B.E.L.I.E.V.E. – Ted Lasso’s Guide to Radical Optimism

Keep a beginner mindset, never stop learning, and don’t play or pretend to be the expert. These are the essence of leadership drawn from Ted’s unique approach.

A friend told me I had to watch a new Apple TV series, Ted Lasso. My initial reaction was, Ted, who? From the first episode, I was hooked. I enjoyed every moment of every episode. When the series ended, I was left wanting more! What a strange place to find some of the best leadership lessons: a TV series. This show was exciting and relevant because it showed leadership skills in action, not just those studied from a book or heard in a lecture. So many great and memorable lessons were demonstrated.

Ted Lasso is a workshop on “how to lead and manage at work and in life.” I was so interested in diving deeper and learning all I could from Coach Lasso that I went back and re-watched every episode and took notes. I replayed numerous parts so I could get the words and quotes correct. At times, the British accents were so thick that I had a hard time understanding what was said. My solution to this editorial challenge was engaging the English subtitles that helped me with every word.

As I re-watched and studied each episode, recurring themes began to emerge. These themes were the most salient learning points for me. What follows is a distillation of my thoughts, takeaways, and favorite quotes that best summarize each topic. I hope you enjoy reading this as much as I did watching and re-watching it!

Teamwork: The Balance Between ‘Me’ and ‘Us’

No organization, from a family to a Fortune 500 firm, can excel without those involved working in a cooperative manner. There is value in being part of a larger unit, be it a Team, Family, or Business. Teamwork isn’t just about working well with others; it’s about understanding and appreciating each individual’s uniqueness and combining these diverse talents to create something extraordinary.

 “You are so sure that you are 1 in a million, that sometimes you forget you are one of 11.”

“It ain’t the execution that’s the gift its the exertion.”

“It’s our choices, gentlemen, that show what we truly are, far more than our abilities.”

Living in the Present: Goldfish Wisdom

We need to focus on the now rather than getting caught up in the past. Learn from past mistakes, a gift you give yourself, then move on. Living in the present moment is an art that can dramatically improve the quality of your life. Ted Lasso champions this principle, using the metaphor of a goldfish to emphasize the power of embracing the now.

“Be a goldfish” they have a 10-second memory.

“Don’t let the past muck up your future.”

“You intend to go 12 rounds with yourself…why?…you need to get some of these (scissors), cut yourself some slack.”

Belief: The Power Within and Around

Belief is more than just a fleeting thought or a vague wish; it’s the fuel driving the transformation engine. In the world of Ted Lasso, this word takes on a unique significance, helping to change lives both on and off the football field. Belief, both in oneself and in others, shapes destiny.

“To believe in yourself, to believe in one another, that’s fundamental to being alive.”

“I have a real tricky time hearing folks that don’t believe in themselves.”

“Success is not about the wins and losses, its about helping these young persons be the best version of themselves.”

Embracing Love, Friendship, Family and Forgiveness

Ted Lasso’s wisdom on love transcends the confines of romance, teaching us that love is a universal principle that applies to all aspects of life. Love is the cornerstone of a fulfilling, meaningful life, from friendships to romantic relationships and even our relationships with ourselves.

“After all what’s more important, being loving or being right?”

“I think that if you care about someone and you got a little love in your heart, there ain’t nothing you can’t get through together.”

“That’s the thing about being a parent: sometimes you lose, sometimes you win, most times you just tie. All we can do is keep playing.”

Be Curious, not Judgmental.

Curiosity isn’t just an attribute; for Ted Lasso, it’s a way of life. It is an approach that fundamentally alters how we interact with the world and serves as an antidote to judgment and narrow-mindedness. When we think we’ve got it all figured out, we lose the ability to explore, learn, and grow.

“I realized not a single one of them was curious, they thought they had everything all figured out.”

“Most of the time change is a good thing, I think that’s what its all about, embracing change, being brave, doing whatever you have to so everyone in your life can move forward with theirs.”

“Alot of times the right idea is sitting right behind a couple of wrong ones.”

Being Authentic: Be Your Best Self

The character of Ted Lasso shows us the power of being yourself, not only for personal satisfaction but also for the impact it has on those around you. Authentic leadership fosters trust and encourages a culture of openness and inclusivity. When leaders are authentic, team members are more likely to be authentic, too, creating a virtuous cycle that can lead to unexpected levels of success.

“The best brand is just being yourself.”

“Sometimes you have to do the right thing, even if you lose.”

