Making Big Decisions Better

How to Set and Simplify Business Strategy

Tim Lewko

• Publisher: Routledge
• Year: 2017
• eBook ISBN: 9781317102632
• Topic: Business
• Subtopic: Business General
• Index: Business

Making Big Decisions Better is leading a global movement to equip present and next generation leaders with proven strategy tools that enable agile thinking that ignites stronger, more predictable, direct paths to profit.

No more academic theories. These are real tools and a system that enables improved strategic thinking and leadership.

This book bridges an unspoken gap in strategy thinking that until now, only provided leaders with just SWOT and Porter's 5 Forces as the language of strategy.

By using the decision making tools in Making Big Decisions Better, you'll finally remove the mystique of those you manage up to, and lead those that report to you. You will standout and have a transportable set of tools for any role or industry.

There's never been a better time to break away from the outdated, mainstream strategy planning process that misused scarce resources, burned out its leaders and never delivered the results.

It's your turn to learn and lead!

Part I
Fix

The problems limiting strategy

1
The absence of shared language

Why no one is on the same page

After 5pm

Right now in your organization, strategy has many meanings. Multiple definitions for the same word create confusion and diffusion of focus.

You need to define for your company what strategy is to remove the unseen communication gaps and disconnects that undermine your organization’s focus and effectiveness when dealing with issues.

Defining it creates focus. Not defining strategy creates chaos. Only you have the power to make the simple change in your company or area you lead.

What is your definition of strategy?

Have you ever been asked that question by your peers or a direct report? Has anyone ever raised their hand during a CEO town hall meeting and said, “Excuse me Mr. CEO, but what do you mean by strategy?”

Probably not.

And “Who cares anyway?” you might be thinking.

If you want to drive speed and profitability in your organization through better decision-making, you must start by defining what strategy is for your organization.

Today, walking the halls of your organization, each person has their own working definition of strategy. Whether they have read the latest strategy book, adopted something from experience or learned it in their MBA program, everyone has their definition but not a common one for the company. And this lack of a standard approach is a major cause of seen and unseen confusion in many companies.

Why? Because when they use the word “strategy,” they are not talking about the same thing and no one wants to admit it.

For the last 17 years, I start every new consulting engagement by asking the CEO and executive team within the first five minutes to collectively do ONE thing: take five minutes and answer the following question (see Figure 1.1) and post your answer on the wall. Make sure it is visible.

In most cases, those involved confidently stride to the wall and post their definition of strategy then gaze at their peers’ responses, and the room usually goes silent.

If you’re playing along now and wondering what happens with this exercise – here are some real responses from a recent manufacturing client executive team who collectively manage and lead over 1000 people across two continents.

Figure 1.1 What is your definition of strategy? (Side note: The question is NOT “What is your strategy?” but rather “What is strategy?”; what do you mean when you use the word in your organization and what do employees understand by it? Keep in mind, these are experienced, seasoned, educated and well-intentioned executives who are wondering why they have to answer this question for a consultant they have just met but are genuinely intrigued by the answer they themselves will come up with, along with the response of their peers. They hold the power to infuse clarity or misunderstanding in their organizations.)

Real executive responses:

1	Sue:	Path to the goal of making money
2	Bob:	A way to conquer problems
3	Bill:	Tools required to successfully grow the company
4	Peter:	A method of thinking to meet a goal
5	John:	Work at making a plan to meet the end goals
6	Rick:	A plan setting goals
7	Dan:	Series of steps required to get to your goal
8	Sam:	Commonly understood direction and goals
9	Sara:	Style in doing assigned tasks
10	Reg:	Plan to grow business and increase revenue
11	Mark:	Using appropriate tools to obtain goals
12	Sid:	Plan for future actions
13	Paul:	The goals and direction a company will create
14	Mike:	What direction to improve and grow
15	Sid:	How to make more money than the competition

These well-oiled, high-performing leadership team members all have different answers. When I ask them, “What’s the So What?” they consistently share the following concerns or comments when comparing responses:

1. There are SIMILARITIES and DIFFERENCES
2. Some talk more about the WHAT
3. Some talk about the HOW
4. Some define it as an END POINT
5. Others see it as a SET of STEPS or TASKS
6. Some view it as TOOLS
7. Some see it as THINKING
8. Many bring up GOALS or OUTCOMES
9. Some see it as PROBLEM-SOLVING and DECISIONS

So at the same time they are all RIGHT and WRONG. One thing is certain: when people in the organization use the word strategy in their meetings, client proposals, customer service hotlines, purchasing department parameters, procurement negotiations and board meetings, they are NOT on the same page.

The complete list, from A to I, is full of potential for misunderstanding, conflict and confusion – all of which is readily avoidable. Yes, there are themes that align, but there is, nevertheless, too much room for ambiguity and uncertainty.

The most powerful observation that hits home for an executive team that has just completed this exercise always comes back to things they can fix to get people on the same page, including:

1. DIFFUSION:
   When we use the word strategy in our day-to-day meetings and conversations, WE ARE PROBABLY TALKING ABOUT DIFFERENT THINGS.
2. UNNEEDED CONFLICT:
   The SOURCE for conflict in our strategy discussions is not usually because of the content but because we are talking about DIFFERENT THINGS at DIFFERENT TIMES.
3. TIME:
   We could SAVE TIME and channel efforts and resources FASTER and more effectively if we had a COMMON DEFINITION.
4. STRATEGIC THINKING:
   Many of us default to operational thinking and talking, even when we are thinking strategically. We need to be aware and improve this part of our thinking and COMPETENCY in our company.
5. GUIDANCE:
   If we are not on the SAME page for what STRATEGY is, what about the 986 people who report to us? How clear are they on what strategy is and how much guidance does our strategy and strategy process really give those on the frontlines making daily decisions?

What to do?

The best CEOs and organizations I have worked with come to the realization that they must define what strategy is for their organization rather than leave it to chance.

This is not about imposing or legislating a RIGHT definition, but rather having a common language and approach for your company that pays immediate dividends.

With respect to all that has been and will ever be written on strategy and the tools to create it, strategy is simply and practically defined as shown in Figure 1.2.

Figure 1.2 Definition of strategy and what the big decisions to be made are

This definition returns everyone back to the simplicity of strategy

Namely, this definition returns ever...

Table of contents

• Cover
• Title
• Copyright
• Contents
• List of figures
• List of tables
• Preface
• Introduction
• PART I FIX: the problems limiting strategy
• PART II BUILD: a simple strategy system to make big decisions better
• PART III USE: how to use your strategy to drive results
• Index