service may not be your focus during your own “Power Hour,” use this time as an opportunity to step away from short-term demands and making a strategic shift into a forward thinking mode. For most people, “Power Hour” is most effective if you start early in the day when your mind is fresh. Set aside a specific time; make an appointment with yourself. Consider changing your environment by moving away from your regular work situation. Lastly, be spontaneous as you think about the future. Remember, strategic opportunity is where innovation and forward thinking meet.
Too many organizations use poor strategic methods during their planning meetings and come away from them having essentially wasted valuable time, effort, and other resources only to leave the process with a weak “strategic plan.” Many strategic plans are actually little more than goals infused with a lot of fluff. This happens because companies are unable to make timely, definitive choices, and because they subscribe to template-style strategic planning.
Making Strategic Choices
Creating a strategic plan requires time, effort and decisions. Also, numerous trade-offs are required in order to make progress. Companies large and small have goals to meet. Different areas within an organization often have competing goals, and executive management is ultimately responsible for deciding which goals have priority.
In order to avoid stepping on toes, top-level executives may push the responsibility of deciding which goals to focus on onto department heads. In situations like this, nothing gets done. No strategic alignments are made. More precious time is wasted, and in the meantime, competitors are probably sharpening their strategic plans.
A French philosopher named Nicolas de Condorcet determined that if too many groups fight for majority consensus, chances are very high that a consensus will never be met. Later, economist Kenneth Arrow proved that the “Condorcet Paradox” cannot be solved using majority voting schemes. Someone else has to step in and make a decision. No matter who that person is, the decision must be made in order for true strategy to emerge.
Template-Style Strategic Plans
Templates are useful in a number of business applications, except strategy. However, so many companies use template-style strategic planning that the practice can be easily pointed out and may look something like the following:
Vision Start with the vision of what the organization looks or feels like at some future point in time. Be sure to use high-minded words like “best,” “leading,” “best known,” “successful,” or “well-known.”
Mission Add another high-minded and politically correct statement or two about the purpose of the organization. Be sure to add words like, “progress,” “sustainable,” and “innovative.”
Core Values Sprinkle in a few statements filled with generic value words, like “integrity,” “customer service,” “compassion,” and “ingenuity.”
Strategies Only use aspirations and goals and call them strategies.
By looking at template strategies from this angle, it is easier to see how far they are from the mark of a true strategy. A true strategy is more than empty words and lofty language. A lot more. A true strategy is more than a politically correct mission statement, and more than a vision of the future. Later on, I will get into what creating a good strategic plan looks like.
Until then, what do you think it takes to create strategy?
Today, many of us face incredible pressures to deliver immediate results, to do more with less, and to manage an ever-increasing workload. The pace and urgency of daily demands can make it difficult to look even one step ahead. Successful leaders are different; they learn to look ahead and not just think about today, but also tomorrow. Thinking and acting like a strategist is nothing more than the capacity to anticipate, and the discipline to evaluate, prepare, and position yourself for the future.
As humans, we have the capacity to think broadly, if we choose. Being a strategist means having the courage to think deliberately and deeply about what you want to create and achieve. Strategic thinking is about creativity, intuition and planning to help you reach your business and personal goals. In essence, strategic people think and act before they are forced to take up a reactive position. We must realize that everyone is the leader of his or her own job, projects, assignments, and customers. Effective leadership means being prepared for what happens in the future, as well as being responsible for what happens today.
The problem we face in becoming more strategic in our thinking and planning is our tendency to be addicted to “short term” thinking and the routine activity trap. As a consequence, we continue to do what we’ve always done, though changing conditions may make old solutions irrelevant to today’s problems. We simply overlook options or opportunities to see our situation from a strategic perspective.
There are plenty of legitimate reasons to pay attention to the daily operational issues. We are frequently rewarded for it and job security often depends upon it. But, we must learn to look to the horizon and identify the signals that indicate coming changes in our own area of responsibility that will lead to effective solutions and impact tomorrow’s success. You have to shift gears and focus your mind with discipline and skill so you satisfy both the tactical and strategic demands of your job. When you develop the discipline to set aside the urgencies of the day and concentrate on the horizon, you create enormous advantages for yourself and the business.
