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MANAGEMENTFORDESIGN
WWW.M4D.COM.AU | [email protected]
BUSINESS JOURNAL 102MAKING STRATEGY HAPPEN
Introduction
Not all practices need a business plan, a strategic plan,
strategic objectives or a clear direction. Those businesses with a
compelling design proposition or a unique market expertise don’t
need it. Does it help? Yes. Is it necessary? No. They are
successful because they have a unique and compelling value
proposition that clearly differentiates them from the normal. Think
Gehry, think Richard Meier, think GHD!
But most businesses, and I mean 95%, are not in this situation.
Many like to think they are, but, in our experience, the market
doesn’t see it this way. So what’s the solution to elevate your
business above the performance of your competitor?
It’s no secret that many design focussed businesses are
superficial in their planning, concentrating on the design, fees,
schedules and day-to-day deliverables rather than defining
exciting, attainable objectives for the future that will motivate
the key people and lead to high achievement.
Our research shows that up to 70% of design businesses do
minimal or no strategic planning. Of the remaining 30%, only one in
three achieve clear and sustainable change in their business, which
leads to new markets, new locations, new client sectors, new design
approaches, new ways of working or improved leadership.
In our experience, five critical elements need to be in place to
make strategy happen:
1. Leadership needs to drive the process
2. A level of excitement
3. It has to be concise with definitive timeframes
4. It needs to be flexible
5. Consider execution before you start
Why develop a strategic plan in the first place?
The key reason to develop a strategic plan is to position your
business to focus the energy, resources, and time of the key people
in the business in order to create and sustain an advantage in an
increasingly competitive environment. Success, of course, is
subjective
“70% of design businesses do minimal or no strategic
planning.
”
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WWW.M4D.COM.AU | [email protected]
and will mean different things to different people — it could
include more interesting projects, more engaging clients, more
talented people, more revenue, more profit or more innovation. Each
business needs to work this out for itself and the strategic
planning process should clarify these clear objectives for the
future. An effective plan points to specific results to be achieved
and establishes a course of action for achieving them.
Where should you start? Take a look at your business. Does there
seem to be a lack of focus on where the company is headed? Does
everyone clearly understand the goals for the business?
Strategically, how will the business achieve
those goals? Is your current planning horizon longer than one
year? Are you developing annual business/operating plans without a
strategic plan in place? Your strategy is your opportunity to
develop and deliver on an integrated set of choices.
Why does it matter? Arguably, the leading cause of business
failure is the lack of a well-implemented strategy. And if the
leadership of the business is not aligned with where the business
is heading, it will wander aimlessly, with priorities changing
constantly and key people confused about their own contribution and
priorities.
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WWW.M4D.COM.AU | [email protected]
Planning to fail
Given this, why do so many businesses lack a clear strategy? And
why do the majority of those who do fail to execute it? The
fundamental problem is leadership. More often than not the practice
leaders are engaged in the here and now — the current and next
project; the current and next client etc. Yet, at the same time,
they bemoan the lack of quality documentation or don’t understand
why they’re not attracting and retaining great people.
Secondly, the pathway to leadership in a design practice is
typically through design or client relationship talent. It’s not
business acumen that gets them there! This means that, typically,
leaders of design practices don’t have the inherent discipline and
capability that enables effective strategy development and
execution.
We talk to many leaders who fall victim to the gap between
promises they’ve made and results their practices delivered. They
frequently tell us they have a problem with accountability — people
aren’t doing the things they’re supposed to do to implement a plan.
They desperately want to make changes of some kind, but what do
they need to change? They don’t know — and if they do they don’t
know how to make it happen.
Even when the strategy process has been attempted, typically
busy leaders delegate the operational side of business, while they
focus on the perceived “design and client” issues. This is
completely wrong. Execution is not just words, documents and
tactics — it is a discipline and a system. The leadership of the
business must be deeply engaged in it.
