strategic thinking Archives • NYC Executive Coaching

Rethinking Strategy: Making Strategic Planning a Living Process

Posted on October 30, 2025 by Doug BrownOctober 30, 2025

From my associate Dan Elliott.

‍If the past half decade has taught us anything, it is that the pace of change and disruption is accelerating. From the introduction of artificial intelligence to global tariffs, from demographic shifts to political shifts, business leaders are navigating an environment where yesterday’s assumptions no longer hold true. In this climate, the organizations that thrive are not the ones with the thickest binders of long-term plans, but those that are resilient, agile and are willing to adapt.

The Limits of Linear Planning

For many years, strategic planning followed a linear model: chart a three-to-five-year course, set goals, and measure progress against them. That model assumes a relatively stable environment. The reality today is far different. Assumptions that were made can be undone in a matter of months. New technologies can change customer expectations overnight. Regulations can appear and shift quickly. Competitors can emerge from unexpected places at almost any time.

This does not mean planning is obsolete, it means that planning must evolve. Strategic thinking is no longer about predicting the future with certainty but preparing for multiple possible futures.

‍The Role of Scenario Planning

‍One of the most powerful tools in a disrupted environment is scenario planning. Unlike traditional forecasting, which projects one “most likely” outcome, scenario planning forces leaders to consider a range of plausible futures and test how their strategies hold up.

‍For example, a financial services firm might ask:

What if markets turn downward or go flat for the next five years?
What if new AI-driven platforms change how X, Y and Z generation clients expect to interact with advisors?
What if consolidation in the industry accelerates, and we must compete with fewer but larger players?

‍By examining these scenarios, organizations can stress-test their strategies and build contingency plans. The goal is not to prepare for every possibility, but to ensure the organization can pivot when conditions change.

Building Organizational Resilience

If disruption is inevitable, resilience then becomes essential. Resilient organizations share several traits:

Clarity of Purpose: A well-defined mission and set of values provide stability even as tactics shift.
Flexibility of Resources: Maintaining financial reserves, cross-training employees, and diversifying partnerships all allow quicker responses to change.
Culture of Adaptability: Teams that are encouraged to learn, experiment, and respond without fear of failure are better prepared to navigate uncertainty.

Resilience is less about predicting disruption and more about accepting it without losing focus on your direction.

Process Over Perfection

‍Another mindset shift is moving away from the idea of the “perfect” plan. Too often, organizations spend months crafting strategies that become outdated within weeks of their approval. A better approach is to view strategy as a living process.

‍This means shorter planning cycles with regular check-ins, quarterly reviews of key assumptions, and a willingness to course-correct when facts and circumstances suggests a shift is needed. Leaders who treat strategic planning as an ongoing conversation rather than a static event keep their organizations more agile and engaged.

The Leadership Mindset

‍At the center of all this is leadership. In times of disruption, leaders must demonstrate adaptability, steadiness, and clarity of their vision. Teams look to leadership not for certainty, but for confidence that the organization can navigate uncertainty.

‍Communication is critical. Leaders should articulate the long-term vision while openly acknowledging the unknowns. By doing so, they create trust and encourage shared ownership of the strategy. The role of the modern leader is not command-and-control, but sense-and-respond – monitoring changing conditions and preparing the organization to pivot as needed.

‍Practical Steps for Leaders

While every organization faces different challenges, these practical steps can strengthen any strategic planning process in a disruptive environment:

Shorten the cycle. Keep a long-term vision but revisit plans quarterly to adjust assumptions.
Use scenarios. Develop two or three “what if” models and stress-test strategies against them.
Build resilience. Maintain financial stability, deepen your talent pool, and foster a culture that embraces adaptability.
Align daily actions. Ensure employees understand how their work connects to broader goals.
Communicate with clarity. Share both the vision and the process for adapting along the way.

‍Closing Thoughts

Strategic planning is not about eliminating uncertainty – it’s about being equipped to face it with confidence. In this age of disruption, the winners will not be those who cling to rigid plans, but those who stay true to their purpose while remaining flexible in their approach. Much like sailing, success comes not from controlling the wind but from adjusting the sails to harness it.

Strategic Coaching for Sustained Growth: Doing the Right Job, Right Way, and Right Now

Posted on December 3, 2024 by Doug BrownDecember 3, 2024

From my associate, Janice Giannini.

