Boards in the mist

Boards have to be mobilized in order to make the right decisions to survive the crisis. Nothing new. But according to this essay from McKinsey, it’s far from being that simple.

Three reasons are put forward

• Boards follow unchanging procedures and ritualss. Defines shedules on a yearly basis, documents  and agendas fixed many weekds ago.

It may seem absurd that people who make strategic decisions are traped into such straitjackets but this is facts. With all the consequences we can imagine on adaptability.

• Interaction modes that are not constents with the purpose. Boards are the place for consensual discussions, members only validate what has been done in preliminary works. It’s in no way a place for brainstorming and reflection from which anything innovative will emerge.

It seems that the only conflictuous point in a board meeting may be power. Not strategic issues.

• Many board members are not in touch with what’s going on in the economy. They are more comfortable with “preservation” strategies, waiting for things to solve themselves rather than with trying to take the initiative.

As a result, they will find themselves struggling to withstand tough conditions and badly positioned in the new environment.

Conclusion : board have to get rid of received ideas, to learn to think differently in order to find the means for strategies heading to the future instead of to become ossified on the present. Unlike halves-strategies.

A crisis that’s not that economic

Many people agree to admit the time has come to built a kind of new economic order, the drifts of the current system having lead to the situation we all know. But, saying that, people often neglect what I consider being a management failure. As for the hen and the egg it’s hard to say who was responsible but we have to admit both successfully helped one another.

Weeks ago I wrote that logic without good sens leads to catastroph and worried about companies who only had halve strategies, that’s to say that focus on exploiting the present without thinking of allocating part of their ressources in order to prepare the future. Said differently, it’s like promising a linear performance when they only give themselves enough assets to follow a curve limited at its top.

Recently I was backed up by a note by Jon Husband who pointed at an  interview of Henry Mintzberg who was saying it was more a management crisis than an economic one. An opinion I share. A few points I bring out from this interview [Read more...]

Halves strategies lead to crisis

I recently wrote about issues experienced by companies that focus on halves strategies. The obvious conclusion was that preparing the future is very hard when one’s only purpose is to maintain the pas.

By the way, why do we have to prepare for the future since everything is doing right now and doing things the same way we’ve always done guarantiees the foreseeable nature of things and security ? Because one day it’s not the past that catches you up but the future that becomes present. And this day seems to have come.

That’s not about changing everything but about learning from the past while preparing the future. Today most companies stop after the first step, neglect its intangible assets and put itself at risk.

When one tries to maintain what exists, he tries to endlessly replicate what he has been doing for ages. It’s cartesian, it’s about numbers, concrete and tangible things. The exact opposite of networks, knowledge, human capital, which are nice concepts that don’t feed the bottom line ( but are you really sure ? ).

[Read more...]

Did you find my strategy ? Lost a part of it on my way !

That’s a question many companies could ask themselve. In fact they didn’t lost their strategy but only half of it.

As I already said many companies and people tend to mistake means for goals. Said in practical terms that means that they consider many things, projects as final purpose althought the true objective is the impact of the project on the organization, to assess trainers instead of the training’s impact on people’s work, to gather ideas when the purpose is to launch new projets, and, as a conclusion, to consider that a company’s operation is the corporate goal.

We’ll try to focus on this late point. Each service becomes its own purpose, each person too. The underlying purpose of many intiatives is to justify and maintain what exist. This may seem logical but…

This is why people don’t have time to collaborate (because companies makes sure people are busy, so no time for any unplanned thing), that’s why the “that’s the way we’ve always done” theory often com to surface and  that’s why many projects are launched and successfully managed without bringing any kind of benefit.

Imagine a human organism, a child. Imagine its organism only works in order to satisfy its current needs. Not to prepare its growth, produce things that may be useless at this stage but key to reach the adult age. No muscles, no senses. One only concern : make the digestive machine run and get bigger. Imagine the result…scary, isn’t it. But that’s the way many companies operates : run and get bigger, even if it’s a threat to adapting to the future, to evolve.  Any likeness with what happened to the economic system is pure coincidence.

That reminds me of this excellent post from Michel Volle [fr] about enterprises, above all because he explains better than me what he calls “half-strategy”

Many companies don’t have a stragegy but halve-strategies. They want to “get biger to survive” but they stick on their traditional activities and refuse to diversify their offer. They want to “reduce costs” but neglect marketing. They want to stabilize their finance but renounce their R&D. Their directors neglect the corporate polyphony, the multitude of the logics it articulates and are all necessary, in they only pay attention to one melody.

By focusing on getting bigger, some may forget to grow. And when one gets bigger without growing, he becomes a vegetable.

It explains partly the gap between those who are successful in organizational tranformation and the others.