Who Moves Your Organization Forward? Engaged vs Disengaged Employees

[Editor's Note: In 2016, I saw a startling statistic from Gallup. Of the employees in the largest 30,000 companies in the U.S., over 68% were disengaged - not connected to the objectives and goals of the organization. I was stunned, but over the years, I have come to realize that it is very true.

As companies struggle to attract and retain good employees I thought you might enjoy the following insights from Curt Coffman (author of "First Break All the Rules") about the differences between satisfied employees and engaged employees. Which type of employees do you have in your organization?           -dpm]

  

                                                         Who Moves Your Organization Forward?

Satisfied Employee	Engaged Employee
Lagging indicator as contribution to Shareholder Value	Leading indicator as contribution to Shareholder Value
Reactive -- "I do what I'm asked."	Proactive -- "I do what needs to be done - even if not directed to."
"That's how we do things here!"	"How can we do this better?"
"I work here"  "I do my job."	"I am part of the organization's fabric."     "I am not limited by a job description -     I want to make a broader contribution."
Short term focus (steps) "How should I do this?"	Long term focus (outcomes) "What result is required?"
Easy to manage -- "I go along to get along."	More difficult to manage - does more than required - pushes the boundaries
Seeks answers	Seeks results
Points out problems	Solves problems - prevents problems
Applies learning to a current situation	Applies learning to improve future situations
"What do you want me to do?"	"How can I help?" "What else can I do?"
Don't make waves - avoid conflict	Challenge the status quo - constructive conflict
Flies below the manager radar whenever possible	Demands relationship with manager
Powerless -- wait for direction	Powerful - act, then ask for forgiveness
Risk avoidant -- "I follow the rules."	Takes calculated risks -- "I bend rules as needed to achieve the required results."
"I try to do a good job."	"My work energizes me. I give it my best."

© 2006 Curt Coffman Consulting LLC, All rights reserved

"People are normally productive for about 5.7 hours in an eight-hour business day.  

But any time a change of control takes place;  

their productivity falls to less than an hour."

 If you would like to discuss how we might help your company accelerate the process of adding value and moving your company to the next level of performance, please contact us.

Strategic Planning is fundamental to a company's success. But, do you have a plan that your company can really execute?

At an initial strategic planning kick-off session for a client company, the senior vice president of marketing spoke up: "I've been through these strategic planning processes before at other companies. Over the course of several months, our management team would spend several days together. We put together a fantastic looking plan, then it would sit on the shelf and it was never looked at again."

I looked the seasoned executive in the eye and offered this challenge: "It's obvious to me that the CEO and management team at those companies may never have been truly committed to executing the strategic plan in the first place."  

"Oh, but we were!" he replied. "We just never converted the great strategic dialogue and consensus into strategic actions. Then we got so buried in our day-to-day duties that we never took the time to focus on executing the plan."

 

A good plan well executed is better than an excellent plan poorly executed.

The point is clear. To receive value for the time and money invested in strategic planning, you must employ a well-defined continuous process, execute strategic actions and routinely update and refresh your plan.

 

Four key checkpoints

The key to securing this value is a CEO and an executive team disciplined enough to ensure that the organization stays focused on plan execution. Value exists in the strategic process of analyzing current strategic direction and determining future strategic focus. However, this value is greatly reduced without commitment and focus to implement the plan.

 

Four key checkpoints can ensure that you place adequate focus on strategic plan execution during the planning and development process.

 

CEO commitment from the outset

The first checkpoint: determine whether the CEO and management team are truly committed not only to developing the strategic plan, but also focusing resources on executing the strategic plan. Commitment to execution is particularly challenging for entrepreneurial-minded CEOs of closely held companies who tend to be very opportunistic. These CEOs often view the strategic plan process as limiting their ability to "jump at good opportunities."In other cases, significant company-based issues may exist that must be resolved before the CEO and management team can focus on strategic plan development and execution. Regardless, it's critical at the outset that the organization challenge itself to ensure that it is truly committed to strategic plan execution and follow-through.

