Recent research carried out by McKinsey Quarterly with 2,135 executives showed that most companies’ strategies are flawed and not ‘future-proofed’ to make sure that they are adaptable to changing market conditions. With 2012 ahead of us (and no doubt some globally challenging times ahead), we have detailed the main checklist that you should review to see where gaps lie in your company’s strategy and develop a future process for improving your strategy over the next 12 months:

1. Commit to following your strategy (but with some flexibility!)
2. Make sure you do something different
3. Understand whether your strategy taps into a true source of competitive advantage (and if it doesn’t, try and develop one)
4. Evaluate whether your strategy is granular enough about where to compete so you can make a difference to actions and the bottom line
5. Don’t rely on the past to plan future strategy (and also don’t rely too heavily on internal bias as this may give a blinkered view)
6. Ensure your strategy includes different scenario planning to take account of uncertainty
7. MOST IMPORTANT: Make sure you transfer your strategy from paper into an action plan

As documented by Porter and his 5 forces, all companies operate in markets surrounded by customers, suppliers, competitors, substitutes, and potential entrants and all are seeking to advance their own positions. The problem is that most companies continue to do what they have always done and not think about diversifying to beat the market. Remember, if you always do what you have always done then you will always get what you have always got…if you are lucky!

Make sure that you do something different in 2012 to create value and improve your strategy development process.

For a full reading of the article by McKinsey please visit www.mckinseyquarterly.com ‘Have you tested your strategy lately?’

For further reading on strategy development and competitive intelligence click on the links below:

B2B International White Paper – Competitor Intelligence
B2B International White Paper – Strategic Decisions Planning

Julia Cupman this week discusses how to drive excellence in companies.

I am always intrigued by what people think drives excellence in companies.  The common thread in everything that we are asked to do in our search for market intelligence is to find the nuggets and insights that show how companies can improve – how they can beat the competition.

The search for excellence has attracted many authors and ex-McKinsey consultant, Tom Peters, has written widely on the subject.  In his book "In Search Of Excellence" (1982), Peters nominated GM (among others) as a model of distinction.  A lot has happened since then and as we know, foreign competition and a lack of focus, perhaps tinged with some arrogance, have seen many of the paradigms of excellence fall from grace.

In his original work, Peters suggested eight themes result in excellence:

1. A bias for action, active decision making – ‘getting on with it’, for quick decision making and problem solving tends to avoid bureaucratic control.
2. Closeness to the customer – learning from the people served by the business.
3. Autonomy and entrepreneurship – fostering innovation and nurturing ‘champions’.
4. Productivity through people- treating rank and file employees as a source of quality.
5. Hands-on, value-driven – a management philosophy that guides everyday practice – management showing its commitment.
6. Stick to the knitting – stay with the business that you know.
7. Simple form, lean staff – some of the best companies have minimal HQ staff.
8. Simultaneous loose-tight properties – autonomy in shop-floor activities plus centralized values.

Like all good business gurus, Peters has developed his thinking, and authored an article recently in the Financial Times (29th August 2011), adding four further "obsessions" which he believes drive excellence.

1. Frontline managers – the equivalent of the sergeants in the army.  They are the foreman in the factory, the supervisor on the shop floor – the people who know an organization intimately and who are responsible for driving productivity.
2. Cross functional excellence – the importance of different departments working together and not against each other.
3. Strategic listening – the importance of listening.  Indeed listening to customers as well as to staff is so easy and yet so often companies plough on with their ear plugs in.
4. Meetings – the need not for fewer nor for more meetings, but for more actionable meetings, i.e. meetings should be used as a platform for boosting enthusiasm and motivating action.

Understanding what drives excellence in business is the Holy Grail.  Market research is not carried out to provide an elegant description of markets.  Rather it is the strategic listening that Peters refers to.  It is about understanding and spotting meanings; in particular, the opportunities that can provide a comparative advantage or help avoid a disaster.

I would like to add a fifth theme that will drive excellence: an obsession with intelligence – knowing more than the competition and using this knowledge more effectively than the competition.

In this week’s Thursday Night Insight, Nick Hague questions how clearly people are communicating in the business world today.

The year is now 2011 but things are no different than 2010 and I profess they are getting worse. I was sat in a meeting a couple of weeks ago (just after New Year) listening to the same old twaddle:

“It is mission critical that we focus on our core competencies in order to maintain our edge in the marketplace. If we don’t think outside the box, become more customer centric and focus on the low hanging fruit we will get push back and won’t be able to deliver the win win to deliver a seamless solution. Come on, let’s give 110%”.

Of course I exaggerate, but only slightly! How did things ever come to this – and when could you get more than 100%?

If I went home and started talking to my family in this kind of talk they would think I was speaking another language and they would be right. I have also started to hear similar talk out of work with people in the pub using such awful phrases as ‘blue-sky thinking’ and ‘singing from the same hymn sheet’. Why do we talk in this weird business speak?

