Question Everything about Your Business – Know the 3 levels of questions

Question everything about your businessThe words question everything has rung out in the halls of many organizations. It is in essence what makes you better at what you do in your business. That is, to be able to ask key business questions so that you have the opportunity to find or develop solutions to business problems or opportunities. Really, isn’t questioning the hallmark of all great business leaders and champions. Sometimes we need guidance on the types of questions we ask.

In business there are only truly three levels of questions: These include:

  • Strategic: These are what and why questions. What are we going to be focusing on? Why is that so important? The why question is the benefit questions. Find the answer to that question and you have earned your salary. What and why questions are the accountability questions. It has to be where the bulk stops.
  • Tactical: These are the questions that professionals ask the most. They include who, how, when, how much. Perfect for the mid level planners and people responsible for getting work done – the doing. These questions must be linked to the strategic questions.
  • Operational: Always fun as they are the here and now questions. It is like the phone rings and you had to pick it up, deal with the issue and move onto the next thing. No doubt you use the ‘what and why’ question as in what do you want and why should I care. But most likely you are the who, the know how and need to get it done, when.

All these, the strategic, the tactical and the operational are levels within your organization. They are all linked by the questions we ask, the answers we get and the actions we take. Listen to the questions you ask about your business. The response is in the ask.

Question: What questions do you ask about your business to get people thinking about making it better?

It all Happens from the “Get Go” – 7 planning steps to achieve measurable results

It all happens from the get goBusiness leaders need to ensure that planning and implementation is focused. A well thought-out planning and implementation approach considers linking strategy, tactics and operational needs. It includes considerations for key business impact zones (productivity, tools, people and culture) and the outcomes required for solutions to business problems. Consider the business objectives, the process and the work approach that must be used to successfully achieve results in an organization. Results should be resource-driven beginning with shared thinking and consideration of the challenges that need to be addressed. Call them points of pain. All businesses have them and every business leader knows it. A checklist would be handy at this point. Consider common business challenges such as issues with focus and direction, trust, communications and collaboration, productivity, effectiveness and efficiency, process and work procedures, outdated equipment and tools, people experience, skills, beliefs, values or even blame-storming. No matter the issue, they all add up to one thing – a negative impact, something a business leader seeks to avoid.

Here are 7 steps to consider when planning for measurable results:

Step 1. Understand your business priorities What five things are on the strategic agenda of the organization? Why are they so important to the business? In what way can your team make those items happen? If you can answer these questions you are on the path to good business leadership thinking.

Step 2. Identify the challenges What are the points of pain? What are the key challenges? How are these challenges impacting the business? Can we qualify and quantify the problem? Have we considered the impact to productivity, our tools, people and culture? What are the overall impacts and ripple effects to the organization? Write a clear and concise business problem statement that everyone understands. Share that statement and engage in shared thinking and creative solutions with your people.

Step 3. Determine key solutions Throughout the process, encourage teams to assist you in solving the business problems. Be careful here, as coming up with ideas on how to solve business problems does not mean implementing solutions. Provide support and insight to people whose natural approach is to roll up their sleeves and jump right in. At this point, as a business leader, you should be seeking thinking and solutions. Only after the ideas have been put forth do you seek to prove their viability.

Step 4. Choose a solution that makes sense This is where viability comes in. It really comes down to what, why, who, how, when, where, how much and what’s in it for the organization, the benefit, risk and return factor; all the things we learned in grade school and on the playground only with more risk. The best thing is to review situations and possible impacts. Pick three solutions: the do nothing solution, the do something solution or the do something else solution. Think through the issues and make a decision.

Step 5. Implement the solution It’s not always easy, but it must be done. As the business leader, make sure you have your team together. Establish your approach to deal with people and team dynamics across the organization. Change means push back so be prepared. Be honest about your resource abilities. Invest in their success through investing in your own development. Use a good business coach to avoid future issues. Make it part of the process so your people will embrace it. This is a preemptive approach for solution implementation. Remember, as the leader you do not need to be the sage on stage but be the guide on the side.