Your contribution will increase if you master the principles and skills of personal strategic thinking. You will have to develop patience and balance operational issues as you give your mind a chance to think, reflect, and contemplate. You will have to resist constant pressure for instant results, quick fixes, and fast solutions to every challenge or dilemma. In short, you will have to be courageous and bold as you try to bring more balance and a strategic perspective into your life.
You can be more successful strategist if you think ahead, determine what it will take to make a difference, and make a greater contribution. When you adopt an innovative and proactive mindset, you will be more prepared for the tough decisions, realities, and opportunities that come your way.
On the way to work this morning, I watched a young man maneuver his truck in and out of three lanes of traffic, trying to position himself to be first in line at the next stop light. Actually, he was trying to make it through the intersection before the light turned red, but he didn’t quite make it. I happened to be stopped next to him or just a couple of cars behind him at the next several intersections. I could visibly see his frustration by the way his jaw tighten and his hands clenched his steering wheel. At the next red light, he was holding his head with one hand and pounded his steering wheel a couple of times with the other. Obviously he was late for something or trying to get somewhere fast.
The point of this story is quite simple; when people don’t practice “everyday strategy”, stress levels rise and they often take erroneous risks. Chances are that when frustration takes over, an argumentative attitude is the result. In the work environment, the recipients of this destructive attitude are most often family members or coworkers, worse yet clients and employers.
What is Everyday Strategy?
“Everyday Strategy” is the habit of thinking and acting more strategically about daily and operational tasks. It means paying attention to the environment and adjusting to obstacles or trends so you might better accomplish your tasks or work towards goals. For example, if the young man I saw driving this morning would have checked traffic reports, or remembered that the road he planned to take this morning was under construction, he might have left earlier, got to his destination on time, and not experienced the frustration that he did.
This concept sounds simple and many people use this approach to their work and life without even realizing they are doing it. The problem is that for many people it has yet to become a conscious effort in the workplace. Senior leaders and managers are thought to be the ones that do all the strategic thinking. Yet, a huge difference could be made for businesses if everyone from the top down approached their work with a strategic mindset. For example, two American Airlines mechanics thought it was strange that they were told to throw away the drill bits they used once they became dull. So, they rigged up some old parts and they built “Thumping Ralph,” which was a machine that sharpened the dull drill bits and saved the company an estimated $300,000.00 annually.
Quick Tip
Don’t make “everyday strategy” into something complex or difficult, because it shouldn’t be that way. Simply look around your work area and ask yourself, “What can be improved, discarded, or added to make processes more efficient, less costly, or improve value?” The person who best knows the answers to these types of questions is you, the one who actually does the task every day.
Everybody says we need to be strategic, but the reality is very few people have a strategic mindset, especially at work. This conundrum seems to be driven by a world of instant response and having access to what we want, when we want it. Be it overnight shipping, finger tip access to information via the internet, or using a credit account to instantly purchase items that we may or may not be able to afford, it conditions us to be tactical and think short-term, moving us away from a strategic mode.
The concept of “instant” can be good. It is appealing, and does offer value, but it does not position individuals or organizations for the needs or challenges that may arise in the near or long-term future. By keeping our head up and looking towards the horizon, we can set a clear strategic direction and adjust our strategic course on-demand.
This strategic conundrum can be driven by many reasons and common misconceptions. Here are a few of the most common:
ATime Issue
Our time is limited to only 168 hours in a week. In addition to our regular work, we have to answer and return phone calls, respond to emails, pickup kids from school, make dinner, among many other things. Because of our time crunch, we condition ourselves to respond to life in a reactive way. Our excuse is that there is just not enough time in the day.
The reality is we need to make time for strategy so we can gain time later. Acting strategically is not just looking at the big picture, but it is also thinking about and processing the big picture. Crafting strategy does not have to be a time suck. In fact, strategic thinkers are often able to minimize time spent on problems as a result of a little foresight and planning. Start out by spending five minutes looking at your day from a strategic mindset. Consider the key steps you need to take to make your week productive and successful.
The Notion That Strategy is Reservedfor Leaders
Strategy is not reserved for leaders. Strategy is for anyone who can and wants to prosper and beat out the competition. Strategy is about positioning yourself, your team, department, or organization for success. While leaders may set the overall strategic direction of the organization, you as an individual need to be thinking about how you can contribute to the organization at your individual level to beat out the competition and support an overarching strategy. Individuals put traction into an organizations strategy.
