How to strategize with your team (Inspired by HBR Jan/Feb 2011)

We are all aware of companies goals. You can find them in annual report, conference rooms, even around the walls as very well design poster. Had you ever ask yourself? "What is my influence against such metric?, How do I contribute?"

Most companies/managers do a poor job translating the company goals into actions. So the groups goes along receiving a paycheck never sure why.

The following exercise is a good way for managers to help guide their team creating their charter to help the company be successful.

PRE-QUEL!
Before starting if you are the manager, make sure to PREPARE yourself to understand the big goals and reason behind them. You might want to even play out this activity as part of the pre-work with yourself to get an idea of any questions that might come up. Don't forget to be OPEN MINDED, as I can guarantee you that whatever you thought the outcome was going to be it will not. Be prepare to accept good (or better) suggestions that were not expected.


Step 1: State your intent
Start the meeting like you should. Remind yourself and the team what is the intention of the day. I would always recommend providing a brief reminder of the days objective and then do a round table on individual expectations. Make a mental note on what is in scope and out of scope. Not every expectation can be met, but let them know when and where they can get the answer they are looking for.

You can start now by using those data points and breaking them out into 2 distinct groups, Task and Purpose.

The task is your what. What are you doing, activities, events
Purpose is your why. Why are we doing it... (improve service, cost, profits, etc.... )

Depending on the size of the team, break the team out, probably a couple of times, always building on thier accomplishment but with one goal in mind. Make your list into a one sentence summary. Have them review each other and at the end come up with ONE one-sentence summary.

Step 2: Try again
This is a good time to take a break as the next session is to pressure test your sentence, but this time with context. It would come handy if in your prep-work you where able to come up your supplier, customer, cross-functional team, bosses and others what and whys.

Can they, would they stand up to the test. Does your task and purpose, compliment all your the parties involve? How can you modify it so that it will.

My personal recommendation at this point is to understand your circle of influence. What is under your control. If you can modify your parties task and purpose, work with them, but if it is out of you control, then only accept what it is and move on.

Once the room is satisfied, time to move on to the next step. How do we know when we are winning?

Step 3: Measuring System

Let's review our progress so far. We got a solid elevator speech that will resonate with our customers, suppliers, with the company and our peers. That is not an easy task! Let's take a moment to admire our accomplishments.

We don't what our accomplishment to failed let's figure out how to measure them. When the time period end, when the buzzer sound, how can we tell what is the score? You got it, we need to set a measurement system in place.

Let's break it out into 2 sections, trackers and monitors.

Trackers should be for those actions you and your team are responsible. Those are your daily and controllable metrics. These goals are team base, they are the one common goal all members is after.

Monitors are the metrics that your partners measure themselves or you. Keep an eye on this measurements but do not over-react to what they say. They are nothing more than a reference and you are only one variable in the equation.

Step 4: Implication and prioritization
By this point in time you might want to think, we are done. We got a common goal, we are all align and we even pressure tested against our interdependencies. Let's go home!!!.... NOT YET!!!

You still have one more question to answer. What do I do next? Tomorrow when I sit in my desk, turn on my computer what is different?
This is the time to start putting your intent into actions.

Personally I've always love to draw a window frame and as we brainstorm different topics we can but them inside the window frame (in scope), out of the window frame (out of scope) and in between if you are undecided. Regardless the tool you use this exercise should allow you, the manager, to provide guidance of what is in and out and most importantly WHY! The team needs to be clear what are their borders so that they can interact with thier customer and peers with confidence and committing themselves do to what they are there to do and not to overcommit.

Once you feel comfortable and depending on how messy the window frame is you might want to take a few minutes to group them.

Once you decided what is important to the business and to the success of your team, you will need to decide what is critical. The moment had arrived where you can rank and stack the list. Why is it important. This is the filter the team will use to say YES or NO. This will eliminate the filter on who scream the loudest to get things done.

