leadership Archives - Richard Lannon

9 Focus Areas In Strategic Business Analysis for Success

On October 3, 2017 / business analysis, leadership, strategic planning

Recently I was having breakfast with a CEO of a ½ billion dollar annual revenue resource company.

He was telling me how they had a strategic planning session with a former executive where they mapped out their plans for the next five years. As with most companies, the plan is to grow, to expand and explore new worlds and go where they have never gone before. Does that sound familiar?

So being the strategic planner and business analyst that I am, I asked if they had defined, scoped and prioritized their initiatives yet. There was an awkward moment of silence. Sixty seconds when you are not sure if you should begin to pray, cry or buy a lotto ticket. The response was they had not gotten that far yet because they were busy operating the business. But their people will do that, get right on it, right?

Business leaders and professionals often do not take strategic planning to the next level, a situation I know only too well. Companies create great plans and ideas from their initial strategic planning and mapping sessions only to front-load everything and not take the time to understand where they should focus, why and what should be the priorities.

This is where strategic business analysis (enterprise analysis) comes in. As in the question, I asked above; strategic business analysis is used to define, scope and prioritize initiatives, a step in the strategic planning process that gets missed. In the real world of business, a strategic business analysis is an essential component of every project or change initiative to ensure outcomes align with the goals and objectives the entire organization and its departments.

In a review of the IIBA Body of Knowledge, several books on strategic analysis, my book, SET for Success, and from the work I have done with small to large corporations, strategic business analysis requires a keen focus on the following:

Understanding the business structure, architectures, and people and culture
Conducting capability analysis to ensure the organization can do what it says it plans to do
Ensuring proper strengths and weaknesses are recognized, and opportunity and threats are identified and defined
Business problems and opportunities are analyzed, and solutions are brainstormed beyond the norm of improving processes, increased sales and cut costs
Performing feasibility and risk analysis on the potential solutions and compare the solutions alternatives through success and failure analysis, pros and cons discussions, and cost, ease, benefit analysis and developing decision grids to prioritize solutions
Determining the proper scope change initiatives based on business, structure and organizational parameters and capabilities
Developing the business case to drive out the investments and expected returns externally or internally for the key initiatives.
Creating a communication plan that helps guide the organization through the changes that will take place as initiatives become implemented, and
Building a roadmap focused on using project management best practices of implementation with business champions, key initiatives, tactical focus, time and dates and a reporting structure to ensure initiatives are moving forward as originally planned.

There is a lot going on here, and it would be a mistake to think that this is the private domain of business analysts identified on an organizational chart. It is not. Business analysis and strategic business analysis is a set of skills that bridge a position. In today’s business world the CEO, COO, VPs, various Managers, and Professionals must be able to perform these critical tasks at the strategic, tactical and operational levels. Granted there is a difference in the tools and techniques employed, and the expected outcomes and deliverables that exist in the details. The key is that there is a shared vision of success connected to the goals and objectives of the organization. Something many business leaders and professionals miss with a negative impact on the organization.

It is great to have a strategic plan. You also need to pick and prioritize your project focus. Share on X

Effectively implementing strategic plans means using proper strategic analysis and strategic business analysis to ensure you make the best strategic decisions, that you are actually strategic through proper strategic management considerations and that you are focused on the best initiatives and projects for your organization at this point and time. Strategic analysis and therefore the strategic business analysis focuses on factual support of business decisions. Hopefully, in the end, the business has made better business decisions.

Final Thoughts

I have always enjoyed the topic of strategic planning, management, and analysis because it is incredibly interesting to help shape an organization’s future and because learning strategic business analysis is for everyone in business, from the executive to the professional. Granted you may not be working at the strategic level in your career, but you have a business impact at the tactical and operational levels. If strategic business analysis helps scope out the initiatives and projects delivered by mid-level and project managers, then other professionals have to flush out the details to ensure that prioritized initiatives and projects deliver.

