It's that time of the year. 
I was on the phone a few months ago, with the Executive Director who was looking for a Strategic Planning service.  As usual, the conversation went as far as detailing the needs, specifications, and the rationale for reaching out for an external resource. 

Let's break the four misconceptions about strategies and strategic formulation, in general.

1. Get the text out soon. The product is important but there's more to the written text
The process dynamics will be so rich that you should  capture  the momentum to bring your organization to another level of development or competency. Strategy exercises expend a lot of energy and resources, do it all with care and devotion, it will have positive compounding effects.

2. We begin from zero every time. The process is not linear and you don't have to start all over again
The brick-and-mortar style can be shortened, there is no hard and fast rule on stages and how organizations should approach the strategy development. Use your prior strategic decisions to move you forward on a long-term path unless there's a big reason to make a radical right turn. 

3. We don't have to implement them. Yes you do.
It doesn't mean that you have to implement them all at once and with equal amounts of strategies and tactics. Implementation is an art and a science. There are bridging processes to ensure that the old strategy gives way to the new one without cutting off continuing impacts. It's like buying an expensive exercise machine and not using it or winning the lottery and returning the money back. Get the point? 

4. We want to include a specific commitment to (another motherhood value statement). You can't include the kitchen sink, sorry.
Remember, its your strategic direction- how you are going to act in the face of internal and external challenges, constraints, and opportunities to achieve your goals. Unless, it's strategic, leave it to the values section. 

Read this before you call someone for external support or talk to your Board or staff so you can get on with the program. Call me when you're ready to proceed. 

I asked this question because many organizational executives are comfortably in a fear mode in these difficult times. 

What's the next disruption that will derail, disrupt, disembowel your organization's market positioning? or for that matter, your reason for being? what is the most existential threat likely to happen in the next five years? 

If it's the fear of the uncertain/unknown that drives your executives to grind down everyday, you better back up and check that the fear is a positive fear that you can control and manage.
If it's the fear of being left out/missing out in the trend-train, check the rational behind the impulse, and fall back to where you are actually generating sustainable outcomes.
If it's survival and modest growth, plan to pivot when you can transition comfortably in the next 3 years, until such a time when you have the golden opportunity to create this new future.
If it's growing and reclaiming lost ground, there is no better time, than now. Get consensus and act on what you have existing at the moment. 

"What's driving you forward?" is a better question than "What drives your executives sleepless at night?" 
You need to capitalize on the dynamics of forward-motion than the idealized notions of lessons learned. And I hope you're not running around a carousel. 
​

An organization that identified a huge gap in their operational talked to a consultant recently. They are willing to confront the pain and are willing to take steps to immediately reset their efforts. Then silence, silence, silence.

What's happening behind the scenes would be telling? When managers have no strategic confidence to make decisions on the basis of information acquired and in the best intentions, paralysis-analysis occurs. They like bring too many people in the analysis of the problem, the prognosis, and the actions to be taken. They want to be told what to do. In short, they want to avoid failing at all costs. 

When this happens, failure-avoidance leads to very smart but all too narrow gains. What can you lose  with that investment? Reputation loss, money, staff time, and opportunity costs? 

Think hard, are you losing all of them right now as we speak by doing the paralysis-analysis and failure-avoidance techniques. 

If you're too afraid, shut the doors and windows, and stay under the covers. 

A year ago, in a course seminar, one of my learners told me that their organization does not have a strategy. They, in practice, have what we call an emergent strategy. 

Emergent strategies do not come up from strategy retreats or top-down planning process of their leaders.

It comes from continuous patterns of behaviors, inclinations, and moves that stem from an adaptive understanding of the competitive field and the resultant effects to products, services, and priorities. Smaller organizations rely on their yearly assessment to generate the kind of strategic knowledge they need to maintain their ordered disorder. More of a 'gut thinking' than a reliance to a formal systematic cognitive process.

However, emergent does not mean not being able to define, articulate, and leverage your strategy to be able to win against competition or survive in tough times. A strategy is like an arrow in a skilled marksman. It's sharp, unyielding, and produces the intended impact, whether to defend oneself  or make a ruckus. Be intentional with your target, because as "the arrow chases the target, the target chases the arrow." - Paolo Coelho.

You can be precise but completely wrong, instead adjust as you build. 

How can on-purpose organizations become better at securing more resources for their organizational development and building up their resiliency? The 10% budget for administration will never get you there.

1. Change your mindset
This practice has been ingrained in your psyche long enough that it becomes the proverbial truth. Far from it, this practice squeezes out the smaller organizations from existing and thriving. Anything that involves being strategic will require financial investments. It may not be a large amount but it should be sufficient enough to build capacities through systems and processes that have direct benefit to staff well-being, Board strengthening, and programs and impact-generating activities. You need to educate yourself, build a business case and build a team to champion it. It is an investment, not as cost to control. 


2. Link to strategic objectives
Your strategic plan spells out clear alignment over goals and objectives, measures, activities/program,  budgets, and performance evaluation. Institutional activities that support strategic aims should be supported by budgets and clear metrics. If the links are clear and well-established, flows out are part of the strategic management. 


