Francis Wade | Afraid to be lofty? Expand, then compress your strategy

A turbulent world demands game-changing strategies. Companies need to stand out, but executives quickly learn that setting exaggerated goals has its limits. Is there a way to engage staff and board with big aspirations while retaining credibility?

Case in Point: You hope for breakthroughs during strategic planning retreats. However, all you see are the same old ideas. The cause? It’s all a function of tentative thinking.

You want your executives to get past this point, and think in lofty, inspirational terms. But it’s hard to make them execute brave moves in just a few hours. Even if your business is in desperate need of leadership, taking bold action is easier said than done.

You complain that there must be a way to escape the extremes. Is there a method to follow for thinking big, without changing or completely retraining members of your current senior team? Try the strategy compression technique.

Establish equity: A ground rule

A CEO interrupts a retreat to make a surprise announcement. On his own, after much deliberation, he’s figured out the “perfect” targets and timeframes. To cut the discussion short, he demands: “You guys, just focus on how we get there.”

At first, this may seem like a helpful short-cut, but it’s not. It’s bullying.

Essentially, he is hijacking the process, forcing his colleagues into a subordinate role. By taking over, he has removed the power from the team to make the most significant judgements.

Fix the problem of poor judgement by establishing ground rules in the retreat to ensure everyone is at the same level.

They should describe the method to hold discussions. Also, the rules must outline the process for making decisions. When someone violates them, be ready with pre-defined next steps.

A CEO should understand that she is in a unique position. In her role, she should be thinking about strategy more frequently than others - almost daily. Therefore, she’ll be obliged to be patient with her colleagues. They just need more time to think strategically.

Old-style thinking

Most executive teams lack experience with skilful game-changing strategic planning. But C-suiters are familiar with the raw challenges of engaging staff in far-reaching dreams.

They have seen where aspirational programs earned ridicule because of overly ambitious goals.

Now, they want to protect their reputations. Consequently, leaders prefer to think small, focusing on three to five-year timeframes.

As such, during their retreat, they stunt their ideation with short horizons, thereby limiting their creativity. Instead of seizing the opportunity for exciting pre-emptive thinking, the opposite occurs. They settle for mundane logic and uninspiring goals.

Is there a cost?

Blackberry, Nokia and Ericsson dominated the mobile phone market in the 2000s. Their products disappeared because of poor but seemingly safe thinking. In spite of millions of dollars available to plan an exciting future, their executives became stuck in comfortable ruts that destroyed each company.

To change expectations, advise attendees that the team will be engaging in game-changing, pre-emptive planning. Then, apply the following technique.

Expand-compress technique

Once the right tone has been set, start by setting a target year some 15-30-years away. A horizon such as one defined for 2050 ensures that the planning is not simply an extension of business-as-usual thinking.

Then, for that year, brainstorm a range of desired outcomes which collectively describe a breakthrough vision.

The magic happens in the next step when milestones are created between this year and 2050. Make them realistic. How? Backcast from the future to the present, then create mini-plans to reach these objectives. The product is known as a ‘Merlin Chart’.

Now, take a collective pause. Ask: How can the chart be compressed?

This is a delicate question. Why?

If a CEO drives the team to compress too aggressively, she may end up with an unrealistic plan. It will violate the cause-and-effect logic built into the Merlin Chart.

However, a cohesive group of leaders can often challenge underlying assumptions.

Usually, these can come from anywhere – finance, operations, human resources, marketing, etc. The fact is, the Merlin Chart belongs to everyone involved.

But compressing it is not a matter of being reckless. Instead, the process requires rigour to prevent unrealism from creeping in. The intent is to bend the model, but not push it beyond the breaking point.

If this rule is followed, every participant can stand behind the compressed Merlin Chart. By openly negotiating specific timing, and making trade-offs, the resulting strategy is owned by the team which fashioned it.

Consequently, the chances of implementation will soar.

It’s likely to be a contentious affair, but by the end, compression allows you to reach for lofty aspirations.

Francis Wade is a management consultant and author of Perfect Time-Based Productivity. To search past columns on productivity, strategy and business processes, or give feedback, email: columns@fwconsulting.com