 

Validate your plans with the market

Just because you decide on a sexy new strategy does not necessarily mean that your company can be successful implementing it. It is important that you understand how customers and prospects perceive your company and that you have an honest appraisal of your strengths, weaknesses, and core competencies. Suppose the strategic planning team at Kmart were to decide to that they needed to adopt a strategy to become a high price/high service retailer like Nordstrom. Do you really think the market would accept that from Kmart?

 

Translating strategic direction to strategic action plans

Before preparing to initiate the strategic planning process, strategic planners often ask CEOs to produce a copy of their most recent strategic plan. Usually, a direct correlation exists between how long it took the CEO to find the document and whether the strategic plan included clearly defined strategic action steps.

Many strategic plans assess the current company situation, market, industry and competitive environment. These plans may also provide a clear strategic framework for the company. However, they often fall short in translating defined strategic direction into strategic actions. Without clear strategic actions that identify who's responsible, metrics and deadlines, it will be difficult, if not impossible, to achieve your goals.

 

Implementing a process for strategic plan follow-up and execution

More sophisticated organizations may implement integrated strategic execution processes. For example, the "Balanced Scorecard Approach" builds the strategic plan around key business success drivers. It links measurable corporate and business unit goals and related strategies with the performance management system. And it builds regular plan execution reporting into the process. However, some companies may not believe they have the resources to develop and implement an integrated approach. If you fall into this group, consider the following options:

• Hold quarterly planning update sessions to review status against plan.
• At key manager or board meetings, create a standard agenda item that requires some discussion/review of the strategic plan.
• Report and update employees on major elements of the strategic plan. A commitment to employee communication will keep execution of strategic initiatives top-of-mind with the management team.
• Assign a key member of the planning team to help the CEO keep execution of strategic initiatives foremost on the management team's priorities.
• Create opportunities through strategic assessment tools that force the organization to periodically review results and performance against key strategic objectives (e.g., benchmarking, customer satisfaction surveys, etc.).

A valuable asset to any organization

A continual strategic planning process can be tremendously valuable to any organization. However, its ultimate value is significantly reduced if there's a lack of commitment and focus on implementing the plan. Make certain that you can execute your plans in order to get the real benefits.

 The Mead Consulting Group has been helping clients develop and execute Strategic Growth& Execution plans for many years. Check out our website for descriptions of some client success stories.

Deciding to Go

[Editor’s Note: The decision to become an extraordinary company is not coincidence or happenstance. Rather it is a conscious choice. Shouldn’t you be great at what you do? Shouldn’t you decide to become the company your customers can’t live without?   –dpm] 

Author and speaker Joe Calloway opens many of his presentations with a story from the movie Apollo 13: “The movie opens with a gathering of astronauts to watch Neal Armstrong who is about to become the first human being to walk on the moon. As we hear Armstrong’s immortal words, ‘One small step for man; one giant leap for mankind,’ the mood becomes quiet, even reverential. …Shortly after the broadcast, the party breaks up and everyone goes their separate ways, Jim Lovell, who is played by Tom Hanks, is alone with his wife, Marilyn in their backyard. Looking up at the moon, Lovell says, ‘From now on, we live in a world where man has walked on the moon. It’s not a miracle. We just decided to go.”

Calloway makes the point that the first step that great companies make is the deliberate decision to pursue greatness. Many organizations talk about change. Sometimes companies will orchestrate management retreats, spending two or three days at some resort developing great ideas in a sea of flip chart paper and white boards. Six months later, everyone wonders, “What happened to those great ideas we had.”

Strategic Planning without a “Decision to GO” is a waste of time

Decide to go… or go home. Strategic planning without a “decision to go” is a waste of time. You might think it peculiar that a company like ours would make such a statement. After all, The Mead Consulting Group helps companies develop and execute strategy. But, after more than 35 years helping companies, we have learned that it is the commitment to ACTION that determines success. “Deciding to go” is the biggest differentiator among companies.

What many people don’t know (or probably are too young to remember) is that when President John F. Kennedy made the statement in May 1961 that the U.S. would put a man on the moon by the end of the decade, it was simply not another political speech. He rallied support in all sectors of government and the country. He helped us all see that this was a major commitment that was worthy of our time, resources, and commitment. He helped us “decide to go.” You might say that President Kennedy created what Jim Collins (“Good to Great”) calls a BHAG – a Big Hairy Audacious Goal.