If you are a manager, this last step is the step you want to keep close to your memory, desk, computer. This is what you will use to manage the boundaries of your team. This is the list and activities that you are task to enable and empower your team.

Some side benefits

You just created a map that will:
a. help you establish a 2-way communication with your team
b. Provide an elevator speech through out the organization on the intent and goals of your team.
c. Help you gain clarity with all levels of the organization, including upper management and customers
d. Opportunity to gain alignment with the rest of the organization that might have goals or activities that are conflictive

On top of all those benefits the one that I must like is that this would allow you to empower your organization making them operational autonomous.

The Ever-Changing Organization (Inspired by Business Harvard Review Jan/Feb 2011)

Let me start with a quote by Benjamin Franklin... "When you're finish changing, you are finished."

Don't forget that today is not tomorrow. Although when you say this out loud it sounds silly, even stupid, many of us forget that today's organization will not be tomorrow, and to only stay focus on today's services will drive us to destruction of our organization or jobs.

But how do you take this words and turn them into action? In this article I will present a simple tool made of 3 columns divided into theme that will help you to:

1. Manage the present
2. Selectively forget the past
3. Create the future

I would go as far as to recommend to use this technique if:
- You are a result driven person
- Want to maintain your job and/or grow in it
- Have a team of people of services you manage
- Even if you are a CEO and want to make sure your business doesn't perish

Let me introduce you to the table, which is the tool that we will be building out.

Very easily created in any presentation tool or blank sheet of paper.

STEP 1:
For now let's start with Box 1. It is imperative that you get this box correct, this is the tactical box that will keep you in business. If you are a manager, this box is meant to write out the team strategy and day to day work. CEOs, managers are accountable for this box, but not responsible. In other word this are the teams projects.

STEP 2:
I would recommend to continue by filling out Box 3. Let's be honest, go where you think it is natural, because this should be an "Ever-changing" tool I think is a matter of preference if you want to continue in Box 2 versus 3 it's fine. If that is the case go to step 3 then come back.
Ok, Box 3 is about creating the future, where you want to go, what is the next step of your organization. If you are in the market and competing for market share, this should strive towards the next great thing. (If you are the organization with the greatest things in the market today, Box 3 focus should be aimed at the next best thing. If you read the blog published Jan 31, 2011 "the S curve". This is a tool that will complement innovation and discovery at least from a strategy level.

We will come back to this box one more time, but for now take sometime and make your wish list.

STEP 3:
Box 2, now that you created your present, take your first step to understand your future, let's make that list of anchors that are tying you to Box 1.
- First think about the things you must recognized to achieve Box 3
- Second think about the paradigms from Box 1 that are tying you to it

Before shouting DONE! let's take a final look at Box 3, were there any discoveries in Box 2 that should be added to box 3? Take a look.

Nice, now you have a list which can be transferable into actions. Couple of useful tips:
1. Work Box 3 projects into today's accountability day to day work
2. Involve young or untraditional voices (do not select people that are complacent with the status quo)
3.Do not forget that in order to create you must learn and forget. Do not start implementing Box 3 actions before doing a good due diligence in Box 2.

Gaps in the Market (Inspired by Business Harvard Review Jan/Feb 2011)

Some might read this and decide that this is the best approach for Emerging Markets. When I read the original article in HBR, regardless that I was in a middle of a 20hrs trip to an undisclosed location xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx, my thoughts was that we can apply the concepts below in every market, all the time. I truly believe that if we never stop thinking on:

• New ways to present our products or services
• Identifying unmet customer needs
• Providing affordability and accessibility to all economic classes
• Interviewing the consumers to understand how the product is being use

We will most likely be leading our business sector by finding and discovering new demographics and innovation. I’m convinced this will be a never ending very profitable loop.

New ways to present our products or services

Does it get old, to only know that you can have ketchup in burgers and fries? What if I told you that the best shrimp cocktail sauce I’ve ever had was made with Orange Juice and a fair amount of ketchup? That pasta taste excellent with heated ketchup vs. a spaghetti sauce? 

