I am doing a strategic planning retreat for a multi-billion dollar company tomorrow and another similar retreat next week. In 2015 I facilitated perhaps a dozen such meetings and here are four key things that I have seen companies struggle with time and time again as they looked at their current performance and began planning for their future success.
Lack of Focus: This has got to be one of the major issues that many businesses have a hard time with, trying to do too many projects, working in too many markets and trying to serve too many different types of customers with too many different types of products. Here is a phrase I just learned that sums up my thinking on this issue, “Simplicity Now – Fancy Later.” Heck, I wrote a book on this topic so it’s pretty clear I believe it is hugely important to keep the focus of your business Awesomely Simple. Another way to put this powerfully is:
Deciding what NOT to do is just as important in a strategy as figuring out what to do.
Lack of Execution: This is a problem I have been tracking for the last 15 years, and in the last five years it has become the leading issue in almost every company I work with. There is no shortage of cool, innovative, bold strategies, but there is a massive shortage of organizations that can take those strategies and execute them with discipline.
Lack of Agility: Let’s face it, the marketplace has never moved faster and it is not going to slow down anytime soon. When I began leading strategic planning retreats more than 20 years ago it was not uncommon for us to work on a 10 year planning horizon, today I rarely work with a business that looks out more than three years. Wildly volatile economics, changing customer expectations, nontraditional competitors, global competition and the incredible velocity of technological change are just a few of the factors that demand companies be agile, nimble and highly innovative – just to stay in business.
Another factor around agility is the failure to make decisions quickly. Too much hierarchy, aversion to risk, resistance to change and the need to get consensus on every major (and sometimes minor) decision is an all too common obstacle for many organizations.
Lack of Talent: It is one of the key themes in all my work, “The future success of your business is directly proportional to the quality of the people that you can get, grow and keep on your team.” However, I run into far too few companies that take this idea seriously and actually look at talent acquisition, talent development and talent retention as a strategic objective. Although it is essential to have a deep bench of talent in order to run a sustainably successful business, I have had too many clients tell me something like, “We are being held hostage by our worst employees, they know that we don’t have anybody to replace them with, so they feel secure that no matter how poor their performances is they won’t get fired.” It almost makes me cry.
So in working with dozens of companies all over the world those are the four major issues I see companies grappling with when attempting to create a thoughtful strategy that has a high potential for success. My advice to you? Make sure that you have a strategic plan that addresses these issues and makes them a strength in your business that creates opportunities not a weakness that exposes you to competitive threats.