Two lessons a horse race can teach about high-stakes strategies
When Mystik Dan won the 150th run of the Kentucky Derby, it was a history-making photo finish. Despite the 18:1 odds, the three-year-old colt hugged the rail and edged out a field of 19 other aggressive competitors who were right on his heels. It was one of only 10 nose-to-nose finishes in the race’s history. And to have three horses finish a nose apart, you have to go back in the record books to 1947. Officials, fans, and pundits poured over videos of the two-minute race to understand exactly what happened. How did this unlikely horse win one of the biggest competitions in the horse racing world? I see two valuable lessons for EVERY leader driving a strategy when the stakes are high: #1. Establish your positioning quickly –and firmly hold on to it! Though he wasn’t the first out of the gate, Jockey Brian Hernandez quickly secured a position at the rail, the shortest path around the track. This is where he knew Mystik Dan could best play to his strengths. Clarifying your strategic positioning in the marketplace allows you to play to your strengths too. Your strategic positioning defines who you are, your unique identity, what you stand for, who you serve, and the outcomes you deliver. Positioning is the foundation that drives your message and your brand. It is authentic. Your strategic positioning doesn’t change, no matter who you talk to. When you have this clarity, decision-making is easier for everyone on your team. It also attracts the right employees, partners, funders, and customers to join you in the journey. #2. Seize windows of opportunity –even if you risk getting bumped around! A horse race can be messy and chaotic, with lots of surprises. Despite the other horses bumping into and around Mystik Dan, a little daylight suddenly opened up. The colt immediately shot through that spot and seemed to find another gear, surging to the finish. When you are driving a new strategy, you risk getting bumped around too. Potholes and roadblocks during implementation often cause anxiety, and many leadership teams get derailed. Mystik Dan and his team – the owner, trainer, and jockey – knew when they entered to race in the Kentucky Derby that it wasn’t going to be easy. They established a “What If? Rhythm”. Instead of wringing their hands, they planned for the uncertainties. You, too, can establish a “What If” Rhythm” as you plan to implement your high-stakes strategy. When you and your team plan for uncertainties, you need to consider different ways to recover from disruptions from all sides. But you don’t stop there. Risk isn’t all about the downside. You also need to consider how you will be ready to seize windows of opportunity when they arise. Just as Mystik Dan was prepared and physically able to surge ahead when a gap opened up, you can establish a “What If? Rhythm” so leaders are ready to capitalize on fleeting moments of advantage for their organization. This means staying vigilant and adaptable, ensuring you have reserves and the capacity as a team to step up or pivot whenever necessary. For Mystik Dan, the stakes were high. Many had counted him out. He didn’t win by a mile. And it wasn’t necessarily pretty. Despite the risks, Mystik Dan and his team de-risked and executed a strategy that accomplished their big idea: to win the Kentucky Derby. Are you driving a new strategy when the stakes are high? With clear strategic positioning and a “What If “rhythm, you too can de-risk your strategy. You and your team can be more confident despite the odds. Because even when the odds aren’t in your favor, you can still win by a nose — or maybe two! I’d love to hear YOUR thoughts on this! How could this apply in your world? — Susan This article is part of my newsletter, which equips and energizes leaders with practical ways to move forward, whether leading a new strategy or getting one back on track. Subscribe if you’d like insights like this one or twice a month. Explore my website, www.gotomarketimpact.com, to learn more about my upcoming book, “FastTrack Your Big Idea!” as well as my offerings to help you and your team clarify your strategy and get results faster. Or message me, and let’s connect! susan.Schramm@gotomarketimpact.com.
Want Yes’s Faster? Avoid Skipping this Step.
