Recently I was asked to comment on the question: Who is or should be responsible for Strategic Planning? Several people responded. Here is my response:
Of course I agree that the CEO is the ultimate decider of the final strategic plan. Strategy is the CEOs primary job and also one of the key areas of attention for the Board. While I agree with the philosophy of the other respondents, I don’t believe the responses take the issue of “who” to a deep enough level.
I respectfully suggest that the CEO get input from many fronts. Unfortunately, too often, the CEO’s executives are telling him/her just what they think the CEO wants to hear and often what has been acceptable in the past. The input isn’t pure. Often there is no new thought, even though they may think there is.The CEO needs to get unbiased information, about the business as it is, the markets as they are, the customers that they have, the competitors they now fend off and the situation as it looks for the future.
Those are the traditional inputs. Strategic planning is all about making solid, reliable and competent decisions for the future. To achieve this, CEOs need not only the traditional information, but fresh perspectives to expand their vision of the future.This fresh input is critical to success. The input should be from sources not previously considered; from people not previously asked, markets not previously tapped, in industries and from sources never before explored.
Many of you will say, but we are already brainstorming. But what is directing your brainstorming thought process? Are you using specific tools or methods? In traditional strategic planning we use the tools we know like the SWOT analysis, brainstorming where we throw ideas on the wall and see what sticks and financial history. Most of the time the results bear little if any real and new fruit. If anything comes of it at all, there are a few changes made, a little efficiency gained and maybe even a little competitive advantage realized, that within a few weeks, the competitors have figured out and matched. No real benefit here.
There are tools now and people who can teach you how to use them, that will create very different, reproducible, defensible results. So going back to the original question, who is responsible for strategic planning, of course it is the CEO. Hopefully the CEO is strong enough and receptive enough to look at methods, tools and sources for planning that will not only make the company more competitive in the current markets and competitive field, but just might open up an entire new market that the competition has never even thought about.
For further information on the Blue Ocean Strategic Planning Process we use, email me at info@corporatestrategy.com
Sarah
Friday, November 11, 2011
Saturday, September 10, 2011
The Strategy Lesson of 9-11
For me, 9-11 started like many other mornings. There was the usual mad dash to the airport to catch my flight to New York. I had been working a lot in New York and I knew the routine. I had a very busy day planned so I was anxious to get to LaGuardia and get started.
As we approached the city, the normal announcements were made that we had been cleared to land and we started our final approach. Suddenly we heard the engines grow loud as they strained to lift us back into the sky. Then the captain came on the loudspeaker and said we have been diverted to Boston. He said there had been a plane crash and LaGuardia was closed. They suspected sabotage. At that point one plane had hit the tower and the plane flying towards the second tower was behind us, but we had no knowledge of what was going on.
We headed for Boston. A few minutes later the captain came back on the PA system and said he made an executive decision to go to Providence instead. We still had no idea what was going on. When we got to Providence, it was a zoo. I looked quickly for a cab or any way to get out of there and in to NY for my meetings. All phones were down, I could not call anyone. At that point the second plane had hit the second tower.
Another stranded passenger and I shared a cab that took us to Greenwich. That was as far as the cab company would take us. We stayed glued to the radio, hanging on every word, for more than three hours. Finally we reached Greenwich and I was able to contact my family. They had no idea whether my plane had been one of the hijacked planes or not. I was so happy to talk to my husband.
My client sent a car to bring me in to the Bronx. What a day it was. We were supposed to be closing the sale of the company to the next generation of partners on Sept 12. They decided to go forward with the sale but of course the celebration in NYC was canceled.
I kept my original schedule to leave NYC on Sept 13. All flights had been cancelled, but finally they let my flight leave. Before taking off, they evacuated us twice out of the terminal due to bomb scares. My flight finally took off with 3 passengers and the crew. It was the first plane out of LaGuardia after 9-11. They let one other flight leave that night and then shut down the airport again for several days. My client who went to the airport with me did not get out of NYC for four more days.
The events of that terrible day will live with me for the rest of my life and my thoughts and prayers are with those that were not as fortunate as I. Now after 10 years have passed, I still feel the combination of fear and anger that I felt that day but I have also tried to learn the lessons that the day taught.
