Newsletter November 2001A
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A Printable Newsletter Format November 2001A

MAKE IT WORK DAILY: Tips for Strategists

Every year a select group of senior executives pack their bags and head off to an exclusive retreat for several days with the purpose of developing the corporate Strategic Plan. For last year's excursion, your team may have included the CEO, president, CFO, COO and all the vice presidents and several key managers. In other words, the people at the top, the people in whom all others in the organization put their faith, are the people who create the strategic plan by which the rest of the organization will work for the next year or two. However, will they build the best plan for the firm? Will the plan actually work? More likely than not, the plan is not going to reap the expected rewards.

Because these people know what's going on in the company and are setting the tone, we often place a kind of blind faith in them that their plans are good plans. Unfortunately, the positive natures of our faith and their intentions do not equal excellent strategic plans. Doubt what we say? Take a look back at your previous years of planning sessions and follow the track record. Leadership comes back with a several-page report establishing direction, budgets, competition, marketing, human resource needs and a host of important topics that were discussed in detail, yet the well-intended papers of years past have not really been the reality of what happened during the year to follow. There are two major reasons that explain why this so commonly occurs: 1) Rome wasn't built in a day, and 2) No recipe tastes like Grandma's when it's missing key ingredients.

Rome wasn't built in a day: The time frame set for the completion of most strategic plans is too short. It is unrealistic and irresponsible to expect to put together the framework of an organization's action plan in only a 2-3 day retreat. It takes months to formulate decisions and to compile complete data in some instances. It also takes time to measure the actual results of past decisions against the expectations. Therefore, it's important to be realistic. Don't expect the impossible; it raises false hopes and makes for sloppy and incomplete strategic plans.

Grandma's recipe: What's missing from traditional plans? Let's start with the name--Strategic Plans. Change the name to Strategic and Tactical Plans. In making a name change, we also change the contents of the plan in a conscious fashion. We no longer are willing to accept a white paper that sits on a shelf that holds a laundry list of topics that often addresses no more than the theoretical side of the business. Our expectations change to include the HOW. The HOW are the missing ingredients. Your plan should include, but not be limited to:

So, what is the true test of a successfully developed plan? If everyone, from CEO on down, can clear their desks/workbenches/work areas, set the Strategic and Tactical Plan down in front of them, and work off it daily to achieve consistent, reliable, predictable and integrated results for the firm, then you've developed the plan successfully. A real plan is the road map by which your top level people can find their way not only to and from the retreat each year, but by which everyone else can navigate your firm to success during the months between.

GET CONSENSUS FIRST:
Agreements vs. Sales Pitch

"I'm going to force you to sign this, because it makes money for me." Are you a guilty partner in this type of crime?

Have you ever taken the time to draw out a clearly defined contract or proposal for a client/customer, vendor/supplier or partnership/joint venture only to find that the party had little or no interest in the ideas you outlined? The contract is not accepted as is because of a fatal flaw in our perceived notions about creating such documents. So, what is the purpose of a contract and how should we use contracts?

For our purposes, we will define the term "contract" and examine two types of contracts, proposals and agreements. A contract is a legal and binding document sealing the fate of a serious venture between or amongst two or more parties. When contemplating signing a contract, parties often experience a level of stress and possible hesitation; no one wants to be trapped by signing something that won't serve their best interests now and in the future. Visual: ball and chain.

The party submitting a proposal is asking, "What do you think of this?" One party is suggesting that you put the terms or recommendations in writing and then you may review the details. The proposal is often written to:

     1. Eliminate calling the individual in charge
     2. Get all their ideas down on paper first.
     3. To look professional and well prepared
     4. To secure a deal you think is worth obtaining.

You and the other party are about to agree on the words on a page. Here's the catch. All the above have to do with you and not necessarily the other party involved.

Agreements are summaries. Agreements say, "I've outlined what we've already agreed to do for each other." You are now submitting a compilation of what two or more parties have already agreed upon and have now placed it in writing. It's not making assumptions about what others want and you need, its addressing shared needs. You've already done your homework, answered questions, established a relationship of trust, understand each parties needs, and the sale has been made prior to asking for the signature.

An agreement to purchase a home outlines a price and guidelines that both parties have already stated they want. The same is true in a sales proposal or an alliance.

     1. You have discussed the matter in depth to secure          understanding and consensus
     2. You have covered all the bases of a deal with options to          continue
     3 You now gain a professional stature from the         thoroughness
     4. You have had time to think out the deal and are now          willing to put it in writing.

Consider changing your vocabulary and changing your method of obtaining a signed-for sale. Instead of submitting contracts and proposals, try agreements. Agreements in business come from great note taking, asking great questions and thinking of the old "win-win" situation. It means you understand the other's objectives in the deal... what they want. What they would consider to be measures of success...how you will know if the deal is successful and what is the value to the firm or individual to get this accomplished. If all three are not outlined the deal is bound to go bad. Take the time before putting pen to paper or fingers to the keyboard to find that middle ground. If done right, the signature is all but secured and more importantly, both parties will win.

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David & Lorrie Goldsmith are founders of the Syracuse based MetaMatrix Consulting Group Inc. Their firm specializes in consulting, executive management education and speaking services. They can be reached at 315-476-0510  888-777-8857 or emailed at dgoldsmith@davidgoldsmith.com

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