The Tao of Business Strategy

Tao is a Chinese term meaning the ‘way’ or ‘route’.  The Tao of Business Strategy is a simple, highly effective path to creating the kind of business strategy you need; your staff desire; your stakeholders demand and will create benefit for generations to come.

Taoism recognises the interconnectivity of all things.  The Tao of Business Strategy recognises that strategy is intertwined with business success and the development of great people who will go on to create great businesses in the future.

There is no ‘easy’ way to create a great business strategy, it will always require hard work; intense questioning and rigorous planning but this Tao provides 3 basic steps to getting it right.

Think of the Roman numerals for 3 (III), joined together creating a top, bottom and supporting pillars.  Using this Tao, you will get a solid foundation, a strong roof and supporting struts.

Why?

Start by creating and defining your own thunder, your raison d’etre, the very reason why your business exists – the thing you’re passionate about.  Getting this right will feed a simple yet effective statement of the future as you see it (your ‘vision’) and encapsulate your reason for doing what you’re doing (your ‘mission’).

Tell the world what you’re about.  If they believe in your thunderous why, they’ll support you even when things don’t go according to plan.  If you’re passionate about it, you’ll attract others who are passionate about it too.  Think Apple here – they don’t have ‘customers’, they have ‘supporters’!

What?

This will explain ‘what’ your business will be doing be it making widgets or tilting the axis on which the world rotates and should absolutely link in to and support the ‘why’.

These will be your ‘objectives’ and they should support your mission and move you toward your vision.  If they don’t, then you’ve got something wrong and now’s the time to go back and review where the gap is.

It also covers (in the planning stages) ‘what’s required; what’s expected; what’s within and outside acceptable tolerance, what will be your USP’ and so on.  Leave nothing to chance, create plan A, B, C and so on.

It’ll make clear your expectations to your team and your shareholders.

How?

Now you know what you’re going to be doing (and why you’re doing it), it’s time to start thinking about how you’re going to make it happen; how you’re going to get you message to the masses and get the various component parts together.

Emanating from this will be the ‘when’ and ‘who’ but these are logistical considerations not strategic ones.  Get the team who can deliver on your strategy not the strategy that your team can deliver.

Karma

The natural law of ‘cause and effect’, Karma suggests that if you do good things, good things will continue to emanate from it, a positive ripple from a single act thrown into a still pool of water.

This Tao is designed to ensure that you do ‘good things’ in order that good things are visited upon you, your business, your colleagues and friends, investors, customers and the wider community.

Of course merely doing good deeds is not enough and success will require continually checking on progress; avoiding mission creep and digression, hubris or complacency.

A strong moral compass combined with a defining mission statement and a code of ethical practice combined with the kind of integrity that epitomises professional managers will ensure you stay with the Tao.

Educating Leaders?

This is a discussion paper exploring whether there is, in fact, an inextricable link between our education systems and contemporary leaders and to that end, I would love readers to comment, reflect and share their personal experiences.

Education in Scotland

There are and have been many facets and dynamics to the education system in Scotland, public schools; private schools; state schools; segregation based on sex and religious belief.  It seems schools have, intentionally or subconsciously also determined the traits of Scotland’s ‘leaders’.

Education for the wealthy

Education was originally the preserve of the wealthy.  Those who could afford to school their children had reasonably well paid; well respected positions – generally management level, a profession or owned their own business.

There was an unenviable link between personal wealth, educational attainment and future career options – the ‘uneducated’ mining or undertaking other physical tasks.

Schools were segregated based on sex and the curriculum was too.  Wider societal values were reinforced in educational establishments and as such, females were found at the helm of neither business nor industry.

Education for all

Education became State sponsored and tuition fees abolished.  However, the prevailing economic climate meant that schools were still filled with middle and upper classes and the curriculum remained segmented.  This was reflected in the higher echelons of business.

Command & Control

As education became more accessible and families less dependent on children earning an income, emphasis moved to conformity; the ‘educational’ cream hived off to Academies whilst the rest were given more vocational training in things like typing and woodwork.

Poor achievers were a burden and often removed from classes to avoid their disrupting the mainstream ‘able’ children.

Similarly, the business world was all ‘hire and fire’.  There was no time for coaching and mentoring; business was not a place for sentimental notions.  Orders were barked and employees dutiful in following these commands promptly.

This generation grew up with the threat of a ‘belt’ or ‘ruler’ being used to enforce classroom law and dismissal the ultimate sanction in business. 

Over time, high performing employees started to make it into the promotion pools based on their ability rather than educational attainment.

The sex battle’s dissipated somewhat but isolated pockets of conflict remain (predominantly) in the 45 -65 age bracket where women seek recognition of their ‘right’ to equal treatment in business and men struggle to accept females in senior positions.

