Now that the economic recession appears to be abating, companies are plotting a quick return to profitable growth. Pockets of opportunities have emerged as demand gradually picks up among the rubble of defunct competitors.
Yet the greatest risk is trying to do too much and flooding the growth engine. Complicated strategies often sabotage execution even in the best of times. What is needed is a simple, focused approach. Indeed, when it comes to creating and executing strategy, the old adage "less is more" prevails.
"We are focusing on only three initiatives to jump-start our business here in Asia," said "Roger," the regional managing director of a multinational foods company based in Bangkok. "Our plan is simple. It includes recapturing key distributors, getting a clear brand message out, and winning the war in hypermarkets."
Oftentimes, in an effort to be comprehensive, strategies driving change are too ambitious. They confuse employees, who have difficulty understanding what is important and prioritising what needs to be done.
In trying to do everything and cover all aspects of organisation performance, the strategy does nothing. Management jargon and variations on how the strategic plan is communicated send inconsistent messages and further alienate employees. A straightforward, simple strategy enhances the chances of successful execution.
"Creating alignment with three or four major initiatives is more effective than having employees spend their time on many different things. If you apply the 80/20 rule, usually what needs to be done is obvious," said Roger. "It's only when we try to do too much or make our strategies sound brilliant that they lose their impact."
From my experience assisting clients to align their organisations with strategy, the challenge is to simplify and make strategy actionable. If a client can't describe their strategic plan in less than 15 seconds, then it is probably too complicated. People need to know what to do, who does what, and how success will be measured. It is like shooting a rifle with three or four shots, rather than spraying the target with a shotgun blast of activity.
Said Roger: "Managing is straightforward. All I do is periodically ask people how they are doing on recapturing distributors, communicating the brand message, and taking away competitor share in our biggest retailers. My job is to simplify things for people."
Of course, making sure you have the right strategy in place is essential. But more often than not, identifying the right direction is not the problem. The problem is translating this direction into a few simple moves that everyone can understand and support with coordinated actions. Clarifying what people need to do day-to-day to drive the strategy ensures alignment and minimises drifting into less important areas.
"We are on track to create sustainable growth by creating a sense of urgency around three core things. If we cannot achieve them, then nothing else matters," said Roger.
Larry Chao is managing director of Chao Group, an organisation-change consultancy located in New York and Bangkok (www.chaogroup.com).