A company that builds their products and believes that the consumer will only have one need is losing a huge market. There is an “unmet” market out there that is being ignored because many companies stop promoting different uses. This will take effort, will probably be a conflict with your R&D, marketing and your sales force, but it will also provide them with options, to impact new markets (marketing), bring new customer (sales) and be a source of inspiration to develop the new generation (R&D).

Identifying unmet customer needs

Imagine you enter a market where you are providing a service already being performed by your end user. Here is a good example… Going from washing your cloth in the river to a washing machine, okay maybe I took it to the extreme, but you get my drift.

People (customers) are your best R&D department, but don’t just focus on those that already buy your products. Going back to the ketchup example, if you spend time in some communities you will find that some were mixing pepper in their ketchup, well what did Heinz and other ketchup makers did, they release a product with Tabasco or any other spices to penetrate the market. I’m sure that we all can come up with past example, my challenge to you, and me is to keep your eyes open for new needs.

Providing affordability and accessibility to all economic classes

This is not about reducing your prices or services, nor about taking an existing product and sacrificing its quality in order to sell it for less, but it is about being creative and provide a product or service that can compete in that class without sacrificing quality. Let’s work with an example. Let’s say you own the #1 refreshment (soda) company in the United States and wish to expand into an emerging market (domestic or international). This market is made of middle class or low income class, and your competition is lemonade, ice tea and water. If you decide to take your highest quality product and do the following: reduce the quantity, create promotions, reduce the serving size, or create a hybrid that people can still compare it to the high quality product you offer, you will encounter with a peak of revenue on your new product follow by a tsunami of collateral damage to your main product, your new product and your brand.

The best way to service and impact this demographic group is by being creative, innovative, and understanding how your product can complement what is already there. 

For this scenario options such as a powder product (mix with water), new packaging, or even a new formula are good options. Do not forget that just because you price it and market it for a target audience, you will not get a response for others market areas. Be ready to provide alternative uses for them. One audience can use it for their everyday drink, another for special occasions.

Had you notice that you can shop at Best Buy in the airport, but had you seen a best buy store in any airport. The answer is no. Best Buy discovered that they don’t need to have a present establishment in order to create a presence. Next time you are in the airport, take a look how this company took a concept used only for snacks and soda, the vending machine and applied it to their products. This is the true definition of accessibility.

For our refreshment case study, if the answer was a powder product, accessibility could be providing portion packaging versus a can, or large container. As you walk to supermarket, mall or even the airport, you can see how companies are looking for ways to not only be accessible but also to reach out in areas where needs for their services are required but not always found.

Interviewing the consumers to understand how the product is being use

If you think that your product is being used for the intention use you are selling, think again. 

Make sure to interview, survey and investigate how your product is being use constantly. If it is being use other than the intentional use, then you just discover an opportunity to develop create or modify your product or. Follow this rules published in HBR as your guidelines to constantly discover the unmet needs.

1. Study what your customers are doing with your product. Be aware that, as Peter Drucker famously said, “The customer rarely buys what the business thinks it sells him.”
2. Look at the alternatives to your offerings that consumers buy. Investigate a wide range of substitutes for your products, not just what your competitors make.
3. Watch for compensating behaviors. Discover what jobs people are satisfying poorly.
4. Search for explanations. Uncover the root causes of consumers’ behavior by asking what people are trying to accomplish with the goods and services they use.

The “S” Curve, the game where one strike could mean you’re out! (Inspired by HBR Jan/Feb 2011)

Trying to be an innovative and changing company (staying ahead in the marketplace), and at the same time trying to be a stable company (one that the employee can develop and grow) could create conflicting priorities.

Let’s talk about the first part of the sentence, being an innovative company, where your products and/or services are state of the art. Let’s call this avoiding to “S” curve. The best way to describe this is by studying the picture below.

