This video is an overview of some of the most important ideas I’ve ever learned about creating and executing a winning strategy for your business.
If you found these ideas of value, I very much hope you will share the video with your network.
Thanks – John
In 23 years serving as a management advisor to companies of every size, all over the world, I have yet to encounter an organization that does not struggle with some form of “communication” challenges. Although this can impact companies from several different angles, there is one communication breakdown that has the most significant impact on the overall success of the business.
The lack of a sharply focused, easily understood and extremely well-communicated vision and strategy for growth.
In most businesses, the executive team and senior managers are constantly talking about the vision and strategy, it’s part of their meetings, it’s what they lay awake at night thinking about, but typically if you go just one or two layers down in the organization nobody has a clue about the actual meaning of the vision and how they are supposed to implement the strategy. Remember this: without a clearly communicated vision there is no way to achieve alignment across the organization, act strategically, empower fast decision-making or create a high level of accountability.
When people do not know where they’re going, it is impossible for them to get there successfully!
The key point here is, to effectively communicate the organization’s vision and strategy you must talk about them all the time, using multiple communications channels, at all levels of the organization, delivering a consistent and focused message. I once had the CEO of a company ask me, “When do you know that you have communicated the vision enough?” I replied, “When you get to point that if you have to explain it one more time… you’ll vomit… that’s when the lowest person in your organization just heard the vision for the very first time.”
The answer is simple: communicate, communicate, communicate… and then communicate some more.
After more than two decades of working with organizations around the world, the single biggest issue I see in company after company is: Lack of Disciplined Execution.
I meet plenty of brilliant people, who have developed amazing products and services and have unique and compelling strategies for how to win in the marketplace. Yet time and again I see those strategies fail because they are not effectively executed. Below is a article that was created by an amazing company out of New Zealand called Advisory Works. They are among the world’s leading experts in helping companies execute their plans, which is why I am extremely proud to announce that we have formed a partnership so that the team at Advisory Works can assist my clients who are struggling to implement the plans that I help them create.
I believe you’ll find some very powerful ideas in this PDF, things that you can apply right away to help you be more successful in taking the exciting ideas in your company and turning them into action in the marketplace.
Please feel free to share this article with anyone you want to and if you think you might need a little bit of help, don’t hesitate to contact the folks at Advisory Works, you will be extremely impressed.The Four Cornerstones of Strategic Execution 06
On behalf of myself, my wife and business partner, Sheila Spence, our Operations Manager, Mercedes Petrus and our Financial Manager, Esther Mallard – thank you VERY much to all of our clients from 2016 for trusting us to be involved in your businesses.
I hope you will share this video with your network, and if you have not already, please sign up for my blog – I only post good stuff! blog.johnspence.com
In my last blog, The Big Trends From 2016, I got lots of great comments and questions. I especially liked this question and wanted to share my answer with all of you.
Q: How often do you find executives who expect their salespeople to sell value that does not exist? In my last two sales jobs, the real value of the product or service was not a differentiator in the marketplace. Even for the most incredible sales person, companies are not naive and they can quickly assess whether there is value in an offering or just double talk. What are the executives’ responsibilities in this situation? How often are you seeing this situation at companies?
A: Good question, tough answer. You have to find some way to add value above the product or service even if it is truly a commodity. I have worked with a lot of companies that had very little differentiation, and the executives wanted their folks to sell on value, but few people understood how to create real value beyond what they were selling. If you cannot figure this out, then the only thing you have left to sell on is price.
In my strategic thinking workshops, I tell the attendees that all effective strategy boils down to: Valued Differentiation X Disciplined Execution. In other words, you have to bring something to the marketplace that is unique, exciting and compelling – that your customers VERY highly value – that is difficult, if not impossible, for your competition to copy – and that you can deliver on flawlessly. Until you can discover how you, your products and/or services can meet these criteria – the only thing you have to sell is lower price, which is the fast lane to bankruptcy.
You ask above, “What are the executives’ responsibilities in this situation?” It is my feeling that they must understand their product and market well enough to clearly show their salespeople where the real value exists. If they cannot clearly differentiate their own product from the competition’s product, then a salesperson needs to ask how they can sell on value if the executive can’t even describe it. One of the big issues I see are companies that demand that their salespeople sell on value and capture a premium price in a market that truly will not support it. This is a recipe for failure and is exceedingly frustrating to the sales force. As the old saying goes, “You can’t get blood from a stone,” and you can’t sell value where none exists.
However, it has been my experience that where there is little product differentiation the only way to command a premium price is for the salesperson to add massive additional value. What unique expertise can you bring to the situation? How can you give your customer insights and ideas they could not have developed without you? What recommendations can you make to improve the customer’s business? What additional services can your company deliver that significantly increases the value of your total solution?