The building blocks of successLevel of excitement
There is so much methodology and advice around strategy that
sometimes you need something that will get you and your people
excited to make things happen. In order for a
strategy to gain traction, and to engage the people within the
business, there needs to be a level of anticipation in your
objectives and plans. It can’t all be about improving the profit
margin or making more effective use of your technology, or fixing
up our communications collateral. Obviously these can be important
initiatives but if you want to engage people there needs to be an
element of excitement amongst the leadership and the people. Think
about it. What would that be for your business? Creating a landmark
in the city? Establishing a presence in a new location? Aiming for
market leadership in a new sector? Becoming expert in a new work
type?
Strategic objectives should stretch the limits of your business
capabilities, making them exciting to achieve, without being
impossible to accomplish.
Leadership
Leadership can’t delegate strategy development and execution —
leaders need to step up. A business can only make things happen,
drive change, and deliver strategic objectives if the leaderships’
heart and soul are immersed in the business. The leadership needs
to be in charge of getting things done by running the three core
processes — setting the strategic direction and priorities,
engaging the right people, and regularly monitoring progress.
“Arguably, the leading cause of business failure is the lack of
a well-implemented strategy.
”
http://www.m4d.com.au
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WWW.M4D.COM.AU | [email protected]
Only a leader can ask the tough questions that everyone needs to
answer, then manage the process of debating the information and
making the right trade-offs. And only the leader who is intimately
engaged in the business can know enough to have the comprehensive
view.
What exactly does a leader who is in charge of execution do? How
does he or she avoid being a micro manager, and getting caught up
in the details of running the business? Briefly, the core elements
are:
• Knowing and challenging your people
• Being realistic
• Keeping to clear and actionable goals and priorities
• Following up and creating energy
• Rewarding those that contribute
• Knowing yourself and setting the example
Flexibility
Unforeseen change in business conditions naturally occur so you
also need to allow for flexibility in your plans.
It’s more effective to continually review and develop the
businesses and align your strategic objectives rather than talking
and debating the new office in Asia or the new documentation
standards. Get on with things! Take small steps, assign smaller
goals, communicate your successes, analyse your weaknesses, adapt
your approach, seek out business partners that can assist — make
things happen, measure their success or otherwise. I can guarantee
that others are. If you’re not, then remember our industry is too
competitive and too dynamic for you to sit back and wait!!
And when you find yourself at the top don’t rest — the best
businesses find ways to do great things even better.
Concise with definitive timeframes
Your strategy is not a business plan — they are 2 different
things. You don’t need to document your strengths and weaknesses,
you don’t need to define your brand and you don’t need a
comprehensive set of numbers. Don’t create something that will sit
in the bottom drawer and requires endless revisions to make it
live.
Start with the big picture — what does your business need to
look like to thrive in the marketplace in three years? Then action
these into ambitious but realistic milestones of three and twelve
months, assign responsibilities and tasks to individuals, build in
realistic timeframes, targets and measurement criteria to assess
progress. With the right people and methodology it’s possible to
develop a strategic plan, with a plan for execution, in one
day.
Consider execution at the start
We have seen strategic plans not being implemented over and
over. In order to avoid this you need to have a plan and process in
place for executing your strategy. You need to consider and involve
those people that will contribute to making it happen at the early
planning stages. They need to take ownership and be part of the
process from the start.
“Take small steps, assign smaller goals, communicate your
successes, analyse your weaknesses, adapt your approach…
”
http://www.m4d.com.au
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WWW.M4D.COM.AU | [email protected]
How will you reward those people that make it happen? Is that
ownership becoming a Director, profit share, heading up a new
office? I can guarantee that even if you aren’t thinking about
this, your key people are. Work out what system you will use to
track progress — how you will keep people up to date? Where will
you keep the key documents? Is your strategy going to be shared
with everyone in the business or just the highlights? How much time
will the leadership dedicate to follow up and follow through and
where is this time going to come from? How often will you meet to
review progress? What support will you need? What will prevent the
day
to day getting in the way? How much time and resources are you
prepared to invest?
Don’t commence the planning process until you have thought
through these issues and put in place the systems to ensure you
deliver on your plans. Don’t let strategy become planning!
Management for Design has developed a unique approach to
strategy development and execution that if implemented effectively
ensures results. At the core is a methodology and system to ensure
successful execution that involves the key people in the
business.
http://www.m4d.com.au