That day the terrorists had a carefully devised strategy to attack us in a new and different way, a way that we were not prepared to deal with. The innovation in their strategy provided them the ability to be successful in their evil plan.
That gut retching day taught me the power of innovation better than any book could ever do and in a way I will never forget: Innovation can be applied successfully whether for good or for evil.
Dr. Sarah Layton
drsarahl@corporatestrategy.com
As we approached the city, the normal announcements were made that we had been cleared to land and we started our final approach. Suddenly we heard the engines grow loud as they strained to lift us back into the sky. Then the captain came on the loudspeaker and said we have been diverted to Boston. He said there had been a plane crash and LaGuardia was closed. They suspected sabotage. At that point one plane had hit the tower and the plane flying towards the second tower was behind us, but we had no knowledge of what was going on.
We headed for Boston. A few minutes later the captain came back on the PA system and said he made an executive decision to go to Providence instead. We still had no idea what was going on. When we got to Providence, it was a zoo. I looked quickly for a cab or any way to get out of there and in to NY for my meetings. All phones were down, I could not call anyone. At that point the second plane had hit the second tower.
Another stranded passenger and I shared a cab that took us to Greenwich. That was as far as the cab company would take us. We stayed glued to the radio, hanging on every word, for more than three hours. Finally we reached Greenwich and I was able to contact my family. They had no idea whether my plane had been one of the hijacked planes or not. I was so happy to talk to my husband.
My client sent a car to bring me in to the Bronx. What a day it was. We were supposed to be closing the sale of the company to the next generation of partners on Sept 12. They decided to go forward with the sale but of course the celebration in NYC was canceled.
I kept my original schedule to leave NYC on Sept 13. All flights had been cancelled, but finally they let my flight leave. Before taking off, they evacuated us twice out of the terminal due to bomb scares. My flight finally took off with 3 passengers and the crew. It was the first plane out of LaGuardia after 9-11. They let one other flight leave that night and then shut down the airport again for several days. My client who went to the airport with me did not get out of NYC for four more days.
The events of that terrible day will live with me for the rest of my life and my thoughts and prayers are with those that were not as fortunate as I. Now after 10 years have passed, I still feel the combination of fear and anger that I felt that day but I have also tried to learn the lessons that the day taught.
That day the terrorists had a carefully devised strategy to attack us in a new and different way, a way that we were not prepared to deal with. The innovation in their strategy provided them the ability to be successful in their evil plan.
That gut retching day taught me the power of innovation better than any book could ever do and in a way I will never forget: Innovation can be applied successfully whether for good or for evil.
Dr. Sarah Layton
drsarahl@corporatestrategy.com
Thursday, September 8, 2011
You Can't Win the Strategy Horse Race with a Planning Mule
One of the questions I was asked recently is: "How can you be so sure that the tools of Blue Ocean Strategy® will result in lower cost and increased revenue?"
The short answer is that clients find and capitalize on a large hidden market opportunity that will grow their business when they know how to look for the opportunities. Remember, a consultant (at least this consultant) doesn't come up with all the brilliant ideas. The client (YOU!) does when you know how and where to look for them.
What I do that is difficult for you to do by yourself is guide your thinking and show you how to use the latest tools to uncover those ideas. A recent client discovered over a million dollars in services they were providing customers that the customers did not care about. This sort of “low hanging fruit” is common and goes right to the bottom line.
Consider how we used to do surgery. Until very recently, most surgeries were major operations and meant days if not weeks of hospital stays. Today, our tools are much more sophisticated and our knowledge more refined. That results in less trauma to the patient, shorter recovery, and greater surgical success.
It isn't too much different with the tools of strategy. Most of the old methods of strategy creation have the client focusing on the competition and the current market. Brainstorming, a longtime method used in strategy creation, didn't produce very good results. Why? Because the brainstorming was not properly directed. Using the old tools of brainstorming and SWOT analysis is a bit like riding a mule in the strategy horse race. You will seldom find yourself ahead of the pack.
The tools we use in Blue Ocean Strategy® help direct your thinking in ways you would have never thought about yourself. This gives you a strategy to get out in front of the pack rather than having to constantly spur your mule to try and stay even.
