13 Steps to Better Strategy Execution

Screen Shot 2014-08-22 at 2.14.20 PMI’m teaching a course at U of T in Continuing Studies in the fall called Connecting Strategy with Action. It’s all about driving superlative results through better strategy execution. The most remarkable outcome of students who take it is how they end up shifting their whole management focus from activities to results.

In the course we talk about employees three greatest needs:

  • To know exactly what is expected of them.
  • To know how they’re doing.
  • To understand how they can improve.

I prepared this document as an outline of the course and thought I should share it here as well.

13 Steps to Better Strategy Execution

The Organized Mind

mcgill-alumni-mainDaniel Levitin has written an interesting book called the Organized Mind. I saw him speak the other day about the book and was fascinated by the stories he told about highly accomplished people.

Not being one of those people, I listened closely to figure out what I could learn. What struck me most was the way he differentiated between creative thinking and rational decision making.

To Levitin, “Creative thinking means allowing the nonlinear to intrude on the linear and to exercise some control over the output.” It is a mystery though, how linkages are made between the linear and non-linear in order to make creative leaps.

“In contrast to creative thinking is rational decision making.” According to Levitin, “Human brains didn’t evolve to be very good at this…because we have a limited attentional capacity to deal with large amounts of information.”

So if a human brain has two critical functions: creativity and decision making, it turns out that we’re not much good at either of them. And if we don’t have the ability to to pay attention to detail, we’ll never get any better at the latter.

This leaves the human brain to excel at one thing, which is day dreaming, and that I suspect we are all very good at this.

Entrepreneurship Research Roundup

Entrepreneurship Research RoundupI’m continually finding interesting entrepreneurship research (among many topics) and thought that it might be useful to share it from time to time. I share on Twitter but it probably just zings by quickly so here is some interesting stuff.

Failed Entrepreneurs Find More Success the Second Time.

My favourite entrepreneurship research of the week is about failure. I’m glad to see that failed entrepreneurs are much more likely to be successful on their second go round. This of course means that we’re willing and able to learn from past mistakes.

Culture More Important than Strategy and Execution

While I disagree with these findings of this research it is because it asks opinions of leaders and doesn’t do any empirical research into the subject of causal factors for success. In any case it is an interesting question to ask.

Startup Accelerators

Accelerators and Incubators have become much more prevalent in recent years to assist startups. I was amazed to find that there were 464,819 entrepreneurs applying to 2,856 accelerator programs. I was flabbergasted to think that there were that many of each.

Tech Industry Not Good at Diversity

Finally to something that is disappointing and probably not a surprise. Research by Y Combinator has found that it funds startups with women on the founding team at a lower percentage than those startups’ application rates.

Newsflash – 80% are Above Average at Driving (and Execution)

Bad Driver and ExecutionIf you did a survey of drivers I think that you would find that 80% of them consider themselves to be of above average capability. I know I fall into that category yet I am guilty of speeding (most of the time), rolling stops (often) and running yellow lights (sometimes.)

In reality, I am probably a below average driver and yet because I don’t get caught, I figure I’m above average. After all I have a friend (Tom are you there?) who gets caught speeding half a dozen times a year. He is definately below average.

But what about execution?

I figure its the same thing with execution. Most managers out there probably think they are above average at execution. Well if this is true (statistically impossible) why does HBR think that execution is the biggest problem in business today?

I finally figured it out and of course it has to do with the way people are managed. If a company has a results-based management focus and good metrics then people can know with precision whether or not they are executing well.

However this isn’t the case with most companies. Most of them are activity-focussed, manage activities and use metics that track activities. If they don’t have a measured, causal relationship between activities and results then they’ll never know whether they are any good at execution.

And because there is no one explicitly in charge of execution (we all are) and thus no one measuring it, no one really ever has a way of finding out whether or not they are any good at executing.

Which brings up the dreaded annual appraisal. Is there anyone out there whose appraisal is any good at dealing in an objective manner with execution?

So there we have it: No one in charge, poor metrics, activity orientation instead of results, poor appraisals means no one really knows if they are any good at execution. (But I’m sure you’re all great drivers – except Tom of course.)

