Here are 2 x 10 sets of tips on why some strategies work brilliantly and others fail miserably.
Looking back on a wide and varied career, thankfully (or maybe luckily) with far more successes than failures, I’ve worked for some really decent bosses, some lousy ones and plenty of average ones… from first line management, right up to CEO and investor level.
I think most of us know about the lousy ones but these aside, even the decent ones can get things wrong at times and just one or two pieces of the strategic jigsaw puzzle can result in failure to achieve the overarching big goal, as the following research findings from McKinsey & Co confirm.
Over Two-Thirds of Change Strategies Fail!
According to research from the famous global consulting firm, McKinsey & Co — the vast majority (70%) of change management strategies fail, largely for two reasons:
1. Employee Resistance
2. Lack of Management Support
To overcome issue 1 you need to address issue 2, which requires internal diagnostics and relevant development of managers, especially the lower ranks of first and second line managers who influence the mass of employees delivering products and services to customers at the front lines… brilliantly or otherwise!
Overlooking these 2 simple factors is a common mistake and one that can have damaging effects on the success of any business improvement or culture change strategy.
What follows are therefore the 10 key areas where I have seen leaders make mistakes that impact negatively in the two areas mentioned, followed by the 10 key areas that when factored into a strategic change initiative, can make all the difference to it being a resounding success.
Having said that, this post isn’t aimed at senior level bosses but lower to middle level managers who may some day become our future leaders. Take note of these and I’m sure many will get more things right and bring their people along with them on the road to success and maybe even stardom in some cases.
These are in summary format for speed and ease to stimulate thinking but anyone wishing to discuss the subject in more depth can reach out to me HERE.
10 REASONS WHY… LEADERSHIP STRATEGIES FAIL TO HIT THE MARK.
Below are the 10 most common reasons why I’ve seen leaders fail to turnaround or transform their business into a growth engine that drives prosperity for all who work within it. Take particular note of item number 10.
1. A Status Quo Mentality & No Real Strategy to Inspire or Galvanise People
• People in the organisation continue to do more of what’s not working, they work harder and longer hours but doing the same things that fail to produce the desired results despite the realities of the current situation that’s ‘telling’ the business, things need to change.
• There’s no proper assessment or diagnosis of the ‘real’ problems or opportunities and so perception and leadership assumptions prevail because they’re too far removed from reality, most notably what’s happening on the ground level.
• The business continues to operate in the same way even though competitive, market and economic conditions are changing fast. Or, they follow the activities of the masses of average companies doing the same old thing in the same old way but feel comfortable because they don’t have the guts to stick their necks out and be different, good different.
• Consequently, there’s no creativity or innovation; people with capability internally are not trusted to come up with insights or ideas that can drive the business forward. The business therefore gets pulled around and controlled by these factors, instead of being in control.
NB: In all the firms I’ve worked in or with, those who’ve performed way below their level of true capability have been the ones without an idea of what they could be or a plan to take them there. They don’t notice what’s going on externally and fail to focus energy on internal strengths to build on them. There’s a saying ‘those going nowhere normally get there’ and this is so true because many of the firms, once so good but without a future proof plan are now gone, kaput, history.
2. Wrong Strategy
• Not identifying, discussing or facing up to the risks, potential crises, threats, trends or opportunities and not involving the ‘whole’ business in the development of a suitable strategy.
• Creating a strategy based only to address short-term tactical issues and not with the longer-term future in mind, in essence, a fire-fighting strategy versus a business focused one.
Example: An American media giant acquires 5 separate UK firms, each held leading market positions but were being attacked by new entrants and the changing digital landscape. Instead of joining forces to create a compelling enterprise solution, the firm was too worried about cannibalisation of revenues and market share in the short-term. Consequently, it was too slow to bring all business together as one awesome collection of services. Each of the 5 businesses continued to operate independently until some closed down, merged or were sold to other concerns and the media giant retreated back to the USA.
