What are your plans when you get to New York?

Recently I read with interest an article by Kenneth Rogoff, Project Syndicate in Korea Times about some of the challenges and opportunities faced by Europe.

Below is an abstract:

What will Europe's growth trajectory look like after the financial crisis? For some Europeans, still nervous that their economies and banking systems might collapse, this is a little like asking a passenger on the Titanic what they plan to do when they arrive in New York. But it is a crucial question to ask, especially when Europe has been facing so much outside pressure from the likes of the United States and the International Monetary Fund to focus on short-term Keynesian stimulus policies.
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Yet, ugly or not, the downturn will eventually end. Yes, there is still a real risk of hitting an iceberg.
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But, for now, a complete meltdown seems distinctly less likely than gradual stabilization followed by a tepid recovery, with soaring debt levels and lingering high unemployment.
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An epic, financial-crisis-driven recession, such as the one we are still experiencing, is not a one-year event. So policymakers' responses cannot be evaluated by short-term measures, either. It is just as important to ask what happens over the next five years as over the next six months, and the jury is still very much out on that.
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The recent recession has presented challenges, but European leaders were right to avoid becoming intoxicated with short-term Keynesian policies, especially where these are inimical to addressing Europe's long-term challenges.

Kenneth Rogoff is Professor of Economics and Public Policy at Harvard University, and was formerly chief economist at the IMF. Copyright: Project Syndicate, 2009. www.project-syndicate.org

When I read the article I came to think of companies instead of continents. I think that many companies these days see themselves like having been onboard an ocean going maiden voyage - maybe even a "Blue Ocean" voyage on an unsinkable cruiseliner towards the land of golden opportunities.

And now they hit an iceberg and the question of strategy planning seems as relevant as the above question of "what they plan to do when they arrive in New York"

As for continents according to Kenneth Rogoff I believe it is for companies in that: "policymakers' responses cannot be evaluated by short-term meassures, either. It is just as important to ask what happens over the next five years as over the next six months, and the jury is still very much out on that".

If you are a B2B policymaker you may find interest in reading my blog "Strategy On-line" where I also discuss practical hands-on tools in strategy formulation and execution or your may find interest in reading my little "epic" story of a ship, a captain and his crew: "Back on the right course"


PETER SØRENSEN

If you do not know where you are going

..................... any road will take you there.

Or what happens when you are not clear on what is your mission and what are your values.

"`Cheshire Puss,' Alice began, rather timidly, as she did not at all know whether it would like the name: however, it only grinned a little wider. `Come, it's pleased so far,' thought Alice, and she went on. `Would you tell me, please, which way I ought to go from here?'
`That depends a good deal on where you want to get to,' said the Cat.
`I don't much care where--' said Alice.
`Then it doesn't matter which way you go,' said the Cat.
`--so long as I get SOMEWHERE,' Alice added as an explanation.
`Oh, you're sure to do that,' said the Cat, `if you only walk long enough.'"
"`But I don't want to go among mad people,' Alice remarked.
`Oh, you can't help that,' said the Cat: `we're all mad here. I'm mad. You're mad.'
`How do you know I'm mad?' said Alice.
`You must be,' said the Cat, `or you wouldn't have come here.'
Alice didn't think that proved it at all; however, she went on `And how do you know that you're mad?'

`To begin with,' said the Cat, `a dog's not mad. You grant that?'
`I suppose so,' said Alice.
`Well, then,' the Cat went on, `you see, a dog growls when it's angry, and wags its tail when it's pleased. Now I growl when I'm pleased, and wag my tail when I'm angry. Therefore I'm mad.'"

(Text by Lewis Caroll:"Alice's Adventures in Wonderland " and picture by John Tenniel)

In the famous story "Alice's Adventures in Wonderland" by Lewis Caroll, Alice does not have any mission: "That depends a good deal on where you want to get to," Said the Cat.

"I don't much care where--" said Alice.

Alice is also quite vague about her values:" Bur I don't want to go among mad people," Alice remarked.

Are you clear on your company mission and values?

If not how can you decide which way to go - what strategy to follow?

