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Tag Archives: strategic planning

Evolving Leadership: Guiding Your Team Through Growth

NYC Executive Coaching avatarPosted on January 28, 2025 by Doug BrownJanuary 28, 2025

Editor’s Note: Growing a business requires not only robust, scalable systems but also leadership that adapts as well. In the third article of this series, we delve into how leadership roles must evolve as the organization grows. We’ll discuss the shift from hands-on management to strategic oversight and the importance of fostering a culture that supports sustainable growth.

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Leadership plays a pivotal role in any organization’s success, but as companies grow, the demands on leaders can evolve and increase significantly. What worked within your smaller, more entrepreneurial setting may not be effective in the larger, more complex organization. In this third article of our series, we examine how leadership must adapt to guide a growing organization successfully, drawing on principles from Designed to Scale.

 

The Leadership Shift: From Operational to Strategic

In the early growth stages of a business, leaders are often deeply involved in day-to-day operations. They make quick decisions, solve problems directly, and have a hands-on approach to managing their teams. However, as the organization succeeds, this level of involvement becomes unsustainable. The leader’s role must shift from operational management to enterprise-level strategic oversight.

This shift requires a change in mindset. Instead of focusing on the immediate tactical tasks, leaders need to think long-term, anticipate challenges, and position the company for future success. Delegating more operational responsibilities to trusted managers and focusing on the bigger picture—setting the direction for the organization, aligning teams around common goals, and fostering an environment that supports innovation and growth must become the norm. As one of my retired colleagues, Mike Sleppin, often quipped, “If the Generals are in the foxholes with the corporals and privates, who is running the war”?

 

Building a Leadership Team

Building a strong leadership team is crucial as an organization scales because no single leader can manage everything alone. This team should consist of individuals with expertise in their respective functional areas but, equally important, share the company’s core values and vision. Creating a cohesive leadership team is undoubtedly hard work, but it helps ensure that all aspects of the business are aligned and moving in the same direction.

Designed to Scale emphasizes the importance of hiring leaders who are not only skilled but also adaptable. In a growing organization where change is constant, leaders must navigate this change effectively. They should be capable of leading their teams through transitions, whether integrating new technologies, entering new markets, or scaling operations.

 

Fostering a Growth-Oriented Culture

Leadership isn’t just about managing tasks—it’s about consciously shaping the organization’s culture. A growth-oriented culture encourages innovation, embraces change, and rewards those continuously seeking improvement. Leaders play a key role in cultivating this culture by setting the tone and leading by example.

Communication is a critical component of this. As organizations grow, ensuring everyone is on the same page becomes more challenging. Leaders must invest their energy in prioritizing clear, consistent communication to align teams around the company’s goals and ensure everyone understands their role in achieving them.

‍Moreover, leaders should focus on empowering their employees. I recommend that growing organizations move from a hierarchical command-and-control decision-making structure to a flatter, decentralized model. Leaders must develop the confidence and trust in their teams to make sound decisions after providing them with the tools and information they need to succeed.

 

Actionable Steps for Executives

  1. Evaluate Your Leadership Approach: Reflect on how your role has evolved as your company has grown. Are you still too involved in day-to-day operations? Consider how you can shift your focus to more strategic responsibilities.
  2. Build a Strong Leadership Team: Identify the key areas of your business that require strong leadership. Invest in hiring or developing skilled leaders who will easily align with your company’s values and vision.
  3. Foster a Growth-Oriented Culture: Encourage innovation and continuous improvement within your organization. Lead by example, and ensure that your actions reflect the values and behaviors you want to see in your team.
  4. Prioritize Communication: As your organization grows, communication becomes more challenging and critical. Implement systems and practices that ensure clear, consistent communication across all levels of the organization.

 

Only by evolving your leadership style and building a strong leadership team can you better guide your organization through the complexities of growth. Ultimately helping your company scale effectively and remain agile, innovative, and aligned with its core values.

In the final article of our series, we’ll explore the role of organizational culture in scaling. We’ll discuss how to preserve and strengthen your culture as your company grows and why this is vital for long-term success.

Posted in Leadership Development | Tagged business growth, effective leadership, scalable systems, strategic planning

Navigating the Road to Success: Strategic and Operating Plans Explained

NYC Executive Coaching avatarPosted on November 6, 2023 by Doug BrownNovember 6, 2023

In the world of business management, the secret to a company’s ongoing success often lies in adequately assessing vulnerabilities and careful planning. This planning usually splits into two crucial paths: the strategic and operating plans. Understanding these distinctions, differentiating between these plans, and using them effectively is vital when leading an organization.

