A Quantum Voyage

Our View of the World

Sam Palmisano, President & CEO of IBM, writing to the IBM Partner Network, reaffirming their continuing commitment to their Partners.

Excerpt:

“. . . because of the major shift now underway across the global economy. This is not simply a cyclical downturn. On the other side of the present turmoil, a very different world is taking shape. And together we are uniquely positioned to lead it.

The world is not just becoming smaller and "flatter." It's also becoming smarter. Through pervasive instrumentation and interconnection, almost anything - any person, any object, any process or any service, for any organization, large or small - can become digitally aware, networked and intelligent. And these new capabilities could not be more timely. Even in today's difficult environment, businesses are willing to invest in IT solutions - if they cut costs, drive efficiency and productivity, preserve capital and create competitive advantage. And that's exactly what "smarter" solutions do.”

We couldn't have said it better! A “New York Minute” has become an eternity. We now are dealing in nanoseconds regarding change. (Did you know that a nanosecond is the time it takes light to travel 11½ inches?). There's a bit of trivia.

As we manage our organizations, we're inundated with data that need analysis before we can reap the  benefit of having it. It needs to be in a form that we can understand and convert into usable knowledge. Then we can draw conclusions and make decisions. The closer to humanly understandable form these data are when they are generated, the more quickly we can take advantage of the knowledge buried there and make decisions that lead to actions which are goal directed. That is, after all, what our jobs are about. Take actions that lead to the achievement of organizational goals.

Since this blog is part of Quantum Voyage's raison d'être, I'm now going to suggest that you visit our GoalTrak^TM web site and avail yourself of some “humanly understandable” information. Register for our April 7, 2009 webinar and/or request a free 45 day trial of  GoalTrak^TMEV or GoalTrak^TMCV. When you do, you will have a unique experience in decision making capability.

Strategy is a Funny Thing

Jack Welch, former Chairman of GE, articulated one of the most famous strategies in business. Paraphrased, it said, “We'll be number 1 or 2 in a line of business, or we'll get out of that business.”

Powerful stuff. There aren't many people with the guts to make that kind of strategic commitment. And that's what that statement is; a commitment to an organization's long term position in a given arena. A clear guideline for all those involved, that their performance and behavior must take into account this future state.

When we listen to our colleagues, clients and prospects use the term “strategic planning”, we wonder what they really mean, because when pressed for an explanation, they usually say that they're working on “next year's goals”. This is not strategic planning. In fact, from our perspective, there is no such thing as strategic planning. One can only formulate strategy. Executable goals bring a strategy to fruition. Executable goals and planning how to achieve them can incrementally lead to the point where a strategy has become the reality. A strategy is too big, too amorphous to get a human head around in the executable sense.

It has been said that poor execution will sink the best strategy. Trying to execute directly on a strategy just can't get the desired results. Generally, it gets poor results and many unintended consequences. Creating a system of organizational goals can get the desired results. One can make plans to achieve goals. Goals are the most powerful tool for human achievement. Goal setting is a technology and an art. It takes into account the realities of the moment and the possible futures.

Peter Drucker said that when making decisions, one must do it with the absolute knowledge that the information being used will probably be obsolete before the outcome of the decision is reached. That's the risk inherent in taking the action required to achieve goals that will support a strategic commitment. It is also why one can not execute directly on a genuine strategy. The time line is too long and the unknowns are myriad.

In our over 30 years of consulting experience, we have learned that small and mid-size organizations can get along without explicit strategy, but not without explicit goals. Goals make it possible to know how the organization is doing compared to what it wanted to do during any given period. Without them, people in organizations concentrate on “activity” and eventually become enslaved by it. (I believe Robert Heinlein said that). Real appraisal of performance can happen when there are goals. Without them, appraisal sessions tend to become a bully pulpit for the manager.

Strategy is a wonderful concept, to be embraced at the right time in an organization's development. The time is always right for goals.

Looking Forward After the Fact

“In three years, IBM (NYSE: IBM) has poured at least $10 billion into a new division, Information On Demand, built around the theory that businesses are drowning in a sea of unorganized and underutilized data.” Here's the article.

We applaud IBM, Oracle, SAP and the other firms that are working to bring order to chaos. There are nuggets of gold in data warehouses around the world. With all this technology being brought to bear, the operational history of an organization should be readily available for use in decision-making.

While laudable, keep in mind that the information being culled is historical; it has already been generated by the efforts of the people in the organization. It's similar to the accounting function. That is, “the beans are being counted.” Terrific, on the face of it. We believe, however, that not enough attention, time and effort is being focused on the front end. People's activities created the results that are represented in these data. Our question is: are these human activities the right ones, leading to the desired outcomes?