3. Support from the top leaders
Nobody cares whether your organization exists tomorrow, but you do and you must lead this conversation inside and outside your organization. Your Board, executive team, and staff have a stake and roles to play to make this happen. Organizational sufficiency is worth the struggle and effort so you can build a generational impact around your mission. In the end, everybody benefits. 


4. Get donors who understand
You might say 'our donors insist we keep lean as much as possible.' Lean doesn't mean bare bones structure. Your survival is at stake. Get out from the group that rewards this mentality and reach out to funding organizations and donors who have a broader and progressive outlook on sustainability economics. When you're ready, fire the ones that will block you from achieving success in this direction. 

These are easy to say but hard to do. Like with everything, getting there takes effort and courage. Don't be proud to tell the world that you have a 10% budget on administration and that you have great volunteers who help out. You're lucky but it's not the route to real sustainability.  Get on the right road.

In the on-purpose world, we still have organizations stuck in the twentieth-century thinking that the public donors do not want to pay for administration. Websites of many of these organizations are proud of declaring that they only get 10% for administration, the rest to core programming. Many think that it's larceny to allocate more than 10% or to some extent bad practice to ask for more. 

What we can glean from this based on leadership and management perspective, these organizations have no 

- capability of building up and strengthening their core processes 
- capability of securing and retaining great talent- a must to survive and thrive!
- capability to build strategically for the future
- see themselves as sacrificial conduits with their begging bowls every year
- always uncertain, tentative and highly disrupted by the larger forces around them
- cannot stand up for their principles, values, and commitments

They maybe good with their programs but they're not sustainable and even effective in the long run. If you're not taking care of your own house, how can you be the most charitable for all? 

Don't compromise your organizational sufficiency in the altar of public legitimacy.

At the next blog, I will share some of the strategies to get away from the 10% group. 

I was in the physical therapist' office a few weeks ago. I was feeling something in the wrist. He said that it might be connected with the neck. Aha! I never thought about that connection. Same happens while in the doctor's office, some tingling in my toe, had a connection in other parts of the body.
​
​The body is one big connected organ. I never thought that it could be as latent as that. But your organization, whether it's a two-person or a large enterprise with subdivisions operating beyond borders, is also interconnected and must work synergistically.

A corporate strategy has to trickle down to individual departments, staff, and even to the janitor. How and why things are moving in a 'certain' direction should be and can be answered by any staff you meet in the corridor. Failure to communicate this very important piece leaves room for ambiguity and frustration.

I was in a phone call a few years ago, talking to a Program Administrator. I inquired about the program advertised in their website. She told me that the program has been rescinded. The new strategy provides the opportunity for them to review what their offering versus what exactly they should doing. A case of 'good to have' versus 'our musts/our unique value.' If I were her  boss, I will be very proud of such  employee. She cares so much to know and to communicate her knowledge to all the stakeholders concerned. She owns her role. 

​Are you taking the time to really communicate your grand vision and overall direction to all the people in your organization? Are your employees being a part of your communication strategy?

​When everything is well-coordinated, your toes and fingers can do their best job too!

If leaders are scared, they make stupid decisions.

I'm talking about cost-cutting measures in time of pandemic. If you cut everything that costs money, then you don't know what your financial (and organizational too!) values are.

Stewardship is not about being stingy and operating on costs, it's about operating on value. 

Anything that involves increasing resilience and building lasting effects on your customers and constituencies should be nurtured and developed, even in climate of distress and uncertainty. Values-based organization do not operate on fear-based calculations, much less allow values creep.

The best leaders in organizations retain and protect their strongest assets, which are inimitable and very hard to reconstruct. In times of stress, these assets work like magic. They provide the rest and bounce factors for staff and customers to thrive and not just survive. 

Cut everything that moves and you're cutting your oxygen source. 

As I wrote in my recent Strategy article for CSAE, long-termism is over. Look hard around you. Rules and instructions change quickly and contradict all the time. 

"Focus your executives’ time on discerning where the pressure points and opportunities will be in the coming years, and identifying the most proactive approach. Review your plan every six months to a year, and be prepared to revise as driving forces (i.e. technology, regulations, consumer preferences, social mores) change rapidly without warning."

Key to this are three mindsets: agility in strategy (not just in operations and pouncing on opportunities), strategizing on the strategy, and the discipline to follow-through.

Agility in strategy is about absolutely turning conventional wisdom on long-term planning. It's about learning as you and improvising your subsequent steps rather than preoccupied with planning as if every ducks are in the row. Strategizing on strategy is ensuring that optimal use of resources of doing, measuring, and implementing your new strategy. Forget the 3-day strategy retreat in a nice resort or vacation destination. Try remote strategizing once a week for the next 3 months or so and be surprised as to how much you can accomplish with so little! And third, discipline is the modern-day effectiveness and efficiency combined as measures. Without the discipline and laser-focus commitment, your strategy becomes just a strategy, not a reality. 

Consider this when you think about long-termism using a short-term perspective for the future- the post-pandemic future, that is.