The best part is that strategic business analysis is connected to strategic management which is concerned with the overall goals and objectives of the organization, includes multiple stakeholders in the decision-making process, has to incorporate short and long term specifics of initiatives and projects and knows that there is a trade-off between effectiveness and efficiency. If you are going to envision it and plan it, you better make sure you are addressing the right problem, leveraging the best opportunities and you get your priorities straight; strategic business analysis will help. Good luck.
Do your best, invest in the success of others, and make your journey count. Richard

Six Innovative Personality Types to Create Business Success

On September 2, 2016 / human resources, leadership, profiles

There are many types of people that make up an organization and team. Sometimes the type of person needed changes depending on the circumstances within your organization. Innovation or innovative people types has become popular as of late. So I pose the question, when asked to create a list of innovative people, who comes to mind? Maybe Einstein, Gates, Jobs, Zuckerberg, Spielberg or Hanks. Innovators are people with the creative ability to come up with and act on something new. To take an idea, work with it and create. That leads to the question, who are the different kinds of innovators? When it comes to those in charge of businesses and organizations, there are five different types of innovative personalities that tend to end up at the top.

1. The Driver
The driver is a strong personal type that creates hard, disciplined leaders. They aim for targets, are motivated by results and they love rewards. As time moves on, they work hard to retain influence, to create impact and to leave a legacy. They have a unique ability to run with projects and promote their own success as they get things done. They work to the drum beat of “get it done” and their main question for their team members is “is it done yet?” The Driver make up about 33% of senior ranks.

2. The Pathfinder
Pathfinders are risk takers. They are open to fresh ideas and have a knack for choosing the right approach. They drive results through the use of creative engineering. For better or worse, Pathfinders believe that their sheer will to succeed will guide the way. Even though their ideas or initiatives will not always be fully supported, they dedicate themselves to the cause and apply an unparalleled work ethic to move great ideas along. Pathfinders make up about 16% of executives.

3. The Entrepreneur
Usually have excellent analytical abilities and are the great strategic thinker. Normally easy going, objective and seldom critical. They can succeed in any occupation they chose as long as it does not involve routine. They require independence, diversity, plenty of intellectual stimulation and the opportunity to generate ideas. Their work must be challenging to be satisfying. They do tend to be quick, ingenious, inventive, resourceful, social and enjoy complexity. Best to surround them went capable people.

4. The Wizard
Wizards love to learn, volunteer first, get noticed and everything works out for them even when it shouldn’t’t. They can be the organization’s pet, liked by everyone. Wizards have the ability to create relationships with the right people, support/build talent and leverage their skills for success. Wizards make up 24% of the senior team and are often the person in charge.

5. The Conformist
Conformists like to control and their risk tolerance is low. These individuals like clear instructions and authority. They like to be right, tend to be precise, and are highly organized, thorough and conscientious. Policy and procedure are key. Often they are challenged by change and transformation within their environment, especially if they have no say. Conformists are great tactical managers within the mid range of an organization. They make up about 12% of the senior team.

Related Article: 9 Steps to get Teams Going in the Same Direction

6. The Anchor
The Anchor helps hold everything together. They tie down the sails and batten the hatches. They are great at weighing pros and cons and taking one step at a time. They will sound the warning sign if things are not right. Anchors use approaches and methods that they know work. The Anchor will remind the team of their strengths and limitations. They are realists and love structure. Every boat needs an anchor. They make up about 23% of the senior team.

Final Thoughts

Each of these groups has their unique strengths. The Drivers and Pathfinders are enterprising, prone to risk and internally motivated. They are great for younger organizations. The Entrepreneur is great for creative teams solving problems or leverage opportunities. Unfortunately most traditional organizations and human resource professionals shy away from hiring these individuals because they do not understand how to leverage their unique abilities. Established organizations considering a change might need the Wizard to move vision and strategy forward. The Conformist gets people moving to the rhythm of structure and controls as the Anchor ensures that the rate of innovations is in step with the strengths and limitations of the organization.