“There are 2 buttons I never like to hit; panic and snooze.”

Positivity and Perseverance: Pushing Forward

Ted Lasso teaches us that a positive outlook can make all the difference, even when circumstances aren’t ideal. When faced with obstacles, a positive mindset shifts the focus from what you’ve lost to what you still have and can gain. It propels you to “fight forward,” turning disadvantages into learning opportunities.

“Every disadvantage has its advantage.”

“Don’t fight back, fight forward!”

“The best we can do is keep asking for help and accepting it when you can. And if you keep doing that you will always be moving towards better.”

Conclusion

Leaders today can not possibly know everything. Great ideas can come from anywhere. Stay open-minded and curious. Play to your strengths, forget the past (be a goldfish), and stay in the present. Inspire confidence in others and let them be themselves. Put your beliefs and morals at the top of his decision-making criteria. Keep a beginner mindset, never stop learning, and don’t play or pretend to be the expert. These are the essence of leadership drawn from Ted’s unique approach.

“It’s not about me. It never was.”
Ted Lasso

References:
Quotes are from the “Ted Lasso” TV series, created by Brendan Hunt, Joe Kelly, Bill Lawrence, and Jason Sudeikis, aired on Apple TV+ from August 2020.

 

Dodging a Bullet…the Art and Skill of Contract Cancelation

My intuition told me to have this Contract reviewed by an attorney before signing. I failed to listen to myself. My “inner voice” is right most times; I have to take the time to listen and act. My cognitive biases worked against me. 

I should know better. With years of experience negotiating contracts for myself, my business, and my clients, I still felt trapped in a home-building situation going nowhere fast. What follows is my recent experience working through canceling a construction contract. Even having experience canceling and exiting other business contracts, I was reminded of key points in contracts and negotiation. Following these tactics, along with legal assistance provided by my attorney, I successfully exited this Contract without litigation while receiving a large portion of my funds back. It must be emphasized that the following is not legal advice. Breaching a contract can have serious financial consequences; professional legal advice should be obtained before any action or decision.

“When the student is ready the teacher will appear. When the student is truly ready… The teacher will Disappear.”

 Tao Te Ching

At the onset, finding a suitable Law Firm/Attorney to help with this matter was challenging. Contract disputes can require litigation; only some attorneys have the necessary expertise. 

Rule zero: Have your Team assembled before they are needed.

My intuition told me to have this Contract reviewed by an attorney before signing. I failed to listen to myself. My “inner voice” is right most times; I have to take the time to listen and act. My cognitive biases worked against me. 

Understandably, contracts could be clearer and more manageable to read and understand. Your attorney is a legal expert, and you are the expert in your business. Ensure the Contract addresses the terms essential for you and your situation. Once the attorney’s work is complete and the Contract signed, you and the other party are left following the terms daily.  

Rule 1: Always read the contract completely, always.

The more times you read it, the less confusing and intimidating it becomes. The attorney’s work is ensuring the Contract meets the legal standards. As a signer, you must understand every “nook and cranny” of the agreement.

Many industries use standard contracts approved by State, Builders, and Realtor Associations. When you read these contracts, you will see many “blank” areas relating to “dates,” “dollar amounts,” and “Other Terms” where exact details relating to your agreement can be added. 

Rule 2: Pay attention to the blank areas.

Ensure all dates, dollar amounts, deadlines, financing terms, and interest rates are included.

“A deal good today, will be a deal good tomorrow, or it’s no deal.” I like to say. 

Remember, even with an industry-standard contract, there should be a section for OTHER TERMS. This is where additional terms not covered in the Contract can be added. The reluctance of the other party to include or negotiate these special terms should be cause for caution.

Rule 3: Never feel rushed, pressured, or in a hurry.

Remember, it is your money and your agreement you will have to live with. Once signed, everyone “rushing” you will be gone. Take your time. If it doesn’t feel right, it isn’t.

Always be Learning. I overlooked Rule 2. Over-trusting the promises led to a “Begin By” date being left blank, leaving the other party with nearly unlimited time; this created an unstainable situation for me.  

“The first principle is that you must not fool yourself and you are the easiest person to fool.”

Richard P. Feynman

Rules 0-3 are instrumental before and during the contract negotiation phase. If done correctly and with foresight, potential conflicts can be reduced.

My project had been underway for nearly six months with little visible progress; something had to change; it was time for action.

