Fred Stuvek Jr.'s Blog, page 2

Strategy Implementation Mistakes

Strategy and implementation are inextricably linked.  It is important to put together a plan on how the strategy will be implemented, as a poorly implemented strategy will compromise the results.  The biggest mistakes a company makes when implementing a strategy are summarized below. These mistakes are listed in no particular order, as any one of them can be crippling to the business, with a combination of them proving fatal.

1. Lack of a coherent strategy – The offering and subsequent strategy must have a value proposition differentiating it from the competition.  Once the decision is reached on the strategy, a plan needs to be defined and communicated within the organization with everyone’s interests and activities aligned.

2. Ignoring the Human Factor – A company can have the best strategy in the business, but without the right people, properly trained and incentivized, it will never realize its full potential.  In today’s environment, with differences between companies and competitors often blurred, the human side of the equation is more important than ever.

3. Improper Communication – The plan should be conveyed in a clear and crisp manner.  The employees should understand the larger goals of the company and the specific goals applicable to them, with a clear and unequivocal understanding of their role in achieving goals and the priority of these goals.

4. Lack of Accountability – Every activity associated with the plan must have someone accountable for completion of the task.  Those responsible should be empowered in order to imbue ownership and accountability, with a system in place to ascertain goal status and completion.  If no one owns it, no one is accountable.

5. Lack of Metrics – A plan must have a set of milestones or deadlines.  These milestones need to be specific, with clear accountability.  It is the accomplishment of these milestones that determines the success of a project and a business.

6. Lack of Review – A process must be in place to determine progress toward completion.  This is accomplished through a series of reviews, the frequency of which is determined by the scope and time frame of the plan. By monitoring progress and assessing progress towards the plan the necessary adjustments can be made in a timely manner.

7. Incentives Not Aligned – Incentives should drive individual performance to achieve the success of the plan.  These incentives should be objective versus subjective. The plan should include incentives for both short-term and long-term goals, all of which are aligned so that individual or divisional rewards cannot be realized at the expense of the company.

8. Poor Intelligence or Data – It is incumbent upon leadership to ensure they have as much valid data as possible when making a decision.  When assessing data or input, one needs to be measured in drawing conclusions and strive to validate the data as much as possible.  Different people may characterize situations in different ways due to an inherent or organizational bias.

9. Strategy Conflicts with Finance – A strategy with incentive plans not properly aligned could result in internecine conflict.  As an example, if a Divisional Plan is weighted more towards capturing market share while the overarching emphasis on a Corporate Level is profit, you will have contrarian views on which tactics to pursue.

10. Lack of Simplicity – As a company grows, takes on more offerings, adds personnel, creates new positions, and implements systems to manage growth, an unintended consequence is that business processes become more complicated.  Advances in technology, designed to make things simpler, often add another layer of complexity with information transmitted to a host of individuals which can exacerbate the decision-making process. Review all processes, offerings, approvals, and communications with the intent to simplify and streamline as much as practical.

Basic Types of Strategy

The essence of any company strategy is how the company’s offerings compare to the competition, how to gain an edge, and how to sustain this edge or difference.  There are three basic types of strategy that a company can implement.

Cost – This strategy, which could also be called a cost/leadership strategy, is implemented when the company competes on the basis of the price of their offerings.  A company must be careful to ensure that as price pressures come to bear, cost-reduction initiatives do not result in a decline in performance.

Differentiation – This strategy is implemented when a company offers something which is unique, oftentimes proprietary or patented, to distinguish it from the competition.  The offering could also be value based, such as offering a distinct set of services. When the customer sees this offering as something that offers value, it becomes a competitive advantage and can result in a company being able to command a premium price.  When pursuing a strategy of differentiation, a company must be in close contact with the customer to ensure what is offered continues to be unique and is of value to the customer.

Niche – With this strategy, a company will develop a distinct product or approach for a defined segment or group of customers versus going after the entire market.  When deciding on this strategy, the size of the segment, the growth rate, and number of competitors are key considerations. With this strategy, a company must be wary of new market entrants, especially from companies in related markets that are mature or declining, as these larger entities seek business elsewhere and may have economies of scale.

Having a strategy is one thing, successfully implementing it is another.  The next blog will address the mistakes or shortfalls companies make when failing to properly implement their strategy.

