3 Common Mistakes of Strategic Planning

Chess - Bad Move

 

I’m always looking for ways to improve the strategic planning from a dreaded annual activity to a meaningful, helpful process.

Recently, I had the opportunity to read Elevate: The Three Disciplines of Advanced Strategic Thinking by Rich Horwath.  Rich has helped numerous companies and managers with the strategic planning process and evaluating strategic capabilities.  I had the opportunity to talk with Rich about the most common mistakes leaders make.

 

“If your strategic plan isn’t driving daily activities, then you’ve wasted time doing the plan.” -Rich Horwath

 

3 Common Mistakes of Strategic Planning

 

Rich, you’ve worked on strategy both as the CEO of the Strategic Thinking Institute and before that as a Chief Strategy Officer.  What are the most common mistakes you see in strategic planning?

 

There are typically three mistakes when it comes to strategic planning.

 

“The number one cause of bankruptcy is bad strategy.” -Rich Horwath

 

Mistake #1:  Confusing strategy with other planning terms.

 

The first is the group not having a universal understanding of what strategy is and how it differs from other key planning terms such as mission, vision, goals, objectives and tactics. There’s a tremendous lack of precision when it comes to strategic planning and that starts with the fundamental building blocks.

 

“Concepts change thinking and tools change behavior.” -Rich Horwath

 

Mistake #2:  Regurgitating last year’s plan.

 

The second is that most plans are simply a regurgitation of last year’s plan.  This is because managers don’t think before they plan.  I’m a big believer that new growth comes from new thinking.  If you don’t take time and tools to generate new insights, then don’t expect your group to perform any better than the year before, or the year before that.

 

Mistake #3:  Not linking the strategic plan to daily activities.

The 8 Biggest Mobile Mistakes Companies Make

holding a glowing earth and tablet,mobile phone in his hands

 

Over 6 billion people around the world have access to a mobile device.  Time points out that more people have access to a mobile phone than toilets.   These devices are now so important to us that they are almost an extension of our bodies.

As a lawyer, I was captivated to see what the Supreme Court would rule in Riley v. California.  In a rare 9-0 decision, the Supreme Court recognized the importance of mobile devices and held that the police need a warrant to search cell phones.  Even the Supreme Court knows:

Mobile is changing everything.

 

Fact: Half of all local internet searches are performed on mobile devices. –SmartInsights.com

 

The Mobile Revolution

Tom Eslinger, Saatchi & Saatchi’s Worldwide Director of Digital and Social is an expert on mobile marketing.  His recent book The Saatchi & Saatchi Guide to Mobile Marketing got my attention.  It is filled with facts about mobile and a peek into our mobile future.  Tom has helped brands like Toyota, Coca-Cola, T-Mobile, Lexus, Visa, Sony Ericsson, Heineken, and Procter & Gamble with mobile, augmented reality and games.  Who better than Tom to share insights on how organizations are using mobile today?

 

You are enthusiastic about mobile (understatement!). Why?

We can see a steady trend over the last five years in major industries, beginning with the retail consumer marketing-structure as it becomes more fluent with mobile technology.  Mobile devices have already exceeded desktops.  We, consumers, are essentially becoming a culture of detachment and wirelessness.  So, having a mobile-first strategy will be critical for any company over the next five years – and perhaps even the next five months.

 

“Having a mobile-first strategy will be critical for any company over the next five years.” –Tom Eslinger

 

Tom, what are the top mistakes companies are making with mobile?

 

1. Don’t Support Your Campaign

The importance of maintaining your mobile presence can’t be stressed enough.  Slacking off on maintenance can sabotage the best-laid plans.  This means keeping your audience engaged, often at multiple levels of engagement.  And of course, you need to pay attention to the stuff that keeps it all going: server networks, customer care, and technical support.  You can expect to spend around 1.5 times your creation costs on on-going marketing and program maintenance costs.  It’s that important.

 

“Keep your customer at the center of the experience so they keep coming back for more.” –Tom Eslinger

 

2. Think You Have No Bugs

No programmer has ever built anything bug-free from the get-go.

It’s guaranteed that the first version of your mobile product—and many subsequent versions—are going to have some bugs that make it past the testing period.  It’s nothing to panic about, but continue to iterate on your product after it’s released.

 

3. Don’t Keep Up Interest in Your Mobile App

Don’t just let it sit there!

Have an extended plan for the app.  How are you going to update it, change it, push new content through it, and ultimately, perhaps know when to end it?  Push notifications can get really annoying really fast, so make them relevant and desirable.  Have the copywriters rewrite the engineers’ reports in your brand’s voice.

 

Fact: 42 percent of consumers using a mobile while in-store spend more than $1000. IAB

 

4. Try to Do Too Much

Why Winners Take Risks

Decision Making Process, Risk Management

 

Recently, I had the opportunity to talk with Tom Panaggio, entrepreneur, strategic advisor, speaker and amateur race car driver about taking risks, winning, and using failure to propel success. Tom is the author of The Risk Advantage: Embracing the Entrepreneur’s Unexpected Edge.

