The Vision Thing

What makes people look forward to coming to work? What makes them sacrifice
during hard times for the enterprise? Why do people flock to such an
organization?

Surveys of millions of working men and women — so-called “engagement surveys
— are consistent in the answers:

- i make a difference in something worthwhile
- i work with people i respect and  enjoy
- i am proud to be part of the organization
- People recognize and appreciate what i do (especially my boss)
- i am constantly learning and growing

A memorable, compelling vision/mission can drive all of these motivations to a
positive state of mind.

What is a vision? More than a slogan, it is a desired future state which
resonates deeply.

For a profit-making company, at least these:

- what this company will be able to do in the future that it cannot do now and why that matters in the world

- how that translates for customers and employees as well as investors

- in what ways we will be different from and better than competition

- why I will be proud to work for this company

For a not for profit, what are the components? At least these:

- the social value we will create in that desired state
- what we as an organization and as individuals aspire to be able to do
when we live the vision
- in what way we will be different or better than organizations in the same
space

How best to develop a vision and mission?

- the key elements are listed (minimal prose)
- the list is socialized and improves
- a prose version is derived from the list
- the vision is socialized and refined

What test must the vision pass?
- compelling, differentiated and relevant social value
- appropriate given the external challenges
- the right role and alliances given other players in the space
-

How is the vision instituionalized?
- programs, startegiea and budgets are re-evaluated in the light of the vision
- the ” new tape” is played over and over until the old tape is forgotten
- signal acts reinforce the vision

Whose job is all of this? It starts with the passion and spirit of the leader, the CEO, the business owner.

Remember, go visit:

small business advocate

Two topics come to mind:

1. Good moves in uncertain times (really knowing your competitive advantage and building from strength)
2. When “The Vision Thing” Matters Most: in a down economy

In this post, I will deal with the first topic (stay tuned for a second post).

Business owners are always having to live with uncertainty. But the level of uncertainty now is very high in terms of credit availability, cost of capital, ability to raise equity investment, customer appetite for new offerings and much more. Yet, the best of the best make good moves in uncertain times.

Two of my Vistage International Chief Executive Group (Vistage icon elsewhere on this site) illustrate this ability.

One has made two acquisitions in the past year and rejected one possibility. He has acquired smaller competitors at distressed prices. Since they are peers, he has been able to develop a detailed due diligence process built on his detailed knowledge of the business and a superior evaluation process (how much money can we make with the combined companies if we are smart about what we don’t need? how much should we pay for this acquisition?).  His is a B2B service with a terrific technology platform. The acquisitions have yielded new customer lists, diversity of his “footprint” toward national coverage and high margin leverage for his already built capacity — almost no fixed cost from growth and a relatively low marginal cost.

The other has a professional service business. For some years, his firm has acknowledged the need for scale in order to be at the table with much larger competitors when a large prospective client seeks new service provider. Over the past year, negotiations with more than one possible merger partner finally yielded a deal with a firm that will bring not only scale (the combined firm could soon be nearly twice his firm’s past revenues) but also new areas of practice and coverage of a contiguous geography. My view is that there is never a merger of equals and this case is no exception. My member’s firm is stronger in many ways and though there will be a equitable, fair and considerate approach to governance and accountability, his firm is clearly leading because of its highly developed professional practices and great financial strength. Again, a good move in uncertain times, building on strengths.

Places to visit:

small business advocate

stephen h baum leadership (click on vistage icon)

To paraphrase his remarks in a private conversation, first, he always learns how things really work from the front line. And it is often different from what the C-suite and next level executives believe. So walking around is a learning experience in and of itself, a way to stay current on how employees are adapting to current challenges.

But he goes further. He likes to ask what he calls “unexpected questions” during an impromptu meeting in a walk around. What does he ask and why? Let’s say he has heard something from a customer that he believes may warrant re-thinking what we do or how we do it. He will ask questions during his walk that let him test the assumptions underlying the profit model. if the profit model is dependent on customers trading up in equipment and services, for example, but he hears from a customer that they have been “over-sold,” sold more than they need, he asks questions that elicit data about take rates and trading up. Or that prompt the collection of such data. In the process he also learns if the manager or employee is on top of the data about his business and identifies people who are thinking about the need to adapt. A triple whammy.

He warns against making decisions based on a few data points, especially anecdotal information. But the job of the CEO is worry about what could derail the best plans. And knowing and testing the most critical assumptions is part of the job. Actually, it is part of the job at all levels, dont you think?

That’s just my view. What’s yours?