The universal framework
I recently returned from a well-attended two-day strategy conference in Los Angeles hosted by ASP, the Association of Strategic Planners. I enjoyed many of the presentations from the strategy experts there, including some from notable firms like Bain and Accenture.
As I thought about what I heard and learned, he made it clear to me that there is indeed a simple and universal framework that generates positive composite results, if we pay attention to it.
These are the five elements of the “Universal Framework”:
- Goals. Long and short term (3 to 5 years, annual, monthly, weekly and even daily), strategic and operational, corporate, departmental, individual. Begin with the end in mind, as Steven Covey advises. A goal is a picture of your destination, where you intend to be, so that you have something to aim for. Peter Drucker said, “The only way to predict the future is to create it.” I would add to that: “The only way to create the future is see it first. “
- Plans. If our goal is to get to Memphis next Wednesday, then we need a mapped route. Without it, we will just be driving. Plans are the road maps that lead us to the goals (destinations) that we set for ourselves. Do we take the time to plan? Most of us know that planning is worth it, but it’s easy to get so busy that we never get to do it. Here I remember the expression: “Not planning is planning to fail.”
- Standard processes. Let’s start with the premise that for many business activities there are better (and worse) ways of doing things. Standard processes make it easier and cheaper to generate more consistent and reliable results. Michael Gerber, author of the E myth, call this orchestration. A good orchestra doesn’t let the violins play when they want to. And neither do we. We want to make music, not noise. But that doesn’t mean we don’t innovate. Once we discover and test a new way of doing things and it proves it’s better, it’s okay to make it the new standard.
- Measures. Are we doing what we plan to do? Are we getting the results we expected? Measurements keep track of inputs and outputs and tell us how we are doing and why things are going good or bad. Without this information at all levels, from strategic to tactical, we are simply adrift. Measurements are a requirement for fact-based management, which generates smart decisions. They also often save meeting time that could otherwise be used to discuss opinions and anecdotal information. Measures can be granular or higher-level KPIs (Key Performance Indicators). And yes, we need access to a large amount of data for regular diagnostic breakdowns. Absolutely! But on a day-to-day basis we are better off with a more limited set of measurements that highlight the information necessary to keep our finger on the pulse.
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People. People are our greatest asset and our greatest challenge. I think it comes down to this: hire well, connect with the game plan (strategy), inform, include, develop, challenge and acknowledge. The most important thing is to let people use their brains. (‘None of us is smarter than all of us’). This means allowing people the freedom to make decisions within the context of a game plan and organizational framework. Research, including SUMMIT’s 2007 Business Performance Study [http://www.summit-performance.com/research_ezine.htm] indicates that most employees who know the plan, how they fit in, how things are going, are asked for their opinion, receive feedback and development opportunities, and have some control over their jobs, are happy and engaged. A company with mostly happy and engaged employees will outperform a disgruntled and disconnected competitor at all times. Today, this is a smart approach. Soon, as the pace of business continues to accelerate, it will be the only path.
I think that covers it. Almost every business book I read and every management practice I come across seems to address one or more of the five elements highlighted above. I know this is not entirely new. But I hope that seeing these familiar elements as a framework helps you focus more clearly on what needs to be done.
In fact, you may want to take a quick scan of your business while you think about it. (I did, and I can tell you I have work to do!) Do you have good goals, plans, procedures, measurements, and people? How would you rate them for your business on a scale of 1 to 10? How would others in your company rate them? If you determine that your business is lacking in one or more areas and you are motivated to take action, remember that we don’t have to do everything at once, it is a way of life, not an event.
I am convinced that by continually addressing each element of this universal framework, in the long term we will enjoy higher revenues, healthy profits, strong employee morale, and the highest levels of customer satisfaction. That should make it worth doing. Oh, and of course we’ll have a lot more fun running the business. And that’s probably the best part.
Copyright SUMMIT Performance Systems 2008