Whether you’re choosing a seat, selecting a vendor, or funding a cause, it’s a lot easier to say “Yes!” when the choices are clear. Yet, one of the most common mistakes leaders make when launching a new strategy is to skip the step of clarifying “WHY YOU?” If you don’t define a clear niche, you risk that your big idea will falter. Having an answer to “WHY YOU ?” is fundamental to moving your strategy forward and getting Yes’s faster. But how can you do this? In working with client teams, I’ve found it’s easier to clarify your niche when you break the effort into two parts: • Part 1: Spot the gaps. Map out the landscape of organizations addressing the same problem you’re solving and who they solve it for. Dive into the nuances of their approaches. Identifying the white spaces can help you see opportunities to create a niche. You can also more easily see potential partnerships with organizations that are adjacent to your niche. Warning: Many leaders struggle with this step. Some may even start off a little cocky (“We’re the only ones on earth doing this amazing thing!”) but once they get into the details of mapping who’s out there, they can end up humbled and frustrated. That’s when we go to step two: exploring all the possible dimensions for your OWN differentiated niche. • Part 2: Explore every angle of what you do that could make you different. While you’re WHAT (your solution) might be groundbreaking, what is going to set you apart if competitors catch up? Start by brainstorming every strength you have, from every angle. Then ask: What about this is different from others? You might be packaging, or delivering your offering in a unique way, or providing a unique customer experience or serving a unique audience. You’ll be surprised by all the ways you can demonstrate you are unique. ( And if you aren’t, you could be!) This two-part approach to clarifying WHY YOU may sound deceivingly simple; but unfortunately it is often skipped in the excitement of launching a big new idea. Keep in mind as you do this work to clarify your niche: you’re not only making it easier for people to say “Yes!” faster. You’re also building a more confident team that can be clear and proud about what makes your organization exceptional! I look forward to hearing your thoughts! – Susan This article is part of my newsletter, which equips and energizes leaders with practical ways to move forward, whether leading a new strategy or getting one back on track. Subscribe if you’d like insights like this one or twice a month. Explore my website, www.gotomarketimpact.com, to learn more about my upcoming book, “FastTrack Your Big Idea!” as well as my offerings to help you and your team clarify your strategy and get results faster. Or message me, and let’s connect! susan.Schramm@gotomarketimpact.com.
How to Drive Your Strategy at Warp Speed
Wouldn’t you like to be Captain Jean-Luc Picard, from the Star Trek Next Generation movies? He’s a visionary leader with big ideas to make the universe better. His strategies often involve finding peaceful solutions and respecting diverse cultures. His signature phrase: “Make it so”. As in, “Lieutenant, set a course for Starbase 12, warp factor 7. Make it so.” These three words convey his decisiveness and confidence that everyone will execute. It has become an iconic catchphrase, often used to signify the moment when a plan or command is set into motion. But what if people DON’T make it so? What if the people YOU need to take action – won’t? In working with boards and C-suite teams driving high-stakes strategies, I find leaders frequently get frustrated when people don’t quickly start supporting their big ideas. They figure their strategy is logical and makes sense. It just needs to be executed, right? “Make it so!” The problem is this: Even the BEST strategy will FAIL if people are confused, skeptical, or not aligned. What many leaders miss is that Captain Jean Luc Picard – and EVERY leader who successfully executes a high-stakes strategy – has to get really clear about WHO: Who is it that needs to take action? Many leaders make flawed assumptions when it comes to WHO. They make the mistake of underestimating the wide range of people who are going to need to do something new for their strategy to work. If people are surprised and confused by what you’re asking them to do, your initiative will be delayed, if not derailed. Sure, it takes work. After all, Captain Picard is regularly challenged to not only get the members of his leadership team, the crew, and the Starfleet Command all on one page – he often has to convince an entirely different species! You can think about WHO from two perspectives: “internal” and “external.” Your internal WHO includes (at least!) o You o Your leadership team o Employees o Contractors o Partners o Suppliers o Volunteers o Board members o Investors o Donors. All of these people need to be informed, aligned, and ready to do their part. When your internal WHO is informed early and clear about your new direction, they can bring their different perspectives and ideas to help you anticipate issues and get results faster. Your external WHO are all those people you don’t have as much control over but are also critical to your success. It includes (at least!): o Customers who invest in your solution may need to do things differently, such as changing their processes, training, or schedule. o Community stakeholders will need to fully understand what you are doing differently if you want them to recommend you to others o Industry associations, ecosystem partners, and even competition will need to play a part if you are striving to create a new industry standard or a movement. o Beneficiaries who use your solution (even if they don’t pay for it!) will still have to be clear on what they need to do differently to get the benefit. When you plan ahead for WHO needs to take action you will avoid confusion and speed results. Want to know two things you can do RIGHT NOW to ensure your next big strategy gets warp-speed results? 1. Start mapping out WHO needs to take action. 2. Create your plan to make sure they know, understand, and believe in what you’re doing – so they can move WITH you. The faster you focus on WHO, the faster you can boldly go! I’d welcome your thoughts. — Susan This article is part of my newsletter, which equips and energizes leaders with practical ways to move forward, whether leading a new strategy or getting one back on track. Subscribe if you’d like insights like this one or twice a month. Explore my website, www.gotomarketimpact.com, to learn more about my upcoming book, “FastTrack Your Big Idea!” as well as my offerings to help you and your team clarify your strategy and get results faster. Or message me, and let’s connect! susan.Schramm@gotomarketimpact.com.
