Staying focused on what matters
Strategic and business planning can feel complex and filled with all sorts of information. Data, industry trends, performance standards, customer dynamics, labour costs and many more. In the face of this leaders and organisations are tempted to reduce the complexity to unhelpful, simplistic slogans of expectation: ‘Do more with less’, ‘Work smarter, not harder’, ‘Change is the only constant.’ In the midst of this managers and staff can feel disappointed in their leaders and overwhelmed by their situation.
Planning is an ongoing thinking process that periodically crystallises in a formal plan or review.
There are many routines that can be used in the planning process but the one thing it always needs is effective thinking. Some approaches to effective thinking are:
Innovative Thinking
Jame Utterback demonstrated in his research that new innovations come from old capabilities. Innovative thinking in organisations requires looking at the elements of current capability and find ways they can work together for new outcomes. This includes introducing new technologies or practices from outside of the organisation. Innovation is rarely a completely unprecedented capability in an organisation. Creative thinkers never assume that past practices are still the best way to get a result.
Dialectics
Philosophers have explored the dialectic method of thinking since the beginning of recorded eastern and western thought. Basically it is the thinking process, often through dialogue, of taking contrary beliefs or the changing nature of things as a starting point to uncovering a more accurate or truthful view of things. No single starting point is assumed to be the complete truth. An organisation committed to effective thinking will bring ideas together to help find the best way forward. This fails when petty politics, executive rivalry or technical bias turns the conversation into a win-lose competition rather than an exploration of possibilities by sharing different perspectives.
Peripheral voices
Thinking is done by real people in living organisational cultures. This means that we must approach our assumptions with caution as they might simply represent our bias or cultural norms. We don’t see their inadequacies because they are our assumptions so we don’t question them. A simple way for organisations to challenge and review its assumptions is to listen to voices from the periphery. These are people or proposals that often seem irritating, impractical or disruptive. What they offer though is an alternative view about what is happening in the organisation and what could be done. Innovation rarely comes from established practices or institutions, so listening to the radicals is a great resource for effective thinking.
Evidence based decisions
One of the great ways forward for getting reliable results is the use of evidence-based decisions. This moves people away from beliefs or prejudice. Decisions are based on evidence that there is an issue or opportunity at stake and ensuing proposals require evidence as to their viability. Decision making processes that facilitate the gathering and assessment of evidence can remove acrimony or competition from decisions and unite people around a clear path forward.
Self-aware thinking
People often like to think of their ideas as clear, unbiased and accurate. The human mind is more complex than that and thinking processes are easily disrupted by culture and inaccurate information. An important part of effective thinking is cultivating self-awareness to identify bias, fallacies and inaccuracies. Often the most useful breakthroughs in our thinking are accompanied by unpleasant feelings. It is not always exciting to discover the limitations to what we think and believe. As a result, organisations are primed to undermine effective thinking to avoid embarrassing or upsetting others. Or worse, they actively discourage others by humiliating people for getting things wrong or being out of date. Building trust, applying good communications skills and selecting language carefully can help people move beyond assumptions and explore new insights,
Planning is an ongoing thinking process that periodically crystallises in a formal plan or review.
There are many routines that can be used in the planning process but the one thing it always needs is effective thinking. Some approaches to effective thinking are:
Innovative Thinking
Jame Utterback demonstrated in his research that new innovations come from old capabilities. Innovative thinking in organisations requires looking at the elements of current capability and find ways they can work together for new outcomes. This includes introducing new technologies or practices from outside of the organisation. Innovation is rarely a completely unprecedented capability in an organisation. Creative thinkers never assume that past practices are still the best way to get a result.
Dialectics
Philosophers have explored the dialectic method of thinking since the beginning of recorded eastern and western thought. Basically it is the thinking process, often through dialogue, of taking contrary beliefs or the changing nature of things as a starting point to uncovering a more accurate or truthful view of things. No single starting point is assumed to be the complete truth. An organisation committed to effective thinking will bring ideas together to help find the best way forward. This fails when petty politics, executive rivalry or technical bias turns the conversation into a win-lose competition rather than an exploration of possibilities by sharing different perspectives.
