Thursday, September 19, 2013

Build a Strategic Framework Through Strategic Planning

The success of an organization largely depends upon the vision of the leadership. More importantly the vision should be supported by a strategic framework, which would guide individuals and teams to achieve both tactical and strategic goals set by the management. While building a strategic framework, you must focus on every bit of strategy and execute a dry-run on the outcomes. Moving straight from the strategy document to operation is not an easy job because implementation of strategy needs a real-life environment where ideas will be translated into actions. In that process, some pieces of strategy though initially may sound high, during implementation stage would experience certain snags. So, what exactly you need is a full-proof strategic framework through which you can articulate your vision, mission, and values, strategies, and how would you leverage those ideals eventually. You can also deliberate upon tactical steps to materialize a strategic goal, including the methods, processes, tools, and calibration of success. Everything should be well-documented. In case you deviate from the defined path or a specified process, the rationality of deference should also be articulated. Let's first understand what's a strategic framework and what does it capture.

Strategic Framework

A strategic framework is a master plan that defines the structure, aspirations, limitations, design and delivery of a product or service that an organization desires to deliver. On a broader perspective, a strategic framework is a top-level guideline defined by the management as how to achieve the vision of the organization. Every organization starts with a vision. The vision is achieved through mission, values, and strategies. Although you can define your vision, mission, and values very idealistically; without right strategy, you won't be able to achieve those ideals. So, you need strategic planning in which you can set your priorities, quantify your existing resources, and leverage organizational processes, technology, and skills of employees to achieve those common goals. Here is how strategic planning helps achieve your business objectives.

Strategic Planning

Strategic planning is a process of defining organization strategy through which you can analyze the current position and determine the future course of action and how you would do it and for whom you would do it, with due diligence. Strategic planning is fundamentally a deliberations of decisions and actions those could be implemented down the line. An effective strategic planning not only talks about a specific action plan, but also it defines the parameters as how to achieve it successfully. Thus, strategic planning ensures a strategic framework work in a flawless manner. The core components of strategic planning encompasses an understanding of the vision, mission, values, and strategies of an organization.


Defining Vision Statement

A vision relates to the future of the organization – it covers the long-term aspirations. This articulates the dreams and hopes of the promoters and employees as well. A vision statement provides continuous inspiration to all the stakeholders of an organization. While crafting the vision statement for your organization, you must think futuristic and expand your imagination to articulate where do you want to reach or what do you want to achieve in the lifetime of your organization. Let's examine some vision statements of top global companies:

Walmart: To become the worldwide leader in retailing.
Chevron: To be the global energy company most admired for its people, partnership and performance.
GE: We bring good things to life.
Ford Motor: To become the world's leading consumer company for automotive products and services.
City: To be the most competent, profitable, and innovative financial organization in the world.

Well, what do you observe here? All these statements talk about the long-term aspirations of the organization. These statements don't explain how the organization will achieve that vision. And to enable vision work for your organization, you must define your mission statement.

Defining Mission Statements

A mission statement focuses on the purpose of an organization. It explains why the organization exists and how it would achieve the vision. For instance, the mission statement of Walmart states: “To help people save money so they can live better.” Let's now decipher how this statement is supporting the vision of Walmart, which states, “To become the worldwide leader in retailing.” While the vision of Walmart is an inspiration for the organization, the mission clearly putting the purpose of its existence.
Defining Values

Values are the core belief system of the organization that drive its employees to live by those high ideals to deliver results unfailingly. Values explain the collective behavior of the organization. They describe the organizational culture, business ethics, and relationships amongst different stakeholders of the organisation. Let's look at some value propositions that organizations alike believe in. For example, competency, integrity, respect, diversity, teamwork, quality, efficiency, and collaboration. Sample these values of Coca-Cola, which emphasizes on seven parameters:

Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

You can also check the Philosophy of Incrego, which focuses on seven values:

Innovation – Explore groundbreaking technology solutions to address client’s problem
Nurturing – Encourage a culture of professional excellence and continuous innovation to always exceed our client’s expectations
Commitment – Ensure our “clients first” ideology tops our priority
Reliable – Emphasize on the robustness of our services and solutions to ensure peace of mind for our clients
Effective – Assure our clients get the desired results of our services every-time
Growth – Dedicate our efforts for sustained growth of our clients’ businesses
Open-minded – Listen to our customers, employees, and partners without any bias

