Strategic Planning -- With a Twist

In Suntiva's previous newsletter, we described the link between psychology and business strategy, and how this link can provide breakthrough insights that can be turned to lasting competitive advantage. (For a quick refresher,click here.) In that issue, we also promised specific ideas and tips for making this linkage deliver results. As we've recently completed a number of “strategic planning” engagements for our clients, we thought it would be helpful to provide some observations, and perhaps, an opportunity.

First, some background: what does Suntiva mean by strategic planning? Most would agree that it begins with a clear and articulate vision, and mission, for the organization. This describes what the organization wants to be, and provides the context for the how — the specific strategy that is going to get you there. The strategy often becomes a quantifiable set of strategic objectives, providing crucial context for the priorities and focus of the business. These can then roll down into the organization, with each area of the business providing its own strategic objectives that support the overall vision and strategy. Finally, a set of measures are identified — from formal balanced scorecards to individual incentive plans — to help quantify what success looks like, and tie all the pieces together. This process can help you make crucial decisions — such as strategic investment tradeoffs — that end in a winning business strategy and plan.

We would argue, however, that this process is still incomplete — because it leaves out a crucial component: strategic alignment. By this, we mean that key leaders are wholly committed to the strategy, and to its execution. And no, a general nodding of heads at the end of the planning process does not constitute alignment (even if your facilitator says otherwise…). This is where psychology, particularly when it's grounded in the business context, can really add value.

So how do you know if your team is fully aligned and committed to the business strategy? Begin by asking a few key questions:

1. How closely is the plan connected to the personal goals and priorities of the executives on my team? Be careful here: sometimes these fundamental and personal drivers are unspoken and “invisible” to others on the team (particularly the boss). Effective leadership deals proactively with issues surrounding the business and the people. In recognition of this, one Suntiva client used an Executive Coaching program in parallel with the strategic planning process to successfully align personal and business strategies.

2. How well does the plan address the internal barriers to success? No doubt you've spent lots of time (and money) on market assessments, competitive analysis, customer satisfaction surveys, and other external data. But did you spend enough time evaluating critical internal factors, such as executive role assignments, informal communication channels, and the influence of your existing culture? Consider the executive team that prided itself on a culture of informal and open communication (read: lots of public, “lively” discussion)— without realizing that the rest of the staff interpreted this as managerial discord and ineffectiveness. As a result, their strategy execution suffered, because the staff lacked clarity and confidence in the plan.

3. How effective is the executive team in day-to-day execution of the plan — especially in teamwork, communication, and clarity of roles — and was this part of the strategic investment discussions? We've seen companies spend tons of money on sophisticated sales processes, business development, and the like, only to discover that what really needed improving were the relationships between sales, delivery, and R&D. One client had significant challenges in the relationship between the field and corporate R&D; we used our strategic planning and alignment process to help define roles, identify barriers, and create opportunities — ultimately tying together strategy, process, and the measures and priorities for success.

Questions like these can help identify some of the hidden and often unspoken barriers to success. The question then becomes — can I get sufficient “bang for my buck” (or ROI) through investments that address these issues? And if so, what would this investment look like? Fundamentally, psychology best understands how to uncover root-cause issues like these, and can help develop programs leading to lasting change. When you combine psychology with business and strategy expertise, you'll discover new sources for competitive advantage — leveraging your people in ways previously unimagined.

One other note — strategic alignment is not a once-a-year effort, any more than your strategy is a once-a-year event. Planning is interesting, but ultimately you need to execute. And you need a team as aligned and committed in June as they were when they left the last planning session.

So the next time your executive team gets together to discuss strategy, take a few minutes at the end of the meeting and to ask yourself, “What significant issues did not get discussed today? And how is this impacting our execution of the strategy?” If your answer is “none,” you might want to look a bit deeper. Why? Because there just might be an untapped wealth of competitive advantage waiting to be discovered.

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