The Next Recession is Just Around the Corner. Are You Ready?

By Dana Borowka, MA

Whoever coined the phrase, “What goes up, must come down” must have been an economist. Nothing does a better job of explaining the cyclical nature of our economy. The problem faced by business managers is that once we’ve identified which part of the cycle we’re in, it’s too late to do anything about it. Forecasting the next upturn or downturn, and preparing accordingly, is the secret to business survival.

To give our friends and clients time to adjust for the next change in the economic cycle, we’re recently held a special Open Line web event entitled, “Planning for the Next Recession – Now!”: AudioSlides.

The purpose of this article is to highlight a few of the points our panelists explored in more detail: Why expect a recession and what to do now to prepare your business for it.

The Ups and Downs of the U.S. Economy

History has proven there is a 7-10 year cycle in the U.S. that consists of periods of recession, recovery, accelerating growth, and declining growth. Like clockwork, every decade we cycle through all the stages. The last recessionary period was 2008-2009. Since then we’ve experienced a long period of recovery culminating in what some expect as accelerating growth in 2017. So far so good. But remember, what goes up must come down.

The Next Recession is Just Around the Corner

If the U.S. economy has been climbing its way out of the recession for the past eight years, we’re approaching the time when we can and should expect another steep downturn.

There will be another recession in the U.S. The only real question is when, but based on historical trends, that time is only 1-2 years away.

It’s important to note here that I’m talking about the “normal” economic cycles we experience, not those triggered by major unforeseen events such as occurred September 11, 2001, or the collapse of Lehman Brothers in 2008.

Recession? You’re Crazy, Business is Great!

For most of our clients and readers, business is good to great. Everyone is bullish about higher sales and profitability in 2017.

However, the clock is ticking. Our panelists on February 3 are going to present their views on when they expect the next recession to be felt. They believe it will likely be pre-staged by a series of financial events that trigger a severe pull-back in the market and a rapid slowdown of the economy.

One way to suspect that the downturn has begun is to study your order board. Are sales tapering off? Are orders being placed less frequently and for smaller amounts? This tells you your customers are feeling the change.

Are you noticing an uptick in job applicants? This can mean other businesses are beginning to shed workers.

Now What?

Rather than get distracted by attempting to pin-point the time of the next recession, it’s wiser to simply agree that there will be one, and it’ll likely occur within a few years. With that agreement in place you and your staff can prepare the ship for heavy weather.

Beginning immediately, you can take the following steps to prepare your business for operating through a recessionary period.

  • Your management team must accept the same economic picture and be driven to succeed in spite of it. This is a great time for imagination. Work with the team to build action plans based on three different scenarios: a. recession, b. fast growth, c. slow growth. Or, look at it another way. Build a plan for what actions to take if sales drop by 20%, another plan covering if sales drop 40%. If you don’t have an executive dashboard, ask your CFO to build one with indicators for business growth or decline.
  • Make sure everyone on the team is mission critical to building value for the business. Get lean, or refocus some jobs so they are contributing more to the value of the business in some way. If you’ve been adding staff the past few years, there’s a good chance you’ve taken on some “dead wood”.
  • Keep the team motivated. One good way is to identify and acknowledge key people in the organization and make known the succession plan.
  • By all means, get the right people into the right slots now so they are confident in their roles by the time the downturn is really felt. A recession is no time to be breaking in key managers.
  • Don’t overlook your Accounts Receivable department. This may become your lifeline during tough times. Invest in top-notch people and systems.
  • Get your line of credit set. Reduce debt.
  • If you believe the downturn will be accompanied by higher interest rates, do what you can to lock in prices for your raw materials and leases.
  • Take care of your customers. Go out of your way to be seen as invaluable.

The Secret Code

Did you notice a common thread in this advice? Six of the eight recommendations involve the quality of your employees and how well they work together as a team.

Placing the right people in the right positions, for example, requires skillful hiring aided by in-depth work style and personality assessments. Reduce the risk of hiring or promoting the wrong person. Learn more about our personality assessment services.

Pulling the team together and driving forward with a single purpose requires serious team building, not feel-good exercises. An investment in team building now will strengthen the company’s ability to thrive when other companies falter. Learn more about LCS team-building services.

Developing your managers to have excellent communications skills is vital to an organization’s growth, and absolutely mandatory during trying times, such as recession. Learn more about how LCS empowers key personnel so projects flow more smoothly without frustration.

In closing I recommend a book by two economists who have been extremely beneficial to our business. The economists are Alan and Brian Beaulieu from ITR Economics. Their most recent book is, “Prosperity in the Age of Decline.”  I encourage you to read the book, listen to our Open Line panel discussion audio / slides –  and be prepared for the Next Recession.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2017

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code” and “Cracking the Business Code”. To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, 3130 Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, http://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

Creating a Culture Strategy — On Purpose — For Today and Tomorrow

By Suzanne Mayo Frindt & Dwight Frindt – Excerpt from Cracking the Business Code

Is your company culture and your leadership practices designed for success in today’s world?

By Brian Hefele

By Brian Hefele

In the face of unrelenting change and increased complexity of issues facing us in business today, our past based practices and structures may not be sufficient to succeed in this new paradigm. Let’s take a look at how company cultures and leadership must shift to respond powerfully to the circumstances we are currently experiencing.

People don’t really fear change itself; they can become afraid that they won’t be successful in the new paradigm. It is the job of leadership to create conditions, a culture, where people can learn, grow, and adapt to be successful in today’s world.