This picture is describing the business performance against time in relationship to innovation and leading the market. Let us look at the first cut “S”. Notice the take-off runway, the rise, the peak, and the decline. Now take a look at the path of high performers, notice how the decline is eliminated and the peak is really just a slower growth rate than the rest of the curve. In order for high performers to meet this it means it should be creating a new innovation and or service before the curve get’s to its peak.

For an employee looking for a stable organization, this type of environment will be very challenging. Think about the ever-changing priorities, it will feel like riding a wave in the middle of the ocean, one after another, not truly being able to ride the wave to the shore and get some rest. If change management does not handle it upfront and correct the perception could be one of uncontrolled chaos.

Learning to fix what is not broken, or appears not to be broken is a talent, but a talent we all can develop. The reality is that way before business hits its revenue peak; the competitive advantage on which the service or product was founded will expire. As soon as a service, a leading edge service hits the shelf, the customer, consider for a fact that a group of individuals are already trying to jump into your “S” path and become the one with the next big thing, but you have an advantage they might not have, you hit the market first.

Knowing that you will have competition as soon as the news hits the stands, what is holding you to work on the next big thing that will bring obsolescence to your product or service? Let’s be realistic if you don’t, someone else will.

Consider what is needed:

1.      Foresight - talent

2.      Early commitment - talent

3.      Faith in the power of R&D - talent

In order to stay ahead you need talent, you want an organization that will bring new business growth. The best business will always maintain a steady commitment to talent creation. Talent creation is not talent recruitment, but the idea of investing in your people in order to create new knowledge, knowledge that can move your business quicker and stronger into the future. For example, having someone to go through a course such as Green Belt, Black Belt or Lean Master will provide a new insight on the world. If you are a manager it is your responsibility to provide outlets for this employees with new tools to be able to use them and become experts, if you are the employee, it is your responsibility to teach your manager on what support you need. This conversation is crucial, for everyone development.

One key aspect for success is for the top leaders to match the capabilities at the expertise technical detail. This does not mean that they are THE technical experts, but it does mean that they are supporting the organization correctly and setting the company for success. They need to be the conductor of the orchestra, no need on knowing how to play every instrument.

On a side note, many companies or organization pick the successor by who is next in line. For you to stay above the S curve you need to start giving more thought to the right person. This person should be the person that best is qualified on facing the company challenges, not just the next in line.

As you develop your team, think about this, “Does your team have time to think?” If the answer is NO then you need to start hiring or start taking less jobs. A high performer team always has surplus talent, this will allow to divide and conquer to reach the current goals, and allow your team to develop the next generation of services and products which will keep you riding the “S” wave.

By doing this you are also creating a talent pool that the company can use to leapfrog them into high visibility positions.

Remember:

1.      Start your innovation before it reaches its peak

2.      Develop your team

3.      Create room to work on the next generation always

Shared Value fundamentals (Inspired by Business Harvard Review, Jan/Feb 2011)

As companies grow, they try to find share value with society. Some will try to find this link as an employment creator, others will try environmental factors, other just believe that the simple fact of being there is a favor for the community (BIG NO NO). Well, it will not surprise for you to hear that it takes more than that.

The key is to find the needs and challenges the society is going through. If you are located in a small town, you might be looking at creating or providing different business the opportunity to support your business. If you are in a big city you might be looking at participating in school programs, adopting a highway or cleanup. The important thing is for you to understand the need and give a hand.

The company will and I repeat, will, create some externalities. The company will bring and disrupt the environment in new ways, it could be traffic, environmental, air pollution and others. Smart companies will stay ahead by developing programs which will be ahead of the curve and any regulation impose by the community or government. Many time is this externalities the reason why the community imposes taxes or penalty as a way of control, so stay ahead and the society will appreciate that you recognized the waste or a bi-product you are creating. Most likely the community doesn’t want you to go, but is important not to abuse the relationship.

This are some good ways to find that shared value:

Reconceiving the products and markets

Is this a product or service that the society benefit from? Not only that is it good for society but is it better than yesterday. (nutrition, gas mileage) By doing this you are not only making yourself more marketable but you are creating pride on your company and its product.