Cracking the Code: Strategic vs. Operating Plans

Strategic Plan

Top management usually crafts a strategic plan, laying out the long-term direction and goals of the organization, generally stretching over three to five years. It contains the organization’s mission, vision, and central values. It serves as a clear roadmap, aligning the company’s resources and efforts to reach set long-term objectives.

Strategic thinking includes a deeper analysis than is customarily used day-to-day. It typically examines external elements such as market trends, competition, and economic forces, intending to guide the organization through these factors to achieve or maintain a competitive edge. Examples such as a SLOT (Strengths, Limitations, Opportunities, Threats) or PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis help foresee and prepare the company for potential challenges, vulnerabilities, and opportunities within the broader market. This part of the process should also assess existing internal organizational competencies, longer-term succession planning, and human resources elements.

Operating Plan

On the other hand, an operating plan focuses on the organization’s inner workings and digs deeper into the day-to-day activities and operations of the business. Updated yearly, it splits the strategic plan into short-term, doable steps and tasks. This plan spells out significant initiatives for the upcoming period, resource and budget allocation decisions reached, timelines, and who is responsible for what. It transforms the broad objectives of the strategic plan into specific targets and measurable KPIs (Key Performance Indicators) or GKRs (Goals and Key Results) for different departments and teams.

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Making the Most of Strategic and Operating Plans
Strategic Plan
  1. Vision Alignment: Ensures that the organization’s actions and decisions align with its vision and mission, creating a united effort to reach long-term success.
  2. Resource Optimization: Helps tune resource allocation, centering on projects and initiatives that align with the organization’s strategic aspirations.
  3. Risk Management: Equips organizations to spot potential risks and vulnerabilities early on and develop strategies to counter them effectively.
  4. Innovation and Adaptation: Fosters innovation and enables organizations to change and grow in line with shifting market dynamics or conditions.
Operating Plan
  1. Resource Allocation & Budget Management: Aids in carefully determining and monitoring budgets, clearly reflecting the financial impacts of various activities and projects.
  2. Organizational Alignment: Ensures the organization has the optimal operating structure to execute the strategy successfully. (Think boxes on an org chart)
  3. Task Management: Streamlines task management by clearly defining roles and responsibilities for team members.
  4. Operational Efficiency: Supports operational efficiency by designing streamlined processes and procedures, minimizing inefficiency and wastage.
  5. Performance Measurement: Paves the way for evaluating individual and departmental performance by setting up KPIs and targets.

In conclusion, the synergistic relationship between a strategic and an operating plan is crucial in guiding an organization’s future. While the strategic plan lays out the long-term vision and goals, the operating plan breaks these into practical steps, offering an organized and clear approach to business management. Both plans are essential in navigating the intricate business world and guiding the organization toward success.

Posted in Strategic Planning | Tagged strategic planning

Don’t Be Afraid of Strategic Planning

NYC Executive Coaching avatarPosted on November 6, 2023 by Doug BrownNovember 6, 2023

From my associate Janice Giannini.

Emotions drive most peoples’ actions; we don’t like admitting that. We want to believe that reason and logic drive our business decisions. And in some cases, that is true.

There is one case where that needs to be on point. That case is the “job” of strategic planning. Why does it strike fear in the hearts of some? Let’s get the easy answer out of the way; it takes a lot of time and resources and is not fun.

There are many tools to assist with developing the Plan, so we don’t need to focus on that. Discussing the uncomfortable and risky part of the job is our intent.

The reality is that no one has a crystal ball, and there can be severe consequences for making the wrong choice, no choice, or missing the window of opportunity.

Looking through a critical lens might help us focus on the uncomfortable part of the job versus staying in our collective comfort zone. The questions are simple, but the answers are not.

  • First, we must understand our collective comfort zone, which typically surfaces in conversations about what we do and don’t control. This causes us to entertain the most appropriate balance point, even if we think we can’t get there. A strategy typically has many unknowns and touch points out of our control.
  • Do we understand the difference between a Strategy and a Strategic Plan? The risk is the Strategy. The challenge here is credibly understanding the risk/ reward of the strategic options and objectively discerning those with a low chance of success, regardless of emotional response.
  • What is our comfort level with the Strategy? If we are too comfortable with it, are we on target? A strategy in unpredictable times will likely cause a fair amount of dis-ease. The consequences of not projecting forward enough could be disastrous in the long term.
  • What are the potential single points of failure embedded in our Strategy? Is there a reasoned response to them?
  • Do we have a credible Strategic Plan? Is it simple, straightforward, and understood by the leadership team? If not, it might need additional attention.