Change and Change Again

Our world is rapidly shaping in many amazing ways:

♦ As the video, Shift Happens has pointed out to the millions of YouTube viewers who have seen it on the Internet, “We are currently preparing students for jobs that don’t exist, who will be using technology we haven’t yet discovered, to solve problems we don’t even yet know about yet” (Shift Happens video, created by Karl Fisch and modified by Scott McLeod).
♦ The quantity of information, its availability, and speed of delivery are increasing at an exponential rate as costs are approaching zero.
♦ The number of people accessing and using this information, and the many ways it is disseminated, has exploded since the advent of personal computers and the Internet — which in turn exponentially speeds up the rate at which new technologies are developed.
♦ Women are stepping into leadership roles at all levels, in diverse venues and in unprecedented numbers all over the world.
♦ Awareness that our global environment cannot continue to withstand a collective human consumption race is spreading quickly.
♦ Our children are being born into and growing up in a world that is so different than the one we grew up in, that it requires a new way of being for them to lead successful lives.
♦ More people over 65 are alive today than have ever lived to that age, so that group will be looking for whole new models for leading healthy, successful lives.

The list of changes that we have already experienced is inexhaustible. And as soon as you read this article, there will be even more changes that have occurred. Accelerated change has become the new normal. At the same time, we hear many clients say “as soon as it slows down or gets back to normal.” Those who think there will be a return to the “good ole days” are in for a great shock.

Our cultures, leadership, and structures have to shift from top down to valuing learning and expanding capacities to problem solve in the face of uncertainty, mining all available wisdom and creativity.

Culture…What’s That?

By rekre89 (Flickr)

By rekre89 (Flickr)

Excellent companies have Financial Strategies, Operational Strategies, Marketing and Sales Strategies, and commensurate Resource Allocation Strategies (including People, Time, Money, Equipment/Assets, etc.). How many companies actually have a Cultural Strategy? Yet all companies have a culture, implicitly if not explicitly. They have been developed on a historical basis and impact productivity, success, and health for generations. And, they can be experienced differently depending on one’s position within the organization.

Our first conversations with executives about Culture and Culture Strategies begin with a definition — a shared definition. Since so much of what comprises a culture is often accidental and somewhat invisible, some people have a hard time accepting that there is one, or that it can be defined or even changed.

Once we work through a few of the definitions below, most CEOs and executives agree they do have a definite culture. Then comes the question of whether it is the most productive culture given their purpose, values, and the changes we are experiencing every day.

A company culture can be defined as:

♦ A cognitive framework consisting of attitudes, values, behavioral norms, and expectations. (Greenberg and Baron, 1997)
♦ The collective thoughts, habits, attitudes, feelings, and patterns of behavior. (Clemente and Greenspan, 1999)
♦ The pattern of arrangement, material, or behavior, which has been adopted by a society (corporation, group, or team) as the accepted way of solving problems. (Ahmed et al., 1999)
♦ Includes the organizational values, mission, norms, working language, systems, beliefs, and habits. It is also the pattern of such collective behaviors that are taught to new organizational members as a way of perceiving and even thinking and feeling. (Wikipedia)
♦ A set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for certain situations. (Ravasi and Shultz 2006)

From this collection of definitions of culture, it becomes clear that a group or an organization’s culture is foundational to the success or failure of all other strategies, and yet little, if any attention, is consciously placed on the care and feeding of a productive culture. It is the invisible glue that binds together ever more diverse workforces, including people from many cultures and generations. Since it is invisible, most executives are not conscious of culture or of the implications of their decisions on the development of, or the degradation of, culture. Organizations in a high growth or acquisition mode are at a high risk of failure due to culture clashes. It is very unusual for us to see organizations that understand the criticality of this dimension of an acquisition, or adding lots of employees in a short period of time. Without a clear and intentional culture strategy, along with the allocation of resources to be sure that it is communicated and very well understood and incorporated into every day business interactions, the culture is drastically impacted by whatever the acquisition brought with them, or what the large numbers of employees bring with them. The sad reality is that productive organizational cultures often suffer a demise due to an unconscious neglect by leadership.

What people often complain about is usually a description of the unproductive aspects of the culture, at least from their perspective. We have heard from executives: lack of accountability, defensiveness, competitiveness at the expense of the company, or customer outcomes. In an organizational 360 tool that we use, we have heard from the workforce: micro management, lack of trust, no clear direction, compensation, and reward systems that emphasize individual results rather than company success. This was all within the same company!

Many organizations that we have encountered through our leadership development firm, 2130 Partners, have had what we call “accidental” cultures. Perhaps it was generated initially by a founder entrepreneur, mirrors other cultures in the same industry, or was created by a particular hiring practice or compensation structure. Nonetheless, most cultures develop by accident.

Cultures can be designed on purpose, and existing productive cultures can be maintained and enhanced intentionally.

Leadership — Replacing Commands with Vision

In this evolving new reality, successful leadership will have a very different nature than traditional approaches.

By Aadi Sing

By Aadi Sing

It was quite different to be a leader in simpler economic times and when the world moved at a slower pace with less connectivity. There were successful models and practices in place as well as more easily identifiable and attainable goals. Patterns of entitlement offered at least the illusion of security, and there was more time and predictability in producing results. However, now — when previous business models and assumptions have been turned on their heads, when people’s livelihoods are changing and disappearing regularly, and when successful businesses are being transformed for the new realities — the leadership required is radically agile, proactive, and creative.