Four Ways to Help People “Get” Your Unconventional Niche
The CEO laughed nervously, “We are either going to seize an amazing niche and be considered brilliant – or we’re going to fail miserably because people just don’t get us”. When driving a high-stakes strategy and persuading others to join your cause, there’s a fundamental question: WHY YOU? A niche is a distinct segment within a larger market where an organization can meet the specific demands of target customers and effectively compete. In my research, I’ve found that the most common advice from funders is: “Make sure you’re very clear on why you’re different! ” In this very noisy world, If you don’t define a clear niche for your organization or your offering you simply won’t get heard. But choosing your niche can feel risky too! What if you’ve chosen a problem or a target market that is so different —people just don’t “get it”? Having a solution for a niche that nobody understands (and ignores) can be as dangerous to your strategy as not having a niche at all. It’s natural to question whether your chosen path, if too unconventional, will be understood or accepted. It can feel like taking a leap of faith into the abyss of the unknown, where failure looms large. Here are four practical steps to enlist support for your niche: 1. Make Sure Your Assumptions are Valid An assumption is a statement accepted to be true without proof. You’ve made assumptions about the problem and the consequences. You’ve assumed your niche audience is willing to invest in solving that problem. Drill into the assumptions you are making—and do some research — to make sure your assumptions are true. If they aren’t, shift gears. If they are, this information can help you challenge others’ assumptions with solid facts and language your niche will understand. 2. Show Your Solution Solves a Need I didn’t know I needed an electric toothbrush until I used one When skepticism is high, your target audience may need to “see it to believe it”. Whether through scenarios, prototypes, or pilots, bring both the need and the solution to life. Show a before and after. It can create “ah-ha”moments and build confidence among stakeholders. 3. Craft a Message in THEIR Language A clear message to persuade others answers “WHY” and “WHY NOW” and “WHY YOU”. Craft a message that resonates emotionally and logically for the niche you serve. When you use their own language and familiar examples, it helps your target audience understand the significance and potential impact of your unique approach. 4. Build a Community That “Gets It” Involve your target audience in this niche right from the start. Seek feedback, address concerns, and build a sense of ownership. Invite them to contribute and help shape your solution, your message, and your go-to-market. Their involvement not only enhances the credibility of your vision but also expands the network of advocates who “get it” and will be able to persuade others with you. When you are trying to seize a unique niche, and the stakes are high, practical actions like these can help you more easily enlist support. Yes, you are stepping out and taking a risk when you choose a bold niche! But YES you can be brilliant as you do! This article is part of my newsletter, “Driving a New Direction,” to equip and energize leaders with practical ways to move forward, whether you’re leading a new strategy or getting one back on track. Subscribe if you’d like insights like this once or twice a month. Explore my website to learn more about my upcoming book “FastTrack Your Big Idea!” and how you might leverage our De-Risk System for Impact℠ workshops . Or message me and let’s connect! – susan.schramm@gotomarketimpact.com
Risky Business: Make Big Decisions and Avoid the Pros/ConsTrap
I have a friend struggling with the decision to take a new job or not. Impacted by the wave of tech layoffs last year, she has been carefully considering her next steps. Now, with a big new position on the table, the pressure is on. But for some reason, her stomach is tied up in knots. “Sure, the money sounds great”, she says, “but new roles in new companies have risks too.” When confronted with any big decision, people often use the “Pros & Cons” approach”. Though Ben Franklin is well known as one of America’s founding fathers, he was also a printer, an inventor, a writer, and a contributor to decision theory. Ben Franklin suggested this simple framework when making a difficult decision: 1. On one side of a piece of paper, make a list of the advantages ( the Pros). 2. On the other side, make a list of disadvantages ( the Cons) 3. Weight each item on both sides of the list. 4. Cancel out items of equal weight. 