The decision was made to cancel the Contract. My attorney indicated the contract terms would make cancellation challenging, making a breach likely, forefitting all funds, and risking penalties and litigation.  

In my attorney’s words:

“The terms of the Contract will make it an uphill battle to get any of your deposit back. But the larger issue is getting you out of the Contract entirely. Your notes on what should have been done and what was not done are helpful.

If the amount in dispute was under $25,000, we could file in General District Court and get a quick hearing and decision from the judge. Unfortunately, if the amount in dispute is greater than $25,000 the only option is circuit court where the discovery process (interrogatories, production of documents, depositions, and experts) make it much more time consuming and expensive process. Getting a trial in Circuit Court can take 9 months to a year.”

So we began. We started by communicating what led to this decision, indicated we desired to be fair and equitable, offered to pay for all services to date, requested a refund of any excess funds, and included a Cancellation of Contract Release form. This approach is the “it’s not you, it’s me.” At the same time, we offered complimenting to him and his Team. 

 “It’s Not You It’s Me”

We never indicated blame or requested an exact amount. I have found the best strategy when negotiating a monetary issue is to let the other party go first—shifting the perceived “power” to their side, reducing defensiveness. In most circumstances, their initial offer is more generous than I contemplated. 

Rule 4: Don’t blame; Offer Compliments; Let the other party go first.

Initial communications indicated his willingness to cooperate; he would get back to us once he calculated his time in the project. His delays dragged on. Every week, we would reach back out by email, reminding him of our desire to resolve this issue and the benefits he would achieve by releasing us from the Contract, i.e., re-selling the property.  

At the end of our rope, with no response and little leverage left, our final communication reiterated our desire to settle this matter quickly and equitably, reminding him that his lack of response left us no choice but to take further legal action.

Rule 5: Never threaten; Let the other party’s actions (or lack of action) determine the course.

Finally, an offer was received at the exact amount I had anticipated. RULE 4 worked. There was no need to negotiate; the Cancellation of Contract form was signed, and the check was in the mail.

This entire time-consuming process proved stressful and emotionally draining. I was more critical and upset with myself. I should have known better. I would have been better off if I only did what I told others to do. I wish to share my learning points through this ordeal as contained in my RULES. I hope you can benefit from my mistakes and learn from them.

Rule Zero: Have your Team assembled before they are needed.
Rule 1: Always read the contract completely, always.
Rule 3: Never feel rushed, pressured, or in a hurry.
Rule 4: Don’t blame; Offer Compliments; Let the other party go first.
Rule 5: Never threaten; Let the other party’s actions (or lack of action) determine the course.

I hope this post prevents someone from making the errors I did.

Never stop learning.

David

Keep Your Business Strategy Tight with a Ratchet Tool: Here’s How

Like a Ratchet that turns and tightens in only one direction, a strategy should proceed continuously, moving from Identify to Analyze, to Create, and then Implement

Strategy is the cornerstone for business success.
Strategy connects the present to the future.
Strategy brings focus and meaning to your tactics.
Strategy involves making decisions about the future and predicting the outcomes of those decisions.
Strategy is all these and complex too.

Question
If strategy is so important, why is it one of business’s most confusing and misunderstood disciplines?

Answer
Because strategy requires understanding, assessing, and weighing the importance of multiple variables, now and in the future.

Solution.
Reversing these challenges and understanding the strategic process starts with deconstructing the process into its essential elements.

“Simplicity is the ultimate sophistication.”

Leonardo DaVinci.

The Strategic Process progresses from Strategic Thinking to Strategic Planning to Strategic Decisions.

Strategic thinking > Strategic Planning > Strategic Decisions

Since strategy connects the present to the future, there should be a tool that helps guide and connect the parts. The Strategy Ratchet can be a helpful framework for seeing your strategy through to completion.

Like a Ratchet that turns and tightens in only one direction, a strategy should proceed continuously, moving from Identify to Analyze, to Create, and then Implement. With each loop and iteration, the strategy should align more tightly with your Vision.

Identify. (where are we?)

Complete honesty and transparency are needed here. No sugar coating. No Rose-colored glass, just the good, the bad, and the ugly. No problem-solving at this stage; identify where gaps exist. Time to see what’s “under the hood.” Look at products and services, operations, business financials, sales and marketing plans, market share, and IT. How do our products and services compare to our competitors? Is our present direction aligned with our Vision?

Analyze. (how far off are we?)