 

Fixing Business Entropy

Tools for fixing business entropyI’m back to talking about science and physics as a way to understand fixing business entropy. (See  definition if you missed that blog. This may be boring or confusing but if you read it, I promise it will be good for you.)

If you look at entropy in physical or scientific terms it is pretty easy to see how to fix it. Don’t forget that entropy results in a closed system through the equalization of energy among all elements of that system.

So to fix entropy in a physical system you need to add new energy from the outside.

Fixing Business Entropy

Same in business. Fixing business entropy means applying an outside force to find out why chaos is occurring and develop solutions for that chaos.

It can’t be done from the inside due to the nature of entropy. For a person within the business to address chaos, it would mean doing a regular job managing the chaos and adding extra time to deal with the resolution of it.

The extra effort rarely exists and rarely works because all other employees in the business will resist any application of force that would cause them to exert more than the minimal amount of effort required.

That’s where consultants come in. A consultant is an external force that can look objectively at why chaos is occurring, recommend solutions and drive implementation.

Then the consultant can go away and the business is left to slowly devolve into entropy all over again. Entropy is inevitable and that’s why consultants are inevitable. They are the outside force needed for fixing business entropy.

(And I hope that consultants everywhere can use business entropy as a justification for their existence.)

Business Entropy

Business EntropyI’ve worked over the years in a variety of environments that were totally chaotic and always wondered why employees didn’t do something about it. Why do people put up with chaos when they could be fixing systems to make them more orderly?

Well thanks to a comment from Oksana Fedan I finally understand what causes the acceptance of chaos and it is Business Entropy. Now I am not much of a physicist and I’ll have to resort to physics to explain this so hold on.

Entropy is a “measure of disorder or randomness in a closed system.” The concept originated in thermodynamics but has been applied to all sorts of fields. In physical terms, energy flows from a hotter region to a colder one until they all become equally distributed and less able to utilize that heat.

Business Entropy

Business entropy occurs in bureaucratic organizations when people begin only to see their own jobs and not interactions with others. Employees do only what is expected of them and cease trying to organize the work in a manner that best suits the entire organization.

It takes extra effort to bring order out of chaos and when things get chaotic, organizations just find it easier to adjust to the chaos than to fix it. It takes less energy to do this (and less cost).

Unfortunately, Business Entropy is almost inevitable as an organization grows, becomes more process oriented, jobs become more specialized and bureaucracy emerges.

Bureaucracy begets more bureaucracy and as employees become more process oriented they tend to defend their processes against intrusion from outsiders and change that would benefit the organization as a whole.

It takes a shift in business thinking from a process orientation to an orientation around results to counter Business Entropy and for most companies, that’s just too much of a switch.

Insert Picture Here

Screen Shot 2014-06-24 at 6.20.19 PMI was working away on a new business plan with Paul Engels of Veloxsites fame when out of the blue he said something like: “Stop the presses, we have to do this differently.” Being an inquisitive type and not understanding what on earth he was talking about, I asked him what’s up.

Well Paul had gotten fed up (and rightly so) with the quantity of words in the document. Being someone who as you might imagine, has a love affair with words, I was very disappointed as I actually wanted to add more words.

The way I figure it, no one reads business plans anyway so adding more words just makes the plan seem all the more righteous. But no, this wasn’t what Paul was talking about.

What he wanted was to add more pictures. Yes, replace words with cute little pictures and diagrams that make it so that people who don’t like to read things can get some value out of a document.

That’s when he said something that rocked my world. He gave me a new way to think about communication. What he said was:

Having a picture gives the reader permission to skip reading in detail.

And this is true. When there are pictures in a document, most readers gravitate directly to the pictures and skip the rest. Genius. What it means for you, is that if you want to communicate better, draw some pictures.

Be an effective procrastinator in 5 easy steps!

imagesSo if procrastination isn’t a bad thing and instead is just a value judgement made by anally-retentive over-achievers (see yesterday’s blog) then it is something to be celebrated.