Productivity in the Value Chain

The time to look at productivity as making something faster/more with less people is starting to fade away. There will always be opportunity in labor, material and overhead, but in order to create a strong relationship with the community other buckets should be consider:

1. Environmental impact
2. Supplier access and viability
3. Employee skills
4. Worker safety
5. Employee health
6. Water use
7. Energy use

Building supportive industry cluster

This area is one where you not only get to share the knowledge and up-skill the community but also try to create a talent pool in the community. This talent pool can be use by you and other business (small or big) in the area. Many will join forces with the local education system, high school, trade school, community college or even universities to provide this type of programs.

I can not say this without warning you, that this area will create competition for talent. Companies may move to the neighborhood, established companies might start doing some innovation that require the new skills, etc... 

With education the society will grow, will be more attractive for new talent and synergies between the company and the community will grow stronger.

Whatever you do, remember that the shared value is always changing, being part of a community is a very dynamic role so take advantage of that and become a keystone for the community around you.

Opportunity Cost (Inspired by Harvard Business Review, Jan-Feb 2011)

In this article I want to explore the idea such as “Opportunity Cost” and how can it be apply in the service world.

Had you gone to a store to buy a Bose music system and once you are there ready to buy a voice starts telling you “are you sure you want to spend this amount of money? Do you really needed?” Maybe some of you can relate others might replace the Bose system for a car, a house or something out of your price range, but you surely want it.

The experience salesperson will notice this mood change and rapidly will apply a technique called “Opportunity Cost.” At this point the salesperson might gage how far to push you into the buy, but will provide some offers that you will provide the sense of saving money. He/she will continue to tell you “instead of getting this, why don’t you consider that (cheaper) and spend X (the difference) in accessories.”

Without realizing it you might spend the same amount in the store but doesn’t it feel that you save money because your hands are fuller?

Now that I explain the idea, let us see how to best apply it in the service business.

Case study, not so far from today’s real world.

I am the manager of this small department in an organization that serves as consultants to the enterprise in Continuous Improvement. We specialized in methodologies like Six Sigma and Lean that focuses in problem solving, providing a culture change to accept and sustain Continuous Improvements, and building up skills capabilities in this topic.

Going back to the intention of the article: “How do I implement the idea of ‘Opportunity Cost’ when selling my organization and its services?”

First I would start with understanding what is my menu. I would recommend to provide some options (for example): the premium, the value, the basic, and the customized package.

• Premium Package
• Structure Lean Deployment

Here we invest in creating a Continuous Improvement Culture throughout the organization. This will allow for a sustainable, engage and knowledgeable culture that will modify, create and challenge processes to make them effective and efficient. The form of payment is measure in commitment. In this package the department is in for the long haul. We ask for Value Stream Managers, time and resources to learn and develop the Continuous Improvement skills.

• Value Package
• Quick Wins

In this package we provide the organization our support to participate in a Kaizen event or similar. The commitment in this package will be intensive but for a short amount of time, normally less than 2 month, most customers not ready for a dedicated Lean deployment would select this package. This package will provide the customer with the support and leadership from the experts and at the same time they will be acquiring some knowledge as the customer most provide a leader and co-leader to lead by the guidance of a Lean Master.

• Basic Package
• Facilitation

One of the abilities of the experts is the ability to facilitate and guide a group of people with different personality through a session to arrive at a common goal. In order to do this they use Lean Six Sigma, Project Management or Change Management tool. This type of session are less than a day long and have very little pre-work. It is important to note that in this package the commitment from the team of experts is minimal, no pre-work and no post-work. With that being said the more the customer is involve the most valuable and actionable the session will be.

Customized Package

- Catch all bucket

This package is consider as the catch all bucket. This is the package could be a 3-6 month project, a dedicated resource in a remote assignment and may others. Due to the talent pool acquired you will be ask from time to time to share this resource with the rest of the organization where needs arises. It is important to provide the customer with options and accept to this package as a last resort.

