Involve a larger part of the organization in a discussion on how the company is doing on strategy and execution. Like the annual employee survey, organizations should take the pulse around the most important strategic topics. Such a survey provides powerful insights about how well your employees — the people who know the company best — think it is positioned for success, how well they … [ Read more ]
“Kill the Company” is an exercise which asks participants to step into their competitors’ shoes and think up a detailed strategy aimed at driving their own company out of business. This is achieved by encouraging people to identify weaknesses in their company — or their business unit or division — and show how a savvy competitor could exploit them. The most useful insights surface when … [ Read more ]
Kill the Company is about having an out-of-company experience. It’s about examining your weaknesses so that you can make them your strengths. In most businesses each year, we do a SWOT analysis [to examine] our strengths, weaknesses, opportunities and threats. Most people use it as a political construct to say where they are strong and [to say that] they are not really weak — … [ Read more ]
Rio Tinto institutes checks and balances to manage internal lobbying. We have something called the Investment Committee, which approves sizable investments of any kind and consists of the CEO, CFO, the head of technology and innovation, and the head of business services. In other words, it does not contain any of the divisional heads. The plan is that this committee has enough data to have … [ Read more ]
When Halliburton Energy Services Group, a leading oil field services company, revamped its strategic planning process, senior managers decided that these two processes were in fact one and they designed their strategic planning accordingly. Halliburton now has one owner of strategy and capital allocation, with clear accountability for ensuring alignment between the two. This senior manager owns the corporate-wide strategic managing process and chairs a … [ Read more ]
Too often we find firms with more strategic clutter than clarity. Leaders in these firms have become enamored of the latest strategy twist and continually articulate a new way to position the firm. Nonetheless, it is possible to develop or enhance the required clarity. In one company, a newly appointed leader asked each of his direct reports to answer the question “What are we doing … [ Read more ]
One suggestion is to start with an exercise that is well labeled “Smart Bombing.” Analyze your company. What would you do if you were your closest competitor looking to attack your own company? Put yourself in your competitors’ position and think about how they might try to counter or off-set your advantages in the market place. Where are you possibly vulnerable?
Have your sales and … [ Read more ]
Most companies are accustomed to identifying major internal issues, such as whether to build a business, divest an asset, or lay off people. What’s harder is the early surfacing of opportunities and threats arising out of external events such as dramatic shifts in demand, competitive behavior, industry structure, regulation, or the macroeconomic environment.
A commonsense approach to identifying such issues early is to poll, regularly, all … [ Read more ]
What’s the secret for building enduring client relationships? How do you make these relationships the cornerstone of your company’s reputation in the eyes of employees and investors as well as clients? And how do you avoid being overtaken and marginalized by shifting competitive forces to consistently offer superior value to clients? My answer…consists of five precepts or pillars: Surround yourself with good people. Invest in … [ Read more ]