Leaders who will be effective in this time of incredible opportunity are those that lead as if they are in a dance with reality — that is, they look to create exciting new paradigms, processes, and even companies based on creating the next game while being responsible for the current and unfolding global economy. They are not simply waiting until the economy gets back to normal or using past experiences to map out current pathways. Being in a dance demands conversations appropriate to dancing. Think about it — when you get out on the dance floor, do you tell your partner, “I need these four steps from you in the next minute, followed by a repetitive pattern until I tell you otherwise”? If you have done that, perhaps you have found that it leaves you with very few dance partners. How then do you engage with others in this new reality?

We call the management model we use to replace the old “command-and-control” paradigm, Vision-Focused Leadership, which is an approach grounded in shared vision and built through collaboration.

Vision: A mental image produced by the imagination

Vision-Focused Leadership as a mental model shows how thinking, listening, speaking, and actions — most importantly those that you employ to lead others — are focused and informed by a shared vision. Focusing on your shared vision allows you to make choices; orient your creativity, energy, and resources; and correlate your thoughts and actions and the actions of people working with you on your shared intention. In the absence of shared vision, it is easy to become victims of or be distracted by circumstances, worries, and fears, and to react based on instant, automatic, unconscious, and unexamined thoughts, beliefs, and judgments stored in your mind. Without necessarily realizing it, the past winds up driving your bus.

When we talk about leadership here, our intention is to stress that leader- ship can be evoked anywhere in an organization — that is, every person can exhibit leadership qualities, no matter what his or her job description may be.

If you and your team members have done a good job developing and sharing the vision, then creating powerful actions will flow much more naturally. People will be able to individually source their ideas, actions, and interactions from the shared vision. If you replace commands with shared vision and broaden the source and responsibility for creativity to the entire team, you will maximize creativity, ownership, collaboration, and velocity in fulfilling the shared vision.

We use the term “Yonder Star” to include shared vision, goals, objectives, and strategies to obtain it. It can be applied at any level from a strategic corporate vision to your vision for the outcomes you intend to produce in a single conversation or meeting. The Yonder Star is the ideal, out in front of you and up above the path you are currently traveling, that provides a common focus and inspires your actions. Rather than hanging onto sacred past-based activities and processes (i.e., “what did we do and how did we do it last year?”), priorities, plans, and milestones are designed from a focus on the Yonder Star. From this mind-set, actions are prioritized by their value in fulfilling the Yonder Star. All members of the team are inspired to explore their own integration of the goal with their passion to contribute and the specific role their work will play in its fulfillment.

From shared dedication to the overall outcome, a pervasive attitude of “I’ve got your back” naturally develops within each member of the team. Dissent, one-upmanship, and agendas fueled by self-interest tend to fade to the background.

Collaboration Requires

Connection, Alignment, and Focus

Yonder Star clipartThis graphic is our shorthand illustration of this notion. Here we show a group of people who are interacting from a solid foundation of mutual trust, respect, and safety to reach their mutual Yonder Star. In this case, a collection of aligned Yonder Stars, shown in a stack of different sizes, depicts the many intermediate goals that lie between your current situation and fulfillment of your Yonder Star. To sort out which actions will be most productive on your route to your Yonder Star, look back from your fulfilled Yonder Star and ask, “What’s missing in our current reality that, if we work on it, will accelerate fulfilling our Yonder Star?” From your list, determine the decisions and actions that will be most leveraged in closing the gap. By leveraged, we mean the actions that produce the greatest impact while requiring the fewest resources and taking the least amount of time to accomplish. Get started, monitor results, recalibrate with new position updates, and continue on your path or make adjustments as necessary to stay on course.

Collaboration — New Ways of Working Together

As we go forward, those who lead will be the ones taking advantage of the creativity and productivity gains available by focusing on the human, collaborative dimension, while laggards will suffer in the face of unrelenting change.

The extremely affordable, and nearly instant, access to vast amounts of information and ways of interacting with whole communities that are becoming available, combined with a productive attitude toward change and the new realities it brings, creates huge opportunities for you and your leadership. However, leading effectively will require a new mind-set to unleash potential and creativity and to capitalize on opportunities.

The challenges lie in strengthening your ability to choose the direction, form the goals, and then communicate and enroll others so that you build groups and organizations that can collectively navigate shifting realities. This means improving your ability to communicate, work together collaboratively, and lead others to do so as well. If you learn how to identify and utilize the navigational guides to traversing this uncharted territory, you will experience higher productivity, more rapid innovation, and greater organizational agility. Additionally, responsiveness to the needs of customers and other stakeholders in the organization and more rewarding relationships will become something you can rely upon.

Building Collaborative Capital — It Begins with Me

To effectively change our outer reality requires being willing to shift our inner reality.

Today, talented, educated people who know how and are motivated to work interactively with each other are the key to success for more and more businesses. This new collaborative approach means many more minds are put to work on the opportunities and challenges facing us whether in business, in our organizations, or even in our families.

When we were born, we came equipped with the most powerful computers on earth (although Shift Happens cites projections that the quantitative computing power of a supercomputer will pass that of the human brain by the year 2013). These innate computers serve us well in producing new ideas and dynamic solutions — as we can see in all that has happened just in the past twenty years of technological growth. The core thought processes that guide our reactions and interactions were mostly loaded into your brain and ours when we were children and have been chugging along ever since, functioning as an unconscious and unexamined operating system.

Don’t change the world, change worlds…starting with your own.
Adapted from St. Francis of Assisi, Catholic patron saint of animals and the environment

Being able to think in new ways requires challenging the very basis of your own thinking — your self-concept, worldview, and automatic ways of interacting with others.

What Is a Productive Culture Anyway?