3. Unqualified Leaders
• Creating a strategy to help direct a change effort is one thing (theory) but if the leaders don’t posses the skills, credibility, respect, trust or experience to direct, influence, coach and support all ranks within the business (in practice) it will just not be executed effectively, with risks of backsliding derailing efforts becoming realities.
Example: A new CEO and Sales Director took the helm of a business that was managing decline in revenues from traditional sources whilst actively driving revenues in new areas. Not understanding the market conditions accurately, they ignorantly assumed they knew better and dictated their new change strategy. This accelerated the decline of the existing revenue stream, killed productivity and growth in the new areas and lost many (if not most) of its top performers to the competition, the business still operates today but is now a minnow.
4. Frequent Changes in Leadership or Direction
• Typically, new leaders come in with new ideas and those subjected to constant changes can predict the consequences — a revamp of structure, realignment of people and responsibilities, layoffs, new product or service initiatives that all add up to disruption in the eyes of employees.
• Previous disappointments and credibility, respect for or trust in the leaders is met with cynicism and resistance with the new ones.
Example: A national media company changed leadership 7 times in just 9 years and each one with changes in the direction and modus operandi. The last set of leaders may have had a good change strategy (they didn’t actually) but employees had already negated any benefits because of previous experiences. The last set of leaders expected and waited for results but they didn’t come, at all.
5. Not Involving People & Aligning Functions
• According to a large USA study ‘Feeling in on Things’ was the second highest priority valued by employees (being fully appreciated was №1) and even higher than money.
• Everyone in the business has something to offer but this ‘internal value’ is often missed by leaders, as is the negative effect of strategies that help one function whilst hindering another, strategies must be joined up to involve and benefit multiple functions.
Example: The CEO of a hospital in dire need of a turnaround, drafted his strategy for positive change but knew there would be resistance unless people were on board from the outset. He involved people so they were privy to the harsh realities and some ‘proposed’ tough decisions. He personally received thanks for his honesty and openness. Commitment from his key supporters then spread the message, i.e. get behind the changes. The end result was that patient care and staff morale improved and nursing turnover reduced fivefold.
6. Removing Resistance to Change
• Habits are hard to break and people who have been in the business or a particular role for some time are often the least likely to change and consequently, can be the biggest resistors or detractors.
• They may not say as much in meetings but behind the scenes they can influence others to block, slow down or even derail initiatives.
Example: A new online retail strategy was being developed and an existing manager who expected to be involved in the development and design team was left out. She did however, manage a department key to the success of the strategy and she challenged nearly everything that came her way, slowing things considerably, potentially risking her business to gain the first to market advantage they sought to achieve.
7. Left Too Late
• Leaders that have gotten comfortable and taken the foot off the peddle in driving growth, sit on the cushion of this advantage until the downslide, which starts off slowly but builds speed, then it hits them when it’s too late to recover.
• Urgency (panic) takes over and efforts become diluted by trying too many new small things that just add to the pressure people are already feeling or a super idea is generated but the ‘now limited’ resources and time leave no room to make it work.
Example: A boutique data analytics consultancy came up with a new ‘partnership collaboration’ strategy and early market receptivity was good but the haemorrhaging of existing clients and cash flow left it too late to recover the situation and the consultancy had to close down.
8. Inadequate Market Proposition
• Having the wrong combination for your proposition can be devastating because some elements could be great but still be undone by one poor element.
• The proposition is like a jigsaw puzzle and if one piece doesn’t fit or is missing, the picture remains incomplete.
Example: A new social media content marketing application was just what many in the digital agency market were looking for but prohibitive pricing and less than impressive integration left a good product under-performing and a drastic change in how it went to market was needed.
9. Over-Complicating the Strategy or Making it Too Vague
• As a rule of thumb, if a strategy is too difficult to explain and takes too long to communicate to those who will execute it, then it will also be too difficult and take too long to implement.
• The golden rule demonstrated by many business greats, runs true with strategy more than probably any other business discipline, namely: ‘keep it simple’ to a) understand and b) implement.
• Counter to this is not having sufficient and clear information for people to digest and understand, it’s about having the right balance relevant to each unique business and culture.