Pure Ignorance
Ignorance is defined as a lack of knowledge, education, or awareness. Some individuals may feel that they don’t understand what being strategic is or even where to begin. While certain aspects of strategy can be complex, it is fundamentally about creating direction and priorities that will advance both your short-term and long-term direction and efforts. Simply picking up a well respected book that offers insight to strategic thinking and concepts will provide a great introduction. However, don’t stop with a quick read. You need to continue to learn about it and refine what strategy is and how it best applies to you. You don’t need to become an expert, but seek to gain some perspective.
Shoot From The Hip Mentality
Some people believe that planning or anticipating for more than 6-12 months ahead is absurd. The common excuse is that there are too many external variables, factors, and unknowns that are out of your realm of control, — making it pointless to plan. Any organization or individual who wants to be world class needs, needs to dump this notion if they want to stay relevant and competitive. Throw this idea out the window. This is a fast track to extinction. While there may be a sliver of truth to it, you can change or influence that which falls within your sphere of control. If you are thinking and planning ahead, if you are scanning your external environment, then you can forecast or anticipate, with some degree of accuracy, how you will be directly affected by external sources over which you have no control. A strategic plan does not need to be a big formal document written in stone and signed by blood. Think more realistic and catch a glimpse of your desired future state.
Don’t use one of many lazy excuses as to why you can’t be strategic. Take control of your future direction, otherwise you’ll find many missed opportunities that have come and gone. Capitalizing on just a few of these may surprise you as to have valuable it is. Once you see the value, you will be sold on thinking strategically.
Being a step ahead of your competitors is a great place to be and gaining that extra step requires that you focus on the future. General Motors understands that better than most and it shows. GM operates in a highly competitive market where the ability to think ahead and strategize accordingly are vital to the company’s continued prosperity.
Every year, General Motors invites top college students to intern in their design center where behind tight security the auto maker develops its future models. This year the discovery channel has gotten involved, creating a reality-TV series called “Future Cars” that will showcase the interns’ bright ideas. Their task was to envision the year 2030 and design personal transportation for the needs of GM’s customers 20 years from now.
The interns were told to dream big and think of the possibilities that the future might hold. They talked about designing the car for “Generation I”, those born after the integration of the internet. As they designed the cars, they had to imagine how new technology, materials, and social situations would affect how cars would need to be designed in the future.
Leaders at GM viewed this experience as a reverse mentoring process. Larry Burns, VP of Strategic Planning for GM, said, “I think we ended up with a lot of great ideas, and it’s going to help the business leaders of General Motors stretch their thinking about how far we need to be pushing innovation into the future.”
Most businesses today may not be thinking 20 years into the future, but if you are not thinking strategically about what the future may hold, your competitors will. Similar to the concepts the interns were exploring; future technology, new materials, and social situations, to name a few – companies across all industries need to be considering these ideas as well. Gathering and understanding information on what the future could hold can help company stakeholders make smart strategic decisions – and propel these companies to the top of their industry.
Greg Page, CEO for Cargill, once quoted in one of our strategic learning events, “You have to be more effective and strategically minded than the person in the same role who is working for our competitors.” To gain the step ahead, employees at all levels of the organization need to spend time thinking strategically about their position, their job responsibilities, and how to improve efficiency, and where they might find strategic opportunities.
All it takes is one strategic idea to get a step ahead.
Achieving business success in any economic scenario can be a daunting task. The task becomes a little easier when each activity, function, and team is aligned with the long-term business strategy. When conducting our research projects and seminars, we operate under a simple premise: each manager has to think and act like a CEO for his or her piece of the organization’s value chain. We refer to this concept as “managing the business within the business.” In short, we believe that every manager at every level must be thinking about their strategic contribution to the business. They must also be accountable for creating a strategic direction that links to and supports the organization as it evolves. Preparing each function and activity for the future is how managers can contribute to and align with the firm’s overarching plan to win in the marketplace. Firms create a powerful competitive advantage when all of the business’ activities and functions fit, link, and align with the larger business. The alternative is both ineffective and harmful to the firm: a bundle of silos, individual business activities that are not galvanized into one unified body marching toward the goals and changes that lie ahead.