Step 6. Measure the results Ensure that you have put the right items in place to measure the results. This could be at many levels. Answer the simple question: does it work? The answer needs to be a yes or no, not maybe or sort of, eh! Did you get what you expected? How long did it take? Is it over or under budget? Will you see the expected return on investment? If so, over how many years? Do we have the right people? Have you considered the impact zones and the impact? Does the solution (process, tools, people, etc) align with what is important to the business? The list of questions here is long and depends on what was set as the measurement needs earlier in the planning process.

Step 7. Capture lessons learned This is an area that business leaders rarely engage in. Yet, it is extremely valuable at all levels in the business. A feedback loop should always exist and the business leader should explore what was learned internally and externally. This is your intellectual property that can be used for future planning and continuous improvement. In the end, it comes down to following a planning and implementation approach that ties strategy and tactical solutions together. As the business leader your success depends on following a proven approach, engaging your people in the process and building key business skills. Planning for measurable results happens from the ‘get go’.

It does all happen from the ‘Get Go’. Taking the steps is important. What are your business priorities and in what way are you considering achieving them? This is a discussion that would be great to have with someone that has been there. Connect with me at 1-866-559-8126 Ext 201 and I will send 30 minutes chatting with you about your concerns. Richard Lannon, all rights reserved 2012, but enjoy.

Do you Know your Business’ Guiding Principles?

Stay Focused with Guiding Principles
Companies that get focused and provide a vital service for people’s lives deserve to be around a long time. RANA Respiratory Care Group (http://bit.ly/1zq46Do) is one such company. Recently I had the opportunity to interview Cory McArthur, President, about the strategic planning of RANA and their organization as a whole. As we discussed RANA’s thinking on Strategic Planning and the importance of business growth and development, it became apparent that having Guiding Principles was a key to their business’s success.
Guiding Principles provide a litheness test for making better business decisions. They are usually based on your organization’s core values and, to be of most use, should be simple and easy to understand for all

involved. .  Most successful companies have between 3-5 Guiding Principles.  They use these both as a foundation for making short-term business decisions, as well as a platform from which to create their strategic planning.

As Corey explained, RANA has five unique guiding principles, but one stands out the most: good for the client, good for the system and good for RANA. Simple and profound at the same time, it’s something that both the executives and employees can embrace.  It reflects their core values, provides balance, and keeps the company pointed in the right direction.  The executive team felt that with this guiding principle none of them could lose when making business decisions. That is a powerful perspective.  It not only provides RANA focus, but also has allows them to come out neutral or ahead in their business.
Cory went on to break down this Principle in more depth:
  • Good for the clientkeeps the company and its people focused on their primary responsibility: the health and well being of their clients.
  • Good for the systemis about embracing and enhancing the healthcare system over the long term. As a private provider in a public system they need to benefit and compliment the overall healthcare system.
  • Good for RANA has to do with the business side of the organization and sustainability. That means helping patients and maintaining a healthy company over the long term.
RANA has definitely embraced the key elements of strategic planning. In this case, as a company of 25 years, they have grown and developed a set of Guiding Principles for their business decision-making process that can be used over the long term.  A great lesson learned from a company that is a Canadian business champion.
 
What are your company’s guiding principles?
Listen to our CJOB podcast here The SPAR with Richard Lannon and Cory McArthur.

Four Points to Consider in Stakeholder Based Approach for Your Planning Efforts


The success of every initiative realizes on good stakeholder management. It is all about engaging the right people to make a difference in your business

Stakeholders in Business

Stakeholders vs Stakeholders

success. The more people you connect with, more influencers you engage, the greater positive or negative impact you will have. It is the difference between success and failure.

 
Consider these 4 benefits of using a stakeholder based approach:
  • Engage the most influential stakeholders to help shape the planning process and support agreed upon initiatives
  • Increase access to resources through leveraging the key stakeholder’s abilities to help you get key initiatives approved, supported and move things forward
  • Connect through benefit based communications early and often to ensure the stakeholders know what is going on. This activates support.
  • Predict challenge areas where key initiatives and work element may not be as populate and to build plans to win support.