5. The side with the most remaining strong reasons is your best choice. In working with leaders launching new strategies, I’ve seen Ben Franklin’s “Pros and Cons” decision-making process used regularly by individuals and teams trying to make a decision. A re-organization? A new vendor? A new office location? “Let’s list the Pros and Cons and see which way we should go.” It seems so scientific. But doesn’t it feel – incomplete? My friend Wes Kimes agrees. For decades as an executive coach, Wes has helped organizations put the right leadership team in place for their next chapter of growth. He also makes sure those leaders are well-positioned to be successful. In coaching hundreds of executives, Wes found that when making a big decision, leaders need to be able to openly talk about the risks. If not, it causes anxiety. Though they may want to appear “all in” for the big promotion, career changes can have serious implications on a person’s family and how much they enjoy their work, and can even impact their health. Just the process of making the decision can create anxiety. Big decisions need to be framed in a broader context. Evaluate the pros/benefits and cons/risks of TAKING a new path but consider the implications of NOT TAKING that path as well! Wes suggests his clients use this simple framework to consider a big decision: What I have always liked about this simple approach is that it encourages you to consider risk from more dimensions and to create more options. Framing decisions with only a “YES”/ NO” option tends to leave you feeling trapped. But exploring the implications of taking an action – and NOT even taking that action at all!— results in a broader set of scenarios. The Pros/Cons approach doesn’t provide this range of possibilities and options. You, along with your team or family, can envision “What if?” more objectively, with less anxiety, and feeling more empowered. You can step back and breathe as you consider each scenario and how you would deal with them. When I’ve used this framework myself, I’ve found that I am much calmer after making a decision. Even if I say YES and run into problems down the road, I know I will have options. And even if I say NO, I am not stuck. I have a myriad of solid paths I can take that I may have otherwise missed. When I use this decision-making approach with my clients to evaluate “What If” scenarios, I find leadership teams are less emotional talking about downside risks, and more creative about coming up with upside benefits. Even the most difficult naysayer can contribute a few options. Is this new year presenting you with a big risky decision to make? Don’t get stuck in the Pros and Cons Trap. Step back and breathe. You have options! I’d welcome your thoughts! — Susan This article is part of my newsletter, “Driving a New Direction,” to equip and energize leaders with practical ways to move forward, whether you’re leading a new strategy or getting one back on track. Subscribe if you’d like insights like this once or twice a month. Explore my website to learn more about how you might leverage the De-Risk System for Impact℠ workshops, and about my upcoming book “FastTrack Your Big Idea!” Or message me on and let’s connect!
Is Your “Big Idea” Too Small?
The CEO sitting across the table shifted in his seat. He was tackling a problem in his community, and his nonprofit start-up was introducing a new approach. Unfortunately, they weren’t getting traction as fast as he’d hoped. But when I said their innovative approach was a “big idea” that justified getting a solid strategy in place, he seemed uncomfortable. “That sounds a little too ambitious. We’re not creating seismic shifts or changing the world. We’re just trying to help kids,” he said humbly. When it comes to innovation and strategy, we often think of complex BIG ideas that disrupt the world. The internet. The human genome project. Artificial intelligence. But when we are just innovating in our own backyard, and the focus is smaller — we somehow downplay it. The truth is, BIG ideas start with a SMALL idea. How do “SMALL ideas” become “BIG ideas”? By getting the strategic fundamentals right. Working with startups can be exciting — whether they are businesses, charitable nonprofits, or faith-based organizations. Their leadership teams and boards have an excitement and urgency to get GOING. But getting traction quickly requires you to answer some basic questions: • WHY? What problem do you solve? For whom? What’s the outcome? • WHO? Do people understand how they can help? And do they want to? • WHY YOU? Do people understand why they should choose you over others? • HOW? Is your idea tested? What works and doesn’t as things change? • WHAT IF? Are you ready for bumps in the road? Prepared to adapt? Addressing these fundamentals up front will help you manage the risks and get traction faster for your “small idea.” The good news is that these questions are relevant as you scale! As you go through the different stages (from discovery to start-up to breakeven to sustainable to scaling even further), these questions can inform your strategy and help you adapt. So, never be embarrassed or apologetic that your “big idea” starts small. Once you get the fundamentals in place you can buckle up and enjoy the ride as your “small idea” changes the world! Welcome your thoughts — Susan This article is part of my newsletter, “Driving a New Direction,” to equip and energize leaders with practical ways to move forward, whether you’re leading a new strategy or getting one back on track. Subscribe if you’d like insights like this once or twice a month. Explore my website to learn more about how you might leverage our De-Risk System for Impact℠ workshops, and about my upcoming book “FastTrack Your Big Idea: De-Risk, Align People, and Communicate Your Strategy to Speed Results.” Or let’s connect! #strategy #leadership #riskmanagement