Close your eyes for a moment and create a picture of your company where 70% of the leaders are resilient and empowered to be adaptable and innovative. Then, create a picture of the competitive advantage the entire organization creates by working in this way. Is that a place you would like to lead and work for? That is what Strategic Coaching can deliver.

‍Why is it important to be resilient, adaptable, and innovative?

‍Actively planning where you are going short, mid, and long term and understanding how to stay ahead of the competition is critical.
Effectively managing risk, balancing the risk of change, and staying the course is the difference between success and defeat/stagnation.
Operationally, doing the right job at the right time in the right way closes the deal!

Do any of these thoughts surface periodically and get in the way?

‍Are you doing the best you can, or are you doing what you need to do to accomplish your growth goals?
What is the risk of change versus continuing down the same path you are on, strategically and operationally?
What gets in the way of changes that will close the gap between where you are and where you need to be?
Are you dealing with too many artifacts of past success, such as outdated processes or resistance to change, versus what is needed / appropriate for the world you live in today?
What would your revenue, profit, innovation, and market presence be if your leaders and associates performed at their peak on a regular basis?

‍If the answers to the above questions do not immediately come to mind, immediate reflection and action need to happen.

Does the leadership team have the same clear understanding and ability to articulate?

What does the business need to accomplish, and what are the risks and constraints? It is critical to be honest with yourself and others.
When and how does the environment enable a leader to openly say, “I don’t agree or understand,” and the team responds, “Let’s spend time getting on the same page?” Or Not?
When is Change a dirty word in your environment versus an opportunity for success?
What do you need to give up to achieve your goals/mission?
What are you willing to give up?
When the need to let go is greater than the willingness to do so, change management is required! Lack of alignment of the need and willingness to let go dictates less or rocky growth, lower innovation-impaired competitiveness, and lower market presence with revenue and profits left on the table.

‍‍A Strategic Imperative on the critical path to growth and innovation

Coaching is a time-proven process that decreases the gap between need and willingness to change. This will close the gap between where you are and where you need to be to achieve your growth, innovation, and profit goals/mission.‍

Let’s look through 3 different lenses to understand how coaching can be a performance multiplier:

The coach’s perspective
The person being coached perspective
The Sponsor’s (Executive or other leader in the organization, including self) perspective

The Coach’s Perspective

‍I invite you to consider an Executive Coach as your growth catalyst as you navigate the turbulent waters and transform yourself and your leaders to meet the challenges of today’s rapidly changing world.

‍The relationships and personal growth catapult the leadership team to greater results. Coaches grow and evolve along with their mentee/ client/ leader/ associate. Coaching helps the mentee recognize the roadblocks, blind spots, limiting patterns of thought, and under-utilized/recognized strengths that constrain professional and, therefore, company growth.

As the coaching process is a two–way street/relationship, the coach and the mentee grow. As the coach goes through this process with their mentee, both parties better understand how to work more effectively together to accomplish the mission and goals.

This leads to implementing a tiered strategic-minded coaching approach; the senior leaders embrace personal coaching themselves and, as a result, become more adept at coaching the organization itself. In the process, the senior leader is reshaping how they see themselves and how others perceive them in the organization. The senior leader also becomes more aware of how their struggles contribute to or interfere with team alignment. What would a 20% increase in team alignment enable the business to achieve or avoid?

The Person Being Coached Perspective

From the vantage point of closing the gap between where you are and where you need the company to be, coaching helps individuals reframe and transform how they see themselves. This transformation from manager or technical expert to a visionary leader results in greater confidence, resilience, and adaptability. Additionally, it causes an increased ability to inspire and positively impact those around them. It can help people’s willingness to step out of their comfort zone with the confidence to recognize and drive strategic initiatives that strengthen the company and themselves.

While a person initially may not see themselves as a natural-born leader, they will become able to see themselves as an influential voice, inspiring others to work more confidently, to fully engage, focusing on insights and more immediate changes that yield significant impacts for the business.

Additionally, people more quickly recognize a lack of alignment and develop the ability to speak up, identify, and collaborate to find better alternatives, enabling growth. These changes in leaders’ self-perspectives drive necessary changes that ripple across the company and its success.

It is important to recognize that progress is often incremental. It may not be the”Big Bang Theory.” It may be smaller incremental movements that, in the aggregate, can be huge progress and success. These smaller successes cascade upon themselves, driving people to want to do more to help the company’s continued growth.