 

The 2 Big Advantages of Risk

 

“A leader who accepts risk is setting the stage for long term success.” –Tom Panaggio

 

Why is risk an advantage?

 

There are two big advantages to risk.

First and foremost risk is directly connected to opportunity.  Every opportunity must have an element of risk or there will be no benefit.  Risk is the cost of opportunity.  All businesses and organizations must be in a constant state of forward progress because of competition and the ever-changing demands of customers.  Therefore, as an entrepreneur or business leader we must continuously seek out opportunities to meet these demands.  A leader who recognizes the vast importance of forward motion for their organization accepts risk as merely a cost of opportunity and then actively endorses this philosophy throughout his business in setting the stage for long term success.

Secondly because most people have a tendency to avoid or minimize risk, those who have the courage to embrace it already have a competitive advantage.  For example my company was a non-stop marketer.  We knew that our competition was not willing to risk the investment in marketing to the degree that we were.  So we took advantage of their unwillingness to risk the marketing dollars and dominated our market space by out-marketing them.  We put ourselves in a position to win by embracing the risk of marketing.

 


“The only way to achieve success is to have the courage to embrace risk every day.” –Tom Panaggio

 

How do you encourage the appropriate amount of risk?

It is important to understand that my position on embracing risk does not advocate blindly engaging in any and all opportunities regardless of the potential outcome.  But the only way to achieve long term success is to have the courage to embrace risk each and every day.  With that said, there is no standard to determine what level of risk is appropriate, and there is only a blanket rule of thumb that can be generally applied.  That’s the great challenge of being a business leader: recognizing worthy opportunities.  Any opportunity that is void of a sufficient benefit or is described as “no-risk” should be avoided.  Each situation that requires one to embrace risk must be evaluated on a unique basis.

If pressed for an answer, I would say that we always start with the end to determine if this is an opportunity worth pursuing.  What is the reward or benefit the company receives from committing to this opportunity?  If an opportunity provides little reward or doesn’t help with the company’s forward motion, then we limit the amount of risk.  If the opportunity can change the competitive landscape for the company or increases the value your product or service has for your customers, then the level of risk increases by the potential return.

Everyone wants a formula or template they can apply to all business situations.  That shifts the responsibility from the business leader to the formula.  But in the end, business leaders need to rely on their gut intuition and have the courage to step outside the comfort zone.

 

Adapting A Winner’s Mindset

 

How do you adapt a winner’s mindset?

This is really a difficult concept to grab hold of because human nature is pushing us to play not to lose rather than to go for the win.  A study was done and it found out that most people get twice as much joy from not losing as they do from winning.  Lose aversion creates risk aversion: “I don’t want to lose what I have.”

My father was a basketball coach so from a very early age the idea of winning was a way of life. I was conditioned to want to win and, therefore, not only to think like a winner, but more importantly ACT like a winner, which means having the internal drive that says, “I want to win” and then focusing on preparing for competition, execution and moving forward.

 

“If you do not have a winner’s mindset, odds are you will not succeed.” –Tom Panaggio

 

The truth is business does not support the theory of, “It’s not whether you win or lose, but how you play the game.”  In business you not only better play the game right, but you have to win, too. Competition in business has no level of compassion, you either want to win and then act like a winner or you get eliminated.  So if you do not possess a winner’s mindset when you launch a business, the odds are you will not succeed.

 

Using Failure to Succeed

7 Tenets of Taxi Terry

It Started With A Question

 

“Are you ready for the best cab ride of your life?”

When the door slammed shut, Scott McKain wasn’t only taking a cab ride to his hotel.  He was embarking on one of the greatest customer experiences he could imagine.  Not only would Scott enjoy a memorable cab ride, he would exit that taxi with lessons that can make a difference in every business.

 

“Passion without effort equals failure.” –Scott McKain

 

The taxi driver, Taxi Terry, didn’t know that he had just picked up my friend, bestselling author, extraordinary professional speaker, and customer service expert Scott McKain.  Of all the people in the world to pick up at the airport, Taxi Terry picked up a global expert in standing out, in the art of distinction. In fact, he is the Chairman of the Distinction Institute.

 

7 Tenets of Taxi Terry

  1. Set high expectations and then exceed them.
  2. Delivering what helps the customer helps you.
  3. Customers are people, so personalize their experience.
  4. Think logically and then act creatively and consistently.
  5. Make the customer the star of your show.
  6. Help your customers come back for more.
  7. Creating joy for your customer will make your work–and life–more joyful.

 

That simple, enthusiastic question, directed to an exhausted traveler one night was the beginning of a customer experience that tens of thousands of people have learned from. Scott has presented the lessons he learned to audiences around the world.  And the lessons are now available in a new book, one that will inspire you.  7 Tenets of Taxi Terry is sure to be one of the enduring business books that will come up in conversations everywhere (yes, even in a cab!).

 

“If you want your business to get better, the first step is for you to get better.” –Scott McKain

 

Do You Want to Create Memorable Customer Experiences?