Attainment for all

Creation of ‘Standard Grades’ meant attainment for all.  You were categorised into foundation; standard and credit and given parameters inside which you could comfortably achieve ‘something’.  This was echoed in the business world with the rise of the bonus culture, no longer the preserve of high achievers, all employees had to be requisitely rewarded for effort regardless of attainment.

Curriculum for Excellence

Changing the dynamic of learning to focus on experimentation; improvisation and a sense of adventure, the curriculum for excellence is professed to create a ‘safe environment’ for children to develop through trial, error and perseverance.

The Exception?

Many people point to Lord Alan Sugar, Sir Richard Branson et al. as demonstrable evidence against any such correlation between educational experience and future attainment.  I disagree.

Being in the ‘lower attainment’ bracket, children were taught that little was expected of them and therefore little was asked of them.  They never learned what it meant to fail therefore they were excused the burden of expectation and disappointment.

They carried this fearlessness into their business activities and, combined with exceptional business acumen, they set out achieving for themselves what the educational establishment had refused to provide them – recognition of their ability and reward for their effort.

Now the Buck$ Don't Work

The last 20 years have seen the monetisation of just about everything – including motivating and ‘engaging’ staff (and I use the term loosely).  What was once the preserve of salesmen and factory workers on ‘bit rate’ has since become the norm across the public, private and 3^rd sector.

Ever watched “The Undercover Boss” and found yourself emotionally engaged with the stories of the workers as they learn the real identity of their new “colleague”?  Here’s what the Undercover Boss knows and you should understand.

Change lanes now!

Driving output through reward is not a new concept.  Paying “bonuses” in return for targets met or exceeded to ‘incentivise’ higher output for greater stakeholder gain has been with us for some time.  However performance related bonuses have evolved and morphed into hygiene factors – their presence will no longer motivate but their absence will de-motivate.

Organisations have become hogtied into making these payments for less than exemplar work and the message being conveyed is that you want more of the same!  (You’re paying the bonus aren’t you?)

Getting it wrong

Reward routine behaviour and you’ll get more routine behaviour.  Want more from your staff?  They’ll now expect more in return as you’ve been rewarding mediocrity previously.

Stop the bonus payments and they’ll become de-motivated, withholding all discretionary effort and most likely affecting your business’ bottom line.  De-motivated and disengaged staff are a destructive force.

Getting it right

Real engagement is achieved without the short burst of endorphines a bonus cheque creates. 

Trade in bonus cheques for long term career development; alignment between organisational and personal values and aspirations; increased responsibility, accountability, recognition and more autonomy; your team want to be heard and respected; enfranchised and valued.

Great leaders are not ‘transactional’ but ‘transformational’; they don’t buy effort from their team, they positively inspire it.  Financial rewards are simply not sophisticated enough to achieve that.

Flatter, more compressed management structures; intra-communications and ease of connectivity means a personal message recognising the efforts of the individual as part of the team is not only desireable – it’s unquestionably achievable.

Leaders need to orate what ‘success’ looks like and managers need to design simple yet comprehensive systems that measure inputs as well as outputs and outcomes; rewards should be linked to behaviours as well as results.

Motivating without money

·         Have incremental non-financial rewards such as invitations onto work panels or groups; more autonomous working; more trust; sponsored time off to follow a pursuit they enjoy;

·         Sponsor further academic studies (win / win because the student's learning will also benefit the organisation);

·         Demonstrate you know your staff – give rewards that will mean something to them personally;

·         Make it clear that you’re rewarding the inputs as well as the outputs and outcomes – there are clear rules and a code of conduct which must be observed; this is about behaviours as well as results;

·         Catch people doing it right – during the process hold up a few shining examples of the kinds of behaviour and activity you’re expecting, this will act as a ‘reality check’ for the others;

·         Be as good as your word – if the reward’s been earned, then give it no matter how much it costs;

·         If the reward wasn’t earned, explain why and make sure the misunderstanding doesn’t lie with you;

·         Be prepared to challenge inappropriate or wrong behaviour along the way too. Organisational culture can be affected as much by behaviour which isn’t challenged as it can by behaviour which is rewarded!

Engagement is about more than a few bucks on the bottom line – a truly engaged and highly motivated workforce will strain every sinew to ensure your business remains viable because they believe in it.

The "Jedi Generation"

A New Hope?

The “Jedi Generation” will be defined not by age but by commonality in belief and behaviour; a unity of cause and altruism energising their lives.  They are a generation bound by raison d’être.

Star Wars charted the fall and rise of the Jedi Order, a sect of highly gifted individuals seeking to maintain peace and equilibrium across the galaxy whilst battling the internalised personal conflict possession of great power creates.

Having grown up watching the movies (repeatedly), it strikes me the parables told across this epic saga may actually hold clues as to the trajectory of the business galaxy too. 