Peripheral voices
Thinking is done by real people in living organisational cultures. This means that we must approach our assumptions with caution as they might simply represent our bias or cultural norms. We don’t see their inadequacies because they are our assumptions so we don’t question them. A simple way for organisations to challenge and review its assumptions is to listen to voices from the periphery. These are people or proposals that often seem irritating, impractical or disruptive. What they offer though is an alternative view about what is happening in the organisation and what could be done. Innovation rarely comes from established practices or institutions, so listening to the radicals is a great resource for effective thinking.
Evidence based decisions
One of the great ways forward for getting reliable results is the use of evidence-based decisions. This moves people away from beliefs or prejudice. Decisions are based on evidence that there is an issue or opportunity at stake and ensuing proposals require evidence as to their viability. Decision making processes that facilitate the gathering and assessment of evidence can remove acrimony or competition from decisions and unite people around a clear path forward.
Self-aware thinking
People often like to think of their ideas as clear, unbiased and accurate. The human mind is more complex than that and thinking processes are easily disrupted by culture and inaccurate information. An important part of effective thinking is cultivating self-awareness to identify bias, fallacies and inaccuracies. Often the most useful breakthroughs in our thinking are accompanied by unpleasant feelings. It is not always exciting to discover the limitations to what we think and believe. As a result, organisations are primed to undermine effective thinking to avoid embarrassing or upsetting others. Or worse, they actively discourage others by humiliating people for getting things wrong or being out of date. Building trust, applying good communications skills and selecting language carefully can help people move beyond assumptions and explore new insights,
Creating value is the core purpose of any organisation.
The type of value varies. A financial services provider might express value in terms of money, financial security or lifestyle options for its customers. A government organisation might focus on regulation, development or economic and social stability and growth. A not-for-profit might focus on a community benefit or help for disadvantaged people.
Knowing what value your organisation is creating is critical for focus and direction. The Enrichment Axis on the Performance Panel focuses on this issue. The Value Hexagon is about the type of value. The Design Hexagon is about how that value can be created and delivered.
Thinking about value is complex. At its simplest it can be done by responding to what your investors and customers ask for. Sometimes it involves educating them about new possibilities, products and services.
Value also takes place at different levels. There is the practical, immediate solution that your product or service provides. But remaining at that level can reduce your value to a commodity, no different to any alternative service with similar attributes.
Using Moral Foundations Theory, first developed by Jonathan Haidt and Craig Joseph, always leads to a deeper understanding of the value people seek. It helps organisations explore the deeper reasons behind why people value something, such as care, fairness, liberty, belonging, authority and integrity.
Using design theory concepts helps people explore how they can do things differently and maximise the value they create for others. Design considers elements such as resources, effort, ease of use, applicability, results and maintenance, all of which determine whether your product or service provides people with a sustainable solution that meets a need with minimal effort on their part.
Considering these elements from the Enrichment Axis helps organisations and teams build a reliable foundation for their focus and direction. Knowledge of value and how to best deliver it provides criteria for whether to continue or discontinue things, where to invest in innovation and what to prioritise.
The type of value varies. A financial services provider might express value in terms of money, financial security or lifestyle options for its customers. A government organisation might focus on regulation, development or economic and social stability and growth. A not-for-profit might focus on a community benefit or help for disadvantaged people.
Knowing what value your organisation is creating is critical for focus and direction. The Enrichment Axis on the Performance Panel focuses on this issue. The Value Hexagon is about the type of value. The Design Hexagon is about how that value can be created and delivered.
Thinking about value is complex. At its simplest it can be done by responding to what your investors and customers ask for. Sometimes it involves educating them about new possibilities, products and services.
Value also takes place at different levels. There is the practical, immediate solution that your product or service provides. But remaining at that level can reduce your value to a commodity, no different to any alternative service with similar attributes.
Using Moral Foundations Theory, first developed by Jonathan Haidt and Craig Joseph, always leads to a deeper understanding of the value people seek. It helps organisations explore the deeper reasons behind why people value something, such as care, fairness, liberty, belonging, authority and integrity.