Minds are like parachutes; they work best when open. T. Dewar Share on X

The Driver and Pathfinder make things happen. The Entrepreneur figures things out quickly and strategically. The Conformist and the Anchor holds everything together.

A Side Note: Disruptions has become the big word in innovation thinking. Along with creative teams innovation drives success. The most innovative teams have a natural tension between risk and reality, and creating a strong mix of the above personality types can help keep a healthy balance. Of course there is always the potential for chaos. But managed chaos often requires the ability to diverge only to converge on new ideas and the different innovative personality types play an important role in making that happen.

Do your best,
Invest in the success of others,
May your journey count.
Richard

6 Strategic Insight Terms You Should Know to Help You Focus

On August 15, 2016 / business analysis, leadership, strategic planning

Recently I wrote about the importance of communications and having a common stakeholder language.

From a strategy insight perspective this is extremely important. Definitions and a common language help keep people on track so they move things forward. Often I have to tell my stakeholders what the terms mean in the context we are using them in and that they cannot change the definition. This approach helps move stakeholders forward. In the strategic facilitation this is a valuable approach. Even if you are not doing strategic facilitation or planning, as a business leader and professional you need to know the key terms to align your work and project initiatives. That is the implementation of the strategy.

Here are six strategic analysis, planning and implementation terms I often give to clients to ensure that we are all speaking the same language and our work aligns with the over arching business requirements and stakeholders needs.

Strategy Agenda Item is a high level plan of action item designed to achieve a vision. Since strategic planning is a component of the business planning that is to be done before you take tactical action it is imperative that there is a clear understanding of the strategic agenda items as they provide focus. Often rather than focusing on internal operational issues, a strategic focus means addressing and solving business problems through the effective use of existing resources. As strategic initiatives are defined resource usage is analyzed.

Strategic Initiatives should represent the most significant line of business or cross line of business projects that are planned to improve the business in some way with consideration for the four key business impact zones. In this part of strategic planning phase the team is deciding the essential focus and key initiatives that must be met to achieve the strategic agenda items. Depending on the size of your organization these will become enterprise, program or project initiatives. They can be very strategic or tactical based on your organization’s size, structure and present culture. At the initiative level the way you define success in the attainment of our objectives should be clarified, the speed and distance of action determined and the critical success factors defined. This takes a while to do.

Business and Initiative Champions are individuals that go beyond their operative responsibilities. As defined here, they are individuals trying to influence strategic issues larger than their own immediate operational responsibilities. They take the initiative and accept responsibility and accountability for it. The potential ways and objectives of championing cover the whole process of strategy: the formation of the content of strategy as well as the process of implementing strategic contents.

If the focus is more of being an initiative champion then that person should bring discipline and rigour to planning and execution of an initiative ensuring the timing and achievement of milestones and deliverables are agreed upon and managed. They will need to tie investment in strategic items and strategic initiative to specific and measurable outcomes and enable issues to be addressed and resolved proactively, before they jeopardize outcomes.

A champion can be used more specifically to refer to a senior manager who champions the project, ensures that it is properly resourced and uses their influence to overcome barriers for the team.

Measurable Outcomes are the measurable results of the implemented objectives and must be defined in measurable terms. Measurements are essential for understanding what is happening in your business–what gets measured gets done. In a business environment, measurements come in many forms and include hard, soft, lagging and leading indicators.

Lagging indicators are used to measure performance and allow the 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 already captured. Just about anything you wish to monitor will have lagging indicators. Leading indicators are precursors to the direction something is going. 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 and decision-making process.

You can pre-determine or reverse engineer measurable outcomes by either using the SMART and/or CAR principle. As part of the measurable outcome determination always consider key stakeholders.

Key Elements are the big things that need to be done in order to be successful. They are the big buckets of work. The key to creating key elements is to understand the scope of work at a high level and to be able to state them clearly. A scope of work sets forth requirements for performance of work to achieve strategic and project objectives. The scope of work must be clear, accurate and complete. It needs to be understood by a wide audience. Defining key elements is part art and science and takes a while to master.