Time to quantify the problems and gaps identified. Look for sales, revenue, new products and services development gaps, and customer and employee satisfaction scores. Is market share growing or shrinking? By how much? What about financial performance, gross margins, profitability, and net income? How efficient are operations? What are gross margins, net income, and EBITDA?

Create. (what new ideas can close the gap?)

Moving forward requires seeing new possibilities. What future state and results are desired? What steps need to be taken to reach the desired goal? What needs to change to close the gaps identified in the Analyze step? Ideas and possibilities are endless; seeing them requires looking across disciplines to bring new insights and perspectives to problems. Breaking down the silos of conventional thought and replacing it with awareness and observation is a perfect place to start.

“Vision without Execution is hallucination.”
Thomas Edison

Implement. (how is action created?)

Strategies fail to reach their targets due to a lack of action and execution, not a lack of Vision and Mission. Continuous execution is essential. Strategy is a Team effort, so alignment, accountability, and rhythm are needed. Align actions by planning backward and executing forwards. Start with the goal and work backward to milestones and, finally, tasks that are accomplished daily. Accountability is required and can be used as a learning and training process. Celebrate team successes. At the same time, learn why goals were not met so performance can be improved during the next iteration. Finally, let the team establish their rhythm and develop a dashboard with key performance metrics to track progress.

Summary

Give the Strategy Ratchet a try. See if it helps you understand better this complex and confusing topic. Remember, too, your strategy must continue beyond Vision, Goals, and Objectives; execution and action bring it to life. This quote from VanGogh sums it all up the best:

“Great things are done by a series of small things brought together.”
Vincent VanGogh

 

100% GPT-3 Free

Should AI-generated or AI-FREE content be labeled?

I am dating myself here, but I remember the ad along with cassette tapes…

“Is it live, or is it Memorex? Who knows?”

Marketers create labels that send signals and messages to consumers.
Industries and producers go to great lengths to differentiate their products by indicating what’s in and, even more importantly, what’s not in them.
We have all seen these labels that influence our purchasing choices and decisions;

100% gluten-free, nut-free, dairy-free, trans-fat-free, lactose-free, sugar-free, corn-free, soy-free, egg-free, alcohol-free, GMO-free, Paraben-free, and additive free.

Should AI-Free content be labeled too?  If it is, will that influence what content is given credence and consumed and what is ignored?  We need more Signal and Less noise.  
*This post is 100% human and 100% GPT-3 Free.

 

Sharpen Your Strategic Thinking Here

Strategic thinking integrates analytical skills, problem-solving skills, creative skills, communication skills, along with management skills.

 

Strategic Thinking is the hard stuff of business.

If you are looking for a few ideas to strengthen your strategic thinking, sharpen your ability to see new solutions, think more critically, and be more analytical to help impact your business’s growth and competitiveness, then keep reading.

Strategic thinking is critical for all organizations since it charts the path between the present and the future and helps leaders shift their focus from short-term execution to the longer-term needs of the organization. For this reason, strategic thinking skills are highly desirable and worthy of improvement through learning, study, and practice. 

“Knowing the name of something doesn’t mean you understand it.”

Richard Feynman

The Skills of Strategic Thinking

Strategic thinking integrates analytical skills, problem-solving skills, creative skills, communication skills, along with management skills. These skills can tremendously impact a business’s trajectory, growth, and competitiveness in the marketplace. These skills are essential, allowing a business to achieve its objectives, overcome obstacles, and address challenges it faces in the markets.

  • Analytical skills: A strategy starts by understanding objective data from your business, markets, and stakeholders. These inputs include financial statements, KPIs, industry trends, market conditions, and vendor and stakeholder perspectives. This step helps define the current reality facing your business.
  • Problem-solving skills: Strategic planning is often used to solve problems or address challenges, such as missed financial targets, inefficient workflows, or an emerging competitor. Implementing a strategy addressing your central challenge requires understanding the problem and its potential solutions. From there, you can craft a strategy that solves it.

“A real strategy is a coherent mix of policy and action designed to overcome a significant challenge” 

Richard P. Rumelt

  • Creative Skills: An excellent strategist can integrate data analysis with problems and challenges to generate new approaches and ideas. Developing your competitive advantage requires understanding your firm’s unique resources and capabilities and leveraging them in new ways not previously available in the market. These new approaches require one to see “between, around, and through” the obvious to find a new path forward.
  • Communication skills: Implementing a strategy for your company requires exceptional communication skills. Strategy can appear complex making it essential that all stakeholders understand and are aligned, so everyone works toward the same goals and objectives. Building teamwork, consensus, and collaboration make communication critical to strategic success.
  • Management skills: Strategy isn’t just about thinking of solutions; it requires action to achieve results. Once data has been analyzed, the problem is understood, and a solution has been created and communicated, you need strong management skills to bring everything together.