Strategy

Successful companies have two inextricably linked characteristics in common.  First, they have good people. Second, strategy is not given lip service. These companies place a high priority on developing a strategic plan.  The benefits of having a well-conceived business strategy are numerous and affect the entire organization. The strategy should home in on what the company is good at doing and how it can leverage its strengths into a sustainable competitive advantage.  Having a strategy in place accomplishes the following things:

1. Clearly defines the purpose of the company and sets the direction

2. Provides guidance to the entire management team and employees

3. Establishes realistic goals and objectives

4. Creates metrics and timelines for evaluation

5. Provides focus

6. Determines accountability

7. Sets prioritization of resources

8. Provides the basis for development of financials

9. Enables the company to take advantage of opportunities and respond to threats

10. Provides for more efficiency and better decision making

The essence of any company strategy is how the company’s offerings compare to the competition, how to gain an edge, and how to sustain this edge or difference.  The topic of the next blog will be on the basic types of strategy.

Personal Strategy

“Strategy” a word of Greek origin, was initially used in the context of warfare.  The term, however, is also applicable to other areas such as business, sports, and your personal life.  While you may never have thought about putting together a personal strategy, it is essential to achieving success both personally and professionally.

Ask yourself the question, “Five years from now, if my life were exactly the same as it is today, would I be happy?”  If the answer is “No,” and you do not have a personal strategy in place, now is the time to do it.

A personal strategy is a road map for what you want to accomplish within a specified period of time with goals, objectives, and timelines associated with them. This road map is not fixed; it is dynamic.  As you evolve and grow, so will your goals. Periodic review of this road map for success is mandatory, and as you check off some goals, you will add others to reflect future ambitions.

A personal strategy should encompass a number of goals that can be divided into three main areas.  The first is personal, the second is professional, and the third, which is commonly ignored, is fitness.  “Personal” goals should reflect your values and what you see as your mission. “Professional” goals relate to what you want to accomplish in the workplace and can encompass any number of areas.  “Fitness” goals refer to you. There are many benefits to exercise: it alleviates stress, promotes a positive attitude, makes you more energetic, improves your self-image, and projects a better you to your family, friends, colleagues, and acquaintances. Personal-fitness goals should never be optional.

If you do not have a personal strategy in place, don’t put it off. This strategy, developed by you, will help ensure that your goals and actions are aligned, will provide focus and direction, and it will help you become more effective in all areas of your life.  Moreover, this strategy becomes a source of motivation and helps you lead a balanced, happier, and healthier life.

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The Importance of Weight Training

One area which is often overlooked as part of an exercise regimen is weight training.  Some of this is due to misconceptions about weight training such as it is only for athletes or that it will add bulk.  Part of this is also due to an unfamiliarity with weight training and not understanding the myriad benefits. If you are not including weight training in your fitness program it is absolutely essential that you do so if you want to achieve the best version of you possible.  There are numerous reasons for including weight training in your fitness program and for the sake of simplicity I will focus on three areas.

Health – Numerous studies have underscored the cardiovascular benefits of weight training which can significantly reduce your risk of having a heart attack or a stroke by as much as 50 per cent since it helps burns calories and fat by virtue of a higher metabolism, and it also reduces blood pressure.  It is proven to be effective in helping to prevent diabetes by as much one-third, and nearly two-thirds when combined with aerobic exercise.  And as you tend to lose muscle mass and bone density as you age, it is effective in helping to offset these areas by strengthening the muscles and helping to reduce bone loss, including osteoporosis.

Lifestyle – By having your muscles strengthened you are better able to deal with your daily routine such as walking stairs, getting in and out of a car or a chair, or sitting at a desk for long hours.  The reason for this is that as you strengthen your core muscles it enhances your ability to move with less strain and effort, which concordantly improves your balance, and makes you less susceptible to a fall, which is a leading cause of injury for many people, especially as you age.

Mental – Weight training enhances your mood and can help you deal with anxiety and depression.  This is partly due to the endorphins which are released, which are mood enhancers, and the fact that you are able to better deal with challenges since you are stronger.  And by looking better and having an improved self-image you will have a more positive mindset and exude confidence.

As with anything, if you are not sure what to do, ask for help and ask a personal trainer to design a program for you. Remember to start slowly, working up to multiple sets and heavier weights.  Over time it will become second nature for you as you get acclimated to this new routine.  And with anything, ditch the excuses and do it.  You will look back and be glad you did.

Which Exercise is Right for You?

Regular exercise is key to maintaining good health as there are myriad benefits to a fitness regimen There are different types of exercise which can essentially be broken down into three categories – aerobic, strengthening, and stretching.