Well, it may be due to the invasion of business reality TV shows like The Apprentice but I think the time has come to start speaking like humans again (even at work!).

Think of the last time you sat on a plane or train that was delayed and the way the guard or pilot phrases their apology. Just before Christmas, I was sat with a colleague on a plane (after an hour and a half delay already) and as we were sat on the tarmac, over the tannoy came the pilot “We would like to thank all passengers for their patience and apologise for any inconvenience caused”. The pilot then went on to add that “due to unforeseen circumstances that are out of our control our slot has been put back a further hour. We will update you when we have more information but if you do wish to get off this flight please make yourself known to one of the cabin crew”.

It may as well have been delivered by a robot with the inhuman way it was put across. On the occasions when I am home late from work or having to work late to meet deadlines would I ever say ‘sorry for the inconvenience’ to my wife who has put the children to bed and dealt with another evening of solitary confinement; of course I wouldn’t and if I did I know what the comeback would be!

Suffice to say, we got off the plane and ended up delivering the presentation via a video conference. What was enlightening was that after the 3 hour video conference, one of the PA’s came in and profusely apologised “I am so sorry for not offering you coffee or tea during the meeting”. It was heartfelt and of course it was no problem but immediately I warmed to her genuine nature.

I therefore postulate; is the way we communicate hurting our businesses and individual reputation more than we know? If the airline in question had dealt with the situation in a slightly more humane way, would I have felt differently about the soured experience? Research carried out in the UK with over 2,000 adults by YouGov confirmed these worrying trends that nearly half of the respondents admitted to using ‘business jargon’ outside of work with family and friends but an enlightening 70% of people (especially in the North West of England) found such talk to be irritating.

Of course, there is always a balance between being professional and being personable but in this world saturated in information and alternatives, being clear not only in the proposition you take to market but in the language you use will make you stand out from the crowd and deliver you a competitive advantage that customers will warm to.

So in wrap up to this week’s Thursday Night Insight and with the whole year ahead of us I ask you to try and make this year’s resolution to talk with clarity and without mumbo jumbo jargon and I promise you; as long as you give it 200%, it will definitely feel fresh to the other claptrap that is being spouted!

Research by market research specialists B2B International on the value of HR certification around the world reveals an average ROI of gaining the credentials of over 250%

The message seems to be ‘get certified’! An online survey for the HR Certification Institute, of more than 1,500 HR professionals in 37 countries worldwide, has shown that human resources employees and employers value HR certification at more than two-and-a-half times the initial certification outlay.

From an employer’s perspective, having employees gain professional HR certification brings numerous advantages to the organisation, including an increase in employee engagement, satisfaction and productivity, as well as a reduction in staff turnover, all leading to an increase in customer satisfaction. Employers also comment that certification increases employees’ HR knowledge and ensures that they keep up-to-date; it demonstrates employees’ commitment to HR and to learning, as well as increasing confidence in their ability to do their job; and having employees with certification is good for the organisation’s reputation and demonstrates that it takes HR seriously.

For individuals, the biggest incentives toward pursuing HR certification stem from the belief that the credentials will increase their HR knowledge and thus strengthen their CV. 94% of HR employee respondents and 97% of HR employers believe that certification is important for those working in human resources, more than 60% of whom stated it is ‘very important’. An even greater number of employers expect certification to be of importance in five years’ time.

Ninety-six percent feel that an HR certified candidate applying for a job would have an advantage over a non-HR certified candidate, with more than 50% believing this to be a ‘very significant’ advantage. This is borne out by employers: more than two-thirds state that an HR certified person being considered as an independent consultant for an HR department would have a ‘very significant’ advantage over a non-certified individual. HR certification was highlighted as particularly advantageous for HR professionals going for a promotion or facing redundancy.

HR Certification Institute’s global business development director Alexandre Bouché, who commissioned B2B International to conduct the study, remarked on how highly valued the survey showed certification to be. “Of the four types of credential that an HR professional might hold, that is to say an undergraduate degree, a graduate degree, a certificate or a certification, the certification was felt to be by far the most beneficial. Its advantages include it offering the most value for money and return on investment; being highly flexible and customisable; being the most practically and professionally oriented of the choices; being the most experience based; and that choosing to work toward a certification provides the best networking opportunities.”

B2B International’s Matthew Harrison, in charge of the study, noted differences between continents. He said: “Finding the time to study for certification was not a key issue for Europeans or Asians and yet was a key unmet need for Americans. Indeed, the survey conveyed a general sense that US employers were less actively involved in professional certification than their foreign counterparts, with only 8% deciding which certification their staff obtained, against 22% in other countries.”

 
About HR Certification Institute – www.hrci.org
HR Certification Institute is an internationally recognized leader in HR certification, having been certifying HR professionals for more than 33 years. The HR Certification Institute has awarded more than 108,000 credentials in over 70 countries to HR professionals who have passed rigorous exams to demonstrate their mastery and real-world application of forward-thinking HR practices, policies and procedures. HR Certification Institute is an affiliate of the Society for Human Resource Management.