Telling someone to think differently without giving that thought process a direction and a purpose is usually a waste of time. We know what we know and we tend to fall back on that. It is comfortable and we have gotten some results in the past.
Unfortunately, the past is behind us and isn’t likely to come back. Blue Ocean Strategy® is designed to show us the way to survive and thrive as we move into the future.
If you are ready to find your path to thriving in our rapidly morphing world, call or text my cell (407-342-6507) or email me drsarahl@corporatestrategy.com.
The short answer is that clients find and capitalize on a large hidden market opportunity that will grow their business when they know how to look for the opportunities. Remember, a consultant (at least this consultant) doesn't come up with all the brilliant ideas. The client (YOU!) does when you know how and where to look for them.
What I do that is difficult for you to do by yourself is guide your thinking and show you how to use the latest tools to uncover those ideas. A recent client discovered over a million dollars in services they were providing customers that the customers did not care about. This sort of “low hanging fruit” is common and goes right to the bottom line.
Consider how we used to do surgery. Until very recently, most surgeries were major operations and meant days if not weeks of hospital stays. Today, our tools are much more sophisticated and our knowledge more refined. That results in less trauma to the patient, shorter recovery, and greater surgical success.
It isn't too much different with the tools of strategy. Most of the old methods of strategy creation have the client focusing on the competition and the current market. Brainstorming, a longtime method used in strategy creation, didn't produce very good results. Why? Because the brainstorming was not properly directed. Using the old tools of brainstorming and SWOT analysis is a bit like riding a mule in the strategy horse race. You will seldom find yourself ahead of the pack.
The tools we use in Blue Ocean Strategy® help direct your thinking in ways you would have never thought about yourself. This gives you a strategy to get out in front of the pack rather than having to constantly spur your mule to try and stay even.
Telling someone to think differently without giving that thought process a direction and a purpose is usually a waste of time. We know what we know and we tend to fall back on that. It is comfortable and we have gotten some results in the past.
Unfortunately, the past is behind us and isn’t likely to come back. Blue Ocean Strategy® is designed to show us the way to survive and thrive as we move into the future.
If you are ready to find your path to thriving in our rapidly morphing world, call or text my cell (407-342-6507) or email me drsarahl@corporatestrategy.com.
Wednesday, June 29, 2011
What is the real reason for a lack of customers?
In a recent post, the US Chamber of Commerce posted the results of a quick poll. One of the questions was regarding the biggest obstacle to creating jobs. The greatest number of respondents said that lack of sufficient customers was the biggest obstacle. Here is my response to the Chamber on their blog:
I noticed that your poll indicates the largest obstacle to creating jobs is lack of customers. It is time for us to get away from the notion that we can keep doing what we have always done yet expect different or better results. Why we keep doing that is a mystery to me.
We must get better at creating Value Innovation. If you have value without innovation, it doesn't give you much advantage, your competitor will quickly catch up. If you have innovation without value, it won't be commercially successful, no one will buy. If you truly create Value Innovation, you will be providing a product or service that is in high demand, will be difficult for the competition to duplicate and you will be making a good profit in the process.
The tools of strategy creation have traditionally been the SWOT analysis, "throw ideas on the wall and see what sticks" method of brainstorming and financial histories. Keep using these tools and you will keep getting the same results.
The new tools that will create value innovation are extremely effective and will help you make four strategic moves that will make an enormous difference in your business. Those four strategic moves are:
1. Eliminate those competitive factors your customers really don't care about. They waste your resources and don't get you any more or better business. You are probably just trying to keep up with the competition by providing them.
2. Reduce your investment in the competitive factors you need to offer but not at the level you are currently offering them.
3. Raise your investment in those factors that the market values but isn't getting enough of
4. Create new value the industry has never before seen.
These are not my concepts, but the concepts of Chan Kim and Renee Mauborgne, authors of the book Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. I do happen to be a Qualified BOS consultant and have blogged about many of the tools and methods at www.blueoceanstrategicplanning.blogspot.com. For a free two page summary review of the book, email your request to info@corporatestrategy.com.
