You are a leader, and are well aware that both private and public sector organizations must prioritize long-term thinking. As a result, you can immediately enumerate some of the main reasons. However, there are persistent corporate issues that appear ...
You are a leader, and are well aware that both private and public sector organizations must prioritize long-term thinking. As a result, you can immediately enumerate some of the main reasons.
However, there are persistent corporate issues that appear unrelated to long-term planning. Therefore, their sudden presence catches leaders off-guard. Failing to complete a long-term strategic plan can lead to three anticipated but uncommon issues.
1. Commitments at Cross-Purposes
Consider an organization that has invested substantial time and effort into crafting a meticulous three-year strategic plan. The document lays out clear goals, milestones, and performance indicators to work towards over that relatively short timeframe. However, when gazing further into the future, a lack of cohesion emerges among the executive team and board members. Each leader has their own personal vision for where the company should be in four, ten, or thirty years. But there is no consensus or shared strategic roadmap beyond the three-year horizon.
This divergence in perspectives can undermine decision-making processes. Without alignment on long-term direction, executives rely on their own criteria when charting the future course. The cumulative impact of this disjointed approach to leadership can be highly detrimental. It leads to missed opportunities, strategic missteps, and organizational stagnation or decline. Unified commitment to a long-term vision enables more focused decision-making and progress.
In addition to this problem, there is also a detrimental effect on the top issue that organizations often report in their strategic planning – the lackluster execution. In the absence of a long-term vision, perceptive executives often find themselves involuntarily holding back their support. Why?
They can tell that the commitment is superficial. And likely to shift in a moment. Hence, it is unnecessary to invest precious social capital, budget, and time into a fleeting plan that may have a 50% likelihood of being discarded.
Missing Important Trends
I recently revisited Competing for the Future by Hamel and Prahalad, immersing myself once again in their groundbreaking insights. In this 1994 classic, they accurately foresaw the influence of emerging technologies.
It was quite interesting to note that they were mostly correct in their observations. Taking their predictions seriously would have allowed a company to establish a distinct competitive edge.
However, this is only one small section of the larger landscape. You may be familiar with the comprehensive PESTEL suite, which encompasses Political, Economic, Social, Technological, Environmental, and Legal/Regulatory factors. By only planning with a short-term horizon, companies fail to acknowledge the cumulative effects of gradual trends in all these areas simultaneously.
By doing so, they make themselves vulnerable to potential dangers. Additionally, they miss out on significant opportunities because they fail to consider the hidden possibilities.
For example, Apple had a visionary glimpse into the future, imagining a comprehensive ecosystem that revolved around their products, services, and the cloud. Most likely, they were in possession of the identical information as everyone else. What set it apart?
Around 2010, they devised a comprehensive plan that spanned a decade, gradually constructing a complete solution, piece by piece. From their near-collapse in 1997, they have risen to become one of the most valuable companies in the world today. In the face of an existential threat, they boldly seized an opportunity that came their way.
Not Doing Succession Planning
Most organizations find it challenging to create succession plans. Why? Letting incumbents go unchallenged and accepting their perpetual rule is the easier option.
It’s only when you consider the long-term consequences that you realize the folly of this approach.
For example, it becomes evident that the necessary skills to navigate the company through upcoming transitions are lacking. A person nearing retirement may not be the most suitable candidate for tackling a new learning curve.
But that’s just scratching the surface. As soon as talented middle managers sense the lack of long-term direction, the sights of them browsing job listings and attending networking events become more frequent.
Over time, companies find themselves staffed by an ineffective majority, trapped in a state of stagnation. However, the situation takes a turn for the worse. Eventually, as the “last men standing”, members of this cohort receive promotions, even to the highest executive positions.
To prevent these three slow-moving disasters, your team must engage in strategic planning that integrates short and long-term perspectives.
You are someone who is already a long-term thinker, working in a for-profit company. Unlike many, you don’t need to be convinced about the importance of long-term thinking. Somewhere early in the past – childhood, early career – you embedded the idea in your thinking. Now balancing short and long term thinking is a part of your character.
