There is good innovation and bad innovation. Can you tell the difference? One is stylish, compelling, easy to use, and even has the ability to capture pictures of bad innovation! The other is an attempt at stylish, impossible to use without touching the dirty water or the sides of the sink, and even has the ability to totally drench you if you turn the water on too high. Innovation isn’t just about being different! It is about creating value. Fun is good. But a functional item actually needs to be functional! Whoever designed this sink was an idiot. Reminds me of the people who started a new dog food company, invested a ton of money in developing and marketing healthful dog food only to discover the dogs wouldn’t eat it. Want loyal customers? Innovate smartly!
Hot-and-sour fish-soup potato chips and white fungus oatmeal, PepsiCo’s new snack flavors for China, are fabulous reminders that your likes and dislikes are irrelevant! It is your customer’s opinion that counts when it comes to product offerings, selling approach, and relationship building efforts. Assuming your customers share your values is a huge mistake, even if you aren’t doing business half way around the world. When was the last time you checked to see what your customers really appreciate, wish for, and need? How do you know they aren’t acquiring a taste for hot-and-sour fish-soup potato chips or white fungus oatmeal? Isn’t it time you asked?
What couple of changes will make the biggest difference for you in the new year? Answer this question at the executive level, the individual level, and every level in between. Focus and alignment are critical. Do you need to: Offer different products or services to provide compelling, differentiated, and profitable value Change your sales and distribution channels to increase sales and profits Communicate more carefully so your target markets know you exist, customers know what to expect, suppliers know what is important, and employees can contribute successfully Improve your execution so you are better, faster, and cheaper Develop new capabilities so you have more opportunities for success You can’t do it all and you can’t succeed if your organization is running around like a “chicken with its head cut off,” as my mother used to say. Dig into the broad categories above and choose just a few priorities. Be specific. What needs to be different? What will success look like? How can each individual help make those top priorities successful? Need help establishing your top priorities, communicating what they are and why they are important, and creating the alignment and commitment throughout your organization? Give us a call at 800-527-0087.
At the conclusion of strategic planning with a client this week, one participant expressed tremendous appreciation for having been included. Although not a new employee, she was stunned by how much she had just learned about the company, its leaders, and the challenges and opportunities it faces. She was excited about the profound shift we created, and thankful that she understood the amazing ah-ha’s behind it. What a difference from two years ago when the previous strategic planning never even made a blip on her radar screen! I’ve heard this too many times to cringe. And often, the employee is wrong. She may have completely forgotten the strategic planning presentation she attended. But we all know what it’s like to be on the receiving end of such a presentation. It’s like being shown a picture of a tent and then expected to know how to survive in the wilderness.
If you are familiar with the concept of a “driving force” you know that strong, thriving organizations take their driving force seriously. Apple’s driving force is super cool products. You would never catch them launching something that wasn’t sleek, flashy, high tech, and intuitive. GE is driven by profits and is willing to acquire any business from appliances to healthcare to water quality as long as the profit is impressive. Slip and you are gone in a blink. The products and markets involved are irrelevant. Gerber is a good example of a company that is market driven. As they’ve expanded beyond baby food into children’s clothing and life insurance, their market has remained constant. Additional driving forces include: capacity, production capabilities, sales channels, distribution channels, natural resources, and social cause. A good strategic planning process establishes this kind of clarity. What is your driving force? But before you compare your company to the options mentioned above, take a moment to consider your REAL driving force? It may be none of the above!
How often should you do strategic planning? Every year Every 3 to 5 years Whenever you suspect the competition is about to eat your lunch Whenever sales and profits fall significantly short of goals None of the above Select your answer and then read on to see if you are correct.
OK, I guess you should listen to them, but don’t just do as they say! Too often customers know what they want, but not what they need. If you worked in a hardware store and a customer came looking for a good old-fashioned night-light, you could hand him exactly what he asked for and he would leave happy. However, if you asked some questions and showed him some options, he might leave with a light-sensitive, motion-activated nightlight that only burns electricity when it is needed. He wouldn’t be happy, he’d be thrilled! The discrepancy between wants and needs does not just apply to simple examples like night-lights. I’ve had clients ask me to lead them through strategic planning. After a little discussion, it becomes apparent that strategic planning is not what they need.
If 2012 is approaching faster than you ever thought possible, now is a good time to look around and see if your plane is still soaring, stalled on the runway, or out of sight in a hangar. Ask yourself these three questions: Are we adapting to changes around us, especially changes in our customers’ wants and needs? Are we becoming something new, smarter, and more capable than we were at the beginning of the year? Are we continuing to eliminate the tasks that contribute least to our profits and the value for which customers are willing to pay? If you answered any of these questions with no, not sure, or luckily, now would be a good time to embark on a stronger, more intentional approach to better results in 2012!
I didn’t think I would like an electronic reader. I love books too much. And I thought it was silly to be dependent on one more electronic device that needs charging. I succumbed for travel purpose. One skinny, light Kindle is a lot easier to haul around than a stack of books. But now I love it! Some of the reasons may surprise you! It doesn’t close while I am flossing and brushing my teeth. I can increase the text size with just a couple of clicks if the light is fading and making it hard to read. I can download additional books at the drop of a hat as long as there is a WIFI connection. It is really light-weight, balances on one leg easily, and requires barely one knuckle to turn the page. It never loses my page, even if I drop it.
Strategic clarity is essential if an organization is to use resources wisely and get great results. And the relevant decisions are made by everyone from the CEO to each individual contributor. Below are ten indicators of insufficient strategic clarity. How many of these affect you or the people around you? Priorities and goals seem to jump around at a moments notice Many can not confidently enumerate their top few priorities, let alone those of the organization People are feeling stressed by tasks that languish and efforts that don’t align with official goals The tail often wags the dog – new ideas and events derail plans Cynicism and resignation are more common than enthusiasm for the future New initiatives or projects are often launched before current projects are completed There are simply too many priorities, which means there are no priorities