Particularly in times of financial crisis, economic down turn, stock market collapse, recession, consumer cut in spending etc. it is essential to have a strategy that is clear as crystal.

If you would like some input as to how to identify and formulate company mission ans values as well as how to formulate and implement company strategy you may want to take a look at my other blog: Strategy on-line

Peter Sørensen

Making a brick or building a cathedral?

About the importance of mission statements particularly in B2B Business

It was a hot sunny day and the hiker was out walking. She passed a limestone quarry and met two men working hard and sweating while they were chipping away at the hard rock.
"What are you doing?" she asked the first man.
"I am making limestone brick" he answered in a sulky mood.
"But we are doing more than that!" exclaimed the second
"We are building a cathedral!"

The above short story illustrates in a good way the importance of putting the right perspective or purpose into your mission statement - particularly if your are a B2B manager

In B2B your direct customer is not the end-user and it may be difficult for your employees to see the wider perspective or meaning in what they do. This is a consequence of your company's position in the value chain as I describe in my other blog: "Strategy on-line"...

In their book:"Executing your Strategy; How to break it down & get it done" Morgan, Levitt and Malek put it this way:

"A sense of purpose is critical to creating a sustainable organization or business. It gives people a compelling reason to come to work every day and to invest rtheir personal resources in the collective endeavor........
Without a sense of purpose, there is little reason to expect high performance. In contrast, a strong sense of purpose can actually reduce the stress of the overworked, by helping people separate the unimportant tasks from the ones that propel the organization toward its intended future....
......., the smallest building blocks of strategic execution are the individual, moment-by-moment choices of what to work on, what not to work on, and what level of effort and excellence to bring to the task. Without some collective sense of purpose, those individual investment decisions devolve to personal preference. Thus creating a sense of shared purpose is far more important than the sharing of lofty thoughts in the executive suite. It is actually the microscopic fiber that connects individual choices to the real work of strategic execution."

PETER SØRENSEN

To be committed or merely to be involved?

The pig and the hen met one early morning just outside the barn. The sun was shinning and it was a beautiful day - just right for discussing visionary ideas.
The hen said to the pig: " I have a business proposal that I would like to discuss with you."
"And what would that be?" asked the pig a little on guard.
"I suggest that we open a Breakfast Restaurant", said the hen.
"A Breakfast Restaurant?" the pig was surprised.
"Yes, a Breakfast Restaurant where we will serve home made country cooking" answered the hen.
"And what would be on the menu?" the pig was now interested.
"It should of course be Bacon & Eggs!" declaimed the hen.
"Great idea - let us go for it" acclaimed the pig now convinced that the hen had indeed come up with a brilliant idea.

In the above I geuss that you can say that the hen was involved but the pig became committed?

Transformed into business language there may be some resemblence to the relationship between consultancy and leadership - you guess who is who!

Having said that I strongly believe that we need both types - also in business, and if you happen to be a leader do not dispair - because in Nordic mythologic there was one unique creature called "særimner". The gods would cut slices of bacon form him every evening and in the morning he had fulle recovered!

And if you do not mind me getting "involved" then maybe you should checkout my blog:

www.strategyonline.blogspot.com

Peter Sørensen

I can see clearly now.......

Thanks to http://www.youtube.com/user/ncmizzy
I often think of a Johnny Nash classic: " I can see clearly now": Here is how it goes:

"I can see clearly now, the rain is gone,
I can see all obstacles in my way
Gone are the dark clouds that had me blind
It’s gonna be a bright (bright), bright (bright) Sun-Shiny day.
I think I can make it now, the pain is gone
All of the bad feelings have disappeared
Here is the rainbow I’ve been praying for
It’s gonna be a bright (bright), bright (bright) Sun-Shiny day.
Look all around, there’s nothing but blue skies
Look straight ahead, nothing but blue skies
I can see clearly now, the rain is gone,
I can see all obstacles in my way
Gone are the dark clouds that had me blind
It’s gonna be a bright (bright), bright (bright) Sun-Shiny day."

I know it maybe a bit far-fetched but in a way the above describes in a perfect way what I hope to help facilitate in B2B development with my other blog:

www.strategyonline.blogspot.com

Peter Sørensen