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Показаны сообщения с ярлыком targets. Показать все сообщения

четверг, 30 ноября 2023 г.

Strategic Archery

 


Just as “All models are wrong, but some are useful” (George Box), I’d like to suggest that “All metaphors are oversimplified, but some are quite helpful“.

Archery, darts, and other target metaphors are frequently used in strategy discussions e.g.

“Hitting our target”
“Missed our target”
“Ready, Fire, Aim” (criticism)

Strategic targets are set as part of the strategic planning process, usually as a means by which to determine whether goals have been achieved. These targets are sometimes called Indicators or Key Performance Indicators (KPIs).

The header image for this post reflects on this ‘archery’ metaphor to seek insights into strategic goal development and execution. While interpretations and circumstances can differ, when metaphors are used often it is worth examining how these mini-stories, or ‘narratives’, inform our approach to a key governance activity.

Confusing ‘means’ and ‘ends’

I have often found that directors have difficulty in framing goal statements, and that they are too ready to accept a goal which is actually an action or activity by which an ‘unstated goal’ may be achieved e.g. to publish updated information resources for members/clients. Using this example, the goal is to enhance member/client response or decision-making capacity, and the means to that end is to update information resources in a highly engaging manner.

Where a goal can be simply reported as ‘done’, and offers no qualitative or quantitative metric by which to judge how effectively it was achieved, it is more likely to be a ‘means’ than an ‘end’. Saying, for example, that web materials were updated and then viewed by 3000 members/clients, would not really tell us whether we had achieved the underlying goal of enhancing response or decision-making capacity.

Strategic goals need to be expressed in terms of the outcomes and impact sought, to allow the identification and use of relevant indicators of success. Hitting a target in itself is necessary, but not sufficient. Having hit a quantitative target, we also need to know what impact the achievement had and how well we achieved our intended outcome.

Bringing the future into the present

Sports psychologists help athletes to achieve peak performance by coaching them to visualise themselves performing ideal moves at optimum levels. Consequently, when they are in the game or a competition they can successfully repeat an outcome that they have vividly imagined and rehearsed many times before.

The use of creative imagination was once thought to be limited to artists such as Michelangelo, famously quoted as saying “The sculpture is already complete within the marble block, before I start my work. It is already there, I just have to chisel away the superfluous material”. We can now see this as a precursor to ‘back-casting‘ in strategic planning, whereby a beneficial scenario is used as a starting point, and its origins and lines of development are traced back to the present. This process is sometimes also called ‘reverse-engineering’, as illustrated in the chart below.


More recently the wider use of this approach across all fields has been summed up in the quote “Everything begins with a thought, and thoughts are turned into plans, and plans into reality” (Marshall Sylver).

Just as peak athletic or artistic performance requires the vivid picturing of a desired future state, so too does effective strategic planning (and career planning). The chart below augments the messages in the header image by unpacking some of the elements of the process. This tabular presentation may also skim over some aspects that are important in your field, but it nonetheless conveys broadly relevant considerations for most organisations.


Potential, possible, plausible, probable, preferred

Scenario mapping is one of the processes recommended for strategic planning and we are indebted to futurists such as Hancock and Bezold (1994) for the development of taxonomies and schematics distinguishing between possible, plausible, probable and preferred futures (The Futures Cone). My version of this (below) adapts the standard model by blending it with the strategic archery metaphor, and McKinsey’s 3 Horizon model.

A strategic plan consists of a selection of goals, which can range over a number of focal areas. It is not one arrow aimed at one target, but a number of arrows aimed at a collection of chosen targets. The process of choosing which targets should be priorities for the next stage of your organisation’s work necessarily involves rejecting various potential or possible targets. While implausible (or preposterous) ones are relatively easy to reject, the critical debate is about which targets should be preferred, so that the board adds value to the organisation. As discussed previously, the trade-off between benefits, costs, and risks informs that process.

Some targets are shorter term, and others medium or longer term in nature (usually 3-5 years). Depending on the horizon under consideration, certain targets will focus on capacity building for later initiatives, while most will seek full delivery of outcomes and ‘impact benefits’ within the first ‘horizon’.

The limits on organisational resources and the skills of the ‘execution’ team all need to be taken into account. The addition of each extra goal can potentially impede success in achievement of the existing goals. Boards therefore need to consider those goals collectively, as well as individually. Part of that process involves ranking them in priority order, so that where decisions need to be made about which goals take precedence, the answer is usually obvious.

Future studies have given us the ‘Cone of Plausibility‘ (Taylor), ‘Utopian, Protopian and Dystopian‘ (Kelly) perspectives, and the ‘Futurist’s Framework for Strategic Development‘ (Webb) amongst many other models, all of which can aid your thinking about the areas requiring attention in your next strategic plan. Perhaps your board might also benefit from practicing strategic ‘archery’ to better align their intentions and the outcomes achieved.

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четверг, 31 декабря 2020 г.

The Integrated Strategy Map

 A strategy map provides the visual foundation of a business strategy. It provides the means by which a business can communicate its strategic plan to customers, employees and stakeholders. As such, it is probably one of the most powerful documents a business can create.