Milestone is one of a series of numbered markers placed along a road. Within the framework of strategic planning, a milestone is a special event that receives special attention. It is often falsely put at the end of a stage to mark the completion of a work package or phase. Milestones should be put before the end of a phase so that corrective actions can be taken. In addition to signalling the completion of a key deliverable, a milestone may also signify an important decision, which outlines or affects the future of an initiative or project. In this sense, a milestone not only signifies distance traveled (key stages in a project) but also indicates direction of travel since key decisions made at milestones may alter the route pre-determine in the various plans (strategic, tactical or operational).

The secret to success is to know something nobody else knows. Aristotle Onassis Share on X

Final Thoughts

Whether you are working on a top-down, bottom-up or mid-level initiatives having clear definition of these terms will help you. It is very difficult to walk into a room and write a list of terms on a white board and ask people to define them. You will spend a lot of time on an activity that should be done prior to meeting. I believe the professional provides the words and defines the terms that will be used. I have provided variations of these terms when working with clients to align their thinking, to build or interpret roadmaps and plans already created and to ensure stakeholders had a common language. I invite you to adapt them for your own use. Good luck.

Always
Do your best,
Invest in the success of others,
Make your journey count.
Richard

Article adapted from SET for Success, Chapter 15, by Richard Lannon

Richard Lannon – SET for Success
business strategist, conference speaker, trainer, coach, author, blogger, radio host, podcaster and your business cheerleader
BraveWorld Inc. http://braveworld.ca/

3 Key Levels of Risk Planning and Analysis for the Business Enterprise

On November 5, 2014 / business analysis, business leadership, business planning, leadership, project management, risk management, strategic planning

Recently I delivered a workshop on Risk Planning and Analysis for the Business Enterprise. I was asked about the various levels of risk within an organization. In response to that question, I explained that there are many levels of risk that could be organized along standard company structure. My preference is to use three structure approach – – strategic, tactical and operational.

Strategic Risk: Generally strategic risk is at the enterprise level and requires a business risk management enterprise plan. There are many models that can be used. At this level risk management, planning and analysis should be part of the strategic planning process. An enterprise risk management plan should be created that addresses strategic planning elements, cultural risk appetite and attitude, governance, stress testing, identification, measurement, response and control. These elements should be brought forward as a standard in the rest of the organization. On a regular basis the organization should complete an enterprise risk environmental scan to ensure they keep their business risk artifacts current.

Tactical Risk:This level of risk is at the project management level. Often it is part of the project management process for key approved initiatives. Its objective is the successful completion of the project while addressing risk concerns effectively and efficiently as possible. Often tactical risk analysis requires that the organization have a risk management plan that provides the guidelines as to how risk is to identified, qualified, quantified, responded, controlled and monitored. Guidelines should be provided by the business enterprise so that project teams do not create their own risk management standards.

Operational Risk:The here and now of any organization is the operational level. It is what happening with the front-line of the business from your customer facing employees, the manufacturing floor equipment and product assemblers, to the field maintenance people. Operational risk varies by company and by industry. One thing is for sure, operational risk needs to be aligned with business guiding principles to ensure people and equipment is functioning appropriately. For example, safety is a huge issue in a number of industries. Therefore, risk response mechanisms need to be put into operational place to minimize risk impact.

Risk management, planning and analysis are a huge discipline that impacts all levels of the organization. It is not something that is meant to be done neither in isolation nor with a single group. When you consider risk management consider all levels of your company.

Maybe by putting together a solid risk management plan there will be a less of a need to carry a rabbits foot.

This Weeks Red Question: What is your integrated standardized risk management approach that aligns all levels in your organization?