Think of it this way: if the parent corporation has a strategy, and each business unit has a strategy, and if the marketing department has a strategy for products being offered, then why shouldn’t each function, team, or project be responsible for producing a proactive strategy as well? Having individual strategies working in concert throughout the business adds significant value to the business, helping it grow, innovate, become more internally efficient, deal with competitive threats, or serve the customer better than the competition. For 25 years, the academic experts have been saying that highly successful businesses must either have differentiated product/service offerings or they must perform the same operational activities, processes, and tasks differently than their competitors. This means that each functional area must constantly be searching for both best practices and next practices in order to create a compelling value proposition and build sustainable competitive advantage. This strategic edge will come not only from senior management but from middle management and individual contributors on the front lines where the competitive war is being waged.
We think strategy should move fluidly in both directions, filtering down from the top as well as up from the bottom. In essence, strategy is everyone’s job. Everyone has to understand the business strategy, contribute new ideas, and actually formulate and execute strategy in a practical way at the functional level. When all of the strategy pieces come together, a firm can create a different experience or a more cost-effective solution for the customer, thus enabling the firm to invest in research and development, reward shareholders and employees, or charge less for the same product or service being offered by its competitors.
Watching people create and execute strategy at the very heart of the business is actually pretty exciting. As people use their strategic thinking skills, they become more engaged in the roles they perform and understand in a deeper way how what they do matters to the business.
“This workshop helped me gain a true understanding of strategy. It moved strategy away from being the latest buzz word to being a way of operating through life.”
The above quote was taken from a participant’s evaluation during a recent Applied Strategic Thinking session conducted by CMOE. It stood out to me because I hadn’t realized that the term “strategy” had developed into an overused buzz word used in the business world. After some doing some research, I quickly discovered that this participant’s statement was correct. There are hundreds of workshops and learning solutions on the topic of business strategy, and thousands upon thousands of books, blogs, and articles about this topic, as well. It is clear that a good portion of the information available is misusing the term “strategy.” So what was it that differentiates all the available information on strategy from CMOE’s information? Perhaps this participant said it best with the phrase, “a way of operating through life.” As I scanned a number of sources, I noticed that most of the material suggests that strategy is simply forward thinking. CMOE’s concept of strategy is more defined and well-rounded. True strategy involves learning from the patterns and lessons from the past (yours or others), thinking and formulating a defined path forward, and acting with boldness and courage as you implement your strategy. Each of the three elements are necessary to becoming a strategic force. This form of strategy can be applied in all areas of life as you identify opportunities and face that come your way.
Next time you hear someone use the word “strategy,” process the thought and consider if it’s being used in the right context or has been used inappropriately as a convenient, catchy word. Strategy is not destined for the buzzword graveyard, so take some time to understand what it means.
You may be aware, or may have personally been affected by Apple’s New Year glitch. The first day back to work for many after the holiday break started out on a sour note when Apple users were left sleeping when a glitch with some Apple products internal clock, including iPhone, iPad, and iTouch, prevented the alarm clocks from going off. As an Apple customer who experienced this glitch firsthand, I know I would have been a lot more satisfied with my Apple products if I had not had to experience a problem this large in stature. Not only did this cause many people to arrive late for work, many travelers missed flights and had to delay their travel plans. As of January 3rd, the alarm glitch should be fixed; allowing these clocks to function properly, but this didn’t prevent any hassle on the first day of the New Year.
According to a variety of news articles, this isn’t the first time that Apple has experienced problems with the functionality of their products’ alarm clocks. In November many iPhone users in Australia woke up an hour later than they were supposed to be because the phone’s internal clocks didn’t adapt to daylight savings time.
A little bit of strategic thinking could have saved Apple from a large number of upset customers. Since Apple was aware that they had previously struggled with their internal clocks, it would have been strategic to solve the problem, even before it took place; to keep the future in mind, so that what they were doing yesterday and what they are doing today, will allow them to be better equipped for the future. Strategic thinking requires people to analyze the changes happening today that will influence tomorrow’s reality. Apple could truly benefit from looking at what is happening today that will influence their success tomorrow. If they take the time to prepare for and adapt to these changes, Apple will be better equipped to handle and prevent problems, now and in the future.
I wonder if any any Apple employees experienced the problem?
Organizations experience two different types of forces when it comes to organizational change:
1. External Forces – Examples might include customer demands, political factors, and technology, among others 2. Internal Forces – Examples might include corporate policies, financial constraints, and strategy, among others
Fortunately, changes of these types are also accompanies by two categories of solutions:
Type 1 – A Reactive Approach
Reactive individuals are the operational executors or tacticians, the people who worry, focusing on today’s results, and do nothing to offset the risks they see in the future, if they can see the future at all. Change makes them uncomfortable, and when things change, these people tend to resist the change and treat it cautiously. They prefer to stay in their comfort zones doing the things that they’ve always done.