By Anne Davis (773 Flickr)

By Anne Davis (773 Flickr)

We don’t use terminology such as “good” or “bad” cultures, which is a binary and simplistic assessment. We consider the organization’s purpose, or vision and mission to determine if the existing culture supports the achievement of that purpose while calling forth the best from the people within the organization. Does it call forth high performance and productivity on a sustainable basis? Does it reward Self-Generated Accountability and Productive Dialogue? Does it foment gossip, jealousy, politics, CYA, or individual success over company success?

What is productive in a culture is what people are proud of about their company or their work. When shared values are demonstrated and memorialized in great stories, people tell about “the time when…”

What If You Created a Learning Culture?

A Learning Culture is one where the individuals and teams consciously invest in growing and developing themselves. In a Learning Culture, executives are conscious and purposeful about the impact of decisions and strategies on the fabric of cultural development. There is a purposeful focus on reducing friction and waste in communications and developing productive working relationships. People know there is an expectation for growing and learning. Hiring decisions are made with an interest in an individual’s ability to learn, adapt, grow, and shift outdated mental models, as much as their past-based, functional experience. An atmosphere of curiosity, forward thinking and ‘how can we learn from this’ thinking permeates. It becomes the foundation or platform on which everything else is built.

What Are The Payoffs of a Learning Culture?

For an organization, this type of culture provides much more innovation, creativity, flexibility, agility, and expedited problem solving capabilities. It also affects retention and even hiring decisions of individuals in the firm.

For individuals, it provides opportunities for learning and growth; enhancing marketability and value to this or other organizations. It also provides forums to be challenged, to add value, and to contribute at a high level. Some CEOs have actually expressed concern that growing their people will make them more vulnerable to their best people leaving. However, if looked at from the individual’s perspective, why would they leave unless they have fully used up the growth opportunities where they are right now? Why would someone leave a position where their value and contribution are recognized, supported, and rewarded?

How Can We Develop a Learning Culture?

There are many books and articles about learning organizations including work by Senge and Argyris that explain in depth about the what and how of learning organizations. Our 2130 methodology (and terminology adaptation in some instances) ties to the 5 aspects of a learning organization that are generally accepted by leadership “gurus” as follows:

1. Systems Thinking: Understanding how things influence each other as a whole. Our view is that executives and organizational leadership are accountable to the entire organization and all stakeholders for this larger view. This includes strategy development, planning, implementation, review, and adjustment. This is a level above what most executives contribute on a day-to-day basis from their functional expertise (Finance, Operations, Sales, Marketing, HR, etc.). In addition to a responsibility for systems thinking on an individual executive basis, it is also critical that the entire executive team itself operate as a productive, learning system. Most organizations develop a Vision statement, Mission, and Values that constitute the overall framework, (we call it the ‘Yonder Star’), and then on a regular basis develop strategies, initiative, goals, and actions in the dimensions of finance, operations, marketing, sales, resource allocation, and to a lesser degree, culture. Our methodology, “Vision-Focused Leadership” is designed to support systems thinking. We work with top executives — the CEO, President, or entrepreneur — in a trusted advisor or executive coaching assignment to create a learning culture. We also work with the team of top executives to support the development of and focus on all the strategies required to be successful. Our Operating Principles create a platform for a productive, learning culture with the executive leadership team and then the entire organization.

By Gerd Altmann

By Gerd Altmann

2. Shared Vision/Values: “A vehicle for building shared meaning” from Peter Senge’s Fifth Discipline. Unfortunately, this often looks more like the version from Dilbert: “A long meaningless statement that proves management’s inability to focus.” Over the last 20+ years we have worked with organizations to develop Vision, Mission, and Values using our “Vision-Focused Leadership” methodology. Leadership gurus have been espousing for at least two decades the value of a shared vision to focus and align resources. Absent a shared vision, individual agendas rule the day and gaining personal power becomes a major executive focus. Shared Vision/Values encourage a learning culture by emphasizing the gaps toward our Shared Vision/Values, what is missing and what is next, versus what is wrong from the past.

3. Productive Mental Framework: We talk about busting mental barriers, increasing mental agility, and increasing capacities to deal with the unrelenting pace of change and increased complexity of issues facing leadership today. It requires skills at reframing for ourselves and others, and developing focus in chaos and high emotional states. Past-based arrogance and rigidity undermine productive cultures. It is critical to become aware of our blind spots and biases to be able to think clearly in the present to make the best decisions in a complex business environment. We use our Operating Principles and Essential Notions, developed and validated over the past 20 years to help build a learning culture platform and equip leaders and man- agers with the mental and collaborative skills needed in today’s world.

4. Personal Mastery: This is the commitment of every person in the organization to improve, develop, and challenge themselves to be more than they are today, and to proactively challenge themselves inside a framework of contribution and collaboration. Individuals who insist on status quo and structural barriers to communication usually self-select out of a Learning Culture. In our book, Accelerate: High Leverage Leadership for Today’s World, we say that when individuals develop themselves they have increased their collaborative capacities. We will get older automatically, however to grow as we age requires a conscious choice. In our work, we describe conscious choice as the Leadership Choice Point. Every moment of every day presents an opportunity for choice. Will I relate to the world around me, the circumstances of my life as the defining parameters, or will I choose to use the circumstances as an opportunity to grow toward the Yonder Star?

5. Team Mastery: In addition to individual learning and development, organizations must realize that groups of people, (of any size of two or more), creates yet another “entity” with its own dynamics and productivity levels. Two or more people, who may be very developed individually, when put together in a group or team may not be as productive together as the sum of their individual productivity. The question becomes: will we synergize our efforts where 1+1=3 or more, or will we diminish productivity potential with friction and waste to make 1+1=1.5 or less? There are numerous examples of sports teams that have all “star” players, yet a team of “average” players can beat them because of the way the average players have developed their team effectiveness. The sum of what the players produce together is much greater than adding up individual skills — and so it is for organizational groups and teams. There are group skills and developmental opportunities that build on, yet are distinct from individual capacities. When groups develop these capacities we call that increasing their collaborative capital.