Before we actually get around to creating National Procrastinator’s Day, maybe we should focus on how to become better procrastinators. Here then are five easy steps to save time and effort by becoming a better procrastinator:

  1. When someone else gives you a task to do along with a deadline, ask them if they really really need it by the deadline date or whether it is an artificial date. Try to get that deadline extended.
  2. After a few days have gone by, ask a bunch of really tough questions that will make the other person think hard and take a while to answer. This makes the other person think that you’re really getting at it and at the same time it can cut down what you need to do or potentially delay completion even more.
  3. Let the task roll around in your head for a while, all the time thinking about what is the least amount of work you can do to get the task done. Ask more questions to seem busy and try to reduce the task or eliminate it.
  4. Once you have figured out the absolute minimum amount of work needed (see blog on Perfectionism) then figure out the absolutely latest time possible that you can start the task.
  5. Once that time has past, get down to and rescue victory from the jaws of defeat by doing even less work than you thought you needed to do and pulling off a miracle to complete the task on time.

Now you may think I’m joking about this but I’m being perfectly serious. A lot of us spend too much time doing things that don’t need to be done or spending too much time on things of little value.

The great thing about procrastination is that it can be used as a tool to avoid doing the unnecessary and reducing time on the unimportant.

The Benefits of Procrastination

Procrastination

You would think from the comments to my last blog that people feel very guilty when they procrastinate. I find that really funny as I never feel guilty when I procrastinate.

Apparently, there are three types of procrastinators, Delayers put things off for all sorts of reasons, Perfectionists don’t let go of something until it is perfect and Distractibles are people who are easily distracted by bright shiny objects.

No matter what type of procrastinator you happen to be, most people seem to feel some form of guilt, anxiety, dissatisfaction, depression or self-loathing when they procrastinate.

Silly, silly, silly. This must be something like left-over guilt from toilet training when one is young. After all, if you aren’t late at delivering something you promised,who cares if you did it at the last minute or weeks ago? Why do we think it is better to do things early that to do it late. After all, what does it really matter when you do it, as long as it is of acceptable quality and on time?

In fact the way I think about it, there are a bunch of benefits to procrastinating when trying to do something:

  • Whatever you have to do might get cancelled before you get to it.
  • You get to do things you like more first.
  • You get more time to figure out what to do. (If I had more time I would have written a shorter letter.)
  • You can get it all done at once.

So it’s time to take off the shackles of unwarranted value judgements designed in the Victorian age to benefit the early bird who gets lots of worms. Stop feeling guilty about doing things at the last minute. Who really cares when you do something?

Procrastination is much better that not getting stuff done. These are the people who really should feel guilty, the ones who don’t produce. And the funny thing is that the non-producers don’t feel guilty about their lack of production. So why should you feel guilty about procrastinating?

Procrastination

procrastinationI have a friend who considers herself to be a terrible procrastinator and yet she is one of the most productive people I know. If you look up stuff on procrastination online, you’ll get all sorts of information on how bad it is to procrastinate and how you can overcome this horrid tendency in 5 easy steps.

So if procrastination is so bad, how is it that my friend can be so productive? Maybe we have it all wrong, maybe procrastination is actually a good thing.

First lets look at what procrastination is. Various sites define procrastination as “the practice of carrying out less urgent tasks in preference to more urgent ones, or doing more pleasurable things in place of more pleasurable ones.” It is also defined as “the act or habit of procrastinating, or putting off or delaying especially something requiring immediate attention.” “To postpone or delay needlessly.”

Now this friend of mine fits the bill to a T. If she has something that just has to be done for work and she doesn’t want to do it, she’ll do anything else instead. When she should be working the weekend on a report, she’ll spend the time tidying her place, cleaning, doing errands, laundry, almost anything other than doing the report.

If you notice the definitions of procrastination and the description of my friend’s activities, you’ll notice something interesting. Procrastinators are not people who do nothing, they just happen to do things in an order that would seem to be counter-productive, less important before more important.

And when I look at it that way, procrastination doesn’t seem all that bad. You’re still getting stuff done, just perhaps not in the order that would seem to make sense.