Budgeting? A Blueprint to Climb Out of the Minutia
The annual budget meeting droned on, and the frustrated executive muttered to himself, “We are stuck in minutia! I’m wasting my time here!” It’s November, and if you lead people or projects, you’re likely spending time nailing down budgets for next year. I work with organizations driving high-stakes strategies. A common mistake I see boards and leadership teams make is to go through budget reviews without ensuring they’re clear on the bigger strategy it supports. My dad was a CFO for decades. He specialized in turnarounds. He always guided, “Your budget is a blueprint for building your strategy. It helps bring your strategy to life.” That perspective can make budget discussions WAY more interesting! When you are driving a big new strategy — or getting one back on track — the stakes are high and so are the risks. Much like an architectural blueprint, your budget can help you see more clearly the bets you are placing. A blueprint for a structure is a way for people to communicate what they are going to achieve together. They require the input and expertise of a lot of people and perspectives. This process isn’t new. The oldest known architectural plans were found in Saudi Arabia and Jordan, almost 8000 years old. They depict “desert kites” which were vast structures built to trap animals for food. Their drawings have evidence of corrections and changes as the people planning the big feat had to get on one page. In construction, “red line drawings” are a crucial part of the architectural design process. They are blueprints that have been reviewed and marked up with changes and revisions, typically in red ink. They reflect not only errors caught but also clarifications as people realize the interdependencies and potential, and can better visualize what they are trying to achieve. Discussions about your budget can serve as “red line drawings” for your strategy blueprint. A budget discussion is your opportunity to get everyone on one page — not only about the numbers but the strategy behind it. When your budget discussions are stuck in the minutia, and you’re getting blurry-eyed with spreadsheets, I encourage you to challenge your team to step back and see the big picture of what you are building together. Here are five questions every board and leadership team needs to consider before you finalize your budget for next year: · How does this budget support our mission and strategy? A mission answers the fundamental question: Why does this organization exist? The strategy is a plan to achieve the mission. It clarifies the problems an organization is focused on solving. Ask: How is our strategy changing this year? Are we all clear and aligned on why we’re changing? Does our budget reflect this change? · Does this budget directly address each of our strategic priorities? Strategic priorities are the goals that are most critical to the success of your strategy over time. An annual budget ensures that the right resources, time, and effort are aligned to tackle these priorities over the next 12 months. Ask: Are we starving any strategic initiative by budgeting inadequate resources — and actually setting the organization up to fail? Or are we saying that this is no longer our strategic priority? · What assumptions are we making that will need to prove true? Assumptions are beliefs that are accepted as true without proof. They can get buried in a spreadsheet and you don’t even know it! Ask: What are we actually assuming about our people and our capacity to execute, the marketplace and our customers and our funders, the economy and our supply chain? Why do we believe these to be true? Are we in agreement on these assumptions? · What are the biggest risks as we execute this plan? Every strategy has risks. Holding an open discussion about the risks you are taking actually reduces anxiety and builds confidence in the plan. It also ensures the elephants in the room become visible. Ask: What risks are we taking in this budget to seize windows of opportunities? What risks are we taking that might result in losses? Are these reasonable risks in light of the reward? Are we taking any risks that seem unnecessary? · How are we going to de-risk this plan over the course of this year? De-risking is an action verb. Once a strategy is defined, and the next year’s budget is “locked” –that does not mean it is on autopilot! The assumptions need to be revisited and proven to be true. The risks that you know you are taking need focus. Ask: What process