In other words, if the product is not a differentiator, the salesperson must be. This is easy to say, but extremely hard to do. It takes a lot of work, time, effort and energy to educate yourself at a level where you can be positioned as a trusted advisor – not a salesperson. Luckily, very few salespeople are willing to make the personal investment necessary to become a high level consultative salesperson, so if you can achieve this you will have created a good deal of job security because every company wants a salesperson who can create unique value for the customer that drives high margins.
I hope you found this of value.
I am sitting in my hotel room in San Diego taking in the view from the 16th floor. I’ve just delivered my last speech of the year, it was on advanced sales, teamwork and the future of work. This year I had the opportunity to work with clients in six countries, dozens of different industries, from small startups to the Fortune 10. Here are a few big trends that stuck out to me as I look back over 2016.
Communications: I have not worked for a company in my entire career that did not have some sort of communication challenges, but this year they seem to be even more prevalent. In business after business I encountered organizations which had trouble clearly communicating their vision and strategy for growth, their purpose and core values, and the critical information needed to keep their employees engaged and aligned.
The key to successfully overcoming this ever challenging issue is simply to over communicate using every channel available; one-on-one meetings, town halls, weekly meetings, email, social media, video… any way you can think of to share important information with your employees, vendors and customers. When you think you will get sick if you talk about the vision and strategy one more time, the lowest person in your organization just heard it for the very first time.
Execution: The lack of disciplined execution is the single biggest problem I see in companies around the world. I meet a lot of very smart people who develop unique and compelling strategic plans that would surely give them a strong competitive advantage, only to see them struggle mightily in taking their plans and turning them into results in the marketplace.
The key to successfully overcoming this challenge is to make sure you spend as much time building your execution plan as you do on creating the strategic plan. Your plan must have clear, specific, measurable and binary goals. As I often say: Ambiguity Breeds Mediocrity. For a strategic plan to be successful it MUST have extremely clear expectations of what is required, who is responsible, how the work is to be done and when it is due. Then, you have to have the discipline to consistently work the plan and make sure it stays at the forefront of everyone’s mind. I promise you this, if you could increase the effective execution of your strategy by just 10%, it would have a massive positive impact on the success of your organization. This was a major focus of my work for clients this year and I anticipate it will be again next year because even the best strategy in the world is useless without superb execution.
Technology: For the last several years people have been talking about the, “hyper-speed of technological change,” but I don’t think they really understood just how fast technology is actually changing and the mind-boggling impact is going to have on every business in just the next few years. A number of my clients have asked me to deliver speeches on the future of leadership and business, which has forced me to invest a large amount of my time into studying the various trends in emerging technologies. To name just a few; robotics, artificial intelligence, big data, Internet of Things, genetic decoding and recoding, synthetic medicine, virtual reality and augmented reality are all accelerating at a pace that will leave many, many companies and people completely unable to keep up. Even though I have devoured all of the information I can get my hands on, it is still exceedingly difficult for me to comprehend just how monumental the changes to our lives, businesses, communities, and the world will be in just the next decade.
The key to successfully dealing with this change is to dedicate a minimum of 10% of your time to studying all of the technologies that will potentially impact your business. I currently work with several clients who are directly connected to the auto industry and have challenged them that unless they become “experts” on autonomous cars and other forms of transportation technologies their business might not exist in 5 years. Let me make this Awesomely Simple: Learn or Die.
Talent: For many, (if not most) businesses, two of the only sustainable competitive advantages left are the quality of the people they can get, grow and keep on their team – and the relationships they create with their customers. This means that talent acquisition, talent development and talent retention should be a major strategic objective. However, I still see many companies tolerate mediocrity, do not invest sufficiently in training and development and have difficulty retaining their very best employees (the bad employees don’t want to leave because they know they can’t get a job anyplace else). The success of your business is directly determined by the talent on your team and creating a culture of engagement, customer focus, collaboration, accountability and disciplined execution.
The key to successfully overcoming this challenge is to make getting and keeping wildly talented people as a major focus of your business. Build a talent pipeline to ensure a steady stream of quality recruits, implement a focused and consistent interviewing process, create a robust onboarding system, develop a focused and intensive training program to take great people and make them even better, and have a career pathing program with mentoring, assessment, feedback and coaching to keep your top performers engaged and thinking long-term about their role in the company.
Sales Effectiveness: Nothing happens until somebody sells something. Let’s face it, all of the other stuff I’ve mentioned is useless if at the end of the day nobody buys anything from your company. Sales are the lifeblood of every business, or as Peter Drucker famously said, “The purpose of a business is to create and keep a customer.” Unfortunately, the vast majority of salespeople that I meet are NOT prepared for success. They have not had enough good quality training, they don’t have the right attitude, they don’t spend enough time investing in their own development, they don’t do their homework on their products and services and they don’t spend enough time asking superb questions and being an intense listener when they are in front of their customer. In other words, they waste their customers time, which is the single biggest complaint that executives have about dealing with salespeople.