Aerobic exercise includes a number of activities such as walking, running, bicycling, using an elliptical or a stair master, and swimming.  Aerobic exercise improves your cardiovascular system, builds endurance and stamina, and can help reduce the risk of many diseases. Strengthening exercise carries with it a two-fold benefit.  It strengthens the muscles and also strengthens the bones and stimulates bone growth, which is important later in life to help prevent or cope with osteoporosis. Weight lifting and resistance bands are examples of activities that strengthen these areas. Stretching improves your flexibility and enhances your ability to move, including better range of motion with your joints, and also helps with your balance.

There is no one size fits all when it comes to an exercise program and as you embark on a physical fitness regimen you need to assess what works best for you and the areas you need to focus on.  Your exercise program can be structured, such as a regular program of going to the fitness center, or non-structured, which includes activities in your day to day life such as working around the house or the yard.  More often than not, your program will be combination of structured and non-structured activities, the sum of which add up to your personal physical fitness level.

Many people focus too much on aerobic exercise at the expense of strengthening and stretching, which will ultimately catch up with you in some shape or form.  This is important since as we age, we lose muscle mass and flexibility, thus strengthening and stretching becomes more important by an order of magnitude of later in life.  When designing an exercise program, take all of the above factors into consideration. If you need help putting one together, seek assistance from someone who is well-versed in these aspects, such as a trainer.

Remember, just as you have personal and professional goals, you should also have fitness goals.  A personal fitness plan is not optional, it is mandatory. If you are not exercising regularly put yourself in an action mode.  Schedule it as part of your regular routine, adhere to it, and ditch the excuses.

The Importance of Physical Fitness

Having a fitness plan is not optional, it is mandatory, and in today’s environment, more important than ever.  Our lifestyle has become sedentary as we spend more time sitting, either behind a desk, in a meeting, in a car, or for extended periods while traveling, resulting in less physical activity.  This is compounded by the fact that as you age you will lose 3% to 5% of your muscle mass per decade, in addition to losing flexibility and stamina.

Regular physical exercise offers myriad benefits.  You decrease the risk of certain diseases such as heart disease, high blood pressure, and diabetes as nearly ten percent of the world’s non-communicable diseases are directly attributable to physical inactivity.   It affects you mentally by helping you better manage stress, tension, and reduces the chance of being depressed. Regular exercise boosts your energy levels so that you can get more done, and are better able to cope with the rigors of everyday life.  It promotes a positive attitude, improves your self-image, and projects a better you to your family, friends, colleagues, and acquaintances. And lastly, the discipline, planning, and commitment required to maintain this regimen are skills which carry over to other areas.

If you do not have an established exercise regimen the time is now.  Drop the excuses, put together a plan, schedule the time to do it just as you would for a meeting, and do it.  Keep your goals reasonable. If you need help talk to a friend or a professional who can help design a program for you, taking into account which types of exercise would be most beneficial and what venue works best for you.  Establish realistic goals so that you don’t set yourself up for disappointment. Share these goals with someone, keep them front and center, and have the discipline and willpower to adhere to this regimen. Remember, at the end of the day, you are accountable to you, so start that exercise program now.  You will look back and be glad you did.

Improving Your Communication

Communication is a skill that can be learned and developed.  It is one of the top traits companies look at when hiring and promoting.  Being an effective communicator is a prerequisite for success in all aspects of your life.  To improve your communication skills do the following:

1. Listen – Listening is an important part of communication.  The more you listen, the better you communicate. Put the technology away, focus, listen, and actively engage with the individual.

2. Learn Nonverbal Communication – First impressions are made quickly and are lasting.  Be cognizant of the factors which encompass nonverbal communication, such as making eye contact, being cordial, confident, and approachable.

3. Study – Learn the techniques and subtleties of different types of communication, focusing on those areas where you have shortcomings.

4. Confidence – It is difficult to properly communicate, especially when speaking, if you are anxious, stressed, or overly emotional.  Recognize which settings trigger anxiety and insecurity, simulate those settings, and practice.

5. Clarity – Think about what you are communicating and convey it in the most simple and straightforward manner possible. If the subject is complex break it down into smaller, more readily understood pieces using bullet points.

6. Venue – Many default to the mode of communication they are most comfortable with, which may or may not be the best or most appropriate medium.  Ensure you are communicating in the most efficient manner given the topic, audience, and other issues such as distance or size of the audience.

7. Awareness – Know your audience.  Put yourself in their shoes. Anticipate their questions and concerns and have clear responses prepared in advance.

8. Feedback – Engage with the other party or audience.  Ask questions, respect the other person’s point of view and do not get defensive.

9. Assertiveness – Being assertive does not mean being aggressive.  Be assured and confident enough to get your point across.

10. Regimen – Being a good communicator is an ongoing endeavor.  Treat communication just like any other skill and develop it.