Now that we discuss the opportunity cost, let us rank the Price and the Cost from 0 to 100.

Package	Customer Price (Commitment)	Team Cost (Resource)
Premium	100	100
Value	50	25
Basic	25	10
Customize	35	100

I will not do the math but if you subtract the commitment from the resource you will see that the “profit” varies but you will notice that the most risqué category is the customize package as you and your team are more prone to spend and dedicate more time than the customer you are serving.

The hardest part is done. Quantifying the effort and benefits of your service. Now you can prioritized and work and offer the best benefit for your customer.

If you want to balance your scorecard, I would add a customer scorecard for internal use only. This scorecard should reflect if the expectation and commitment were met from the customer. The intention would be to understand what offering is the customer ready for.

Using this tools you can optimized and be able to sell the appropriate service to your customer. The icing on the cake is that you would be setting yourself and your team for success as you will ensure that the customer can provide the right level of commitment.

My Boss, Technology (Inspired by Harvard Business Review, Jan-Feb 2011)

Technology had advanced so much that is making the people manager obsolete. Let's think about it for a second.

Technology today can monitor, keep track, even have reports of people times, productivity and sometime prioritize base on specified parameters. Scary?

So if you are a manager out there, and I include myself in this equation, what is our future? Does that mean our employees will have no need for us? If you answer YES, then you are RIGHT! Let’s be real, we need to change as well, we can’t stay behind. But the question still stand, where do we go?

First we have to ask, who is our customer? In my mind there are two.

1.      The company we represent and the vision and goals we are imposed

2.      Our employees, who look to us for priority, direction and motivation

Employees today are self directed to a point where they are self managed, they are being their own bosses, the question become where do we, the managers, fit?


Well, I’m learning this the hard way, and there are 4 things managers today need to be active on.

1.      Strong vision and mission

2.      Resources and support

3.      Stay in touch and provide as much help as possible

4.      A self project (creating your signature)

Strong Vision and Mission

Create with your team a organization message map. This will help them set sail in the team’s true north. You can use Franklin Covey, and any other team management tools to get there. If budget is not a concern I recommend to hire a consultant or an organization that do this for a living to facilitate the session. This will ensure that you and all your team members are part of the event.

Resource and Support

Make sure to keep in touch in order to provide any roadblock they encounter. With a self directed team they will be capable of removing most of them, but your help, feedback and passion for their success will go a long way creating credibility with your team, and staying in touch with their work.

Stay in touch and provide as much help as possible

Work on your team, not in your team. Make sure they are in a constant learning, developing new skills and sharpening old ones. Improve your teams reputation and emphasize the importance of their existence. Do not be shy to find opportunities for merger, change and evolution.


Salesperson, you want to be able to sell your teams work and be their number one cheerleader. Always have their success, lesson learn and why the organization needs them in the palm of your hands.

Self-Project

Career project: Find a project you want, outside your teams scope. This is your personal side project you want to have. This project should help you create your signature. Remember the name of the article, and if you, the manager, don’t invest in yourself, you might consider yourself obsolete.

Adaptive Pricing (Inspired by Harvard Business Review, Jan-Feb 2011)

Adaptive pricing

The adaptive pricing concept is base on creating off-products or services from your main line, this will provide customers options base on their budget and needs. For example, when customer were trading price for quality, 'Tide' came out with a different detergent to attract the consumer that needed to make this trade-off.

What 'Tide' created was a “Fighter brand”. Keys to success on this fighter brand is:

1.      Be able to remove it from market when there is no need.

2.      Make sure that it does not replace your main line, but keep interest on your product, so that customer doesn’t migrate or explore.

Some side benefits are: the attraction of new consumers, maybe by curiosity, but people that would not had try the product otherwise.

This tactic should be very well plan, as you do not want your brand to depend on the “fighter brand”.