I noticed that your poll indicates the largest obstacle to creating jobs is lack of customers. It is time for us to get away from the notion that we can keep doing what we have always done yet expect different or better results. Why we keep doing that is a mystery to me.
We must get better at creating Value Innovation. If you have value without innovation, it doesn't give you much advantage, your competitor will quickly catch up. If you have innovation without value, it won't be commercially successful, no one will buy. If you truly create Value Innovation, you will be providing a product or service that is in high demand, will be difficult for the competition to duplicate and you will be making a good profit in the process.
The tools of strategy creation have traditionally been the SWOT analysis, "throw ideas on the wall and see what sticks" method of brainstorming and financial histories. Keep using these tools and you will keep getting the same results.
The new tools that will create value innovation are extremely effective and will help you make four strategic moves that will make an enormous difference in your business. Those four strategic moves are:
1. Eliminate those competitive factors your customers really don't care about. They waste your resources and don't get you any more or better business. You are probably just trying to keep up with the competition by providing them.
2. Reduce your investment in the competitive factors you need to offer but not at the level you are currently offering them.
3. Raise your investment in those factors that the market values but isn't getting enough of
4. Create new value the industry has never before seen.
These are not my concepts, but the concepts of Chan Kim and Renee Mauborgne, authors of the book Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. I do happen to be a Qualified BOS consultant and have blogged about many of the tools and methods at www.blueoceanstrategicplanning.blogspot.com. For a free two page summary review of the book, email your request to info@corporatestrategy.com.
Wednesday, March 2, 2011
The Good, the Bad and the Ugly: Experiences Executives have with Management Consultants
In preparation for the opening keynote at the 2010 Confab meeting of professional management consultants, we asked about a thousand global business leaders to respond to an online survey about their use of and experience with management consultants. When over a hundred executives responded within a few hours, I knew I had hit a nerve.
Eighty three respondents out of 107 replied that they hire management consultants. They represent a broad range of industries from healthcare/pharma and financial services to manufacturing, retail and agriculture. Here are some of their comments, minus specific identifiers. They range in size from start-ups to about USD $120 Billion
Ninety three percent said they were very satisfied to moderately satisfied with their experience with a management consultant. Here are a few of their comments:
The good ....there are tales of how management consultants have saved the company with their recommendations.
Worked with (major consulting firm) consultants on an SG&A rationalization project that was well thought out and very valuable to the organization.
Great experience with a former industry leader that helped the company develop key evaluation hurdles for new projects and prepare a commercialization plan
The bad ...there are tales of how the consultant just rephrased into consultant speak what the client told them, adding no value.
Our CEO hired a consultant to evaluate the sales team. He found him via the internet. The evaluation tests he used were not relevant to our distribution model or industry. He didn't understand our business and he failed miserably. Waste of money.
All talk and theory - no action and practical application
The ugly ... Consultant discovered a major weakness in our CEO's leadership skills and tried to force him out by exposing it to key leaders, very unprofessional approach...should have worked through it at an executive/owner level.
So what would executives like management consultants to know? When given a chance to tell management consultants a thing or two, here is just a sampling what they said:
1. Work with the client. He probably knows what he wants but may not have sufficient resources such as time or people, to carry it out as quickly or to the standards required. Building trust that the consultant has a deep understanding of the clients needs, both spoken and unspoken, and then consistently acting to achieve those goals will always have satisfactory results
2. Sarah, take a lesson from small business. They have to produce results or they don't eat. The days of charging outrageous sums for less than stellar results are over. Success comes from deep commitment and respect on both sides.
3. Spend the extra time up front understanding the problem and don't make the client spend too much time and effort educating you.
4. a. Study the potential client prior to meeting with him/her
b. Do not assume analytical illiteracy on the part of the client
c. Do not assume the client will tell you what she wants to hear
d. Fancy slides do not compensate for mediocre work
Dr. Sarah Layton speaks, consults and writes on value innovation and strategy and can be reached at info@corporatestrategy.com. She is a qualified Blue Ocean Strategy practitioner and managing partner of Corporate Strategy Institute based in Orlando, Fl. She presented the Keynote address at the 2010 Confab in Reno and has travelled Asia, North, Central and South America, and India working with clients to find new markets that have no competition. (www.corporatestrategy.com) (www.blueoceanstrategicplanning.blogspot.com
Eighty three respondents out of 107 replied that they hire management consultants. They represent a broad range of industries from healthcare/pharma and financial services to manufacturing, retail and agriculture. Here are some of their comments, minus specific identifiers. They range in size from start-ups to about USD $120 Billion
Ninety three percent said they were very satisfied to moderately satisfied with their experience with a management consultant. Here are a few of their comments:
The good ....there are tales of how management consultants have saved the company with their recommendations.
