Strategic Planning – Why Do Organizations Need Strategic Planning

Do you know of an organization that performs extremely well during a crisis? Maybe your own?

StrategyDriven Strategic Planning PrincipleOrganizations do well during times of crisis because executives, managers, and individual contributors all gain clarity of purpose, expectation, and action. Clarity, along with a sense of urgency, breaks down organizational barriers allowing people to work efficiently together toward achievement of the shared goal(s). These factors enable the organization to resolve the crisis quickly and return to normal operations.[wcm_restrict plans=”25541, 25542, 25653″]

On a day-to-day basis, especially during a period of continuous success, organizations tend to lose clarity of purpose and the sense of urgency. Over time, bureaucracy builds as a diminished focus on the organization’s mission prevents well intentioned executives and managers from relentlessly eliminating resource waste. Bloated processes make cross-organizational execution more difficult; driving employees to focus on their personal performance and success instead of that of the organization. Silos form and performance declines. Therefore, it is critically important for leaders to clearly define the organization’s goals and actions and to instill the sense of urgency that motivates employees to work effectively and efficiently together in pursuit of mission objectives.

Strategic planning provides the foundation for creating clarity of purpose and action on a day-to-day basis. A well-defined, measurable mission supported by specific organizational objectives and reinforced by vertically cascaded, horizontally shared performance measures and effective executive and managerial oversight creates and maintains the clarity of purpose needed for continuous success. Without the unifying vision provided by strategic planning, an organization may lose sight of its goals, stray from the road to success, stumble, and ultimately fall; failing to keep pace with competitors in today’s extremely aggressive marketplace.

Final Thought…

Some organizations become victims to cyclic performance. When this occurs, the downward slide is typically viewed as a crisis for which the organization rallies to improve performance. Having realized a performance upswing, the organization becomes complacent, losing its focus and once again falling behind the competition. This cycle is often the product of ineffective strategic planning and will likely continue until a strong, unified vision is created and embraced by all members of the organization.

It is the hope of all StrategyDriven Contributors that the concepts and materials provided on our website will help you to develop and communicate the unified vision needed to make yours a truly StrategyDriven Organization.[/wcm_restrict][wcm_nonmember plans=”25541, 25541, 25653″]


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About the Author

Nathan Ives, StrategyDriven Principal is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.

Resource Management Warning Flag 2 – Parkinson’s Law

StrategyDriven Resource Management Warning Flag“Work expands so as to fill the time available for its completion.”

Parkinson’s Law
Wikipedia

There exists a tendency among workers to use all of the time allotted to perform a task even if the work can be done in a shorter period of time. Some organizations, through high accountability and managerial engagement, minimize the amount of lost time caused by unnecessary work expansion. In other organizations, however, a lack of managerial oversight and reinforcement of high performance standards allows the Thieves of Time to rob the organization of precious productivity.[wcm_restrict plans=”40855, 25542, 25653″]

Parkinson’s Law suggests that workers will fill the time allotted to perform work whether that time is needed or not. The three Thieves of Time comprising Parkinson’s Law include: the student syndrome, multitasking, and unassimilated advances. These Thieves of Time can be described as:

  • The Student Syndrome: Tendency to delay the start of an activity until the perceived point at which any further delay would result in the activity being overdue. Problems arising during the performance of the activity typically result in a late completion. (Don’t forget Murphy’s Law – “Anything that can go wrong, will!”)
  • Multitasking: Performance of several activities simultaneously. Time to start and restart an activity accumulates; lengthening the time to perform each activity as compared to that needed to perform the task in a start-to-finish manner.
  • Unassimilated Advances: Accumulation of delays but not advances as work passes through a series of individual contributors. Here, a lack of communication regarding early work completion and/or a lack of preparation to begin work before its scheduled start time results in a failure to capture advances.

If left unchecked, the Thieves of Time will undermine an organization’s productivity and diminish its overall value. While not all inclusive, the four lists below, Process-Based Warning Flags, Process Execution Warning Flags – Behaviors, Potential, Observable Results, and Potential Causes, are designed to help leaders to recognize whether the Thieves of Time are at work within their organizations. Only after a problem is recognized and its causes identified can the needed action be taken to move the organization toward improved performance.

Process-Based Warning Flags

  • no time reporting process
  • no process to collect time to perform data associated with specific project tasks or work orders
  • lack of a rigorous project scope control and/or project change management process

Process Execution Warning Flags – Behaviors

  • individuals do not report time to perform specific work activities even if required to do so by procedure
  • individuals consistently report time worked as 8 hours per day or 40 hours per week even if they worked more or less than this amount
  • individuals record time worked from memory once every several days or more
  • lack of executive and managerial challenge to time reports
  • lack of executive and managerial challenge to time requirement estimates
  • lack of supervisory oversight and observation of work

Potential, Observable Results

  • excessive water cooler time, frequent long lunches, late arrivals, and/or early departures all with on schedule, on budget work completion at the desired quality level
  • excessive time spent on personal emails and/or personal phone calls with on schedule, on budget work completion at the desired quality level
  • excessive, perfectionist standards applied to all work with on schedule, on budget work completion
  • products having additional out-of-scope features while being completed on time and on budget
  • benchmarking consistently reveals higher competitor capacity and/or lower costs