But this may be why you are confused. Others around you don’t share this trait. In fact, you feel like a fish out of water – always harping on the need for long-term thinking, sometimes asking inconvenient questions.
You can’t understand why others don’t share your concern. And it’s not that you are particularly ESG, sustainable or anything like. Nor do you come from an old-school. You sense that the company would make better decisions if it had more than the usual 3-5 year plan.
But how do you convince others in the C-Suite, and the board, to think with an additional lens?
Tune into this episode as I tackle this wicked problem.
Similar to most organizations, your company also has a vision or purpose statement. The initial idea was meant to ignite inspiration, but lately, it seems to have lost its allure. What interventions can you implement to foster a collaborative environment and encourage your staff to go above and beyond? And how does this statement support the goals outlined in your corporate strategy?
It is easy to comprehend the reasons for creating a compelling vision.
As we human beings look to the future, our imaginations run wild with the anticipation of what lies ahead, just beyond the corner. As such, while sitting at work on a Friday afternoon, we’re happy, feeling the anticipation of the weekend ahead.
By mid-day on Sunday, our energy levels plummet and a sense of unease settles in. Why? Monday looms ahead, and with it comes the familiar routine and the anticipation of the weekly grind.
Our psychology is wired to have an addictive tendency to anticipate what lies ahead. Sadly, this fact goes unnoticed by most individuals. The lack of understanding about the future, even among progressive companies, is the reason why social media has such a powerful draw for the average employee.
A company vision is management’s way of providing an alternative, and they offer five options to choose from.
1. **The Invisible Vision**: This form of vision exists solely within the mind of the company’s top leadership. While these individuals may be passionate about their vision, they fail to share it with the rest of the organization. Communication barriers or a desire to maintain control often lead to this secretive approach. As a result, employees are left in the dark, lacking a sense of direction and purpose.
In this first category, if no one besides the top leader knows where your organization is headed, it may be the case.
2. **The Vague Vision**: Perhaps the most common form, vague visions lack clarity and specificity. These statements are often found adorning office walls or buried within corporate documents. While they may sound lofty and inspirational, they fail to provide actionable guidance. Without clear goals and timelines, employees struggle to connect their daily tasks to the overarching vision, resulting in disengagement and apathy.
To determine if your company’s statement is vague, try this simple test. Reflect on whether a rational employee could perceive that the objective has already been fulfilled or is on the verge of completion. Is it done?
Additionally, is there a specific year associated with it? If the answers are simply “Yes” and “No”, it can be considered too vague, leaving room for people to only pay it lip-service.
Honestly…it would be more accurate to call it a slogan.
3. **The Squeezed-Up Vision**: In an attempt to avoid ambiguity, some organizations opt for short-term visions. However, these compressed timelines often lead to unrealistic expectations and limited scope. Employees may feel overwhelmed by the pressure to achieve short-term goals without a broader long-term perspective. As a result, motivation wanes, and morale suffers as employees become disillusioned with unattainable targets.
4. **The Strategy-Less Vision**: Even with clearly defined goals, a vision can falter without the support of a comprehensive strategic plan. In this scenario, organizations set ambitious targets but fail to provide a roadmap for achieving them. Without alignment between the vision and strategic objectives, employees are left to navigate uncertain terrain on their own. As a result, initiatives lack direction, resources are mis-allocated, and progress stalls.
But above all, they realize the groundwork has not been done because it fails to confront reality. As such, they believe the vision won’t be implemented.
On the flip side, there is:
**The Ideal Vision**: This represents the pinnacle of corporate visioning, combining clarity, inspiration, alignment, and engagement. An ideal vision is clear and concise, providing a roadmap for the organization’s future. It inspires passion and commitment among employees, fostering a sense of purpose and belonging. Moreover, it is aligned with the organization’s strategic objectives, ensuring that every action moves the company closer to its goals. Finally, it engages employees at all levels, soliciting their input and fostering a culture of collaboration and innovation.