Using design theory concepts helps people explore how they can do things differently and maximise the value they create for others. Design considers elements such as resources, effort, ease of use, applicability, results and maintenance, all of which determine whether your product or service provides people with a sustainable solution that meets a need with minimal effort on their part.
Considering these elements from the Enrichment Axis helps organisations and teams build a reliable foundation for their focus and direction. Knowledge of value and how to best deliver it provides criteria for whether to continue or discontinue things, where to invest in innovation and what to prioritise.
Good strategic or business planning addresses all dimensions of the organisation and its relationship with stakeholders. While certain key metrics are important, such as profit and loss, market share, or in the case of a not-for-profit, the target community benefit, they cannot be fully addressed without looking at important organisational priorities. Effective planning incorporates internal processes, stakeholder management, operational and product improvement and innovation. All of these rely on people as well as systems.
Perhaps the most famous example of integrated planning is the Toyota Production System. Toyota describes it as a set of principles with three desired outcomes:
In the Performance Panel, the Integration Hexagon focuses on people, leaders and culture. This combination covers the way people operate, think and feel in the organisation. Focus on people and help them succeed. Build leaders who value people and improve the organisation. Continually examine cultural norms and assumptions to dismantle degrading elements and reinforce positive elements.
In the planning process there is no point setting goals if there is no exploration of how the organisation can be mobilised to achieve them. Gung ho slogans and stretch targets are useless unless grounded in what is possible. This requires understanding the potential of people and the organisation then implementing ways to realise that potential. Focusing on the three areas of leaders, people and culture, an organisation can set up its own principles and targets for how people will build and operate a successful organisation that achieves it goals.
Perhaps the most famous example of integrated planning is the Toyota Production System. Toyota describes it as a set of principles with three desired outcomes:
- To provide the customer with the highest quality vehicles, at lowest possible cost, in a timely manner with the shortest possible lead times.
- To provide members with work satisfaction, job security and fair treatment.
- To give the company flexibility to respond to the market, achieve profit through cost reduction activities and long-term prosperity.
In the Performance Panel, the Integration Hexagon focuses on people, leaders and culture. This combination covers the way people operate, think and feel in the organisation. Focus on people and help them succeed. Build leaders who value people and improve the organisation. Continually examine cultural norms and assumptions to dismantle degrading elements and reinforce positive elements.
In the planning process there is no point setting goals if there is no exploration of how the organisation can be mobilised to achieve them. Gung ho slogans and stretch targets are useless unless grounded in what is possible. This requires understanding the potential of people and the organisation then implementing ways to realise that potential. Focusing on the three areas of leaders, people and culture, an organisation can set up its own principles and targets for how people will build and operate a successful organisation that achieves it goals.
Many organisations have visions but might not realise that they can do more harm than good.
What is the point of organisational visions and goals? Their motivational effect. They give people things to achieve and align the priorities of the organisation. Where they become harmful is when they are unachievable. Visions that are vague, unrealistic or out of the control of the organisation cannot motivate people except as a short-live, naive enthusiasm, likely to be crushed by the following sense of powerlessness, disillusion or failure.
Effective visions and goals are within the control of the people in the organisation. They can be planned, acted upon and use available or accessible resources. They are deliverable in a period of time that is short enough to be remembered without becoming part of the furniture. Most importantly, they lead people to achieve what they said they would achieve. They create an experience of contributing to the success of the organisation.
When claims are beyond the control of the organisation they are fanciful, stressful and ultimately demotivating and disenchanting. People get enthusiastic, imagine the outcome and put in a lot of effort only to find they cannot make the claim real. To act as if one can control and influence what is beyond one’s control is a recipe for ruining the health of people and the organisation.
To avoid delusional confusion about visions and goals it helps to keep a few concepts in mind and there separate purposes for the organisation.
