Every business assesses constantly. Companies carefully track and analyze daily sales, traffic count, average ticket, labour percentage, inventory, and productivity. They also look at the distribution of revenue over time, and they examine their margins on products and services. Every business holds it performance data against its "metrics," comparing the actual figures against forecasts and ideals. Every business becomes extremely sophisticated at determining "what happened." Very few become proficient at assessing how it happened or how it might improve. The emphasis here falls on strategic. In a strategic assessment, business people determine how they will achieve their objectives. The numbers and metrics become benchmarks, and the questions focus almost exclusively on "how will we...?"
Begin strategic assessment with sustained examination of needs. Even if a cursory scan of the business's figures suggests that the company falls short of its goals against just about every criterion and measure, planners and managers must examine the very specifics to figure out how employees will improve. Some analysts mistakenly focus only on what went wrong. In every enterprise, some department or group outperforms expectations, providing the paradigm for other units' improvement. Unless planners and managers carefully assess the behaviours and attitudes which generate success, they cannot reasonably and realistically make plans for under-performing units' improvement.
Example: Last month, the widgetworks fell 15% short of its sales goals. Meanwhile, the gadgetronix division beat its sales plan by 19%. How did gadgetronix exceed its goals? How can we adapt tactics and techniques from gadgetronix to help widgetworks perform better? More assessment ensues. Assessors look at gadgetronix performance metrics: Do the associates have better attendance, better product knowledge, deeper customer engagement, more customer loyalty, greater ownership in the products and sales, higher morale? How does gadgetronix promote wellness to assure good attendance? How does associates' sense of ownership translate to improved morale and result in excellent attendance? How does excellent product knowledge affect engagement with customers? How can widgetworks emulate gadgetronix success?
The last question opens discussion of needs. The metrics supply the substance of the questions. Do they need
training? What kind of training do they need? Do they need discipline? What kind of discipline do they need? Do they need more effective leadership and supervision to receive the training and discipline they need? The formula "Do they need plus a metric?" yields the questions that guide the strategic assessment.
Continue strategic assessment with "Backwards Mapping." First, establish the goal: By some realistic date, widgetworks will meet its sales goals. Then, plotting the steps widgetworks must take, work backwards from the goal, asking repeatedly, "In order for the associates to achieve that goal, what must happen immediately before that? How will we know it has happened?" Planners work-out the series of steps that leads from the current situation to achievement of the goal, sustaining their attention to sequencing. Effect and cause; effect and cause. Planner and managers work-out the plot steps that lead to the happy ending. The focus on sequencing forces strategic assessors to figure out what kind of training, incentives, discipline, and staffing will empower widgetworks associates to accomplish each step.
Relentless questioning brings-out the details in strategic assessment. When the series of intermediate goals seems complete, nearly seamless, redirect attention to "How?" Relentlessly ask and answer, "If 'a' causes 'b', then how do we create, motivate, or empower 'a'?" Recognize that a meaningful answer to the question always will describe a significant action. The answer will assert, "We will do 'x' and 'y' to empower 'a'."
Example: The associates need product training. How will we provide that product training? We will provide computer-based instruction and testing. How will we provide computer-based instruction and training? We will work with the trainers in the Human Resources department to develop new training modules. Will that be enough to meet the need; how will we know? Continue questioning until no more questions arise.
At the end of the strategic planning session, a natural leader will emerge, asking, "How will we put the whole plan into effect?" Planners and managers ought to say, almost in unison, "We will just do it, starting at the first step."
Author Resource:-
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