This perspective on coaching leads to considering, as another tier of the approach above, to identify the multiple less-experienced associates in the company, who may and may not have the title manager behind their name, as significant beneficiaries of coaching. Therefore, a coaching plan typically becomes a hybrid approach, continuously using professional coaches as needed and in-house leaders. The benefit of external coaches is that they do not eat/ sleep/breathe in the same environment and can see areas for growth and reinforcement more objectively.

The Sponsor’s Perspective

Sustainable and long–term growth is a function of doing the right things at the right time and in the right way. Companies and enterprises that accomplish long-term growth have a strong, positive, empowering culture that recognizes and values people to make results happen. Coaching is a critical risk-reduction activity that boosts competitiveness, growth, and innovation. It is not discretionary; it is a mission-critical investment for growth.

In the rapidly changing world we live in today, an ecosystem of continuous learning, flexibility, resilience, and adaptability is imperative. ROI is reflected in revenue, profit growth, and innovation, which is essential for marketplace competitiveness.

Coaching ROI tracking checklist:

‍Improves critical team retention. More or less turnover is less optimal and more expensive. (American University Exec coaching industry results: 48% increase in retention and organization performance)
Improves team engagement. Team leaders observe less divisive conflict and a greater willingness to respectfully speak up and resolve issues.
Increasing associates’ satisfaction scores. Associates initiate more positive collaboration themselves versus directives from a manager. (American University Exec coaching industry results: 50% increase in collaboration and team performance)
Coaching surfaces heretofore hidden leadership potential in associates for the future (near, mid,long term), avoiding leadership gaps. Use annual reviews for succession planning to avoid critical gaps.
Improvement in leadership performance metrics across the company.
Aligning with business needs happening more quickly than in the past. Is there a more remarkable ability to let go of what is and to adopt what needs to be with a positive attitude across the board? (American University-industry results: 48% in performance with revenue above expectations)

‍I encourage all leaders to view coaching as a Strategic Imperative for themselves and others in their company. Coaching is about investment in the current and future strength of the company’s business results and culture.

‍The reality and risks of the business world today require different capabilities at most levels in any organization. One or two executive leaders cannot do it all. They must recognize the issues, implement change management to enable growth and develop the associates’ capabilities to stand strong and follow through.

‍Are you ready to create a future-oriented organization with committed, resilient, flexible, and empowered leaders who now create immediate and impactful change? If not now, when?

Strategist or Process Manager?

Posted 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!

Your Business Execution Checklist

Posted on January 18, 2023 by Doug BrownJanuary 18, 2023

From my associate Howard Litwak.

A successful organization is one where all the parts are working together (are in alignment). These organizations are innovative, customer responsive, and prevent fires – they’re not spending their time putting out fires. The Star Model provides a model for alignment.

Organizations of all sizes that have taken the time to master alignment will maximize the short and long-term payout both from a financial and emotional perspective. This alignment is what creates a company that is “World Class,” “Remarkable,” and “Best.” (Fill in your own descriptive term)

Notice that nothing in this model stands alone. Everything touches everything else. All of the points of the star are foundational to the fundamentals of business: getting customers and best-serving customers in order to retain them. I’ve broken down the specifics of each point of the star below.

CUSTOMER LOYALTY and RESULTS

All departments have goals established that support overall objectives
All points of connection with customers are identified
Areas of opportunity to improve points of connection to deliver remarkable service are identified, and best practices established
Indicators of the company’s financial health are identified and tracked in order to know whether the business is on track to produce the desired results or not

STRATEGY

Compelling Vision is established and well communicated
Core Values are established and alive throughout the organization
Yearly objectives are identified
Target markets are clearly defined with demographics and psychographics
A unique selling proposition is created for each market
Additional resources needed to achieve yearly objectives are identified
Additional skills and knowledge needed to obtain objectives are identified.