With the core Strategic Skills outlined, let’s work on improving them. The good news, like any skill, your strategic thinking skills can improve with focus and practice.

TO IMPROVE YOUR STRATEGIC THINKING SKILLS…try the following.

  • Ask the hard questions. To improve your strategic thinking skills, ask more challenging questions. These questions can relate to products, markets, management, or any question that points to adding value for the customer. Doing so allows you to become adept at spotting opportunities, and exploiting opportunities is what strategy does.
  • Observe and analyze. Use Reality Testing to see things as they are rather than how you would like them to be. One of the most effective ways of accomplishing this is to observe and reflect on your current situation, ensuring any strategy you conceive is objective and grounded by facts.  

“The first principle is that you must not fool yourself and you are the easiest person to fool.”

Richard Feynman

  • Play the Devil’s Advocate. Before implementation, your strategy requires thorough analysis, evaluation, and testing to ensure other possibilities are noticed. Play the Devil’s Advocate with your ideas, assertions, and analysis will make any weaknesses or shortcomings evident. You need to be able to defend your strategy when questioned by others. Defending your strategy against other Team members further hones your thinking and logic, helping you better communicate and execute the strategy. Considering opposing ideas, perspectives and opinions further enhances your strategic thinking skills by forcing you to step back and look at the short and long-term views.
  • Always keep learning. The body of knowledge related to strategy is massive. Learn from your work and the experiences of others, as well as books, references, journals, society memberships, presentations, and conferences. Be committed to constant learning and self-improvement.

THE TAKEAWAY

Strategic thinking is essential for business today, regardless of your role or industry. Remember, you can practice these skills in your daily life as well. Try exercising these skills as you plan and face challenges in your own life. Finding an effective solution or alternative will be easier.

 

5 Key Mindsets for Business Growth

It turns out that achieving profitable growth comes from the “choices” a Leader makes.

Growth is essential for a business; leaders aspire to achieve it, yet for most, it remains elusive. McKinsey states that 25% of companies show no growth, and over the last decade, only 1 in 8 achieved more than 10% annual revenue growth. It turns out that achieving profitable growth comes from the “choices” a Leader makes.

Do you, as a leader, make a conscious choice to grow? Or do you pay lip service to your growth ambitions and let your resolve fade if profit isn’t immediate?

Sustainable growth is challenging, but choosing a growth mindset is the essential first step, and it’s readily available to every leader regardless of the industry, economy, or business size. These growth mindset leaders think, act, and speak differently. They seek to align strategy and capabilities with customer needs, wants, and desires. They explore and invest in opportunities both within and outside their core business. They maintain their direction, commitment, and growth vision despite unexpected turbulence and surprises.

A recent article by McKinsey and Company (see reference) explores the characteristics of these leaders who make a purposeful choice to grow and follow through on that choice. 

“…changes in thoughts and actions arising from choice can make the difference between sustained standout growth and remain with the pack.”

Although McKinsey’s research focused on C-Suite leaders of large corporations, there are actionable ideas that any entrepreneur interested in profitably growing their business can use immediately. Leaders who display at least 3 of the following five characteristics (see infographic) are 2.4 times more likely to outgrow their competitor’s profitability. 

GROWTH LEADERS…

1. Emphasize ACTION over PERFECTION.

2. Are WILLING to FAIL.

3. Know their CUSTOMERS as a PERSON.

4. FOCUS on LONG-TERM growth.

5. COMMUNICATE their SUCCESSES.

Action over Perfection. 

With clear strategic goals, objectives, milestones, and metrics, it is easier for leaders to make decisions in the face of uncertainty. This focus helps leaders maintain momentum even through turbulent times. Seeking more information or waiting for the perfect timing are merely stall tactics designed to put off making a decision. 

“Perfection is the enemy of progress.”

Winston Churchill

Be Willing to FAIL. 

Growth leaders understand that their core business maintains their current financial results but is unlikely to achieve profitable growth. Expanding the business by innovating into new markets, creating new businesses in adjacent markets, or building businesses through mergers and acquisitions is essential for long-term growth.

Know your Customers as a Person.

