Let’s assume for a moment that most of the world’s problems can be solved with a 2×2 matrix and a curious mindset.
The process of strategy is simple, or so we believe. The practice of strategy – we’ll concede that’s what probably makes this exercise a challenge.
When we start the strategy process, we start with a curious pursuit of key Insights – about the organization, how it works today, where it struggles, and how the world around it is shifting. We start by asking a couple simple questions:
- Where is the organization today?
- Where is the world going that the organization operates in?
By asking these questions and understanding if the conditions are in the organization’s favour, or working against them, we can then ask a few other more probing questions to determine strengths, weaknesses, opportunities, and threats –the DNA of strategy.
So, if these questions are simple and straightforward, and at the heart of determining what your strategy should be, why are 2 in 3 organizations unsatisfied with their strategy? Perhaps our mindset in answering these questions has something to do with it.
Try this exercise. What is it that your organization does that truly makes it distinct and gives it an advantage? If this were Family Feud, the number one answer is usually ‘our people’. Fair enough – but why? Is it their skills, their work ethic, ability to work together as a team, their customer focus, commitment to performance? And if it’s one or more of these, great. But what is it about these qualities that make them unique? Be specific. Can, and do, other competing organizations make a similar claim? To truly answer these questions, you usually have to go deep and beyond just the surface answers. Think of the ‘5 Why’s’ of getting to the root cause of a problem. What is the root cause of your greatness?
Here’s the other trick shot. If there is more than one of you crafting strategy (and there should be), do you all agree that what you’ve come up with is in fact the case? So, if it’s not really a source of strength or a unique advantage, can you rely on it to power your efforts on strategy?
But we have a business to run! Do we really have time to go that deep?
Getting the right insights – and the insights right – does take a bit of time. And we think there are two mindsets that if you make them a deliberate part of your strategy process, will make a huge difference in the quality, amount of time, and most importantly alignment towards the answers you come up with. The first is commitment to openness and curiosity. The second is the willingness to confront the hard truths (paying homage to Jim Collins refrain…to confront the brutal facts).
When we sit down to craft strategy, it’s critical that everybody share their perspectives. You want as much ‘on the table’ as possible. It’s only when it’s all said that you can determine how important it is, how relevant it is, and how ‘true’ it is. If it’s favourable information, confirming what you think is strength, that’s usually easy. It’s when something is unfavorable and within your control – a weakness – that it gets uncomfortable. All people and organizations have weaknesses, whether they recognize them or not. Sometimes they are organizational blind spots (a great question to start with – what do we think we should know about ourselves but don’t?). Sometimes it’s hiding in plain sight, but we can’t seem talk about it. Things like: we don’t trust each other, we prioritize individual achievement over organization performance, we operate in silo’s (and maybe some people prefer to operate in silo’s).
The point being that if you don’t get to the heart of the insights, the root causes of your current success and current challenges, you will end up with a weak foundation for the strategy you are trying to build. You’ll end up chasing opportunities to grow that don’t really play to your strengths and waste time and resources trying to win a battle you likely can’t. Or you will be deficient in some quality or capability that will really matter for your future success. Big unaddressed weaknesses will hold you back and frustrate your efforts.
This level of curiosity and tough candour is especially critical as you define your opportunities. Do you really know and understand what the market is looking for? What data do you have to support your ‘facts and opinions’ as being true? Sometimes you have to have the courage to call bulls$#t (respectfully of course), before you start throwing real dollars and resources to chase the ideas you’ve fallen in love with.
So, if you’re curious, give it a try. Consider it your time to think about strategy (which we all say we should do more of, but rarely do). Partner with a colleague and take some time to work your way through this 2×2 matrix. Come up with your top 2 SWOT’s in each category. Set the ground rules that you want to be open and curious, and be willing to push each other to get to the hard truths, and see what comes out? What do these Insights tell you about your current organization and the strategy you are pursuing?
Would love to hear your insights about how it went. Send us an email or comment on LinkedIn.