Example: A change manager at a mid-size business that came from a large corporate background tries to impress his management team and their line managers by presenting the strategy that had been agreed in principle (first proper draft) with complicated charts, graphs and fancy workflows that even the people who had agreed it, found hard to grasp. This slowed down the process and the change manager needed coaching whilst another senior manager took the lead to get things on track in way that was relevant and impactful for the rest of the management team.
10. No Follow Up or Follow Through
• Creating a strategy is a start, implementing it is progress but following it through to a successful end is the hardest part of all. So many leaders begin with audacious presentations and lots of bravado but then sit back and expect ‘management and employees’ to deliver. They don’t or won’t get their hands dirty and end up seeing their businesses go back to their old shape and way of operating through habit.
• Good plans get left or stopped and started over again so critical momentum gets lost, along with enthusiasm and commitment of the very people that leaders need to do the work — to make it work.
• Commitment throughout the whole business is vital to success but ultimate responsibility and accountability remains at the top to do their part. Often they don’t contribute well because they’re too far removed from the troops on the front lines. Instead, they sit behind their laptops and spreadsheets, relying too heavily on data alone rather than including vital sentiment amongst the ground forces and customers.
• Keeping the end in sight is a critical focus but with long-term strategies, markets change and so leaders who are rigid in how they get there, are likely to miss opportunities from being open, agile and flexible along the way, sometimes detours are needed but it doesn’t mean abandoning the journey or destination.
Example: Falling morale and revenues amongst 26 sales managers and a sales force of c160 results in a commitment by senior management to a training, development and coaching program over 3 key stages. The first 2 stages were implemented, measurements and reporting showed morale, motivation and sales revenues increasing significantly but then changes at the top meant stage 3 got dropped. The commitment was not followed through on and anecdotal feedback was scathing, the perceived lack of respect and support was taken hard. A drop in sales results and morale ensued, followed by additional increases in turnover and the loss of top performers to competition. The leaders ignored the ‘measurements’ demonstrating success and consequently, under-estimated the negative impact. They tried to pick it up again later but the damage was already done.
10 WAYS HOW… LEADERSHIP STRATEGIES SUCCEED IN HITTING THE MARK.
What follows are the top 10 Tips that better enable a leader to create turnaround and growth strategies that transform performance and drive prosperity up for all who work within it.
1. Establish a clear vision and direction for the business
• A leader must know where their business is heading in terms of the problems it’s trying to solve or opportunities it’s trying to exploit, whether this is based on a key goal, mission or an overall vision. This requires a decision and firm commitment that gives the business something as specific as possible to aim for, a target.
• This will include a picture of how they want to see the business perform, the standards it will operate by and can include the creation of a compelling purpose, set of company values and importantly, the standards of behaviour all employees will live by at work.
• For the purposes of clarity, I use the term ‘vision’ as the core business aim in this post. As one old proverb says ‘Those without vision shall perish’.
2. Assess the current situation and your market position
• Conduct a Strategic Business Review covering internal areas like planning, processes, people, products and services but also, the external environment, including competition, market trends and economic conditions so you have a top-line view of where you stand now in relation to where you want to go.
• This can begin at the top but drilling down the lines of employees should also be considered so that there’s a full and deep understanding of the current situation. This also helps with buy-in, covered in a later tip.
3. Diagnose Functional Performance
• Take assessments a stage further where required by conducting specific internal Functional Performance Reviews to understand risks and opportunities in each area, e.g. sales, marketing, operations, system & technology, financial management and so on.
• Any one function could be a springboard for growth or a liability that pulls profitability down so these reviews can provide focus on areas of concern, opportunity or particular challenges.
• Use online assessment applications, ideally with dashboard reporting capabilities where possible so questions and feedback can be tailored to your needs. Outline examples can be found HERE.
4. Senior Management Alignment
• Ensure all key directors and managers are onboard and willing to act as a powerful force for positive change and assign lead positions of authority. Assess capabilities of the lead team and any gaps that may need to be filled, including any coaching required to increase capability.
• Everyone must be fully committed to the target vision and willing to collaborate and contribute, even if it means some functions may gain more specific benefits from the changes than others.