STRUCTURE

An organizational chart is created showing the accountabilities of roles
Position descriptions are completed for each role, including responsibilities, results expected, standards, and key performance indicators
All identified systems are documented in writing using checklists where ever possible to create an operations manual
Ensure that roles and responsibilities are aligned with team member’s strengths

PEOPLE

Ensure that success-oriented habits and attitudes are developed and reinforced
Make sure that team members understand each other’s strengths, weaknesses, and behavioral styles
Succession plans are in place for key roles

PROCESS

All organizational systems are identified
“Done Right” for each process is clearly defined
All processes are regularly evaluated for continuous improvement

REWARDS

Performance is measured against desired results and core values
Recognition programs encourage behaviors that lead to desired results

LEADERSHIP

Company culture revolves around:

Always provide the best service to the customer,
Always do the best job possible
The workplace should be where one constantly learns, grows, and improves

Up to 5 quarterly priorities are identified, which support yearly objectives. A #1 priority is clearly defined
A tracking system for Key Performance Indicators is implemented
Necessary information flows daily and weekly through a meeting rhythm
Goals are established to obtain needed resources

Here are some questions you can use to evaluate where your business stands now on each of the points of the star:

Strategy

Are employees aware of your objectives? Do they agree? Are they in alignment?
How are your current efforts securing your pre-determined business objectives?
Can you tie your business decisions and actions back to your core values?
Do you have a picture of the future that you believe you will realize?
What are your top priorities?

Structure

Do you have the right people on the rights seats of the bus, and are resources allocated correctly? How do you know?
Do you spend a lot of time putting out fires?
How do departments know what other departments are doing?

People

What is the biggest issue you have in managing your people?
Do you feel your people have the skills necessary to implement your plan?
How do you gauge your people’s productivity?
How do you measure the morale of your employees?
Do you have people ready to fill succession plans?
How do you make people feel that they are an important part of the organizational whole?
How well do you know what your strengths and weaknesses are? What are your people’s strengths and weaknesses?
Does each person in the organization have a detailed development plan with short and long-term goals and action steps?

Process

When was the last time you improved your core processes (i.e., taking out waste, inefficiencies, and extensive costs?
Are you meeting process deadlines?
What does “done right” look like, and how long does it take?
How well are you meeting speed and quality delivery?
How are you challenging everyone to seek innovative and improved methods of doing business and growing the company?
Do you ask your people to analyze processes that interfere with their performance and the performance of the organization?

Rewards & Recognition

How do you currently measure performance?
What do you reward and why?
When things aren’t going well, what do you reward?
How often do you review employees?
Is there a recognition program that shows your people you appreciate your efforts and that their accomplishments are recognized?

Leadership

How do you develop leaders?
How would you differentiate the difference between a leader and a manager and what is more important to the success of your organization?
Do day-to-day operations reflect a “How can we make things better” philosophy?
What qualities do you need to develop to be a better leader?
What qualities do your people need to develop to be better self-leaders?
Is everyone in the organization committed and focused on achieving organizational success?
Is the culture one which encourages people to be their best and perform their best?

Results

How do you measure success?
How do you know if you’re moving in the right direction?
How satisfied are you with your current business results?
How do you measure your customers’ satisfaction?
How are you maintaining consistent growth and improvement?
Are you focusing on results rather than activities?
What is standing in the way of achieving your goals?

This is your road map to an organization that is proactive and innovative. One which develops loyal customers, not just satisfied customers. These are your keys to a high-performance organization. If you focus on aligning the points of the star in your organization, you will be rewarded with higher profits, better standing in the marketplace, and less stress!

Fix the Toaster

Posted on January 11, 2023 by Doug BrownJanuary 11, 2023

Do you want to fix the toaster, or do you keep scraping the burnt part off the toast? It seems like a simple question, but hear me out.

In business and life, we get what we accept. If so, why would we continue to accept an unacceptable outcome rather than address the core problem? These questions may seem ridiculous at first blush.

Now, let’s take that experience into our corporate hallways.

When was the last time you asked yourself where examples of non-productive behavior have crept in as people had to battle the problems caused by all the pressures of the recent past?

Where are past decisions continuing to cause people in your organization to struggle or fall further behind?

Where are leaders and managers asking people to do the equivalent of rolling bowling balls uphill every day to get things done? Are other top leaders in your organization even noticing this has become commonplace? Are they stopping to wonder when their people will be burning out and won’t seem as committed as they once were?

So many people get overwhelmed by the drumbeat of day-to-day responsibilities. They don’t always stop to consider how their decisions impact their direct reports, who are just trying to make a living.

I compare it to driving a speedboat across a lake. The Captain can be so focused on getting to the other side that they become oblivious. They don’t notice that their wake is flooding all the properties along the shoreline.

