StratTalk eNews — Issue 4, July 2008

Welcome to this edition of the 60 Minute Strategic Plan eNews. I just returned from Las Vegas doing 60 Minute Strategic Planning workshops. The city that gambling built is plunked down right in the middle of the desert with what is claimed to be the world’s largest artificial lake. Interesting how talk is about drought and water conservation whereas the water seems to flow very freely in Las Vegas. Now that I’m back and my mind is freshly watered with thoughts of strategic planning, here is this month’s insight into how do it best.

John E. Johnson, CEO
Anne Marie Smith, President

Head Replacement: The Trickiest of All Organ Transplants

Recently during a 60 Minute Strategic Planning workshop, a CEO announced that his strategic issue was replacing himself as head of the company. As best as I could discern, he had given little or no thought to the cultural impact that a new head of family would have on his existing workforce. Having been through a merger myself—which is more or less the same as getting a new head—I can tell you it is very impactful and traumatic for the individual, and the higher the rank, the greater the impact. The first thought that comes to mind is often: I didn’t join up to work for the acquiring company and I am going to decide whether I can work here. By the way, a number of people left the company within the next year or so. Unfortunately, these were the people that had valuable and transferable skills.

It always impresses me the extent to which company values and actual values are a mystery to the management of a company. The very idea that a leader’s ultimate job is to manage the culture is news to most. The majority of management is hard‑put to articulate its own organizational culture let alone how formally stated values might be in conflict with the real culture of the company. I have described culture as as subtle and concrete as gravity. You may not be able to easily discern it. but God help you if you try to deny or oppose it.

Company values do not necessarily translate to company culture. Company values are formal; company culture is informal. Company values are articulated by management; company culture is how people in the work force actually behave. And there can be serious conflict between what management says and how people actually act. When this occurs, it diminishes management’s credibility because the workforce concludes that management simply doesn’t understand how things work.

To manage the culture, the first thing management has to do is get an accurate reading, and that calls for an objective outside party who is experienced in that sort of research. Then management must decide what corporate values are strategic to company success and how far off these are from reality. The next job is to start to bring actual behavior in the form of the culture more in alignment with strategic values.

It is said if you want to change or modify a culture, change the things you measure and the things you compensate—that tends to get people’s attention.

Did You Know?

Here at 60 Minute Strategic Plan, we like to play a little game called “Did You Know?” It’s a fun exercise meant to provide insight into business behavior.

Did you know: People’s behavior is not fixed; it’s a roller coaster.

Did you know: People resist change when they fear it will have negative consequences.

Did you know: You cannot think your way into right acting; you have to act your way into right thinking.

Did you know: Self‑esteem is the result of behavior, not the cause of it; change behavior, then you change attitudes and self‑esteem.

Did you know: You overcome resistance by changing one piece at a time; write down who does what by when and talk consequences.

Blog-O-Licious

The new StratTalk Blog has arrived. We are excited to provide weekly posts about ongoing strategic planning issues, ideas and suggestions. We started the blog to create an interactive forum where our CEO John E. Johnson can interact with members of strategic planning community in a positive and effective way. We welcome all of our readers to join in the ongoing discussion. If you have any questions, we want to hear from you. Please send Johnson an email at JohnE57@aol.com.