So What Will You Do Now?

1. Take stock of your culture. What are the stories being told about your organization by employees, clients, and vendors? What stories would you like to be told? What attributes of this powerful, invisible platform are important to you? Where are the gaps? What will you commit to taking on, challenging the status quo, and BEING as an example of the cultural aspect you are committed to developing? (We use an online organizational assessment to gather objective and confidential data to understand the present condition in an organization).

By Skeeze (Pixabay)

By Skeeze (Pixabay)

2. What cultural “artifacts” do you have in place? (We call the collection of these items, all on one page, your Strategic Focus.)
a) Compelling Vision, Mission, and Shared Values (We also use our Operating Principles as a key piece of culture definition because they are design principles for productive conversations.)
b) Business strategy that fulfills the Vision and Mission
c) Bold Goals that clearly take ground toward the strategy and mission, and are consistent with your vision and values

3. Is your Leadership and management team aligned behind #2 above?

4. Has your Strategic Focus been clearly communicated? Does your team know how to communicate it to their folks?

5. Are your departmental and individual goals lined up with the Mission, Vision, and Strategy?

If you are missing any of the above, fill in the missing pieces immediately! If your Vision or Mission statements are a paragraph long or no one remembers them anymore, throw them out! Vision and Mission statements have a positive influence on culture only when they really “live” inside the hearts and minds of people in the organization. It is not a job for the marketing department or your PR firm to “word smith.” It is the role of leadership to capture and communicate and nurture the Vision and Mission and Values. Each executive and management team member must be willing to have their leadership and management practices be guided by these major cultural influencers you create. When the actions or practices of people in management positions are contrary to what have been espoused as values and the mission then there is a huge disconnect for individuals in the organization, resulting in cynicism and resignation.

If you need help, consider hiring a professional facilitator to work with you and your leadership team to help define the existing reality, clearly define each aspect of your Strategic Focus and identify the gaps. Accomplish this first, before working with the balance of your organization, to develop thinking and behaviors consistent with a learning culture and self-generated accountability.

Above all, keep growing and learning and Accelerate your Leadership.

If Leadership is not consciously strategizing, designing, and developing culture, what is left to form it? Culture exists and is alive in the stories employees, (and vendors and customers), tell about what it is like to work there, how people get treated, how to get ahead, whom to hold your tongue around, whom to please, whether merit or seniority count to a greater extent, what happens if you are ill, what are the opportunities for development, promotion, raises, learning. What stories are being told about your company? What stories would you like to be hearing? How does leadership affect those stories? What are the payoffs? These are the questions to ask to get conscious about the affect of your culture.

by Devanath (pixabay)

by Devanath (pixabay)

References:

Accelerate: High Leverage Leadership for Today’s World by Suzanne and Dwight Frindt – to order go to www.2130partners.com.

“Developing a Corporate Culture as a Competitive Advantage” by Golnaz Sadri and Brian Lees .

Peter Michael Senge is an American scientist and director of the Center for Organizational Learning at the MIT Sloan School of Management. He is known as author of the book The Fifth Discipline: The Art and Practice of the Learning Organization (originally 1990, new edition 2006).

Chris Argyris is an American business theorist, Professor Emeritus at Harvard Business School, and a thought leader at Monitor Group. He is commonly known for seminal work in the area of “Learning Organizations.”

Suzanne Frindt is a co-founder and principal of 2130 Partners, an executive leadership development and education firm that launched in 1990. She is also a recognized speaker on the topics of Vision-Focused Leadership™ and Productive Interactions™, speaking to organizations around the world. She is also a Group Chair for Vistage International, Inc. an organization of CEOs and key executives dedicated to increasing the effectiveness and enhancing the lives of more than 12,000 members. Each month she facilitates groups in Orange County, California, and Seattle, Washington, while also regularly contributing entrepreneurial creativity and management experience to several companies through service on their advisory boards.

Dwight Frindt is also a co-founder and principal of 2130 Partners. Since 1994, Dwight has been a Group Chair for Vistage International facilitating groups of CEOs and senior executives. He has received many performance awards for his work at Vistage and in 2009 Dwight became a Best Practice Chair and began mentoring the Chairs in the South Orange County area. Since then he has added two additional Best Practice Chair regions; the Puget Sound and the Greater Pacific Northwest. In 2011 Dwight received the Best Practice Chair of the Year Award – Western Division. Combining his work with 2130 Partners and Vistage, Dwight has facilitated more than 1,000 days of workshops and meetings, and has logged well over 13,000 hours of executive leadership coaching. In addition to working in the for-profit world, Dwight and Suzanne are very committed to working with non-profits and have been investors and activists with The Hunger Project for many years. To reach them, please visit www.2130partners.com.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2016 This information contained in this article is not meant to be a substitute for professional counseling.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, 3130 Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development, team building, interpersonal & communication training, career guidance & transition, conflict management, 360s, workshops, and executive & employee coaching. Other areas of expertise: Executive on boarding for success, leadership training for the 21st century, exploring global options for expanding your business, sales and customer service training and operational productivity improvement. To order the books, “Cracking the Personality Code” and “Cracking the Business Code” please go to www.lighthouseconsulting.com.