The Empire

Moving from self-sufficiency, ‘organisations’ were created and evolved into large corporate monoliths operating empirically.  There was strength in unity and uniformity.

Power and knowledge became centralised and shared sparingly and with the ‘gifted few’.  Fear was wielded as a powerful motivational tool by the Emperor and his trusted Commanders (note the distinct absence of any females in the higher echelons of the Imperial ranks echoing the lack of females in senior positions in the business galaxy). 

The Dark Lords of the Sith, gaining power initially through consent then refused to yield once it was in their grip. 

Such regimes ensured orders, no matter how questionable, were executed without hesitation, the consequences of disobedience too great for the individuals tasked with doing ‘thy bidding’.

Dawn of the Jedi Generation

A new generation, tired of oppressive cultures and monopolised benefits and aided by some wise but elusive veterans, bode a return to the ancient art of spiritual and cerebral engagement whilst seeking to create and live in work / life harmony.  These people are the emerging “Jedi Generation”.

Just like in the saga, the “Jedi Generation” is ready to wrestle power away from the Empire and use this for much wider and more dispersed benefit.

Power to influence

The Jedi Generation will continue and extend the mantra ‘sell not tell’.  The objective will be to create emotional and intellectual engagement with their colleagues and companions.  Unlike the mythical Jedi, this “consensus” will be achieved through ethical and moral alignment between organisational and individual goal rather than coercion.   

Alliances

Similar to the ‘Rebel Alliance’ that forms across the saga, the “Jedi Generation” will bring their skills to bear in pursuit of a common goal or strategy before once again disbanding and pursuing their own personal and / or professional goals.

Collaboration will feature heavily in short bursts and multiple roles will become the accepted (expected?) norm for gifted individuals.  The “Jedi Generation” must work tirelessly to achieve harmony and not restrict their efforts to a single team, cause or environment.

Using the ‘Force’

In the way the mythical Jedi rely on the ‘Force’ to guide them; the “Jedi Generation” will rely on their highly attuned political and emotional intelligence to read situations to guide their actions and reactions with incredible accuracy and react to achieve exceptional results.

Dynamic Command

As demonstrated in the saga, the Jedi command is mobile, dynamic and fluid.  Leadership responsibility is spread across a number of the Order or a single, consensually appointed leader at any given time before the position is ceded and a new leader steps forth.  This truly is situational and servant leadership.

The group will recognise congruence in their leader and the alignment they create with their own personal beliefs.

Battle Commences

Armed with their MSc; PhD; 3G; formal and informal power; extended reach through the web and increasing discontent with the incumbent empirical management, “The Jedi Generation” is coming; whether you’re Sith or Jedi, the battle in business dawns.

Guerrillas in the Midst

Business is descending into all those clichés again; ‘dog eat dog’, ‘rat race’; ‘law of the jungle’. Those not able to compete fairly will have to take the gloves off and fight dirty – we have guerrillas in the midst.
When working with guerrillas, think of a hand grenade with the pin out – you can scrabble around trying to put it back in and suffer serious damage or you can accept the situation and get safe distance between you and the danger. It’s about damage limitation and staying alive.

The Terrain

Guerrillas hang around senior staff telling them about all the great teamwork they’re doing; all the problems they’ve solved whilst juxtaposing this against the ‘failures’ of people like you. Truth doesn’t matter – this is all about perception. Don’t assume you’ll straighten all this out in some fact finding exercise, that ain’t going to happen.
Guerrillas utilise gossip as a means to undermining your position and creating unsubstantiated doubt in the mind of your bosses.
Disguising their intentions, they’ll offer flattery and favours in front of the boss. Not wishing to seem maverick, you’re left to accept the offers without realising you’re now validating the gossip and rumour the guerrilla started – you’re incompetent and need their help.

Gathering Ammunition

Remember that police caution - "....Anything you do say may be taken down and given against you as evidence....". Same rules apply!

Ground Assault

Target lulled into a false sense of security, it’s time to strike. Withholding information; giving mixed messages across the teams and keeping everyone confused and divided, they’ll start to interpret what’s going for the boss, adding their own malignant slant.
Having created the illusion they’re a ‘team player’, they’ll now set about trying to surreptitiously demonstrate your ‘incompetence’ and validate their earlier gossipings.
Meetings become increasingly dangerous as seemingly random; ‘off the cuff’ comments and questions fly, catching the target ill prepared and off guard.
Fail to adequately respond and you’ll look incompetent, reinforcing the suggestions previously whispered behind your back; overreact and you’ll look incompetent and be seemingly aggressive toward Saint Colleague who’s been working hard to give you all the assistance they can.
Sit on the fence and the guerrilla will become passive aggressive – that subtle manipulation which backs you in to a corner in a play which suggests you’re indecisive and / or incapable of making a decision.