Aspirations
Aspirations are a sense of purpose and a hope for how the organisation will contribute to the world or relevant group. Aspirations are sometimes written as a vision but when this is done they produce a vision that ultimately betrays people because they cannot be achieved. For example, an aspiration for a health care organisation may be “To make a healthier, more caring world.” This is something it can contribute to but is certainly beyond its control. It is a statement of aspiration and purpose that gives meaning and an underlying value to what the organisation does. It answers the question, “What is your organisation for?”
Vision
Visions are what we can actually build and do. They are observable, measurable, achievable and are about what the organisation will make of itself for its investors, people, customers and other stakeholders. It needs to be observable and measurable so people can know whether they are making it real and how they are progressing towards the vision. As such, the vision forms the foundational criteria for marking progress and achievement.
Continuing with the example of the health care organisation, let’s imagine it is a skin cancer clinic. For it to contribute to its aspiration of a healthier, more caring world it has to be effective, profitable, reliable and accessible. So it might produce a vision for the next five years for making itself “The leading regional provider of cost effective, fast and reliable skin cancer diagnosis and referrals for treatment.” It can measure its progress toward making this vision real by accessing data from funding providers and insurance companies. It can also use its own data about missed diagnoses and it’s ability to negotiate quick access to treatment. In this vision is has a practical set of priorities within its control that clearly contribute to a healthier, more caring world.
Goals
Goals start to link the aspiration and vision into the practicalities of business operations. Goals are the milestones along the way to making the vision real. The describe practical outcomes that have to be achieved so the vision can happen. Goals start to correlate with the priorities in executive performance plans, the deliverables they must produce over time.
Continuing with the skin cancer clinic, executives might end up with goals concerning facilities, plant and equipment, quality improvement, marketing, staff development and financial accountability. The details will depend on the assessment of the size and nature of the gap between the organisation’s current position and what it will be like once the vision is achieved.
Values
Values describe the priority thinking, behaviours and outcomes that are required in the organisation if it is to achieve its vision and goals. They are what must be valued for the organisation to succeed. As illustrated by the Toyota Production System in the Integrating the whole business section above, setting a matching set of values directs and guides the multitude of unprogrammed thoughts, decisions, observations and encounters across the organisation each day. The principles embedded in the values help people to focus on what they need to do to help the organisation succeed.
Back to our clinic, it could include in its values “building client confidence to deal with their condition.” As each person in the organisation deals with a client they make different choices about how they can achieve this. The clinician might recognise that one client is emotionally fine but another is overwhelmed by the diagnosis so takes extra time talking them through a treatment plan. The administrative staff might offer reassuring words when they see them worried while making the next appointment. They could also remind them of the support services available as they go through treatment or even offer to facilitate booking the specialist consultation before the client leaves. This value clearly expresses the aspiration of a more caring world but also increased the likelihood of the vision’s commitment to referrals for treatment by encouraging the client to take the next steps when they are at risk of procrastinating or avoiding dealing with their condition.
Objectives
Objectives are the responsibilities of leaders and teams, translating the goals into what they will get done to help achieve the goals and build the vision. These are the tasks and outcomes to go in operational plans for the year, filtering into individual performance agreements and learning and development plans. To use an analogy, if a sports team’s vision is to win the premiership, its goal it to improve its quality of play, its values are hard work, fitness and cooperation, each round in the season requires objectives, the plan and actions required for each particular game, based on the team’s condition and who it is playing. Likewise, each year or half year, a team sets its objectives to make sure it does its bit so the organisation can achieve its goals. In some professions, such as computer programming, the objectives might be set weekly or fortnightly.
Back in our clinic we can imagine the practice manager sitting down each month with staff looking at data about the number of consultations, client feedback and patient outcomes. The team can discuss what it needs to do in response to this data and set out to act on it.
What is the point of organisational visions and goals? Their motivational effect. They give people things to achieve and align the priorities of the organisation. Where they become harmful is when they are unachievable. Visions that are vague, unrealistic or out of the control of the organisation cannot motivate people except as a short-live, naive enthusiasm, likely to be crushed by the following sense of powerlessness, disillusion or failure.