We recently launched a new service called Sino-Am Leadership to help executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, http://www.lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

Cracking the Strategic Planning Code – Ideas from the Experts

By Larry Cassidy, Marc Emmer, Diana Ho, Brian Oken, Steve Phillips & Paul David Walker

When the topic of strategic planning comes up, some individuals get very excited about the planning process while others consider it just a waste of time. With so many different styles and approaches, we thought that we’d ask a number of experts for how they approach this topic and the top three key points to think about before your next strategic planning meeting.Team activity

Larry Cassidy

Strategic Conversation

My view of so-called “strategic planning” is that today it is less an event and more an ongoing conversation. The most effective organizations are evolving, and for me that moves viable strategic thinking away from being an annual event and toward an ongoing conversation.

The idea that we can somehow nail down where and how things are (and, projected, where and how they will be into the future), and then craft a lasting response, is ineffective. The world in which we operate is constantly changing; thus, we too must participate in that same game, which requires a continuing and continuous conversation.

As that applies to crafting strategy, I recommend frequent sessions in which the “team” comes together to discuss the future. For each session, step one is to identify the most important questions which must be answered; step two is to arrive at agreement on the answers; and, step three is to define action steps based on those answers (what, why, who, how, when, resources and milestones). As you prep for these ongoing sessions, consider:

  1. Inviting more of, rather than less of, your management and supervisory team. Interesting ideas often come from the “less likely” participants. And participation invites a sense of “ownership.”
  2. Requesting from the attendees, in advance, the questions they feel are the most important to the firm’s future. You may be surprised at what you get.
  3. Building each session around a few key questions, using multiple breakout groups to discuss each question, and mixing people and functions within breakout groups for each topic discussion (thus creating fresh energy and different chemistry around each question).
  4. And, inviting a few key outsiders to participate in each session (good strategic thinkers, creative types, folks who will challenge and “stir the pot”). You will find their input tends to raise the bar for those on your team.

Marc Emmer

Strategic Planning: The Entrepreneurs Dilemma

There is one thing that almost all entrepreneurs have in common; they want to grow. Yet determining where and how to grow can prove elusive, even to the most savvy strategists.

Which wayOften, management teams face gut wrenching strategic choices. While growing a core business incrementally offers a high probability of success, companies with a singular focus are subject to concentration risk that inhibits enterprise value. The more the company grows, the bigger the problem becomes. A diversification strategy reduces concentration, but growth far afield from one’s core competency, increases the probability of failure.

Often, entrepreneurial companies also lack the talent to focus on transformational business model innovations that could drive competitive advantage. Unfortunately, many companies create a 12 month forecast within their core business, and pass it off as a strategic plan. A well thought out vision balances the short term and the long term and clarifies the company’s value proposition and strategic priorities.

Here are some success factors to consider before engaging in strategic planning:

  1. Market Analysis-A thoughtful review of trends in the industry that will impact future demand.
  2. A level of preparedness on the part of the participants so that they are in a position to make fact-based strategic decisions.
  3. A process that enables execution on strategic objectives.

As we approach the time of year when many companies formalize their business strategies, it is important to structure a framework that ensures that management takes the time to think, both about the core business and potential disruption. Great companies weave strategic thinking into their management DNA and then convert strategies into actionable measurable tactics that drive results.

Diana Ho

The Art of Strategic Planning

Strategic planning has fallen in and out of favor numerous times since my earliest days as a planning facilitator. While my experience base and process toolbox has grown over the years, so has my “beginners mind.” Rather than bringing a methodology that works for all, I approach each planning engagement as a blank slate, pay attention, listen deeply and design each process based upon the unique characteristics of the client organization.team mtg

Every organization has a strategic plan whether they know it or not. The opportunities embedded in a “strategic planning process” include a) making the plan explicit, b) aligning expectations, c) leveraging resources and d) building a skilled planning- and accountability-minded team. The process of planning is equally as important, if not MORE important, than the resulting “plan;” and the effectiveness of any planning process is directly correlated to the extent that it is aligned with the leadership/power structure of the organization. So design the process well, Grasshopper!

When considering external resources, decide where your needs lie along the continuum of “expert” (who will tell you what your process and strategy ought to be) and “facilitator” (who will leverage your organizational resources, ask questions, provide options, build capacity and hold your feet to the fire).

Three things to consider before having a strategic planning meeting:

  1. What is the organizational “appetite” for planning; should we be thinking in terms of a “planning meeting” or a “planning process and mindset?”
  2. Who needs to be at the table?
  3. What are the organizational and personal rewards and consequences for planning or not planning?

Brian Oken

Strategic Planning for the Rest of Us

If you’re like most of us, you’re leading a small to medium-sized business with limited resources, no time and a million things you need to get done. To get the best results, I believe you should narrow your focus, engage your team and make your efforts count.

But before you proceed with any group planning activities, you should:

  1. Be clear about what you want for your business. Do you want to grow market share, sell in the near future, build a legacy…?
  2. Have a competent management team in place.
  3. Decide whether you’re going to use an outside facilitator or Do-It-Yourself.

Here’s my approach to strategic planning:

Be focused and realistic. It’s impossible for any group to successfully accomplish more than 1 or 2 strategic goals a year because of all the associated projects and tasks. If you global-teamtry to do too many things at once, it will dilute your focus and compromise your results. Remember, you want to actually achieve these goals.

Generating great financial results is a team effort. Your plan and strategy (and the reasons for them) must be presented in such a way that everyone in your company can easily understand them. The plan must also connect daily activities to company goals. This is the only way your employees will feel connected to your overall vision. People need feedback and need to know their efforts are making a difference. Be transparent about your results and celebrate your successes!