Market offerings must meet the needs of the customer. Capabilities and Competitive advantages must always relate to the customer, with all products and services providing customer solutions. 

Growth leaders can improve their chances of achieving growth by committing to innovation while identifying and understanding the needs and wants of their customers. Only by knowing the customer can the correct value propositions be developed that will appeal to them. 

“Don’t find customers for your products, find products for your customers.”

Seth Godin

Focus on Long-Term Grow.

While achieving excellence in current operations is critical, growth leaders rely less on historical budgets that feel “familiar.”, choosing instead to explore how to ignite growth. They adapted their operating model for the long term while understanding the risks inherent in the new businesses and markets they were developing. At times these “growth choices.” came at the expense of a few quarters of earnings while always envisioning their long-term growth aspirations. 

“Overnight success stories take a long time.” 

Steve Jobs

Growth leaders accelerate their results through strategic shifts to higher growth pockets within their current markets, innovate core products and services, and improve execution capabilities. They actively track and measure leading and lagging key performance indicators (KPIs) that align with organizational goals and incentives.

Communicate their Successes.

Growth leaders generate 80 percent more shareholder value than their peers over ten years. Beyond creating shareholder value, growth attracts top talent, fosters innovation, and creates jobs. Growth becomes the lifeblood of an organization, feeding the culture, elevating ambitions, and inspiring a sense of purpose. This growth story must be shared repeatedly by all, both inside and outside the organization, to continue to attract the star performers that will perpetuate the growth mindset.

“When you have a winning culture, employees can speak genuinely and convincingly about why your organization is a great place to work. And that naturally attracts people who are seeking exceptional workplaces.” Gallup

Choose the Growth Mindset today.

Making the deliberate choice to grow creates powerful momentum that drives the entire business toward its vision and creates alignment between executives and frontline employees. The 5 Mindsets for growth highlight essential elements leaders need today to achieve profitable, sustaining growth. Focus diligently once they have made a deliberate and purposeful choice to grow.

5 Key Mindsets for Business Growth

REFERENCES:

https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/choosing-to-grow-the-leaders-blueprint

https://www.gallup.com/workplace/237368/culture-wins-attracting-top-candidates.aspx

 

What Separates Good Strategy from Bad Strategy

Strategy’s primary objective is finding a path to overcoming obstacles a business faces.

 

Know as Strategy Strategist Richard Rumelt speaks powerfully regarding how Strategy’s primary objective is finding a path to overcoming obstacles a business faces. He emphasizes that Strategy focuses a firm’s resources and capabilities against opportunities. In contrast, today, what is thought to be Strategy is instead a combination of ambitions, desires, fluff, and buzzwords mashed up to sound intelligent.

“Fluff is superficial restatement of the obvious combined with a generous sprinkling of buzzwords.”
Richard P. Rumelt

On a recent podcast episode of Inside the Strategy Room by McKinsey & Co, Rumelt dives deep into what separates good Strategy from bad. He emphasizes a recent trend towards bad Strategy as CEOs, executives and boards copy what they see others doing. For Rumelt, many so-called strategies are actually a list of ambitions and desires, not strategies. Ambitions and desire feed and inspire your vision and mission, but not your strategy. Strategy is problem-solving, and Strategy is overcoming obstacles and barriers faced by businesses.

“Many bad strategies are just statements of desire rather than plans for overcoming obstacles.”
Richard Rumelt

Rumelt reminds us that if what we are doing is easy, it probably is not Strategy. Strategy is complex; it requires making choices and commitments that leave things behind. These choices and decisions are what make good Strategy so hard. Many Executives believe that Strategy must include everyone, but Strategy is not a democratic process. Traditional Strategy focuses on Product/Market performance along with Customers and Competition. It emphasizes the numbers and financials rather than understanding the problem. Leaders commit resources where they have a competitive advantage to increase market share or sales revenue. Strategy done in this manner leaves out Organizational Functioning and other inward-facing challenges a business faces. Many times these obstacles are just as significant as those of your competitors.

Strategy is about what is important and what challenges you face! Not just about products and services. A Strategy must be focused to be effective and achieve the results desired. Strategy must be challenge-based, not goal based. If your problem were easy to solve, you or your competitor would have done it already. All stakeholders must get honest and talk about what people don’t want to discuss.

A good Strategy must have a response to these questions:

What’s wrong?
What has gone well?
What are the challenges we face?
What are the big opportunities?
What are the obstacles?
What’s failing? What’s not working?
Why do some customers choose our competitors?