Potential Causes

  • executives and managers are uncomfortable with conflict and avoid challenging employees regarding their work practices
  • executives and managers are not engaged with the workforce and their work practices
  • executives and managers routinely assess a person’s value contribution based on how busy they appear, thereby, encouraging ‘busy work’
  • individual contributor complacency

Final Thought…

Establishing and reinforcing high performance standards is critical to creating a culture of accountability. The existence of Parkinson’s Law within an organization suggests that the organization may suffer from diminished accountability. Thus, there may be several other opportunities to realize performance improvement by increasing the organization’s level of accountability. Insights to becoming a more accountable organization can be found in the members’ only category: Organizational Accountability.[/wcm_restrict][wcm_nonmember plans=”40855, 25542, 25653″]


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Additional Information

The following StrategyDriven recommended best practices are designed to promote high, performance-based activity time estimates:

Additional Resources

StrategyDriven Contributors recommend the following resource as a guide to the common methods used to estimate resource needs for an activity or project:

A Guide to the Project Management Body of Knowledge, Third Edition
by the Project Management Institute


About the Author

Nathan Ives, StrategyDriven Principal is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.

Recommended Resource – The World Is Flat: A Brief History of the Twenty-First Century

The World Is Flat [Updated and Expanded]: A Brief History of the Twenty-first Century
by Thomas L. Friedman

About the Reference

The World Is Flat [Updated and Expanded]: A Brief History of the Twenty-first Century by Thomas L. Friedman examines the social, political, and technological forces that are bringing the peoples of our world closer together. Within its pages, Mr. Friedman illustrates how the flattening of the world is creating an increasingly interconnected business environment where businesses large and small as well as knowledge workers from the United States to India will compete in the global marketplace.

Benefits of Using this Reference

Globalization of the marketplace presents new opportunities and new challenges to businesses of all sizes and people of all countries. As the speed of communication and transportation increases, so does the ability of a company or a person to deliver products and services anywhere in the world. With billions of highly educated and motivated people entering the marketplace from India and China, competition is increasing exponentially.

While many of us sensed the flattening of the world, The World Is Flat expertly illustrates what and how these forces are shaping our environment. StrategyDriven contributors believe executives and managers armed with this insight will be better able to take advantage of existing flat world opportunities and envision and leverage future changes; enabling their organizations to remain competitive in the ever flattening world.

Organizational Accountability – Increase Opportunities with Accountability

StrategyDriven Organizational Accountability PrincipleEvery day, executives and managers are presented with opportunities to enhance their organization’s success. Frequently, these opportunities go unrecognized, unexplored, or unexploited because the organization is not prepared for them. Certainly, some opportunities are beyond an organization’s reach because of resource limitations. However, ensuring the organization possesses key attributes will better enable it to take advantage of those opportunities for which it has the resources and that are consistent and aligned with its mission. These attributes include:[wcm_restrict plans=”53529, 25542, 25653″]

  • broad knowledge and skills base
  • questioning attitude
  • trusting environment
  • willingness to rethink previous decisions and pursue new directions
  • willingness to act
  • drive to continuously improve

How do executives and managers build these attributes into an organization? The answer is accountability.

As previously discussed in Resource Management Best Practice 1 – Attract the Best with Accountability, the more accountable the organization the greater its ability to attract and retain highly knowledgeable and skilled workers. These individuals strive for continuous improvement because it is in their nature and is rewarded by the organization. Subsequently, more accountable organizations tend to possess a workforce having a broader, deeper knowledge and skills base, an improvement focused questioning attitude, and a willingness to act to fully realize the benefits associated with those identified improvement opportunities.

By definition, an accountable organization will consequentially act to best achieve its mission. As this implies, members of the organization continually seek performance improvement and new alternatives to more effectively and efficiently realize the organization’s goals even when this requires reconsidering and changing past decisions. Executives, managers, and individual contributors all recognize that people and the business environment evolve over time. Because those within the accountable organization act in the best interest of the organization and demonstrate superior performance, members of the accountable organization have a higher trust for one another thereby making it safe to rethink a previous direction. In the accountable organization, it is worse to fail to try than to try and fail within the boundaries of established protocols.[/wcm_restrict][wcm_nonmember plans=”53529, 25542, 25653″]


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About the Author

Nathan Ives, StrategyDriven Principal is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.

Strategic Planning Whitepaper Introduction – Analysis

StrategyDriven contributors are pleased to introduce the strategic planning whitepaper: Analysis. This whitepaper outlines and describes the major steps taken to assess the organization’s internal performance and external environment in support of long range activity planning.

Strategic analysis is a critical component of the strategic planning process. An integral part of a company’s evaluation and control program, it provides executives and managers with a comprehensive assessment of the organization’s capabilities and market factors; revealing growth opportunities and vulnerabilities. Armed with this information, managers can more effectively chose from among today’s strategic alternatives to create the greatest future reward potential.