Worked with (major consulting firm) consultants on an SG&A rationalization project that was well thought out and very valuable to the organization.
Great experience with a former industry leader that helped the company develop key evaluation hurdles for new projects and prepare a commercialization plan
The bad ...there are tales of how the consultant just rephrased into consultant speak what the client told them, adding no value.
Our CEO hired a consultant to evaluate the sales team. He found him via the internet. The evaluation tests he used were not relevant to our distribution model or industry. He didn't understand our business and he failed miserably. Waste of money.
All talk and theory - no action and practical application
The ugly ... Consultant discovered a major weakness in our CEO's leadership skills and tried to force him out by exposing it to key leaders, very unprofessional approach...should have worked through it at an executive/owner level.
So what would executives like management consultants to know? When given a chance to tell management consultants a thing or two, here is just a sampling what they said:
1. Work with the client. He probably knows what he wants but may not have sufficient resources such as time or people, to carry it out as quickly or to the standards required. Building trust that the consultant has a deep understanding of the clients needs, both spoken and unspoken, and then consistently acting to achieve those goals will always have satisfactory results
2. Sarah, take a lesson from small business. They have to produce results or they don't eat. The days of charging outrageous sums for less than stellar results are over. Success comes from deep commitment and respect on both sides.
3. Spend the extra time up front understanding the problem and don't make the client spend too much time and effort educating you.
4. a. Study the potential client prior to meeting with him/her
b. Do not assume analytical illiteracy on the part of the client
c. Do not assume the client will tell you what she wants to hear
d. Fancy slides do not compensate for mediocre work
Dr. Sarah Layton speaks, consults and writes on value innovation and strategy and can be reached at info@corporatestrategy.com. She is a qualified Blue Ocean Strategy practitioner and managing partner of Corporate Strategy Institute based in Orlando, Fl. She presented the Keynote address at the 2010 Confab in Reno and has travelled Asia, North, Central and South America, and India working with clients to find new markets that have no competition. (www.corporatestrategy.com) (www.blueoceanstrategicplanning.blogspot.com
Tuesday, January 18, 2011
Value Innovation in 2011
Are you happy with your strategy? Are you bringing in new customers that have never bought from you or your competitors before? Think, Nintendo Wii. Sataru Iwata looked past the competition; looked past the market of young antisocial males who bought most of the electronic games, and created a huge mass market that had never before purchased electronic games. Their competition is still scrambling years later.
So what are you doing to expand your horizons into a new market? Do you think it is not possible for you and your company? It not only is possible, it is being accomplished by organizations from police departments (NYPD) to governments (CHINA) to classical maestos (Andre Rieu), not to mention the traditional organizations like Nintendo, HCL financial and CROC.
Would you like to learn how you can create new markets? Are you gearing up for your next strategy session? Would you like to get better results from that session and from the strategy over the next year or three? Contact me now and let's have a discussion based on where you want to go with your business and how value innovation processes can help you get there.
Email me now at drsarahl@corporatestrategy.com or call me at 407/ 342-6507. I'm waiting....
So what are you doing to expand your horizons into a new market? Do you think it is not possible for you and your company? It not only is possible, it is being accomplished by organizations from police departments (NYPD) to governments (CHINA) to classical maestos (Andre Rieu), not to mention the traditional organizations like Nintendo, HCL financial and CROC.
Would you like to learn how you can create new markets? Are you gearing up for your next strategy session? Would you like to get better results from that session and from the strategy over the next year or three? Contact me now and let's have a discussion based on where you want to go with your business and how value innovation processes can help you get there.
Email me now at drsarahl@corporatestrategy.com or call me at 407/ 342-6507. I'm waiting....
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