The key to successfully overcoming this challenge is to be highly selective and targeted in who you hire as a salesperson and then ensure they get all of the training, support and resources they need to be successful in the field. Set clear and specific sales targets, coach and mentor for them for success, over-train them on both sales skills and product knowledge, and align their compensation plan to strongly encourage their full engagement and a strong desire to be successful in their sales efforts.
Leadership Development: I have been teaching leadership skills for nearly 25 years and I can say with great confidence that in the last few years the requirements for being an effective leader have actually changed quite a bit. Theory X, command-and-control and “do as I say not as I do” has not worked in a long time, yet I still see people trying to “lead” this way. Currently just over 50% of the workforce is made up of millennials with this number growing every day, and millennials definitely have a different way they want to be led. If you agree with me that talent is a critical element in building a successful company, then it is important to remember the single biggest reason millennials leave a company is poor leadership. Several research studies also show up to 50% of lost revenues are a direct result of ineffective leadership. Those numbers should be eye-opening to you.
The key to successfully overcoming this challenge is to understand everyone in your organization needs to be a leader. That begins with treating them like a leader, training them, supporting them and rewarding them for superior leadership skills. It also means having the courage to remove people from the team who are ineffective in leading in your organization. I’ve also stumbled across a new idea this year that I think is an important complement to creating great leaders: helping people to learn how to be great followers. Although everyone in your organization needs to be a great leader, they won’t be leading all the time, actually they are typically “following” a good amount of the time as well. So it is also essential to help people understand the importance of being a supportive, encouraging and productive follower.
There are other issues I came across during the last 12 months, but these are the major ones my clients specifically hired me to help them with. I hope my recommendations above will help you if any of these sound familiar.
I look forward to your feedback and comments, what have you been seeing?
I am currently preparing to facilitate three strategic planning meetings, for an association, a technology company and a Fortune 100 client. Here are a few things that I see as foundational for creating an effective strategic plan.
- The key to a successful strategic plan is: FOCUS. Every company, regardless of size, has limited resources and strategy is all about effectively deploying an organization’s resources where they will have the most positive impact in the marketplace.
- To mirror my first point, one of the most important things a great strategic thinker does is figure out what to say “NO” to. What markets will we not compete in? What products or services should we not try to sell? What current projects should we abandon?
- If you have 10 strategic objectives, you do not have a strategy. All of the successful companies I’ve worked with were able to focus in on 3 to 5 major strategic initiatives. Anything more than that causes a lack of focus and ultimately a lack of success.
- When examining business issues, are you trying to solve a puzzle or a mystery? With enough data and information, you can find the right answer to a puzzle, but no matter how hard you try it is impossible to find the exact right solution for mystery. Because of this, as much as I hate to admit it, a large part of strategy is simply an educated guess about what might happen in the future.
- Alignment is critical. If the senior team is not 100% committed to strategic direction of the organization, the plan will fail.
- It’s an age-old business cliché, because it is correct: What gets measured gets done. A major reason that many strategies are not effectively executed is because there is no way to determine exactly what the expectations are. Ambiguity Breeds Mediocrity.
Those are just a few of the key ideas I try to help my clients keep in mind as we move through a strategic planning retreat. I will also add one more critical point; to make sure you follow through and implement your plan, you should spend just as much time on strategic execution planning as you do on planning the strategy. This is a very important idea that few companies truly embrace.
What are your thoughts?
During my recent trip to New Zealand I gave a number of talks on how technology is going to dramatically disrupt every type of business. Part of my presentation focused on advanced robotics and how many jobs will be eliminated by robots and algorithms. Here is a question that I just received from one of the folks that attended a session I delivered to a group of New Zealand entrepreneurs.
I didn’t get a chance to talk to you after your presentation, but I was really curious about the balance between EQ and robotics. You mentioned a bar where the bartender was replaced by robots and how many other service jobs will be. How will this feed into our EQ? Many people go to bars etc. to talk to the bartender about how horrible their boss is. Do you think that as technology progresses more humans will turn to the virtual world for emotional conversations rather than the real world?
Take hotels for example, many can differentiate on price because of the quality of service they provide and the personalized touch they give. I think empathy is one of the key qualities needed to provide customer satisfaction. If a lot of these employees are replaced by robots for the sake of efficiency, how will user experience and emotions play into this?
I would really appreciate it if you could expand on this a bit.
Wow, really great questions, with complex answers.
It is my opinion that many jobs such as bartenders and hotel receptionists will be replaced by robots, it is already happening. However, I completely agree with you that these are positions that traditionally act as service providers that directly connect with customers. I do not believe that computers, even with highly advanced AI, will be able to make a true “human connection.” So perhaps there will be new jobs for people that do nothing but sit and talk with other people about how horrible their boss is, politics, religion and other topics that people like to discuss. They will be trained not to push their own opinion, but to simply be there to listen to the other person, connect with them and show empathy. Actually, I just thought of this idea while I was writing you this note and it is something I’m going to look into with a lot more focus, service jobs being replaced with “professional listener” as a new career. Interesting?