are we putting in place to revisit these risks and assumptions regularly? What can we do now – that we control– to mitigate some of the risks we are taking? Let’s be honest: Driving a high-stakes strategy can be invigorating and exciting – but it can also be stressful! But your budgeting process can actually REDUCE the stress if you use it to ensure everyone is on one page, and that the assumptions and risks you are taking are well understood. As you help people climb out of the minutia, they will remember what you are trying to accomplish as a team- and get excited again to join you! Welcome your thoughts. — Susan This article is part of my newsletter, “Driving a New Direction,” to equip and energize leaders with practical ways to move forward, whether you’re leading a new strategy or getting one back on track. If you’d like insights like this once or twice a month, I’d love you to subscribe below. To learn more about De-Risk System for Impact℠ workshops and custom consulting, and my upcoming book, “Fast Track: A Roadmap to De-Risk, Align People and Communicate Your Big Idea“, explore my website at www.gotomarketimpact.com, or contact me at susan.schramm@gotomarketimpact.com. This article originally appeared at www.gotomarketimpact.com
Avoid Getting Lost: Deal with the Big Risks First
As I was ushered into the office, the CEO bluntly got to the point as he paced around the room. “I’ve bet my career on this new launch, and I need it to work. Our strategy makes sense. Our funders love it. Customers want what we offer. Sounds great, right?” I nodded while the CEO worriedly continued. “But we spend hours and hours in meetings going over all the details, and yet there is STILL a crisis every day that sets us back! “ He grimaced. “We’re burning through money, and everyone is exhausted. If we don’t turn this mess around quickly, I’m going to have to do something… drastic.” I ventured a question. “How do you start your hours and hours of meetings? With the biggest RISKS or diving into all the details? The room got very still. Getting Lost Reading Street Signs I work with leaders every day who are launching big high-stakes strategies. And when it’s high stakes, it’s different. You have limited time and limited resources, and the consequences are severe. As they implement, I’ve found CEOs, boards and leadership teams can invest hours—even days!—in drawn-out reviews talking about a zillion things. It might be stories about the latest customer or funder meetings, the gory details of process or product problems, or pesky issues with a vendor or employee. It’s not that all these things aren’t important to implementing your strategy. But while you’re diving into the details, you can lose your direction. And get lost. It’s like speeding down the highway and reading every sign along the road — and STILL missing that really important exit sign that gets you to your destination fastest! When you are managing a high-stakes strategy, you need to deal with the big risks FIRST. Before you launch, make sure you have identified the significant risks and assumptions of your strategy. Rank them in terms of impact and likelihood.. But that doesn’t end your de-risking effort. As you implement, continue to review the risks and assumptions that could have a big impact on your results.Do this as part of your regular strategy review meetings. As you go through your implementation journey, ask Making risk management a routine part of your strategy implementation rhythm is important — but don’t leave the topic for last! START every implementation review by addressing the biggest risks upfront. It will actually help you see further down the road. Even if you spend the whole meeting talking about the biggest risks, your time will be better spent addressing the big risks than going around the room and randomly addressing topics that people may want to bring up. Prioritizing your time this way will speed up results and avoid catastrophes. You will improve clarity, accelerate decision-making, and provide context so that leaders can make more informed day-to-day decisions. It will also help you sleep at night, knowing that the big risks are visible to others and that you and your team have considered what to do when hazards arise. So, as you speed down the highway implementing your big idea, don’t miss the right exit! Prioritize the signs with the BIG RISKS first – and you will always get to your destination faster. I welcome your thoughts – and hearing about your own learnings from “missing exits”! This article is part of my newsletter, which equips and energizes leaders with practical ways to move forward, whether leading a new strategy or getting one back on track. Subscribe if you’d like insights like this one or twice a month. Explore my website, www.gotomarketimpact.com, to learn more about my upcoming book, “FastTrack Your Big Idea!” as well as my offerings to help you and your team clarify your strategy and get results faster. Or message me, and let’s connect! susan.Schramm@gotomarketimpact.com.
