Strategy
Begin with the end in mind
A good strategy has to be formulated with the end result in mind. It is NEVER too late to set a destination or to change it!
The vast majority of people who own a vehicle know the destination of their travels before they even set foot in the vehicle. How crazy it would be to randomly drive each day. Sounds very chaotic and certainly not very Efficient or Effective yet business owners and operators do this everyday! Most are too busy managing chaos rather than managing direction.
Pick a destination (Vision) and plot your course (Mission). Don’t be fearful of choosing the right path to get there but rather just get started on the journey.
“In order to measure the success of your journey you must know your destination”
“If everyone in your organization doesn’t understand the mission or vision of the company then your expectation of achievement should be zero”
Thought Provokers:
What is your end goal….what is your vision….what is your mission….is it in your head or is it written….do your employees, vendors, and partners know what the goal is?
Strategy Building Process
The Mission & Vision
Define what the company is to accomplish via a mission and/or vision statement. Do not make it about you or the company but rather make it about the clients, industry or community. Not every company needs both a mission statement and a vision statement.
- Mission Statement: What the company goals and objectives are now.
- Vision Statement: What the company goals and objectives are for the future.
Success Formula
Success is what you end up with when you have one part Planning, Commitment, Dedication/Determination and MOST IMPORTANTLY Initiative.
- Planning – (also called forethought) is the process of thinking about and organizing the activities required to achieve a desired goal.
- Commitment – A verbal or written obligation, pledge or promise to do something.
- Dedication/Determination – A continuous resolute movement towards some objective or end regardless of influence or obstacle.
- Initiative – Acting without hesitation to take the first step in a process that once taken determines subsequent events.
Fail Fast and Regret Nothing
The vast majority of people who are not successful view failure as a detriment to success but rather it is the stepping stone to success.
“Failure is merely learning what doesn’t work until you learn what does work. Regret is what you end up with if you choose to NOT learn from what did not work. Regret Nothing!”
Process
e²=P
“Efficiency is doing things right; effectiveness is doing the right things.” Peter Drucker
“Chaos lives where order doesn’t exist”
efficiency X
Efficiency = Doing “Things Right”
- Definition: Achieving maximum productivity with minimum wasted effort or expense.
Example:
A company can be efficient at producing the wrong results or results that do not help to achieve the leadership defined goals (OKR).
effectiveness =
Effectiveness = Doing “The Right Things”!
- Definition: Successful in producing a desired or intended result.
Example:
A company can be effective utilizing a paper system for a ledger or invoicing but it is NOT the quickest most efficient solution available.
Productivity
Productivity = Maximizing “Time, Money & Resources” while Producing “Intended Results”!
- Definition: the quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services. Productivity yields opportunities for profitability
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- Efficiency without Effectiveness or vice versa squanders productivity and therefore potential profits.
Order from Chaos
Chaos is the evil villain you, your employees and your business battle with while spend time implementing just in time workarounds or quick fixes. The best way to eradicate or defeat “Chaos” is to introduce the super hero “Order” via standardized processes & procedures.
By Definition:
- Chaos: A state of Disorder or Confusion; a state of things in which chance is supreme.
- Order: An authoritative command, direction, or instruction; The arrangement or disposition of people or things in relation to each other according to a particular sequence, pattern, or method.
- Process: A series of actions or steps taken in order to achieve a particular end.
- Procedure: An established or official way of doing something; A series of actions conducted in a certain order or manner.
The only way to gain an unbiased perspective of your process efficiency, effectiveness and productivity is the have an outside source evaluate it to reveal strengths, weaknesses, opportunities and threats. Otherwise what you end up with is a biased opinion.