As a business critically examines these characteristics of its Strategy, openly recognizing the limitations of available information and bringing in partners with a different lens might also clarify the strategic path.

Posted in Strategic Planning | Tagged strategic planning

Strategist or Process Manager?

NYC Executive Coaching avatarPosted on November 6, 2023 by Doug BrownNovember 6, 2023

From my associate Grant Tate.

There are two kinds of people working in strategic planning:

  • Those who look at a picture in a newspaper and see nothing but a collection of dots. Those are the business analysts.
  • Then there are those who look at a pile of dots and see pictures. Call them strategists.

We used this guideline to select people for our strategic planning department. We needed both. We needed strategists who could see a complex international economic, social, and technological environment, identify opportunities, and set directions.

We also needed analysts to help us gather, parse, organize, and make sense out of mountains of information.

In addition to those specialists, we also had some talented people who could go both ways—they could process the data but also had rare insight and talent to make sense of it and imagine creative ways for our organization to be successful.

After becoming a consultant, I noticed two types of people helping organizations with setting directions.

One type, the strategist, focuses on strategy development—helping an organization understand its situation, dream about the future, and select a path to success. The strategist may employ a proven process, but the process is more like an innovation process than a predetermined standard “let’s make a plan” approach.

The second consultant uses a predesigned and sometimes standard step-by-step process, resulting in a standard strategic plan format. (Search the internet if you want some examples. They’re all over.) Some of these approaches result in a long list of action steps with a low probability of being implemented. It’s almost as if the process strategic planner is saying, “If we keep on following this process, we will find the answers we need. Sorry folks, you won’t find it.

As you can guess by now, I’m a strong believer in the first type, the strategist. Organizations need good strategies, not a book written at the end of a process.

But any strategic approach should start with answering some important questions.

  • What is our dream for this organization? What do we really want?
  • Are we aiming high enough? What would it mean if we shot for the moon?
  • Do we have the right leadership to realize our dream?
  • What is limiting our ability to realize it?
  • Are we willing to do what it takes to realize our dream?
  • What are our guidelines for how we treat each other? What are our guidelines for how we treat the customers?

These may not be the right questions for you or your organization, but you get the idea. Start with the strategic questions you need to answer before ever kicking off a strategic planning approach. Work with your team to develop the right questions and answer them together. Then, you can design an approach to help you answer the questions.

If you need a consultant to help you formulate or facilitate your strategic thinking or your process to answer them, find out what approach that consultant will use with your team. It starts with the questions. So, get with it!

Posted in Strategic Planning | Tagged strategic planning, strategic thinking

Transitioning From an Entrepreneurship to a Professionally Managed Firm Part III

NYC Executive Coaching avatarPosted on October 12, 2022 by Doug BrownOctober 12, 2022

Editor’s Note:This is the second installment of an ongoing series surrounding what it takes to move from a relatively small, micro-business to a more robust, larger organization. Each article explores a different aspect of that journey.

In the previous issues, I discussed the initial phases of transitioning from a business in its infancy to becoming a sustainable business. I discussed the challenges and the growing pains that are experienced by many companies in that part of the growth curve and understanding the six key organizational development tasks to navigate.

In this issue, we will identify and help you better understand the four major stages and the typical characteristics of those stages that an organization must pass through on its way to greatness.

Those stages and characteristics are:

DescriptionDevelopmental NeedsTypical Revenue Size
1. New VentureNiche and marketsLess than $2 million
2. ExpandingResources and operations$2-$10 million
3. DevelopingProcess management$10-$100 million
4. IntegratingOrganizational cultureMore than $100 million

 

Stage One: In the first stage, revenue ranges from a pure startup to revenues approaching $2 million. As we have covered in detail previously, the essential thing that the owner must be concerned with is developing a focused approach to building the business and securing customers. This happens by identifying, defining, and developing appropriate niches and the carriers and markets to serve them.

Stage Two: In the second stage, the firm has expanded beyond the $2 million range and may hit $10 million. At this stage of development, it is not unusual for the firm to experience a period or periods of rapid expansion. This expansion obviously will involve top-line sales revenues but will likely affect any number of employees and multiple locations.

Stage 2, therefore, provides the management of the firm or organization with a new set of challenges surrounding development. How often have people talked to us about their resources being stretched almost to the breaking point when increased sales require ever-increasing people resources, cash flow, office equipment, supplies or office space.