Implementing a strategic plan is a methodical approach and an ongoing process to help you and your team work smarter and get better results. But in order for this to happen, your plan must drive the agenda of your staff meetings and be referenced and updated on a regular basis. Once you see how an effective plan can help you achieve your goals, I doubt you will ever operate without one again.

Steve Phillips

The Strategic Planning Meeting – Turbo charge your approach!

Strategic planning is by its nature, time consuming and hard! Assessing the environment and the company and then positioning and aligning resources takes tons of effort. So much effort that many Fortune 500 companies just don’t do a good job. And… it’s these companies that rarely hit their potential. But true strategic planning, (like what McKinsey or BCG does) can easily cost $1M or more. So what is the answer? How does a company do great planning at a small fraction of the cost? I think a turbo charged approach meets most everyone’s needs. It’s quick, uses your best people, gets everyone bought in to the implementation of the plan, builds-in an accountability system, and gets it mostly right. Think of it as a leveraged approach.

So what is the process for a turbo charged approach? It’s easy! I find it most useful to use a third party (not the CEO) to organize the process, collect and analyze the data, set the objectives and outcomes for the meeting (with the CEO) design the agenda, and to facilitate the meeting. In this way, people can do their work and the third party can do all the leg work. Then when it’s most important, everyone can meet and use their time together wisely.

So how to approach turbo charged strategic planning?

  1. Pick a third party to organize and drive the process. It can be a senior level consultant (like me 🙂 ) or an internal specialist but it should not be the CEO or President. They have much better things to do than the leg work that it will take to make the meeting effective.
  2. Collect valid data. Some folks like to collect both external data and internal data but some are fine with just picking the brains of their top folks on what we really need to do next to be most successful. (Remember, this is a leveraged “turbo charged” approach). I suggest the third party personally interview participants for about 60 minutes each. This should be plenty of time to assess what should be done next year.
  3. Create a specific and detailed agenda based upon what you learned from your data analysis. This should also include the specific outcomes and objectives for theteam lightbulb meeting and detailed agenda items. Too many times people just put topics on the agenda without ever fully considering: the type of item, the champion of the item, the outcome of the item, the process for the item, the time line for the item, the pre-work needed to be ready to efficiently use time, etc. Creating a great agenda is an art and time consuming. There are many considerations and it often takes much longer than anyone expects but when done right, huge amounts get accomplished in the meeting seamlessly and the group actually enjoys the process (and if I have my way, walk out of the room a more effective team. See #5).
  4. Use a professional facilitator for the meeting. I am not just saying this because I am one. I am saying it because it works a thousand times better than not having one! I would much prefer to be maximizing everyone’s time and using each person’s brain in the room rather than have one of those folks worrying about lunch, the air conditioning or making sure the conversation stays on point. A pro will pay for themselves a hundred times over.
  5. Use the strategic planning meeting to tune up your team. There is no question that teams outperform groups of individuals on complex tasks about 99% of the time. It used to be that we did “teambuilding”. Now I find the best way to build your team is while they are working on a real project. A professional will know how to do this seamlessly and effectively and at the same time you are setting up your plans for the future. It’s a win win win win. Better strategy, alignment, direction, and teamwork!
  6. Do quarterly follow-ups to create a built-in accountability system, adjust the plan as needed, speed up the team, and continue to develop toward high performance. It only takes about 4 hours for the quarterly meeting to meet its objectives but most groups try to leverage or maximize their precious little time together. High performing teams will rotate who is in charge of each meeting and give them total freedom to run the session where and when and how they see fit. They can be at client sites, hotels, new offices, wherever will work for the theme of the day. Most groups put in place a ¾ day or all day quarterly meeting and use the extra time to develop everyone, either with team building, leadership development, site tours, or expert panels or guest speakers. It is a day everyone looks forward to. And then once a year, usually 4th Q, we do a longer retreat to close the year formally and kick off the next, all in alignment with the executive committee and shareholders meetings.

So there you have it. A leveraged approach to your strategic planning. Pick a third party to run the process, collect and analyze data, create a specific and detailed agenda, hire a professional facilitator to run the meeting, and create a built-in accountability system that ensures people stay on track and in alignment. This process works like crazy, takes very little time, is not terribly expensive, uses your people where they are best and does not waste their time. It creates ownership and buy-in, decreases resistance and makes full implementation almost assured, creates strategic alignment, builds your team and helps them to achieve and stay at high performance. It gives you a full opportunity to participate as a leader, makes everyone smarter and leaves your organization aligned, agile, collaborative, and highly productive.

Paul David Walker

Understand Present Reality

There are flows of intelligence that manifest as multidimensional streams of cause and effect at every level of life. These flows have momentum and move forward with or without you. In business these flows are formed by market wants and needs. As you consider your business strategy, it is important to understand these flows and position your window of opportunitycompany to use these flows, like a surfer at the sweet spot of a wave, to move forward accurately. It is pointless to try to swim against the current. As you ride these flows forward you will be able to see opportunities as they emerge before your competitors. The objective is to find emerging trends that lead to a window of opportunity, as we do with our clients illustrated here.

The Right Plan For You

It is dangerous to develop a strategic plan that does not take into account your companies true capabilities. If a surfer chooses a wave that is too big for their skills they will be drowned or seriously hurt, the same is true of a company. It does not serve well to develop a business strategy that requires more resources, talent, or momentum than the company can realistically achieve. Find a place in the flow of your market that acerbates you, not one that will drown you and your company. Once you succeed and gain power and skill, develop a bigger plan.