Leading a Merger: Four Practical Questions to be Ready to Answer
Two similar stats jumped out at me recently: About 70% of all mergers fail to achieve their goals. And about 70% of all blended marriages end in divorce. Coincidence? I don’t think so. The story of a merger is a lot like the story of two people making a commitment to each other, each bringing children into the marriage: “Two (parents/CEOs) are excited by the possibilities of doing life together, inspired by dreams of (happily ever after/the market value of the deal.) Emotions are high and the wine flows as they celebrate the (marriage/merger), but then they wake up and realize, “How are we going to deal with all these different (kids/employees)?” Whether it’s “Yours Mine and Ours,” “The Brady Bunch,” or “Cheaper by the Dozen,” the story of blending families (and companies) gets complicated! The issues parents of blended families deal with echo many of the problems we need to solve during a merger: o Where are we going to live? (Will we consolidate offices and factories?) o Why do we have to do it that way? (How are we going to integrate all these different IT systems and processes?) o Why is my allowance different than hers? (How are we going to fairly calibrate sales compensation, benefits, and HR policies?) o Why do we have to share a room? (Which products and departments will be consolidated or eliminated?) o Does our name change? (Will our brand change? Will an acquired firm’s name just disappear?) o Who makes decisions now, Mom or Dad? (Which leaders will end up with key roles and power in the merged organization?) And while not always spoken out loud, both kids and employees worry: o Why did you do this? Nobody asked me if this was a good idea! o How do I fit in now? Do you still love me? A merger is a high-stakes strategy. Expectations are high, the timelines are tight, and there’s a lot on the line. Success requires everyone is clear and aligned on the goals and the value to be captured. There are a lot of decisions to be made about this new “family” as you shape a new culture and way of working for the NewCo. Unfortunately, many leaders aren’t ready to lead during a merger. Many have never been through a complex transaction like this before. And often the priority of the C-Suite is on getting the deal done, thinking that equipping people for the realities of integration is a “nice to do” to be addressed down the road. The result can be serious: a slowdown in decision-making, productivity, and a negative impact on deal value. In fact, Global PMI Partners, experts in post-merger integration, observed there’s often a productivity slump right after a merger, “a dip in performance that can lead up to a 50% profit loss.” Sobering. In my own experience implementing and consulting with clients going through mergers, I’ve found that there IS a way to lead better. If you can focus on answering just FOUR practical questions FAST, you can lead more effectively and help speed results during a merger or joint venture: 1. “WHY?“( What problems will this new organization be focused on solving? ) While Simon Sinek guides all of us to “Start with Why” to inspire people to join our efforts, this is even more crucial during a merger. Answering this question will help people align more quickly and work together for a common purpose. But “Why” also helps address one of the biggest risks to a merger: attrition of key talent. Research by Bain & Company revealed that #1 contributor to keeping key talent through a merger is “defining a compelling vision for the newly merged company.” Ensuring everyone understands the purpose of this merged organization will also help guide and provide context for hundreds of smaller decisions that need to be made across the organization, as people have to make little tradeoffs every day throughout the integration that aren’t even visible at the top. 2. “WHY YOU — NOW?” Whether you are merging a company or a nonprofit, a large part of the value thesis of a merger is going to be revenue growth. But revenue growth assumes that you’ve got happy customers and donors, and the mere fact that you’ve merged causes confusion and skepticism! Customers and donors want to know: “Why should I choose you — now?” When I work with clients to clarify and accelerate their merger strategy, we work hard on getting the differentiation clear. We draft an initial “Why You” statement tapping the brain trust of senior leaders across functions from both organizations. But we don’t stop there. Front-line employees and customers are both more likely to believe what makes the newly merged organization unique when they hear the stories of what you do well and your successes. So ask your employees from across the merged companies to share what do that they are proudest of! Let them brag about their successes and stories of making a difference. You’ll bring proof points of your differentiation to life faster while starting to build pride in this newly merged organization. “Every family has a story to tell—blended families just have more chapters”- Anonymous. 3. “WHY ME?” Bain’s research also showed that the #2 contributor to keeping key talent through a merger is “defining clear roles for employees in the new organization.” Clarifying who does what as soon as possible will improve productivity and calm fears. If people are confused about where they fit and don’t see a role for themselves or people they respect, they’ll start slow-rolling their work, and some will start heading for the doors. (The flip side is true as well. If you really will not have a role for someone after a merger, instead of awkwardly ignoring them, and keeping them in the dark, be honest about the situation and communicate with respect. Give them a graceful exit and help them leave knowing they are still respected and have made a difference while they were there. The faster you step up and make the hard decisions of whether there’s a fit, the faster you — and they — can move
