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Saturday, February 6, 2010

On The Line: Our "Dead" Strategic Plan

This month we examine ways to make strategic plans "come alive".

Problem/Question

I was asked recently to be part of a strategic planning session for our department. Since the department is quite large, it isn't possible to include all staff in the process. I think strategic planning is very important, but in past years, all the work put into it seems to have gone to waste. The strategic planning document seems to get put in the back of the drawer, and I suspect that most staff don't even read their copies. Since we put a lot of time and effort into the process, can you suggest any ways that we might make it worthwhile?

Answer

What you describe is probably the norm in organizations that do strategic planning. It is rare that plans of any sort are made to "come alive". To understand why this occurs is to take a step to altering the situation. Strategic planning can be one of the backbones of organizational functioning, serving to: · inform decision-making (eg. what we do, what we don't), · help staff determine both work unit and employee objectives · inform the staff development and personnel functions · form a basis for continuous improvement

One major reason for its failure is that it is often seen as an event, unlinked to anything else. One of the keys is to link it to the many other organizational functions through action, not just talk. If we consider strategic planning as long range planning, work units need to use it as a basis for their own shorter-term operational planning. If the larger department does it's strategic plan once a year, each work unit should be using that plan as the foundation for setting it's own goals and objectives for the upcoming fiscal year.

We use the term cascading to refer to the effects that a meaningful strategic plan can have. The departmental plan informs the divisional or work unit plan, which, in turn affects directly the allocation of resources and objectives for individuals.

The advantage of cascading lies in the use of the unit/individual objective setting process to focus on why the department is there, and to link, through concrete action planning, the departmental plan to the everyday activities of each staff member. Individual managers need to be held accountable for the integration of their own plans with the overall departmental plan. So that is often the best place to start; with those managers.

Many managers have inadequate experience in integrating strategic plans into everyday work. It may be a good idea, prior to the strategic planning process, for all participants to get together to plan out how they will make the plan come alive. While we often think of strategic plans in terms of formal release and distribution, the place where real success takes place is the everyday world. If each manager, in any decision-making conversations with staff, refers to the strategic plan as a guidepost for action, then staff begin to realize that it is not a "dead" document, but one that has practical and real relevance to their everyday worklife.


Here are some specific suggestions:

* Treat the strategic plan like a spider-web, with strands into all aspects of your organization, including budget, human resource development, objective setting and performance management, all decision-making at the everyday level, etc. It is part of a system of management, not a stand-alone piece.
* Use every opportunity to relate whatever is being discussed to the strategic plan. · Do your best to allow sufficient time to do the strategic planning process and do all the pieces. (About once a year we publish a model of integrated strategic/shorter term planning that you will find useful-see next month's newsletter).
* The strategic planning process is essentially a stepped process. That is, it is not something that can be completed in a single one day session. As such it is a good idea to communicate with staff and involve them at every step. At each step, participants go back to those not present, discuss the tentative decisions, and obtain input to bring back to the next planning session.

Improving Communication -- Tips For Managers

Research indicates that managers spend somewhere between 50% - 80% of their total time communicating in one way or the other. This isn't surprising, since communication is so critical to everything that goes on in an organization. Without effective communication there can be little or no performance management, innovation, understanding of clients, coordination of effort, AND, without effective communication it is difficult to manage the expectations of those who are in a position to make decisions about your fate.

It can also be said that many managers do not communicate well, and do not set an organizational climate where communication within the organization is managed effectively. This isn't surprising, since a manager who communicates ineffectively and does not encourage effective organizational communication is unlikely to hear about it. Poor communication is self-sustaining, because it eliminates an important "feedback loop". Staff are loathe to "communicate" their concerns about communication because they do not perceive the manager as receptive. Both staff and management play out a little dance.

In short, you may be fostering poor communication, and never know it. You may see the symptoms, but unless you are looking carefully, you may not identify your own involvement in the problem. What can you do about it?

Your Role In Communication Improvement
Effective organizational communication, regardless of form, requires three things.

First, all players must have the appropriate skills and understanding to communicate well. Communication is not a simple process, and many people simply do not have the required depth of understanding of communication issues.

Second, effective organizational communication requires a climate or culture that supports effective communication. More specifically, this climate involves trust, openness, reinforcement of good communication practices, and shared responsibility for making communication effective.

Third, effective communication requires attention. It doesn't just happen, but develops as a result of an intentional effort on the part of management and staff. Too often, communication, whether it is good or bad, is taken for granted.

We can define your role in improving communication with respect to each of these. First, if you want to improve communication, you will need to ensure that you and staff have the skills and knowledge necessary to communicate effectively. This may mean formal training is in order, or it may mean that you coach staff and provide feedback so that they can improve.

Second, you play a critical role in fostering and nurturing a climate that is characterized by open communication. Without this climate, all the skills in the world will be wasted.

Finally, you must bring communication to the forefront of organization attention. If you make the effort to improve communication, your staff will recognize that it is important. If you ignore it, so will staff.

Some Specific Tips:

1) Actively solicit feedback about your own communication, and communication within the organization. Ask staff questions like:

* When we talk, are you generally clear about what I am saying?
* Do you think we communicate well around here?
* Have you got any ideas about how we could communicate better?

Consider including these questions (or similar ones) in your performance management process, or staff meetings.

2) Assess your own communication knowledge and understanding

(See self-assessment instrument on Page 5-sorry, not available online).

3) Working with your staff, define how you should communicate in the organization. Develop consensus regarding:

* a) How disagreements should be handled.
* b) How horizontal communication should work (staff to staff).
* c) How vertical communication should work (manager to staff, staff to manager).
* d) What information should be available and when.

Once consensus is reached, support the achievement of these goals through positive reinforcement and coaching.

4) Look at the impact of the structure of your organization and how it impacts on communication. Indirect communication (communication that is transferred from person to person) is notorious for causing problems. Look at increasing direct communication where the person with the message to send does it directly with the receiver.

5) Learn about, and use active listening techniques. This will set a tone and contribute to a positive communication climate. If you don't know what active listening is, find out. It's important.

6) Consider undertaking a communications audit. (see sidebar).

Conclusion

We only have space to give you a few tips, and communication is a very complex process. We suggest that you take the communication self-assessment checklist on the following page, to assess your own understanding and application of communication principles.

If you would like to increase awareness and attention to communication, consider copying the self-assessment checklist and distribute it to staff.

Suggest that they complete it for their own use, and follow it up by discussing organizational communication in a staff meeting.

Be aware that exploring communication patterns and effectiveness can bring to the surface a number of resentments and perceptions. If you aren't prepared to deal with these, it is best to look to an outside consultant.

Monday, February 1, 2010

Business History

History of business & finance. The concepts of business and finance have been an integral facet of human activity since the development of the earliest civilizations. The earliest business transactions were based on a system of trade known as the barter system. In the barter system, prior to the emergence of systems of currency, goods were exchanged for other goods that were deemed to be of similar value. After the development of currency, goods were exchanged or sold for an agreed upon value in the form of money. The goods and the currency were thus interchangeable, so when goods were not plentiful, replacements could be readily purchased by using currency. The links included herein relate to the history and the human experience of business and finance.