What problems and challenges can you make progress on; commit and make an action plan. Like a physician diagnosing a patient, stakeholders must first diagnose their business’s problems and challenges. For an organization to expend valuable time and resources on a problem, the problem must be:
1. important, and
2. capable of being solved.
Realize that maybe the thing we thought was a problem wasn’t a problem to be solved (because problems have solutions); maybe it was simply a situation or even a dead end.

“A good strategy honestly acknowledges the challenges being faced and provides an approach to overcoming them.”
Richard P. Rumelt

Rumelt talks about “The Crux,” the most challenging part of a mountaineer’s climb, in his most recent book with the same title. Don’t climb if you can not handle The Crux. Similarly, with Strategy, don’t tackle a problem if you can not handle the most challenging part, and every problem has a hard part. Strategy is best formulated by those that know the business best, the CEO, Managers, and Stakeholders. Outsiders and consultants focus on what they all understand best, Financial Accounting and Financial Statements. This emphasis on the financials slants Strategy and goals to numbers rather than obstacles and problems.

Your summary and takeaways.

Strategy does not require sorting through the differences between visions, missions, goals, strategies, objectives, and tactics. It does not require that Strategy be split between corporate, business, and product levels.
Rumelt states the “kernel” of Strategy contains three elements:
1. A diagnosis that defines the challenge or obstacle.
2. A guiding policy for dealing with or overcoming a challenge or obstacle.
3. A set of coherent actions designed to carry out the guiding policy.
So how does your Strategy compare? Do you have a good strategy? or do you need to reevaluate, recraft and redirect your resources to achieve the desired results?

References for the interested reader:

https://podcasts.apple.com/us/podcast/135-richard-rumelt-on-what-separates-good-strategy-from-bad/id1422814215?i=1000580323004

https://www.goodreads.com/book/photo/11721966-good-strategy-bad-strategy

https://www.goodreads.com/book/show/58895961-the-crux

1172196658895961. sy475

 

 

Should I Stay or Should I Go?

Stay Interviews are a great and budget-friendly tool managers can use to gauge employee satisfaction, company culture, and shared thinking on improving and growing the organization.

 

Executives have two roles; 1) creating value and 2) motivating talent. Value creation requires combining resources and capabilities to sustain competitive advantage in the marketplace. Motivating talent requires leveraging human capital through effective management so resources can achieve their highest productivity. Companies that have struggled to survive through the COVID pandemic now face an even more significant challenge, the “Great Resignation,” which has dramatically altered what an employer must do to motivate and retain talent.

A recent survey found more than half of working Americans will be looking for a new job in the next 12 months. Bankrate’s August 2021 Job Seeker Survey found that 55% are likely to do so. Another 28% said they’re not actively looking for a job but still expect to move companies in the next year. As a result, businesses are looking for creative ways to replace workers that have left their workplace.

Keeping the current workforce is critical to minimizing the challenges of hiring today. Businesses now use signing bonuses and dramatically higher wages to help attract new workers. As retention efforts escalate, intelligent employers are instituting something new; “stay interviews .”A Stay Interview is the opposite of an Exit Interview: Instead of asking why an employee is quitting, a stay interview focuses on what motivates the employee to stay employed, what could be better about their work experience, and how they envision the next stage of their career within the organization.

Stay Interviews are a great and budget-friendly tool managers can use to gauge employee satisfaction, company culture, and shared thinking on improving and growing the organization. Managers who conduct stay interviews can retain top talent, engage their employees, and lower employee attrition in ways that others cannot.

A Stay Interview is a structured discussion a leader conducts with an individual employee to learn specific actions the leader can take to strengthen the employee’s engagement and retention with the organization. Managers are best suited to perform the stay interview since they have a more profound knowledge of the challenges employees face daily and potentially more power to make necessary changes. Stay Interviews can boost morale and workplace engagement by signaling to the employee that you are interested in their perspective on the job and the company and willing to make adjustments if necessary to keep them and keep them happy.

Some guidelines to follow as you plan for your Stay Interviews.