Getting Lost in the Possibilities of Your New Strategy
Our family talked for years about going to New Zealand. Inspired by “Lord of the Rings” scenery and a cool Kiwi exchange student, we’d get lost in all the possibilities, pouring over travel guides and maps and dreaming about our “someday” journey. One night, going through piles of paperwork, my husband discovered we’d earned four FREE airline vouchers to fly ANYWHERE in the world. Our dream come true, right? The problem was — the vouchers were expiring in five weeks! Turning our “someday “journey into reality meant we were suddenly faced with decisions: Which cities? How much time? What’s the budget? How do we convince bosses and kids’ teachers that suddenly leaving to go halfway around the world was a great idea? Do we even go? We had gotten so LOST IN THE POSSIBILITIES of our journey that we almost MISSED THE OPPORTUNITY. Your strategy is a journey too. In my work with CEOs, boards, and leadership teams driving a new direction, I find it’s easy to get lost in the possibilities of a new strategy as well. New strategies are often launched with great fanfare — but organizations can quickly lose their way. People can get confused and disillusioned. Work is wasted. Strategies get stalled. When you get lost on a trip, a “You Are Here” signpost can help you get your bearings. In driving a new strategy, the same thing is true. It helps to know where you are on three aspects of the journey: the strategy process journey, the adoption process journey, and even where you are in shifting your mindset to take this new direction. Your Strategy Process Journey is the first step. Do you recognize any of these Strategy Process journey signposts — or challenges? Stage 1: CLARIFY YOUR VISION Many leaders confuse their VISION with a fluffy “someday” tagline. Your vision can FUEL your organization to accomplish great things – but ONLY if you are all on the same page and clear about what “someday” looks like! Avoid fluffy platitudes and get specific: What is the problem you want to solve? What will be different when you’re successful? Who will even care? Can your whole team describe the same vision and how they can play a part? Ensure you all are journeying to the same place by getting clear about your vision as a team. Stage 2: DEFINE YOUR STRATEGIC POSITIONING This stage is often skipped by leaders who fall in love with their big idea and immediately jump in to execute it. But if your strategy requires people to DO something NEW — whether it’s customers, members, employees, partners, or funders — they are likely to ask: Who are you? Why do you matter? Why should I trust you? Can you deliver on your promise? Your strategic positioning is the foundation for your strategy. It’s where you intend to play and how you will win. Defining your strategic positioning helps others know quickly why they should engage with you. Skip this stage and you’ll find decisions and results getting delayed. Stage 3: ALIGN AND PREPARE TO WIN TOGETHER For some leaders, this stage can be the most frustrating! When you clearly see the vision, it’s easy to think you are ready to go — and get impatient with those who aren’t. But even the best strategy will fail if people are confused, skeptical and not aligned. In fact, studies show that highly aligned organizations grow revenue 58% faster than those that are unaligned and unprepared. Aligning for a new strategy means bringing people together in agreement, in support of each other. Who has to take what action to succeed? Are they prepared? Translate your inspiring vision into strategic goals, objectives and milestones, clear roles and responsibilities. Yes, it takes a little more time. But getting alignment right will actually speed up results by eliminating confusion. It will also help you avoid painful frustration along the way. Stage 4: IMPLEMENT AND MEASURE PROGRESS This stage of your Strategy Process journey can be one of the most satisfying stages-– and the most complex. The good news is you can start to see the real-world impact of your vision! But this is also where you are confronted with the fact that many of your ASSUMPTIONS were wrong and things don’t work! Here you can also easily get lost in the details of DOING. Your team can get overwhelmed, disillusioned and stuck. It is important at this implementation stage to prioritize LISTENING as much as doing. Pilot first to listen and learn quickly and prove your assumptions. Listen to the data. But just as important, listen to people on the front line. They have more answers than you may think. Stage 5: SCAN FOR CHANGE AND OPTIMIZE Even good leaders can get overly invested in their perfect plans. They ignore signals that the environment has changed. It can be the death of a good strategy. It’s in this stage you need to establish a regular cadence of sensing changing trends and evaluating your strategic options. Regularly thinking through “what if” scenarios can help your organization prepare for change. The trick when scanning is to not only to collect data — but to be willing to ACT on it! Regularly recalibrating as a team to optimize can help you adapt your business model, mitigate risk, and seize new opportunities. (By the way, this last “stage” of the Strategy Process is never done. It’s a way of working for an organization, and an opportunity to create a competitive advantage!) Okay – did you recognize any of these signposts or challenges? Which stage of the Strategy Process journey are YOU in? By realizing where you are NOW, you can get your bearings, focus on what you need to do for this stage, and prepare for the stages yet to come. Are you responsible for driving a new strategy this year? How are you making sure you don’t get lost? Don’t MISS YOUR OPPORTUNITY by getting LOST IN THE POSSIBILITIES of your Strategy Process