Defining Strategy


Strategies are the methods or approaches through which an organization accomplishes its mission and eventually lives up to the vision of the organization. Each piece of strategy defines a particular goal and the corresponding action plan to achieve that goal. For example, the strategy to achieve a sales target of $100 million in the first quarter can be achieved by strengthening the sales pitch and converting every lead into a sale. Similarly, for HR function, the strategy to bring in transparency in the organization can be achieved by ensuring a continuous top-down communication and developing channels through which employees can post their honest feedback about the organizational decisions. Organizations use various tools and processes for strategic planning. For example, SWOT analysis helps you analyze the strengths, weaknesses, opportunities, and threats in the current situation of the organization and define corresponding strategy to improvise the conditions. Similarly, Balanced Scorecard is a performance management tool that helps managers to track the staff performance.

Wednesday, September 18, 2013

How to retain your best employees

Regardless of constricting job market, the top talents of an organization are always on high demand. For them, switching a job even during intense job market slowdown is like performing a gimmick. However, most organizations ignore this fact and think everything is hunky-dory.

Before getting down to brass tacks, let's quantify the contribution of these top talents for an organization. Various polls and surveys on employee performance and contribution reveal that the top 20% of best performers create 80% value for the organization. Thus, it's quite unthinkable for HR and top management of an organization that they can afford to ignore it and let the top talents part away.

As an HR head or a senior executive of a company, your contribution towards talent management doesn't restrict you to go an extra mile and delve deeper into the issues that your best employees often try to speak out in different forums. For instance, a growing conviction has been established across the board that employees never leave an organization, rather they leave their managers. However incredible the fact may sound, the employees are always on a loggerhead with their managers on different issues, be it personal or professional. Here, you shouldn't blame a particular band of managers because a manager is also a subordinate to her of his superior up in the hierarchy. So, if you look microscopically, you may discover the root of the problem lies somewhere else. This is just one dot of the problem line, there are many such examples.

Well, before zeroing in on the solutions as how to retain your top employees, let's first understand the reasons why employees leave an organization. Some pressing reasons of top talents being dissatisfied with the organization include lack of professional growth, lack of recognition and rewards, missing long term strategy of the organization, and poor work-life balance. Now, you can address these issues and ensure your best employees stay with you so long as they outperform. Here are the ways!

Ensure Growth

In general, employees aspire for continuous growth in their career and the best employees need it more often. Top talents achieve their target faster than an average employee. For them, professional growth is the top priority. If they notice growth opportunity is stymied in the current organization, they will search it elsewhere. Thus, it's imperative for you to chalk out a sustainable growth plan for the best employees and promote them to the position they deserve, so that they can add more values to the organization.

Recognize and Reward their Contribution

Who doesn't need a pat on the back after a good job? The best performers have more appetite for rewards and recognitions. The key aspect of a sustained employee satisfaction program lies in recognizing and rewarding the best talents and setting it as an example for others. This not only elates the spirit of your employees, but also builds up an ecosystem of fair competition amongst the real talents of your organization.

Articulate the Long-term Strategy

The best talents mature faster than the organization does, and they need more opportunities and challenges to prove their mettle. Show them the big picture. If the management of the organization lags behind the thought leadership of the best talents and fails to craft a long-term strategy for the organization, the top talents will be impatient and eventually leave the organization. So, before they take a hard decision, just articulate your vision of the organization and walk the talk. If possible, involve these top talents to shape up your strategy.

Maintain Work-life Balance

Here just one exciting thought of William Henry Davies sounds appropriate:

“What is this life if, full of care,
We have no time to stand and stare.”

After all, the best talents are human beings, not robots. If an organization fails to provide a proper work-life balance for the employees, they will look for some better organizations where they can experience it. The best solution is develop a flexi-hour culture and map rewards and recognitions with actual contribution, not with the amount of time clocked by an employee in the office premise. With the advancement of technology, the concept of workplace is changing faster. Be a change agent of this trend and provide employees the power of flexibility without neglecting the organizational goals.