Simultaneously, just trying “to get the work out the door” is restricting the owner’s attention to recruiting new staff, managing the ongoing training of staff and paying adequate attention to customers and clients other than the renewal period. Since the problems of this period tend to be more associated with growth than survival, this is when people will be pulling their hair out.
It may play out as follows:

  • Supplies run out unexpectedly
  • Some invoices get paid multiple times while others don’t get paid at all for months on end
  • The quality of customer care and responsiveness for existing customers is decreasing with nobody inside catching on to it
  • Fighting fires and dealing with the crisis of the hour or day becomes the norm
  • Staff turnover begins to spike at the worst possible time due to the stress or burnout
  • The impact of poorly designed and executed recruitment processes and lousy hiring decisions come home to roost
  • Errors in handling paperwork (in a paper-based system) lead to missing files, letters, backup documentation, or requests for changes that lead to blaming, confusion, wasted time, and embarrassment
  • Errors in scheduling discipline or too many promises made by too many people may mean the staff will need to be in two places at once or crisscrossing all over the state or country on the same day

 

Ultimately, it can become so devastating that the organization collapses and goes out of business. Usually, this is because the founder or owner did not deal effectively with the issues and managerial challenges that occurred as the organization grew. Having an effective operational system infrastructure that is scalable as the organization grows may be more critical than many people realize. Often owners are not as concerned with what has been dubbed by some as “organizational plumbing” as maybe they should be.

Stage Three: At Stage 3, the owners, and any partners and managers, realize that there is more to becoming even more successful in the future than strictly throwing money into people, equipment, and space. It will be critical that a transition to a different type of organization occur. The movement from an entrepreneurial management style known for its informality to a much more professional leadership style must occur.

It is time to have well-defined strategic plans and operational goals and plans. Regularly scheduled meetings are needed to ensure that everyone stays on the same page and doesn’t feel left out during the quickly changing pace of business. Everyone should have a position description and a well-articulated scope of responsibility used as day-to-day management tools. If not yet in place, it is time for a performance appraisal process to be part of the overall management control system. The people who manage the firm also must change their role and skill sets, approaches to their position, and competencies to keep up with business developments. They probably started as a hands-on manager or a super-worker. They may have maintained that posture through the first two phases. It is unlikely that this same style will serve them well in the future.

Increasingly, what will be needed are the skills associated with formalized planning and administration and overall motivation, including reward and recognition systems and leadership competencies. One tendency to avoid using attention to detail is to under-invest in the management infrastructure until it is almost excruciating.

Stage Four: During Stage 4, the main focus is integrating. Once the organization has somewhat mastered the issues discussed in the prior stages, the crucial work of organizational development begins- the care and feeding of the corporate culture. The culture impacts the day-to-day running of the business. It can also have a considerable effect on the level of profitability.

Since day one, the organization has hired multiple people. They may have come in waves (almost referred to as the class of ‘XX) as the business surged through various levels. In many cases, the staff hired early on probably was hired using a much less formal environment and process. Often, one only needed to demonstrate the basic skills to be hired. Culture, whatever existed, was transmitted via word of mouth and observations surrounding, “That’s how we do things around here.” During the second bout of growth and hiring, the employees who were hired early on in the firm’s history become the carriers and keepers of the culture.

As this process becomes replicated, maintaining the culture gets harder and harder for two reasons. First, the sheer number of people hired can overwhelm the number of early hires. The second challenge comes from expanding via branch offices and locations. It is almost impossible to establish and maintain the desired culture while only relying on casual means. It is time to bite the bullet and establish a formal approach to groom the culture. So how do we characterize the differences between an entrepreneurial style and a professional management style?

In simple terms, many entrepreneurs tend to be relatively informal in their operations, lack processes, and systems, and have a freewheeling nature. They are much more likely to decide based on a gut feeling. An organization with professional management tends to be more formal, has well-developed processes and systems, and exerts internal discipline to achieve its business and profitability targets.

In his book, Making the Transition from an Entrepreneurship to a Professionally Managed Firm Eric G. Flamholtz articulated nine discreet result areas that differ between the entrepreneurial and professional management styles: profit; planning; organization; control; management and development; budgeting; innovation; leadership; and culture. The differences are striking, and understanding the methods behind each form of management leads to an enhanced sense of purpose for an organization during this change.

In the next installment, we will discuss developmental items and tactics, explain and assess the organizational growing pains, and plan the transitions that the leader must successfully execute. Watch for the next installment.

Posted in Organizational Development, process improvement | Tagged effective leadership, strategic planning, strategic thinking

Strategic Planning or Strategic Thinking?

