IS YOUR BUSINESS PLAN SUFFERING FROM OSTRICH SYNDROME?

Many companies suffering from the Ostrich Syndrome today. Teams are attempting to execute a strategic plan written many months if not years ago and it is not working. The Vuca market we find ourselves in today is much different than what your market was in when you wrote your plan. In this article we will help you diagnose if your strategic plan is suffering from Ostridge Syndrome and how you can adapt.

In a recent survey 96% of CEOs believe we will experience a recession but sadly only 14% have a plan should we experience an economic decline. Based on the definition of a recession we are in one now, but many leaders refuse to say the “R” word or wish to adjust their plans based on new trends and constraints. Some leadership teams are starting to feel a decline in revenues, orders getting pushed out or canceled and, in some cases, declining gross margins but have not adjusted their plans.

These folks have a problem—and do not want to deal with it. The thing people most often equate with the ostrich is, “An ostrich lowers its head to the sand when it senses danger, it is a statement that describes some leadership teams today.

They sense a business slowdown or something unpleasant and they lower their head in the sand so that the danger might go away. They see their sales pipelines drying up. They have experienced some customers reduce or cancel orders.

In a business setting the sand is often transaction data analysis and performance management. They wrongly argue, “If I don’t let myself see it, maybe we can just push our way through it.” They hope for some glimpse of data that validates their belief that they will still achieve their revenue growth goals if they can just get their teams to execute the current plan more efficiently and work harder.

Newsflash: This VUCA economy is still here, sand or no sand!

What Is Your Team Not Facing?

I recently spoke at the SAMA conference  in San Diego and shared content on how to opt out of a recessionWe discussed tuning up your current strategic plans based on your current strengths, known weaknesses and current constraints  and trends. Many of those in attendance were familiar with SWOT analysis and I agreed it was a useful tool. From my experience it is an excellent inward facing tool to help teams identify their strengths, weaknesses, opportunities, and threats. However, as we tune up our plans for the current VUCA market I suggest we focus on SWT, our strengths, weaknesses, and trends. This is something all Scaling Up coaches are helping their clients do today. What I did share was a simple model to reset, reboot your strategic plan to ensure your team delivers the revenue your team wants and needs.

Strengths – what is your teams’ distinctive competence or Rembrandt in your attic?

Weaknesses – were does your team have some weak areas and constraints today we need to discuss.

Trends– what are some trends impacting your clients. At the conference we discussed sustainability, decrease in demand at some major clients, labor shortages, supply chain constraints and the ever-growing exit of senior level workers with tribal knowledge that is not captured anywhere.

What Did we Learn in the Last Recession?

In the last recession?

• 75% of businesses did experience a decline in revenue while 14% of companies grew.
• Of the 14% who grew, they grew on average 9%.
• In the last recession the teams that grew had one thing in common, …a plan.
• Developed a plan based on specific trigger events.
• A meeting cadence met regularly and discussed KPIs.
• Agile and adapted as new insights emerged.
• Cross functional empowered teams
• Clear understanding of their customers and their challenges

Teams that had updated plans and executed them grew when their competitors were buttoning down the hatches to weather the storm.

Could your current business plan be suffering from Ostrich Syndrome? 

Do you have a strong business strategy for today?

Does your team have the skills to execute the plan? 

Do you have the right people in the right seats?

Have you identified trends that impact your business and the business of your customers?

Do you clearly understand the voice of your customers today?

Maybe this article is hard for you to read because it hits so close to home. Instead of dismissing it as an attack on your skills, competencies or leadership abilities check yourself to see if your team is being asked to execute a dated plan. Chances are your leadership team is working so hard in the business they are not seeing what they must do to work on the business. What does your transaction data and voice of the customer research tell you?

If your team would like help tuning up your strategic plan to deliver increases in revenue, profits, and shareholder value, let’s schedule a call.