Whether you are working in a company of 5 or 5,000 you want to know what your company is trying to achieve. You want your leaders to be visionary and have a strong sense of where the business is going. You want to be sure your company has ambition, the right plans in place and will be around for the long-haul.

For this, the strategy map has become the communication tool of choice. On a single page, the whole story can be laid out. If constructed correctly, links can be seen from the resource level and organisation capacity requirements through to required process changes. These in turn will impact customers and finally financial results.

A strategy map is usually tiered. One for the whole business and several for each division and department. These are also linked, never losing sight of the business vision and goals.

The only criticism of a basic strategy map is the lack of a link to measures, targets and initiatives. These things have to be in place but are not usually described on the ‘public’ view of the strategy map. This can be a mistake. By failing to include this detail, the value of the strategy map is greatly decreased.

It is when the ‘how’ is included with the ‘what’ that the real power of this one page document reveals itself. The diagram below shows an example of an Integrated Strategy Map. That is, it includes all of the business elements on a single page:



понедельник, 7 декабря 2020 г.

How Do You Set The Right Targets For Your Business? Here Are Some Top Tips

 Every business needs to set targets for success, but how do you set the right targets for your business? It starts with you setting the overall direction, determining where you want your company to go and documenting it in an easy-to-understand strategy summary. Once created, this document should be reviewed by your team throughout the year to be sure you’re on track to achieve milestones and goals.


Set the overall direction of where you want your company to go

Think little goals and expect little achievements. Think big goals and win big success.” – David Joseph Schwartz

The first step in setting the right targets for your business is to establish or review your company’s purpose (mission) and ambition (vision). Even if you have a purpose and ambition statement, it’s always a good idea to review them at least annually to see if they are still relevant to how your company has matured and where you want it to go. If not, it’s time to update them. And, if you never developed them, this is the perfect first step to setting the right targets. Be sure these statements are inspiring and precise. Everyone in your organisation needs to have a clear understanding of where they are heading if there is any chance of getting there.

Next, with purpose and ambition in mind, it’s time to create a simple one-pager that captures your company’s top-level plan, objectives and priorities. This will help your odds of being one of the 10% of companies to actually turn their strategic goals into results, because it will be easy for anyone in the company to read and understand what the priorities are, focus on what’s important, monitor and manage how the team is progressing toward those objectives.

A crucial part of any company’s plans and target setting process needs to include external changes that impact your business in the next year. Businesses are impacted by legislation such as the EU General Data Protection Regulation (GDPR) and new regulatory requirements may shift your strategy. There’s no doubt that Brexit, and similar decisions, will affect businesses operating with or in the UK.

Your Plan-on-a-Page should include:

Your purpose:Include your purpose (mission)—why your business exists—and ambition (vision)—what the organization wants to achieve in the future—statements.

Customer Goals:This should include goals around customers and target market – things like customer satisfaction or loyalty goals, market share growth, etc.

Finance Goals:Where you define how you will drive revenue growth, deliver profits, maintain cash flow and fund your strategy.

Operations Goals:This should include goals for the processes you need to do better internally, how and where you might want to improve efficiencies and expand your capabilities. Here you would also look at goals regarding partners or suppliers.

Resources Goals:Where you define the enabling goals around key resources such as people, IT systems, infrastructure as well as the company culture.

Competition and Risk Goals:While this is often overlooked on strategy documents, it’s important to be aware of external factors that might threaten your success and set goals to mitigate the risks and perform well relative to your competition.

Once you have mapped out your goals across these different parts  of your business(overall no more than 15 or so) you define individual measures and targets for each goal.

Set the right targets for your business with these tips

Every goal needs a number of key performance indicators and targets to measure and monitor success against. Here are some tips to keep in mind when you set targets:

1. Research teaches us that the most successful targets are those that are stretching but realistic and achievable.

2. In order to make them stretching, realistic and achievable you need to benchmark your targets. On a most basic level you can simply base line current performance levels, look at trends and then stretch your target accordingly. More sophisticated ways are to look for external comparisons, industry benchmarks and best practice standards to help set targets.

3. Every target needs a time reference, i.e. by when you want to achieve it. To improve customer satisfaction is not a great target. To improve customer satisfaction (measured by the NPS score) from 55 to 65 by the end of 2019 is better.

4. It is also a good idea to set different milestone targets for different time-frames, e.g. short-term (next quarter) and longer-term (next year, two or three).

Once your targets are set, there are a few more things to consider:

1.Make sure you establish an action plan on how you will achieve each of your targets and milestones.

2. Make sure you monitor the performance against your goals and targets on a regular basis.

3. Make sure you review and adjust your targets regularly to reflect changes in your performance as well as the external environment.

4. Finally, make sure you celebrate and reward the successful delivery of targets and goals.

It doesn’t matter what products or services you sell or whether your company is multinational giant or a small start-up, setting the right targets for your business is the way to stay focused, keeps your organisation advancing forward and sets your company up for success.


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