NYC Executive Coaching avatarPosted on October 4, 2022 by Doug BrownOctober 4, 2022

“There is only one strategy, Tate.”

“What’s that, Bob?”

“Keep your options open,” replied my big boss, the VP of Manufacturing.

I had just finished presenting our division’s 5-year strategic plan and our 2-year operating plan, both containing revenue projections, costs, human resources, and risks. My team had worked for months exploring every opportunity and examining the major external and internal factors that might affect our unit, culminating in a multi-page presentation we thought would be compelling.

But Bob thought we were too rigid. We’d developed a first-class strategic plan but were deficient in strategic thinking. Deflated, we returned to our offices but a week later came back with an exciting, human-based plan that included what-ifs, trigger points, contingency plans, and intensified strategic scanning of the business environment. Bob approved our plan.

Bob’s words ring especially true today. Uncertainty reigns. Inflation, political turmoil, rising interest rates, uneasy workforce, technological change, and market turmoil stress our ability to plot our organization’s path to success. The plan we presented to Bob would have no chance of surviving today.

So what are we to do? How do we think strategically when the future is so foggy? Is strategic planning worth it?

To get you thinking, here are some basic steps.

  1. Renew your business purpose (we call it Massive Transformational Purpose). People need a sense of direction. Why are we here? What are we trying to do? What should I be doing to help? The message: Even amid this chaos, we have important work to do.
  2. Set three to five relatively short-term goals—things to accomplish in six to twelve months. (The timeline depends on the kind of business or organization you have.) Make sure the outcomes are measurable. And have every unit and individual set their own goals in alignment with the organizational goals. Here are the goals we are shooting at. Make sure your goals align with these.
  3. Communicate, communicate, communicate. Make sure everyone understands the goals and their role in their accomplishments. Have regular morning huddles, weekly and monthly meetings to track progress, and make adjustments. To many leaders this may seem like overkill—too many meetings, but evidence shows that repetition is necessary to get results.
  4. Set up a strategic searchlight team—a team designated to continually scan the market and external situation and provide feedback to the organization.
  5. Have a regular monthly strategy meeting to discuss market indicators and other strategic issues. Use this meeting to make adjustments, evaluate progress, and start or stop initiatives.
  6. Make sure your organization structure is up to the task. Turmoil demands agile organizations. Teams need to adjust rapidly to changing business opportunities or challenges. This, of course, requires a rapid reassessment of goals and team direction. It calls for inspired, decisive leadership. Agile organizations need managers and employees who are comfortable with change and can adapt to new situations. This is a new way of thinking for many organizations today.

 

Strategic management is an ongoing process that should not begin and end with a “strategic plan.” This is especially important when the future looks chaotic.

Yes, leaders and all employees need agility. Still, they must also develop a strong sensitivity to the internal and external conditions that affect the organization and that open the door to new opportunities. That means strategic thinking. It also means strategic vision.

Posted in Communication | Tagged strategic planning, strategic thinking

Early Warning Signs

NYC Executive Coaching avatarPosted on February 1, 2022 by Doug BrownFebruary 1, 2022

Peering forward into 2022. It may be the most challenging role for all organizational leaders.

Over the years, I’ve written many articles about the benefits of strategic thinking. I discussed that change in the business environment is inevitable. You will probably agree with this sentiment. Progress results in more change, usually leading to further progress.

I don’t often write about awareness and recognition of early warning signs.

Since this is winter in the northeastern US, temperature fluctuations around the freezing mark are common. Any standing water goes through its natural freezing and thawing cycle.

There is a phenomenon called black ice (or sometimes clear ice)—the thin coating of glazed ice on a road surface or sidewalk. The ice is not black but visually transparent, allowing the asphalt road below to appear. Often, it is almost but not totally invisible. It can be treacherous to drive or walk on – especially if you are surprised.

One key to handling this condition is consciously increasing our awareness and paying more attention to detail. Black ice usually gives us clues and indications that it is present. At night, for example, our headlights shine differently, and the bumpers of cars ahead of us seem to reflect on the road surface. As soon as we spot the signs, we can immediately execute a safer driving style.

Where are the examples of early warning signs or precursory symptoms in your industry?

We don’t have to predict the future-just better prepare to look for it.

Posted in Strategic Planning | Tagged business change, early warning signs, prepare for the future, strategic planning

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As Chairman of the Board, I recently had the opportunity to work with Doug on a strategic planning effort for the New York Society of Association Executives. Doug was terrific in working with Association leaders. His high touch, vast knowledge of planning skills and focus on critical success factors was invaluable.
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