Processes Institutionalize commitment

Motivating the populace was just the start. We needed processes and plans to achieve such a feat. After all, at the time of Kennedy’s statement, the U.S. space program had not even managed to orbit the earth. To speak of going to the moon struck some as an impossible task. It would have been an impossible task if significant changes were not put in place. NASA and the other key organizations worked together to put organizations, plans, people, and processes in place.

Research shows that not a day went by that at President Kennedy did not inquire about some facet of this commitment – notes to the Vice President about funding from Congress, encouraging commitment to math and science education, speeches to keep the issue in front of the American people – making us all feel proud to play a part in this journey.

Along the way, it became OUR goal. It was the processes and daily commitment of many people – at all levels - that made it work. Kennedy was alive for only the first 1000 days of the journey. During that time he helped us make this BHAG ours. Then we took it the rest of the way.

Become the best at what you do

Organizations define themselves – set their own limits. Leadership helps paint the picture for greatness. It is too easy for small and mid-size companies to say that “we’re only a small company” or “we sell undifferentiated, unglamorous products.” With that attitude, why bother getting out of bed in the morning. A mentor of mine once told me, “There are no boring jobs, only boring people.” What he meant was that people need to be inspired. If you have an undifferentiated product or service, whose fault is that? Do something to transform the customer experience. 

Develop a big goal. Then go make it happen. The successful companies are focused on the daily details to accomplish that big goal. Everyone wants to be part of something great.

Become the best at what you do – whatever it is. Make the Decision to Go!

___________________________________

 The Mead Consulting Group has been helping clients develop and execute Strategic Growth& Execution plans for many years. Check out our website for descriptions of some client success stories. 

The Need for Focus

[Editor's Note: Over the years, our firm, The Mead Consulting Group, has been asked to evaluate or "validate" a company's strategic plan and its planning process. What we have found is that the processes for companies in the lower middle market vary widely and some are counterproductive. There are some common issues that are listed in this article. Do you recognize any of them?   - dpm]

Too many strategies and initiatives

Often we see plans that have numerous strategies and initiatives. In one $60M revenue company, there were 17 major initiatives and strategies - so many that all of them couldn't be listed on an 11x14 sheet. When we asked the senior managers to list the top 3 priorities, we got a different answer from each of the managers. An organization can't tackle that many priorities at once. Not surprisingly, this organization had a history of not completing projects. 

Shiny Rocks - moving quickly from one idea to another                              

Sometimes the CEO has one great idea after another and overwhelms the team by abandoning one strategy or initiative to move to another. In these companies, strategies are never fully executed. There becomes a tendency for employees to just duck their heads down and wait for the current "new project" to blow over. There is little commitment to the "strategy du jour." These companies have flurries of activity, yet few accomplishments.  

No "what we are not going to do now" list

As important to narrow the focus of a company's strategic priorities, it is important to develop of list of things that the organization won't do. This is the most difficult task for companies. No one wants to move worthy projects or initiatives to this list. However, if an organization is to accomplish the top priorities, the others must be tabled - at least for the current cycle.  

No agreement on the priorities  

In some organizations, the plans are developed but there is no agreement among key functions and managers about the priorities. These organizations fail to mobilize to necessary resources to execute well.

Developing strategies that the organization cannot execute well

Many organizations develop strategies that either the market won't accept, or that the company does not have - nor can get - the resources or talent required to execute. I tell a story (somewhat tongue in cheek) about a mythical meeting at Kmart where some manager recommends a strategy to emulate the Nordstrom model. No matter how much money is spent, there is no way the market will accept Kmart adopting a Nordstrom model.

The Power of three.  

We believe that for lower middle market companies, there should be no more than three major strategies undertaken in a planning cycle. We find that when companies execute two of these strategies well, they will be very successful.

The Mead Consulting Group has been helping clients develop and execute Strategic Growth& Execution plans for many years. Check out our website for descriptions of some client success stories.