These interviews should be held privately with preplanned questions to keep the conversations productive and on track. Notify the employees that you will be conducting “stay interviews” with the workforce to uncover what makes them happy at work and what can be changed if needed.
There are many good interview questions that you can use for these conversations. The best questions to get the employee to share rich and detailed ideas are open-ended. These are some examples that the Society for Human Resource Management recommends:

  • What do you look forward to when you come to work each day?
  • What do you like most or least about working here?
  • What keeps you working at this company?
  • If you could change any one part of your job, what would that be?
  • What would make your job and overall work experience more satisfying?
  • How do you like to be recognized for your work?
  • What talents do you have that are not being used in your current role?
  • What would you like to learn more about, within or outside of your current role?
  • What motivates (or demotivates) you?
  • What can I do to best support you as your manager?
  • What can I do more of or less of as your manager?
  • How would you describe our company culture to a brand-new employee?
  • What might tempt you to leave?

Once the interviews are complete, the next step will be acting on the information received. If employees have provided honest, legitimate concerns, take steps to correct them.

Whatever insights you gather will be useless unless you are determined to act on them. After analyzing the findings of your Stay Interviews, one must reinforce what works, change what doesn’t, and assess how your efforts are working out. Importantly, you don’t need to do everything people tell you but prioritize the requests from those you deem more valuable.

So, are you ready to get to those Stay Interviews with your employees?

References:

https://www.bankrate.com/personal-finance/job-seekers-survey-august-2021

https://www.shrm.org/resourcesandtools/tools-and-samples/hr-forms/pages/stayinterviewquestions.aspx

https://www.fastcompany.com/90715052/how-to-conduct-a-stay-interview-with-your-employees-and-why-you-should

https://www.zenefits.com/workest/why-you-should-conduct-stay-interviews-to-retain-top-talent/

 

Got Strategy?

Strategy is complex; it involves making tough choices, choosing what to do, and choosing what not to do. Good Strategy changes the actions and behaviors of the organization’s workforce.

Every company says they have a Strategy; many do not, including those that believe they do.

Let’s start by seeing what Strategy is not. When the redundant, non-essential, and distracting elements are removed, what remains begins to look more like Strategy.

Strategy is critical to business success. Creating and executing an effective business strategy is a task that the CEO and C-Suite cannot readily delegate to others. When Strategy is weak, objectives are unclear, resources are not properly allocated, communication and marketing are inconsistent, competitive advantage is eroded, and financial goals are not met. Operating with a flawed strategy that is not a strategy at all will lead to poorer outcomes for the business.

Richard Rumelt in Good Strategy/Bad Strategy concisely states that to detect bad Strategy, look for one of the following:

1. Fluff: Bad Strategy is a simple statement of the obvious combined with a generous sprinkling of buzzwords creating the illusion of high-level thinking. It may sound Strategic but lacks any actionable direction.2. Failure to face the challenge: Bad Strategy does not define or recognize the business’s challenge.
3. Mistaking Goals for Strategy: Goals or desires are not strategies. Goals support the Mission; Strategy supports and directs how the Goals are to be achieved.
4. Bad strategic objectives: Strategic objectives are set by the leaders. Strategic objectives are wrong when they do not address critical issues or challenges.

Strategy is not Vision or Misson.
Strategy is not Goals or Objectives.
Strategy is not a Powerpoint presentation or slide deck.
Strategy is not a mashup of words with Strategy added to it.
Strategy is not just another good thing to do.

Strategy is complex; it involves making tough choices, choosing what to do, and choosing what not to do. Good Strategy changes the actions and behaviors of the organization’s workforce.

“Strategy brings relative strength against relative weakness.”

Richard Rumelt

Making these decisions is hard. It requires focusing on what you are building and letting go of that which no longer serves your objectives.

Letting go is hard.

So, how good is your Strategy?

Anticipate customer needs: a Strategic Choice

Creating unique market offerings begins with a strategic directive that is focused, a focus that requires knowing what resources are required to create your competitive advantage.

Predicting the future is not easy. Tarot Cards, Magic 8 Balls, and Crystal Balls are not strategic initiatives you would invest in.

Let’s consider the following instead.

Happy customers… are created when their needs are met.
Happy customers… tell others and share their stories about your brand.
Happy customers… leave clues.

Clues are customer needs.

By anticipating these needs, you can precisely position a product or service to meet those needs. Creating unique market offerings begins with a strategic directive that is focused, a focus that requires knowing what resources are required to create your competitive advantage. Magnify what makes you different.

“Strategy involves focus and, therefore, choice.  And choice means setting aside some goals in favor of others.  When this hard work is not done, weak amorphous strategy is the result.”

Richard Rumelt

Use this to win and delight your customers. Stand out in the marketplace; it will be easier for your customers to find you. With this combination, all stakeholders will be happy,  and so will your bottom line.