STRATEGIC ADVANTAGE: ASSURING SURVIVAL & SUCCESS!
”Bob, I can’t tell you how scary the future is!” stated Jim, CEO of a leading oil and gas process equipment engineering firm. This was said with a strong sense of anxiety. “I thought that we would have already started to come out of this economic mess. From the latest I’ve been hearing, the upcoming year is forecasted to be as challenging, if not more, given the global economy. We’ve kept outselves out of the red so far, but have an ever pressing need to assure that we come through this upcoming year with minimal damage to our ability to be on top of the recovery curve when it actually arrives! That’s my mandate from our Board!”
“Given that, what’s in survival and readiness for your organization?” I asked. “Quite frankly I’m running out of options and that’s what I would like to explore with you. Are there any other ways I might approach this?” Jim replied.
“Well, as you know in our coaching relationship I don’t provide advice, counseling, consulting or therapy. However, that doesn’t stop us from brainstorming some creative approaches and cherry-picking those ideas you think and feel will work for you. I’m never attached to what it is I share with you. Choose what will work for you.” I stated. “Hey, that’s just what I want!” Jim quickly responded.
In our following coaching exchange, a key piece discussed was to encourage Jim to step back and look at his oganization in it’s entirety. Support him in breaking it down into sub-components that could be viewed individually, but with the full understanding that each component still has a significant effect on the whole organization. A powerful framework shared with him in our coaching conversation was McKinsey & Company’s 7-S Model used to diagnose organizations and establish a base from which to make necessary organization design changes that would help Jim deliberately work toward assuring his firm’s strategic success.
Although there’s really no best approach, Jim did confide that this particular model was most helpful in ensuring the organization is in an ideal position to positively respond to the business world around it. From our conversation he learned that there are seven key aspects to his organization that are critical, maximizing his organization’s effectiveness at the individual, groups/team and system wide levels. Again, McKinsey & Company referred to this model as the 7-S Framework that was reviewed with Jim as follows.
1. STRATEGY: “ What are the sources of sustainable competitive advantage (e.g. cost, quality, service, technical leadership) Jim’s firm has? “ What are the key strategic priorities (e.g. penetrating new markets, new product, development, speed-to-market, improving customer service) Jim’s firm has?
2. STRUCTURE: “ What’s the basic structural form of Jim’s firm? “ How centralized or decentralized is Jim’s organization? “ What is the relative status and power of each of the sub-units of Jim’s organization?
3. SYSTEMS: ” Does Jim’s firm have the systems it really needs to run its business (e.g., does it have a system for monitoring staff and customer satisfaction?) “ What are the management systems that Jim and his executive leadership team use to run his organization? What ones do they pay the closest attention to? Need to pay the closest attention to?
4. STAFFING: ” How does Jim’s organization recruit and develop its people? (e.g. formal training, coaching programs/services, stretch programs, developmental assignments, etc.) “ What are the demographic characteristics of Jim’s executive leadership and lower management teams? (e.g. background, education, age, gender, nationality, professional identity, experience outside the firm, etc.) “ Where are the strongest leaders found in Jim’s organization (e.g., in which functions)? The weakest?
5. SKILLS: ” What business activities are Jim’s organization distinctly good at performing? “ What new capabilities does Jim’s organization need to develop, and which ones does it need to “unlearn,” to achieve strategic advantage and compete in the future?
6. STYLE: ” How does the top leadership team make decisions? (e.g. in formal meetings, informal conversations, in the field, with staff, with customers, in product development, etc.) “ What are the demographic characteristics of his leadership team? (e.g. background, education, age, gender, nationality, professional identity, experience outside of his firm, etc.) “ Where are the strongest leaders found in his organization (e.g. in which functions)? The weakest?
7. SHARED VALUES/GUIDING PRINCIPLES: ” Do people in Jim’s organization have a shared understanding of why the firm exists? “ Do people in Jim’s organization have a shared understanding of the mission/vision of the firm? “ What types of issues receive the most and least attention by Jim and his executive leadership team? (e.g. short run versus long run, internal versus external, etc.) “ How do people in Jim’s organization describe the ways in which his firm is distinctive? (e.g. focus on quality, emphasis on people, importance of customer satisfaction, etc .)
“This is exactly what I was hoping to get our of today’s coaching conversation. You don’t even have to ask me if I’m up to answering these questions and submitting them to you by our next coaching meeting.” Jim enthusiastically offered.
“I’m quite excited for you my friend, and frankly I can’t wait to hear what you come up with and how you think and feel you ‘need to be‘ as CEO in supporting where your organization needs to go from here!”
I invite you, the reader, to let us know what your key ‘take aways’ are from this discussion with Jim. What piece(s) would you like to personally cherry-pick and run with. As always, I’d love to hear your reactions and contributions to this coaching discussion. Take care!
This entry was posted on Sunday, January 24th, 2010 at 7:16 pm and is filed under Business Coaching, Executive Coaching, Organization Development. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