In conclusion, the strength of a corporate vision lies in its ability to provide clear direction, inspire action, and drive meaningful progress. By understanding the various forms of corporate visions and striving for the ideal, organizations can chart a course for success in today’s dynamic business environment.
Navigating professional challenges can feel daunting when your usual methods of coping fail. Friction with colleagues, performance setbacks, economic pressures – these issues can linger and even permeate teams. In times of turbulence, a fresh perspective is needed to build resilience. But where can you start?
Author Byron Katie provided just that with her notion that, “When you are perfectly clear, what is…is the same as what you want.”
While this may sound like a description of what it’s like to be insanely rich, it’s not about achieving all your goals.
Instead, this idea carries powerful implications for managing mindsets when facing adversity. Here is a 3-step, experimental approach to embrace clarity and acceptance:
Step 1: Taking Stock
Begin by taking stock of your immediate surroundings through your senses – the feeling of your feet on the floor, the airflow from the vent, the muffled voices down the hall. Include the observation that you reading this on a screen. Make note of these concrete facts and sensations that comprise your present-moment experience.
Next, turn attention inward. What thoughts, emotions, and social dynamics are swirling within at this time? Name each aspect, from fleeting feelings to charged exchanges with colleagues. These intangible factors also constitute your reality right now.
Let’s mentally label them a pile of stuff you are “Having.”
“Wanting” One at a Time
Now comes the transformative step: transitioning from “having” to “wanting.” After acknowledging each element of your experience, pause and consciously shift into a state of desire. Embrace the desire for what you have, whether it’s this article, your emotions, or even unwelcome sensations like a screen that is too dim.
The key here is to practice acceptance and embrace every facet of your experience, even the ones you’d typically resist. It’s a form of mental jiu-jitsu, where you actively notice a fact, and the feelings around “Wanting” it.
This “having-then-wanting” can transform even the most awful moments.
Building Resilience for Future Challenges
While seemingly simple, the true challenge lies in applying this framework during times of stress. That’s why proactive practice is crucial. Think of it as training for your personal mental Olympics. By regularly practicing “having-then-wanting” in calmer moments, you build inner strength and resilience for when the next hurdle arises.
Notice that in these high-pressure moments, unwanted thoughts forcefully occupy our minds, followed by negative feelings and sensations in our bodies. As we respond, we ignore our inner state in order to survive.
Now imagine embracing, i.e. “Wanting” each of these elements. These could keep us from denying the truth of situations such as the January 6th insurrection. Many are not “Having” it – denying eyewitness testimony and video tapes.
But this isn’t just for you; it’s a team leadership superpower. By collectively acknowledging reality and embracing experiences, you’ll bounce back from setbacks faster and remain grounded when faced with adversity. Imagine the collaborative power of a team where everyone accepts “what is” and works together to navigate it.
Ultimately, this approach empowers you to face stress with grace and emerge stronger. Remember, you would now have the tools to weather any storm. Embrace the practice, cultivate resilience, and forge ahead with confidence, knowing you possess the inner strength to find calm amidst the chaos, even when challenges feel overwhelming.
You are attending a strategic planning offsite and notice that the room has been quiet. Apart from the usual contributions from the CEO and experienced members of the C-Suite, the others are silent.
When they do speak up, it seems as if they are in a regular department meeting, addressing daily concerns. They aren’t thinking strategically.
You want to intervene, but don’t know where to begin.
Tune into this episode to hear from me and my special guest, Svyatoslav Biryulin, as we tackle this wicked problem together.
Show Notes
The full video of the discussion is available for paid members. See below.
Svyatoslav Biryulin is a strategy consultant. Before founding his own consulting boutique, Svyatoslav worked for over 20 years in various commercial enterprises, of which 13 years in a CEO position. Since 2012, he has been serving on the boards of directors of companies in various countries, leading strategy committees. He is an active blogger and publicist and lives in Ljubljana, Slovenia https://www.linkedin.com/in/biryulin/