Effective visions and goals are within the control of the people in the organisation. They can be planned, acted upon and use available or accessible resources. They are deliverable in a period of time that is short enough to be remembered without becoming part of the furniture. Most importantly, they lead people to achieve what they said they would achieve. They create an experience of contributing to the success of the organisation.
When claims are beyond the control of the organisation they are fanciful, stressful and ultimately demotivating and disenchanting. People get enthusiastic, imagine the outcome and put in a lot of effort only to find they cannot make the claim real. To act as if one can control and influence what is beyond one’s control is a recipe for ruining the health of people and the organisation.
To avoid delusional confusion about visions and goals it helps to keep a few concepts in mind and there separate purposes for the organisation.
Aspirations
Aspirations are a sense of purpose and a hope for how the organisation will contribute to the world or relevant group. Aspirations are sometimes written as a vision but when this is done they produce a vision that ultimately betrays people because they cannot be achieved. For example, an aspiration for a health care organisation may be “To make a healthier, more caring world.” This is something it can contribute to but is certainly beyond its control. It is a statement of aspiration and purpose that gives meaning and an underlying value to what the organisation does. It answers the question, “What is your organisation for?”
Vision
Visions are what we can actually build and do. They are observable, measurable, achievable and are about what the organisation will make of itself for its investors, people, customers and other stakeholders. It needs to be observable and measurable so people can know whether they are making it real and how they are progressing towards the vision. As such, the vision forms the foundational criteria for marking progress and achievement.
Continuing with the example of the health care organisation, let’s imagine it is a skin cancer clinic. For it to contribute to its aspiration of a healthier, more caring world it has to be effective, profitable, reliable and accessible. So it might produce a vision for the next five years for making itself “The leading regional provider of cost effective, fast and reliable skin cancer diagnosis and referrals for treatment.” It can measure its progress toward making this vision real by accessing data from funding providers and insurance companies. It can also use its own data about missed diagnoses and it’s ability to negotiate quick access to treatment. In this vision is has a practical set of priorities within its control that clearly contribute to a healthier, more caring world.
Goals
Goals start to link the aspiration and vision into the practicalities of business operations. Goals are the milestones along the way to making the vision real. The describe practical outcomes that have to be achieved so the vision can happen. Goals start to correlate with the priorities in executive performance plans, the deliverables they must produce over time.
Continuing with the skin cancer clinic, executives might end up with goals concerning facilities, plant and equipment, quality improvement, marketing, staff development and financial accountability. The details will depend on the assessment of the size and nature of the gap between the organisation’s current position and what it will be like once the vision is achieved.
Values
Values describe the priority thinking, behaviours and outcomes that are required in the organisation if it is to achieve its vision and goals. They are what must be valued for the organisation to succeed. As illustrated by the Toyota Production System in the Integrating the whole business section above, setting a matching set of values directs and guides the multitude of unprogrammed thoughts, decisions, observations and encounters across the organisation each day. The principles embedded in the values help people to focus on what they need to do to help the organisation succeed.
Back to our clinic, it could include in its values “building client confidence to deal with their condition.” As each person in the organisation deals with a client they make different choices about how they can achieve this. The clinician might recognise that one client is emotionally fine but another is overwhelmed by the diagnosis so takes extra time talking them through a treatment plan. The administrative staff might offer reassuring words when they see them worried while making the next appointment. They could also remind them of the support services available as they go through treatment or even offer to facilitate booking the specialist consultation before the client leaves. This value clearly expresses the aspiration of a more caring world but also increased the likelihood of the vision’s commitment to referrals for treatment by encouraging the client to take the next steps when they are at risk of procrastinating or avoiding dealing with their condition.
Objectives
Objectives are the responsibilities of leaders and teams, translating the goals into what they will get done to help achieve the goals and build the vision. These are the tasks and outcomes to go in operational plans for the year, filtering into individual performance agreements and learning and development plans. To use an analogy, if a sports team’s vision is to win the premiership, its goal it to improve its quality of play, its values are hard work, fitness and cooperation, each round in the season requires objectives, the plan and actions required for each particular game, based on the team’s condition and who it is playing. Likewise, each year or half year, a team sets its objectives to make sure it does its bit so the organisation can achieve its goals. In some professions, such as computer programming, the objectives might be set weekly or fortnightly.