Every initiative should start with proper stakeholder analysis. A stakeholder based approach provides a means to activate your strategic, tactical and operational initiatives more successfully. There are benefits from taking a stakeholder approach. It is a matter of knowing the stakeholders level of power and level of interest in your initiatives. Once you understand that you can engage, increase, connect and predict your way to increased business initiative success. 

 
Question: When you start your planning efforts (strategic, tactical, operational) what do you do to better understand and identify your stakeholders business impact?

2 Measurement Indicators You Should Know – Leading and Lagging

2 Measurement Indicators You Should Know – Leading and Lagging

arrows-1959746_1920In strategic planning, it is important to discuss key performance indicators (KPI). Key business indicators are a type of measurement. They are essential for business leaders to understand what is happening in their business. The first step to determining your KPI is to understand the difference between lagging and leading indicators. The second step is to define and monitor your business indicators.

Lagging and Leading Indicators

Lagging indicators are used to measure performance and allow the business leadership team to track how things are going. Because output (performance) is always easier to measure by assessing whether your goals were achieved, lagging indicators are backward-focused or “trailing”—they measure performance data already captured. Just about anything you wish to monitor will have lagging indicators: returns on investments, a budget to plan variances, the number of sick days, bags moved per day, equipment support incidents, etc.

Leading indicators, on the other hand, change quickly and are generally seen as a precursor to the direction something is going.  For example, changes in building permits may indicate the housing market change, an increase in new business orders could lead to increased production, interest rate changes will impact spending and investments, a diminishing of demands for natural resources will often indicate work slowdowns, and ageing baby boomers may indicate future stresses on the healthcare system.  Because leading indicators come before a trend, they are considered business drivers.  Identifying specific, focused leading indicators should be a part of each business’s strategic planning.

Consider These 7 Tips When Defining Your Indicators

Though there are some guidelines that can be used, there is no “one” way to define the key performance indicators for any particular business. It is as unique as your approach to strategic planning.

Review your strategic planning process, in particular, the assessment section of the various questionnaires and the environmental scan. Identify what you are already measuring and determine if it provides value to your business in your backward and forward thinking.

Review your strategy map and road map to identify the key areas of focus.  Identify the indicators that will tell you whether you have achieved your desired outcome(s) (lagging), as well as the indicators that tell you the direction of the market and where you should focus (leading). Be specific.

Step outside your core senior management team and get additional leadership and external business stakeholders involved. An outside perspective can often help you determine what your lagging and leading indicators are, as well as help in recognizing the key leading indicators for your market that will drive your business.

Always keep an eye on your lagging indicators–they will continue to provide insight into your business. Poor lagging indicators generally translate into poor leading indicators. A performance indicator survey might assist you in the process of ensuring the indicators are appropriate. The challenge is to ensure you have the correct indicators, and that your management team understands how they can be used to align your business impact zones.

Choose your leading indicators carefully. The leading indicators should be unique to your business environment, originate from your key strategic initiatives and work elements, and ultimately be used to drive your business. Try not to be too ambitious. Keep focused on the business key impact zones represented in your strategic plan.

Train your leadership team in understanding key indicators and how to use them to improve the business. It is important that your team can not only identify KPI’s but also recognize the potential business impact indicated by them.

Ensuring that you have the correct indicators may be a challenge, yet is vital to the ongoing health of your business. Make sure your team’s strategic planning process includes determining your indicators and that everyone understands what they are and why they are important.

Key performance indicators are either lagging or leading. They are either relevant or they are not. There should be no in-between. Remember, what gets measured gets done.

Question Everything About Your Business: In what way do you measure your success and challenges in your business? Are there any trending items that need to be discussed to ensure that you are not missing any opportunities? 

Get to Know Richard

Richard works with companies that provide products, services, and expertise to other businesses. As a senior strategic business analyst and consultant, his focus is strategic planning, business analysis, and training and development of client organizations.

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Richard Lannon
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