State of the Art Best Practices Report

The Top 12 Strategic Management Mistakes by Corporations

Problem #4 Continued...

So the reality of organization's success follows Deming’s TQM steps of the first looking outside the holistically, then looking inside analytically, and then pop back up to look holistically for the results.  In other words; outside first, then inside and analytically, then outside again.  He called it “Plan, Do, Check, Act”.

Specifically, went looking from the outside helicopter view we need organizations to adapt an initial planning step called Future Environmental Scanning.  You see, the future is shaped by those who see the possibilities before they become obvious.  The acronym that we have developed and is now becoming standard in usage is SKEPTIC. 

This SKEPTIC framework is simple yet very powerful:

S = socio-demographics
K= competition
E= economics
E= ecological
P= political
T= technological
I= industry
C= customers and citizens

The progressive organizations now think strategically by knowing how they fit into the bigger picture of the world's dynamic and rapidly changing environment.  The helicopter view of life is essential to success. 

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Right now, most of our industrial world is in an economic meltdown, what can we learn from this Helicopter View in all parts of our lives?  To whit:

Societal Example:
Most of what the US Government is doing to deal with this economic meltdown is focused on Wall St. and the financial industry. This is not surprising, since most of the President’s advisors are from there.  However, an Environmental Scan of the world would tell us more alternative actions—how is what the US is doing compared to China, Japan, The EU, etc?  There is an upcoming G-10 (Formerly G-8) meeting and yet little is being done to prepare for it.  The solutions lie not just on Wall St. but in the global economy of which we are a part.  Most of the people in the Treasury Dept are not even Internationally experienced.

Interestingly as well, the helicopter view needs to be lower and look at the housing industry, mortgages people hold and the bonuses, perks and retreats that senior executives take.  This has been brought to the fore by congressmen listing to their constituents about their issues, not Wall St. 

If ever there has been a time to “think global, act local”, it is now!

Organizational Example:
As a result of this meltdown, almost all organizations are looking at cutbacks, layoffs,  and cost savings.  That is fine but does not go far enough.  Now is the time to step back, do this Future Environmental Scanning and big picture look into the future 2-4 years out.  We find that most of our clients now are focused ONLY on cost cutting which is critical now.  However, you do not cut your way to the future.  For example, GM is focused on cost cutting while Ford a few years ago “bet the farm” and leveraged all their resources towards build world class cars again.  Thus they are not now asking for a bail out.  If their Strategic Plan works, you will see a resurgence at Ford.

Now is the time to re-Position yourself for the future.
That is what we are doing at the Haines Centre in 2009.

Training and Organizational Development Example:
How does the meltdown affect this field?  Obviously, from the above, you must scan your environment above and provide timely and relevant support services to your executives in:

1. Blowing Out Bureaucracy and Costs
2. Strategic Thinking on a Daily Basis
3. Reinventing Strategic Planning for the 21st Century