Type 2 – A Proactive Approach
Proactive individuals engage in informal strategic leadership and strategic thinking by being aware of their surroundings and really adapting to the changes they see. These are the individuals who are observant, noticing emerging trends and patterns and attend to coming changes. Whether or not they have capability, resources, or authority to adjust to the changing strategic landscape, they redirect their individual powers that they do have under their direct control and use them to adapt to the changing environment. These people are informal strategic leaders.
Organizations dealing with change need to help people understand the driving forces of change and how to engage in strategic preparation for the challenges and opportunities that accompany a changing environment. Being more aware, alert, and informed are great first steps to becoming a strategic leader, regardless of the level at which you work in your organization.
While standing in the Home Depot (a home improvement store) check-out line, with a pile of supplies in my cart, I heard a repeated announcement over the speaker system informing the store associates that “Power Hour” was beginning. This message was given three or so times in the space of five minutes that I spent checking out, and so my curiosity was piqued by the seemingly importance of this broadcast.
Too many organizations use poor strategic methods during their planning meetings and come away from them having essentially wasted valuable time, effort, and other resources only to leave the process with a weak “
Today, many of us face incredible pressures to deliver immediate results, to do more with less, and to manage an ever-increasing workload. The pace and urgency of daily demands can make it difficult to look even one step ahead. Successful leaders are different; they learn to look ahead and not just think about today, but also tomorrow. Thinking and acting like a strategist is nothing more than the capacity to anticipate, and the discipline to evaluate, prepare, and position yourself for the future.
On the way to work this morning, I watched a young man maneuver his truck in and out of three lanes of traffic, trying to position himself to be first in line at the next stop light. Actually, he was trying to make it through the intersection before the light turned red, but he didn’t quite make it. I happened to be stopped next to him or just a couple of cars behind him at the next several intersections. I could visibly see his frustration by the way his jaw tighten and his hands clenched his steering wheel. At the next red light, he was holding his head with one hand and pounded his steering wheel a couple of times with the other. Obviously he was late for something or trying to get somewhere fast.
Everybody says we need to be strategic, but the reality is very few people have a strategic mindset, especially at work. This conundrum seems to be driven by a world of instant response and having access to what we want, when we want it. Be it overnight shipping, finger tip access to information via the internet, or using a credit account to instantly purchase items that we may or may not be able to afford, it conditions us to be tactical and think short-term, moving us away from a strategic mode.
Being a step ahead of your competitors is a great place to be and gaining that extra step requires that you focus on the future. General Motors understands that better than most and it shows. GM operates in a highly competitive market where the ability to think ahead and strategize accordingly are vital to the company’s continued prosperity.
Think of it this way: if the parent corporation has a strategy, and each business unit has a strategy, and if the marketing department has a strategy for products being offered, then why shouldn’t each function, team, or project be responsible for producing a proactive strategy as well? Having individual strategies working in concert throughout the business adds significant value to the business, helping it grow, innovate, become more internally efficient, deal with competitive threats, or serve the customer better than the competition. For 25 years, the academic experts have been saying that highly successful businesses must either have differentiated product/service offerings or they must perform the same operational activities, processes, and tasks differently than their competitors. This means that each functional area must constantly be searching for both best practices and next practices in order to create a compelling value proposition and build sustainable competitive advantage. This strategic edge will come not only from senior management but from middle management and individual contributors on the front lines where the competitive war is being waged.
The above quote was taken from a participant’s evaluation during a recent Applied 
You may be aware, or may have personally been affected by Apple’s New Year glitch. The first day back to work for many after the holiday break started out on a sour note when Apple users were left sleeping when a glitch with some Apple products internal clock, including iPhone, iPad, and iTouch, prevented the alarm clocks from going off. As an Apple customer who experienced this glitch firsthand, I know I would have been a lot more satisfied with my Apple products if I had not had to experience a problem this large in stature. Not only did this cause many people to arrive late for work, many travelers missed flights and had to delay their travel plans. As of January 3rd, the alarm glitch should be fixed; allowing these clocks to function properly, but this didn’t prevent any hassle on the first day of the New Year.
Type 2 – A Proactive Approach