Your Survival Kit

Hold Your Ground

You need to have some strategies of your own to avoid becoming a casualty of war.
• Asked for information you weren’t expecting? Gently ask why they need it, it wasn’t part of the meeting’s agenda and therefore you haven’t prepared but you’ll have the information with them shortly. If it’s that important, ask for a short recess whilst you get the data they so urgently require right now.
• Find it hard to pin them down. If your requests are met with verbal gymnastics, try summarising what they’ve said and ask for a definitive response, complete with commitments on time; resource; desired outcomes etc. Don’t stop until you’ve pinned them down.
• Knocking all your ideas in front of the boss? Ask them what their solutions are. Guerrillas make themselves look smarter by knocking your ideas but don’t be sucked in, put it back to them – what are their suggestions. If they don’t know what the answer is, they can’t possibly know what it’s not so point out they’ve rejected your ideas off hand and emphasise their unreasonable behaviour without having to say another word.
• Beware silence – guerrillas know that people hate silence and feel compelled to fill that void with rambling. Don’t do it – you’ll say or do something you’ll regret later. If the silence continues, ask if they’re done and excuse yourself; you’ve got other stuff that needs your attention.

Give them the Command

Guerrillas are incompetent leaders so put them in charge at every opportunity, involve them in everything and let their own incompetence be their ultimate downfall. Don’t try to alienate them, as the old adage goes “keep your friends close and your enemies closer”.

Fight another Day

Above all, when the flash attack commences, remain calm and congruent. Stay true to yourself and eventually the guerrilla will be seen for what they are.
You can afford to lose the battle and still win the war. Keep your team on side, stick to your principles and leave the guerrilla exposed. They’re ill prepared for a long, drawn out battle but that’s exactly what you want.

Paratrooper Managers

The recent trend has moved toward ‘parachuting’ successful managers into troubled zones as a quick, easy way to improve performance.  However, the analogy between combat and performance management doesn’t stop at ‘parachuting’. 

Missing in Action

The extraction of a high performing manager from their normal area of business on a special mission will be a motivating and rewarding factor for a short period of time. 

However, as they assist one platoon, their former colleagues may well become de-motivated with their figurehead missing in action; resulting in the performance of the home regiment starting to wane and suffer.

Fatigue

The “paratrooper” may start to fatigue.  We all like a challenge but prefer ‘stress’ in short bursts to ensure optimal personal performance.  Sustained exposure to such pressure will lead to battle fatigue and the leader will start to become disillusioned and disheartened.

Effect on Morale

The deployment of star troopers in someone else’s platoon is going to have a negative impact on morale – the standing leader will most likely resent the external interference.  This is the military equivalent to “boots on the ground”.

The receiving team may also be suspicious of the motives.  This will be worsened if there is a lack of a clear remit and boundaries, leaving mission creep a very real possibility.

Withdrawing the Special Forces

The last pitfall comes when the parachutist is extracted – if the remit has been to improve performance they’ve likely achieved this however unless they’ve ‘up-skilled’ the local commander, performance will nosedive when they leave.

Combat Strategy

Leaders and managers have 3 responsibilities:

·         Short term

·         Medium term

·         Long term

Parachuting high performing managers into low performing areas will have a positive impact in the short term.  

You need to think about is the medium and long term.  How do you make this short tour of duty productive and constructive?  This is where many recent military missions have hit hard times.

The first goal is to improve performance.  Clear objectives, goals and timescales will make sure both the “green beret” and the ground commander are aware of organisational expectations.  

Communicate

Make sure everyone in the ‘drop zone’ is aware of the mission through clear and open communication.  Involve them in discussions around performance and expectations and make sure they understand their role and remit in achieving these.

Create alliances and makes changes with them and not to them.

Coach and Mentor

No point sorting peripheral issues – get the root cause.  Use this time to coach / mentor the ground commander so they’re aware of what you’re doing or planning to do, why and what you expect to achieve as a result of it. 

Help them understand what works and why.  This will build sustainable, improved performance in the medium and long term.

Coaching and mentoring should be part of a much wider learning strategy which is properly designed; deployed and evaluated to ensure the objectives in relation to personnel are met as well as improving organisational performance.

Have an exit strategy

Be very clear on the timescales and stick to them.  If there’s no improvement in the agreed timescale, go to Plan B because Plan A clearly isn’t working.  Clear objectives and timescales will also avoid mission creep.

Use your crack team sparingly

These people likely have a full time role within your organisation already and will not appreciate being ‘dropped’ all over the organisation to sort out personnel and performance issues.

Remember this is your elite team, they also require regular training and skills updates; personal development and team bonding time with their own troops, so use them sparingly and only where other strategies have failed.

Debrief

Speak to everyone involved, capture feedback and learning points and incorporate these into future missions then bring the mission to a formal close.