Our experience with the small and mid market shows that there is an abundance of “executing before the planning is done”. We believe that this is probably true to in the Corporate/Enterprise market as well, albeit, to a lesser extent. Regardless, why is this the apparent case? Why does articulating a vision, formulating strategy and building an organization-wide executable system of goals get short shrift, while combing through a mountain of results is de rigueur?

In a word, Leadership. If the CEO/President/Head Honcho of an organization doesn't champion the process, it doesn't happen. If the leader isn't committed to looking forward and leading the effort to determine the organization's future, no one else can or will. If there is no future magnet attracting the organization, then the market, or some other external influence will make that determination for it. The historical data being massaged will represent what the people in the organization produced based on their best efforts; but not necessarily what the organization wanted.

Remember, Without a system of goals, our only motivation is survival. If just surviving is OK with you, don't change anything. If planned, realistic, controlled growth is more your style, change is required. You make the choice.

-RSL

Do Something!

Our clients are wondering, as are many of us, "what's next?"  "How are we to behave under these difficult circumstances?" One thing is certain; if we do nothing, nothing will happen. That is, without action there can be no results. If we sit around wringing our hands, lamenting the "lousy economy, sick credit situation and housing slump", it will just get worse. The old adage, "don't get mad, get even," seems to apply here.

There is no panacea, no one answer, however, we can do something. And, as cliche as it may sound, goal setting can come to our aid.

Our role as consultants is to help our clients improve organizational performance. The people in the organization are the engine that drives that performance. It follows then, that improving the performance of the people will have a direct impact on the performance of the organization as a whole. Just how can we generate and recognize improved organizational performance?  And how can we use goal setting to help us?

Let's start with something I learned early in my consulting career: "Without a system of goals, our only motivation is survival." A system of organizational goals includes both the organization's goals and the people's goals. Together, they are the "system". One without the other will yield less than optimal results. . . or no results. We all know this. I submit to you, however, that knowing is not doing. Peter Drucker said, "Decisions are only good intentions until they degenerate into work".  Interesting use of the word "degenerate". Simple examples may include, "we're going to increase sales" or, "let's reduce waste" or, "we need a higher return on our investments".

Until these three "decisions" are converted, or degenerate into executable goals that are specific, measurable, tangible, realistic and controllable, they are "just good intentions". There is no denying that it is hard work, mostly mental and emotional work, to create meaningful goals. In an organizational setting, the process is most effective when it is collaborative, meaning that differing points of view must be taken into account. This may lead to confrontation. Many people avoid confrontation because they equate it with negative conflict. With the confrontation of issues there can be resolution. With resolution consensus can be reached. Without at least consensus, if not agreement, forget it. The outcome of the process will likely be vague. This is the painful truth about effective, collaborative goal setting.

What does all this verbiage have to do with "getting even"? Everything! If you can set some short term, realistic goals, say 6 to 12 months, you can get results that will produce results for yourselves, your suppliers, your customers and your people. No guarantees! The alternative of doing nothing, however, does carry a guarantee. . . no results!

-RSL

A Leader's Job

Letter from Richard S. Lewine, Chairman of Achievement Alliance Corp.

After 30 years of working with leaders of small and mid-size
organizations, one of the many things I've learned is that in times like
our current financial meltdown, the contrast between Leaders and
Managers is clear. Now is the time for Leaders to do their job. To
reassure their people; to articulate a clear Vision; to LEAD!

The world is still functioning. People still NEED food, clothing and
shelter; and they WANT other things. Businesses still need suppliers and
customers. We don't operate in a closed system, isolated from the rest
of the world. The question on the table for us is one of faith and trust.

Our economy, in fact, the world economy is built on these two qualities.
As a buyer of products and services, do you have faith in the ability
of your suppliers to deliver as promised? As a seller, do you trust your
customer enough to extend credit for payment later? If you don't believe
that one or both of these conditions exist then cash in your chips and
call it a day.

On the other hand, if you are committed to maintaining your enterprise,
to perpetuating it, then you must believe these conditions exist. The
challenge is to ferret out those that agree with you and together, keep
the wheels of business turning. This is what Leadership is about.
Setting the tone, inspiring, facing the obstacles and roadblocks of
reality and tapping your organizational resources, your people, for
potential solutions.

I believe we have an obligation to "keep on keepin' on." Free enterprise
is about taking risks. It's about converting dreams into reality. it's
about setting realistic goals that people can get their arms and heads
around and buy into. It's about supporting your people's efforts at
achievement and acknowledging their performance.

Yes, I'm "waving the flag".  That's a leader's job!