If your organization has put formal process improvement initiatives on hold during the epidemic, it’s time to take a fresh look at opportunities. While looking for areas to explore, don’t forget to start with how your senior executives are running the business.

How seamlessly does your organization operate? Please go much deeper in your thinking process than whether or not you have an up-to-date organization chart. You and your top team need to examine whether your organization is coalescing around the best ways to get things done.

It can be enlightening to see how things are getting done versus how they are supposed to be getting done.

While some people may smile and say, “Great job innovating,” others will be shocked to learn that many of the checks and balances they thought were in place are being ignored for expediency.

Where do you expect your firm to be on that continuum when you take the time to examine it? Are your teams operating like a well-oiled kanban system or more like a TV comedy show?

Anytime the answer is different from what you had hoped for, look at how easy it is for someone at any level to get things done. Examine your processes for efficiency and effectiveness. Look vertically (relationships with people above or below in the hierarchy) and horizontally (across functional disciplines). Imagine fully capitalizing on foresight, insight, common sense, and proven processes to help you run your business and increase your chances for long-term success.

Editor’s Note:This article was originally published in American Executive Magazine

Transitioning From an Entrepreneurship to a Professionally Managed Firm Part III

Posted 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:

Description	Developmental Needs	Typical Revenue Size
1. New Venture	Niche and markets	Less than $2 million
2. Expanding	Resources and operations	$2-$10 million
3. Developing	Process management	$10-$100 million
4. Integrating	Organizational culture	More 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.

Strategic Planning or Strategic Thinking?

Posted 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.

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.
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.
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.
Set up a strategic searchlight team—a team designated to continually scan the market and external situation and provide feedback to the organization.
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.
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.

National Security – A Strategic and Operational Risk

Posted on September 20, 2022 by Doug BrownSeptember 20, 2022

With the accelerating changes in technology, cyber-security, and geopolitical tensions, the question arises are US company Boards addressing National Security as a significant risk? Or perhaps the better question would be: how do Boards need to address the impact and opportunity of the interdependence/intersection of technology, cyber-sec, and geopolitics comprehensively?

We have lived in an unprecedented time of “relative congeniality” for 30 years with the fall of the Soviet Union, détente, and a less aggressive China. Nevertheless, we must contemplate the increasing reality of shared business power with cultures vastly different from ours. In some cases, these other cultures may not desire to be collaborative, potentially creating a critical imbalance that is not in the US’s favor.

As we confront the reality that we no longer live in that “relative congenial environment”, how might the governance structure and function evolve to address this? I offer the following lenses to spur the conversation:

To what extent do US companies need to be active influencers and players in our national/global security?
There is a robust global supply chain for valid business reasons. That is currently working to the US’ disadvantage in some cases. How do BODs need to consider this as part of the strategic plan? What is the risk profile for your company?
With the blurring of commercial and military applications, if the US strengthened and tightened export control, how vulnerable is your enterprise? What plans need to be put in place now to protect our national assets and potentially land softly if the conflict escalates?
Given the US dependence on many non-national materials, does it need different and more significant stockpiles? Does it need to define an acceptable risk profile and then start the drift in that new direction? How would your company be affected?
In what areas is it advisable to prioritize technology investment to lessen dependence on natural materials from potentially hostile nations? How would your company be able to help or grow in this area? Do we need synthetic materials to reduce the risk?
What is individual and company strategic responsibility for national security? Is it worth a penny per share or .1 cents per share? How do companies balance short, mid, and long-term benefits? What is NYSE and NASDAQ’s responsibility for guidance and evaluation?
Other strategic questions that arise as one looks through a national security lens:
- Location and level of participating in investments and joint ventures abroad
- Does the company benefit financially from these other entities through sales, BOD joint members, or?
- Are we helping our greatest adversaries and allies to succeed at the expense of the US? Where is the line between acceptable and too high a risk?
What is the beneficial outcome of defining and discussing applicable scenarios to understand and plan/respond accordingly?

This article addresses the US perspective. The content applies equally to all parties. Many entities are already addressing National Security as a strategic and operational risk in their plans. Many are not.

What are the appropriate actions your enterprise needs to take? And when does that need to happen?

How Do You Know If You Are On The Right Track Strategically?

Posted on April 19, 2022 by Doug BrownApril 19, 2022

From my associate Janice Giannini.