Explosive Targeted Actions

After understanding your place in market trends, build a simple focused strategic plan. Then eliminate all activities that do not support that plan. Make sure every executive understands that this is not a drill. It is a road map for all actions. Paint a compelling picture of the outcomes at every stage in your plan and develop the courage to act. Teams with clear missions, a sense of urgency, the stillness of a master, and explosive targeted actions are the ones that will win in the 21st century. Those that hesitate will lose. To summarize:

  1. Understand present realitytarget road
  2. Develop the right plan for you, not a grandiose fantasy
  3. Commit to explosive targeted actions

 

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2014

Larry Cassidy has been a Group Chair with Vistage International (formerly TEC International) for over 27 years. He currently works monthly with more than 50 Southern California executives, in three chief executive groups and one group of key executives, regarding all aspects of their businesses. Larry can be reached at hndicapper@gmail.com and 714-460-3090.

Marc Emmer is President of Optimize Inc. a management consulting firm specializing in strategic planning. Marc is the author of Intended Consequences, Design the Future you Wish to Create. Marc can be reached at marc@optimizeinc.net or at 661-296-2568.

Diana L. Ho is a seasoned facilitator/executive coach, percussionist, book-binder and kick-ass project manager. She began her career in retail merchandising and was Vice President and division head in a Los Angeles management consulting firm before founding Management Arts in 1995. Contact her at DianaHo@ManagementArts.com or 310-475-6563.

Brian Oken has a 20 year track record as a successful President/CEO, having effectively guided organizations through aggressive revenue growth to sustained profitability. Throughout his career, he has been involved in managing, operating and strategically positioning companies in the public and private/family sectors. He is well known for improving the profitability of organizations while also creating great places to work. Prior to opening his own firm, Brian spent two decades running manufacturing and service based businesses as President and CEO. His accomplishments include significantly growing income and cash, being listed on the Inc. 500/5000 fastest growing company list, engaging in international strategic alliances and the launching of numerous successful new products. CEOs, Presidents and business owners call on Brian as a trusted advisor to help grow their companies, make better decisions with greater returns and create the highest performing workplace cultures. Brian can be reached at boken@informalcowboy.com or 310-466-2804.

Steven Phillips, Ph.D., Founder and CEO. In his relentless effort to deliver uncommon results, Dr. Steven L. Phillips has built an enviable reputation for his senior team consulting service that focuses on results-driven off-sites for senior leadership, strategic planning, and executive leadership. Dr. Phillips has helped thousands of individuals and organizations establish new levels of teamwork, transformation, and performance, all specifically targeted toward bottom-line results. Dr. Phillips has extensive experience as an Organization Development professional. For many years he served as a SVP Chief Talent Officer for a privately held 1B company with 10,000 employees. As a consultant, he has worked with Senior Executives at Microsoft, PepsiCo, Viacom, Mattel, Boeing, and many others, helping individuals, teams, and entire organizations successfully implement change. Steve also works one-on-one with Presidents and CEOs helping them strategize for powerful and successful leadership. Additionally, Dr. Phillips creates customized team development activities for executive teams designed specifically to shorten cycle time to high performance. Dr. Phillips’ best-selling books are used in corporations throughout the world. His latest book, The Senior Leadership Off-site Playbook, is soon to be released. Steven can be reached at sphillips@phillipsassociates.net or 310-456-3532.

Paul David Walker, Founder & CEO of Genius Stone Partners was part of building the first leadership firm to align Strategy, Structure and Culture, and has been a business leadership adviser to the CEO’s of Fortune 500 and midsize companies for over 25 years. He is the author of Unleashing Genius: Leading Yourself, Teams and Corporations, two other books, and will publish a new book called Invent Your Future. He has succeeded by unleashing the genius of the people around him and is known to be a visionary leader and master of collaboration. Paul can be reached at pauldavidwalker@geniusstone.com or 562-233-7861.

 

Inspiration and Techniques for Building Championship-Level Performance
Lighthouse clients have one thing in common – all are committed to boosting the performance of their organizations. So, we are pleased to introduce our clients and friends to Boaz Rauchwerger — speaker, trainer, author and consultant.  We highly recommend Boaz to you. Ask him to deliver one of his inspirational programs at your next executive retreat or strategic planning session.

One of our favorite Boaz programs is “Playing Like a Championship Team Every Day”. It helps you build on the strengths of everyone’s individual differences. This program helps you discover five steps to get everyone to join the building crew and resign from the wrecking crew. This is a very powerful and inspirational program that receives rave reviews every time.

• Master five techniques to inspire others to perform like champions
• Six recognition techniques including the powerful “good finder” program
• Learn four ways that your team can gain a competitive advantage
• Identify the three prerequisites for maximizing the team’s results
• Learn the two forms of keeping a daily score so everyone wins

Who is Boaz?
Over a 30-year span, Boaz, author of The Tiberias Transformation – How To Change Your Life In Less Than 8 Minutes A Day, has conducted thousands of seminars internationally on goal setting and high achievement. He has taught over half a million people how to supercharge their lives, their careers and how to add Power to their goals. His innovative program, for individuals and corporations, is a simple and highly effective process for high achievement. He was voted Speaker of the Year by Vistage, an international organization of CEOs and business owners. How to contact Boaz – Want more information on Boaz’s Power Program, including “Playing Like a Championship Team Every Day”? Just click here and we’ll be in touch.

 

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, 3130 Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development, team building, interpersonal & communication training, career guidance & transition, conflict management, 360s, workshops, and executive & employee coaching. Other areas of expertise: Executive on boarding for success, leadership training for the 21st century, exploring global options for expanding your business, sales and customer service training and operational productivity improvement.

To order the books, Cracking the Personality Code and Cracking the Business Code please go to www.lighthouseconsulting.com.