Check out more about Richard Lannon www.richardlannon.ca

A RACI Against Time

On October 7, 2014 / business analysis, business decisions, business improvement, business leadership, leadership, project management, stakeholders, strategic, strategic planning, team building, team lead

You just never know what is going to happen in your business life. Recently I had to work like crazy to get a bunch of deadlines completed to free my schedule so I could take an unexpected trip, half way across this wonderful country of ours, Canada.

As events unfolded, an unexpected team came together with each member naturally assuming a specific role. From leader and manager to subject experts, advisors, information generators, documentation creators, and experienced friends and family members, there was a natural stakeholder relationship created that fit a RACI – responsible, accountable, consult and inform. This was a good thing.

A RACI is a powerful tool for stakeholder analysis used to identify and understand key roles of individual team members in an organization. The simplest definition of a RACI goes like this:

Those who are Responsible:

These are the doers – the people responsible for the nuts and bolts. If you and your team are reporting to a sponsor who is the final person accountable for the work, then you belong in this category.

Those who are Accountable:

The buck stops here. This is the person(s) who has the most at stake in events and happenings. They’re the ones who have the final decision or must present key recommendations to others in a final presentation. At the end of the day they sign the cheque. In most organizations this would be the sponsor, but it really can be anyone who has the final call.

Those we need to Consult: The experts.

Every task needs people with the right information at the right time onboard, subject experts and advisors who can help the team leader gain a clear perspective. You might have that person(s) in house (internal stakeholders) or need to outsource to find them (external stakeholders), but either way, they’re vital for getting the job done efficiently and effectively.

Those we need to Inform:

These are all the stakeholders that need to be kept in the loop. They need to know what is going on from a logical and rational perspective with key information.

Though my recent RACI was unexpected, it’s really helpful to make RACI a formal part of your business’ planning process, particularly if you are going to be involved in any strategic, tactical or operational planning.

This will help clarify the different roles and responsibilities needed to complete projects, ensuring your people are able to work with focused intent and to the best of their ability.

Question: For which business initiative can you use a RACI to help putting your team together?

3 Things I learned from the Bow River Flood about my Business

On June 25, 2014 / business analysis, business improvement, business leadership, business planning, change management, human resources, leadership, strategic planning

Bow River Calgary Alberta Fish Creek Park after the floods

Recently I visited Calgary, Alberta, Canada on business. To facilitate a 3 day business requirements session for a client with a focus on the business and stakeholder needs to solve a particular business challenge.

I decided to drive. It was a lovely 15.5 hours there and 13 hours back. I guess I wanted to be home again. Since I drove I took a few extra days, brought my mountain bike and headed for the hills. Calgary has many trails to mountain bike and hill sides with beautiful views. I was interested to see how the landscaped changed. A year early I was in Calgary when the heavens opened and the rain poured down creating a huge flood.

From the hill top where I stood, in Fish Creek Park, you could see where the river runs through it. It had changed course. You see, a year earlier, on that same hill side, where I stood, in the valley below, you could see a meandering river and an island with plush trees. It was now gone. The river had changed course. It shifted to the right.

There are many things we can learn from our surroundings about business. At this very moment three things came to mind.

There are things outside of our control that will impact our lives and business. Sometimes we have to go with the flow.
That business meanders like a great river and often our course is changed by outside forces. So we adjust to the new circumstances and re-focus our efforts, and
When a new course is set and there are opportunities that we can embrace. The key is to remain open to what is presented.

Sometimes we come to a point in our business where things have changed. This particular week the business leaders and their teams I was working with realized that an external force changed the course of their business. The only option was to embrace their new reality, adjust their course and follow a new flow. A river runs through our businesses and when things change we need to change with them.

Question of the Week:

What has changed in your business that needs you to review your circumstances and re-focus your efforts?

9 Focus Areas In Strategic Business Analysis for Success

Final Thoughts

Six Innovative Personality Types to Create Business Success

6 Strategic Insight Terms You Should Know to Help You Focus

3 Key Levels of Risk Planning and Analysis for the Business Enterprise

A RACI Against Time

3 Things I learned from the Bow River Flood about my Business

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