When technology and societal priorities are rapidly changing, the conversation frequently arises “is our strategy relevant and successful?”

There isn’t a standard quiz that can give you a grade of A, B, C, or F to answer that question. Instead, there are several lenses to view the effectiveness and relevance of your strategy and execution.

Conversational lenses to consider:

Are your goals clear? Do you have a strategy? Do most voices understand it well enough to speak it and fully support it?
How well do you understand the risks of the changing conditions in the marketplace that influence a strategy and can pivot as necessary? What are the conditions under which you redirect? When do you wait it out?
Are your values clear, and fully represented in your strategy, and is your leadership style consistent and supportive of those values and plans? If ethics and game-plan don’t align, it can create chaos in an organization.
Under what conditions do you exhibit conflicting priorities and expect others to deal with them?
Is the senior leadership team as effective as it needs to be? Or are they good in their sphere, but lacking the insight and ability to cooperate fully in the company’s best interest? Are they rewarded for that cooperation?
How effective is coordination across the company/organization? Do people fully understand the current state and desired state? If you assume an individual makes ten decisions a day, if they don’t understand the strategic goals and plan, there is a significant probability they will make the wrong choice half the time. Is that ok?
Are you investing enough in leadership development? It has been argued for decades whether leadership is innate or developable. Some are innate. Many are teachable. Is this a fluff expense, or do you consider it an investment in your future? Can you achieve your stretch goals if the leadership team isn’t growing faster than your goals?
Is there enough vertical communication? If the leaders of an organization are not effectively communicating across and down the entire team, you are asking people to “defend something with one hand tied behind their back.” Why? That is hard to do! They will be hugely more effective if they have two hands!

I hear from some leaders that this all sounds great, but we are so busy, that we don’t have the time.

If you observe successful athletes, they set themselves up for success before even walking onto the field/stage. But, unfortunately, we don’t see that part.

I want to share a straightforward example. I take voice lessons. I sang whatever the coach instructed me to sing when I first started. He coached, and we stopped and started as necessary. In my mind, I was maximizing the amount of instruction and insight I was gaining in each lesson because I was singing most of the time. As I matured, I understood that my singing was so much better if I took the time to align my vocal instrument and my breathing. Am I singing a little less in each session? Yes, I am. But the quality of the result and my return on investment of my time is enormous.

Is your strategic instrument aligned? If it would be aligned, might your ROI be significantly higher? For example, consider that a slightly less robust, well-executed strategy may net higher results and ROI than a more aggressive plan not effectively implemented.

You Can Create a Crystal Ball

Posted on October 19, 2021 by Doug BrownOctober 19, 2021

Contributed by our associate Grant Tate.

Leaders today are facing unprecedented uncertainty. Developing long-range plans in this environment can seem like a futile exercise. But this is the ideal time to consider scenario planning.

The current situation with the Covid Delta variant provides a good example where scenario planning could help. If we rewind only six months, planning leaders could have defined at least these three scenarios for what we are facing right now:

The pandemic is declared over, and we are back to somewhat where we were pre-pandemic.
Vaccination rates are such that the crisis is dragging out, but there are no new case spikes.
A new variant is driving another massive spike in COVID cases.

Scenario planning identifies different scenarios, looks at the risk involved in each, and determines how to prepare for each case. The wise planner then identifies the variables that help predict when to jump from one path to another.

Scenario planning is valuable for day-to-day operations as well. The semiconductor shortage is another byproduct of the Covid crisis, but that market has normal fluctuations. Users of semiconductors shouldn’t be surprised that there are shortages. From my experience working at IBM, I can tell you that the supply chain for semiconductors is over a year long. A semiconductor put into production today isn’t inside a computer until a year from now. This time differential prevents gearing up or gearing down the supply chain quickly. So, what do you do?

Many factors such as fluctuations in product demand, supply chain hiccups, widespread disease, etc., drive the complexity of scenario planning. The goal is the cut the lag in the curve by using leading indicators to plan.

A leading indicator is any measure or observable variable that helps forecast a future change. Leading indicators provide insight into likely future outcomes and give organizations the ability to act accordingly in the present. As Drucker said, “strategic planning is about the futurity of today’s decisions.”

Scenario planning is a way for leaders to consolidate their team’s best thinking about possible futures. Prepare the process to monitor those leading indicators now and guide your organizations’ path to success.