• Develop strategic mindsets that lead to smart decisions around the use of different leadership styles that can impact favourably on execution of the strategy, e.g. the Daniel Goleman 6 Leadership Styles That Get Results.
5. Involving others to get behind the vision
• Mobilise the forces by involving as many key people as possible at the early stages of strategy development and design. This helps ensure people are fully engaged and buy into the strategy for change because they’re able to contribute with ideas or potential barriers to success that need to be removed or worked around.
• This initiative is particularly valuable because it enables those involved to promote the positive benefits or aspects of the vision and strategy to colleagues, including breaking down any resistance from those who may otherwise have been opposed to changes.
6. Formulating the Strategies
• The first draft will lay out a plan of action as far as the business can currently see, i.e. for short-term strategies, all the steps to achievement may be known but for longer-term vision strategies, the milestones or core objectives and timings will be known but the specific ‘how to’ at every stage is unlikely.
• Therefore, plan for quick wins to communicate to everyone so that you can build belief in the process of change and importantly, build momentum towards the bigger objective.
• Plan in advance how to recognise all those involved in visible contributions to the formulation of strategies and celebrate and if applicable, reward achievements and milestones accomplished along the way.
7. Communication and Collaboration
• Use every source possible to communicate the benefits of the vision and intermediate pain points of the strategy.
• People value open, honest communications, even when some of the news is uncomfortable so be transparent with what needs to be shared.
• Leaders of the business and various strategy owners will communicate most effectively through demonstration and teaching the attitudes and behaviours that the strategy requires as opposed to the usual ‘telling’ form of communication.
• Collaboration from everyone in the business is crucial to the success of any strategy so eliminating any misunderstandings or ego ‘stand offs’ based on pre-conditioned values, beliefs, ethics, habits or thinking and therefore expectations of others is a must.
• Hold events that encourage collaboration and build trust, such as coaching workshops covering subjects like Emotional Intelligence and The 5 Functions of a Cohesive Team.
8. Implementation and Enabling People for Change
• Put in place the power and authority to change systems or processes at all relevant levels and not just the preserve of senior management who could slows things down.
• Provide the training, development and coaching required that enables people to contribute as effectively as they can in achievement of the vision and all the stepping-stone objectives along the way.
• This includes the removal of obstacles, systems, processes, structures or people that could seriously undermine achievement in the vision.
• The best strategies in the world won’t work if people don’t work to the strategy. Continual monitoring and measurement is required to head off any potential issues or exploit any unforeseen opportunities.
9. Roll Out and Accelerating Momentum
• As you begin seeing improvements and results, use this increased credibility to strengthen belief and ease the way to continue making necessary changes and improvements.
• Encourage calculated risk taking and unconventional ideas to stimulate innovation.
• Actively encourage people to remove barriers to success and clear the path for successful progression towards the vision.
10. Consolidating improvements and producing still more change
• Use the increased credibility to change systems, structures and policies that don’t fit the vision.
• Create opportunities for more people to step up and take on more responsibility so the business doesn’t rely on the leadership alone to drive change.
• Provide a platform for people to increase their level of job satisfaction through the contribution they make but also, how they can develop others along the journey.
• Continue to re-enforce the connection between desired behaviours and successful achievement of the vision.
• Most of all, continue to review, refine and enhance the chances of success by staying alert to threats and opportunities along the way, and maintain that all important sense of urgency, not wildly rushing around but an acute awareness of how speed impacts results and keeps you on the front foot, taking charge of the future by creating it.
Avoiding failure and ensuring success means keeping an eye on the 2 x 10 tips and can be tough at the outset but knowing these in advance will give you a much better chance of formulating the right strategy and very importantly, executing it brilliantly.
As mentioned earlier, these are in summary format for speed and ease but if you want to discuss the subject in more depth with me, you can reach out to me HERE.
Best,
Reece
Author of the Strong Minds Book, Online Course & Podcasts
‘Build Strengths — Eliminate Weaknesses’
Originally published at reecepye.com.