Back in our clinic we can imagine the practice manager sitting down each month with staff looking at data about the number of consultations, client feedback and patient outcomes. The team can discuss what it needs to do in response to this data and set out to act on it.
An effective focus and direction is integrated through the whole organisation. Everyone is contributing to the organisation’s priorities. The board and CEO can focus on the strategic direction while using the planning and reporting framework to ensure that progress is being made.
At every level in the organisation the work plan and productivity targets are determined by their link to the focus and direction. This includes individual performance and learning agreements.
Some cautions are necessary though.
Centralised planning that is to rigid and immersed in the details can stifle initiative, productivity and innovation. Organisations benefit by building the capability of people at all levels to think about better ways to get results.
The organisation also needs to be transparent with its people about variations to the focus and direction. Every plan is a prediction but what happens in life is not determined by the prediction. Variations in consumer demand, economic shocks, disruptive technology and government regulations all influence whether planned targets can be achieved and how. While good strategic planning engages stakeholders and uses reliable data to help develop accurate predictions the simple fact is shocks can come without clear warning. Contingency planning and flexibility are parts of maintaining an realistic focus and direction. This includes the ability to work with people when unexpected changes are needed.
Customer focus is always important. It doesn’t help an organisation if people are so focused on doing their tasks, because that is what is in their plan, that they become insensitive to customer needs. Just as the organisation might face unexpected changes, so too do customers. How this is managed is critical to the reputation of the organisation and its brand.
It is also important to be open with people about the limits to the vision. Organisations, divisions and branches don’t stay the same forever. The bull and bear elements of economic cycles can require different strategies. Changes can force restructure, business ownership changes and in government the changes happen potentially every three to five years, depending on the election cycle.
It is important for government organisations to acknowledge the underlying limit to their vision and departmental identity. Machinery of government changes are when departments are dismantled or built, or branches and functions move between departments. These potentially occur each time a government changes its cabinet portfolio or when there is a significant policy change. If organisations invest too heavily in their departmental identity rather than the underlying government identity as a public service, the changes likely to occur every few years can undermine people’s confidence in future strategies and visions.
At every level in the organisation the work plan and productivity targets are determined by their link to the focus and direction. This includes individual performance and learning agreements.
Some cautions are necessary though.
Centralised planning that is to rigid and immersed in the details can stifle initiative, productivity and innovation. Organisations benefit by building the capability of people at all levels to think about better ways to get results.
The organisation also needs to be transparent with its people about variations to the focus and direction. Every plan is a prediction but what happens in life is not determined by the prediction. Variations in consumer demand, economic shocks, disruptive technology and government regulations all influence whether planned targets can be achieved and how. While good strategic planning engages stakeholders and uses reliable data to help develop accurate predictions the simple fact is shocks can come without clear warning. Contingency planning and flexibility are parts of maintaining an realistic focus and direction. This includes the ability to work with people when unexpected changes are needed.
Customer focus is always important. It doesn’t help an organisation if people are so focused on doing their tasks, because that is what is in their plan, that they become insensitive to customer needs. Just as the organisation might face unexpected changes, so too do customers. How this is managed is critical to the reputation of the organisation and its brand.
It is also important to be open with people about the limits to the vision. Organisations, divisions and branches don’t stay the same forever. The bull and bear elements of economic cycles can require different strategies. Changes can force restructure, business ownership changes and in government the changes happen potentially every three to five years, depending on the election cycle.
It is important for government organisations to acknowledge the underlying limit to their vision and departmental identity. Machinery of government changes are when departments are dismantled or built, or branches and functions move between departments. These potentially occur each time a government changes its cabinet portfolio or when there is a significant policy change. If organisations invest too heavily in their departmental identity rather than the underlying government identity as a public service, the changes likely to occur every few years can undermine people’s confidence in future strategies and visions.