BOSTON — What do large family-inspired business conglomerates like the SM Group, Unilab, Jollibee, Ayala Corp., JG Summit andAboitiz Group have in common?
Every year, around the third quarter, the business unit heads of these companies are busy finalizing pre-strategic work plans for 2017.
Multinational corporations (MNC’s) are also abuzz with dedicated calendars all pointing to their much awaited strategic planning calendar.
ASEAN business advisors like us consider August to November as our busiest and most punishing four months facilitating strategic sessions in the region. August and September alone will take me to five countries! Work is more fun than fun.
Strategic plan as your compass
Most business owners or managers recognize that a strategic plan is a directional map for where their companies are headed and how they intend to get there. However, it is much harder for them to understand what goes into the strategic planning process. Why? Family business leaders belong to a transactional culture, meaning a very selling-oriented environment where the only discipline they know is sales and more sales year-in and year-out. To them, strategic planning sessions are a waste of time and will not result in any concrete and visible result in the immediate term.
Businesses must watch out for the 3Cs and the Real C
When doing Strategic pre-work planning, you must always focus on the three main C’s–competition, competitive advantage (company) and customers. But due to the volatility of the market, I deem it imperative to incorporate another C: complexity. The borderless competition and the complexities of the market have made strategic planning very crucial.
The latter is best done when a company looks at its past, present, and future in light of its changing environment. It is the process of thinking about the company and its related environment as an integrated whole. A process during which an executive “planning team” is organized to consider three key questions on a continuous basis:
What is our business?
Where do we want to go, and when?
How do we get from here to there?
Strategy is a continuation of a long-term plan of action designed to accomplish a desired set of goals. Your strategy relates to why and how your plan will work, relative to all the influences upon your company and its activities (in particular, its customers and competitors). I have seen throughout many consulting engagements that something has been missing.
Managing a family business is tough
A successful business is often the best thing that can happen to a family – and the worst.
“Keeping a family business alive is perhaps the toughest management job on Earth,” says John Ward. But without a clear management strategy, things could get even more awry for everyone – from the family patriarch who heads the business down to its members and staff.
It all starts with a vision you have for your company. Is that vision still relevant? Is it being accurately and concisely communicated throughout the company? If not, the outcome can be far from what you envisioned.
Vision Mission Values (VMV)
Jack Welch of General Electric fame accurately points to VMV as a powerful starting point and he says, “Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.”
While reading this article, why don’t make a review :
1. Vision – Is the original vision still appropriate in terms of market trends, opportunities and threats?
2. Re-energizing – What is the best management structure for the future, especially in terms of outside advisers and non-family managers?
3. Values – Do the values, skills and ambitions of the next generation in the family match their wishes, abilities and views?
4. Continuity – What is the company ethos, family involvement and how are decisions delegated?
5. Governance – What strategies can be adopted by which the family can resolve conflict?
6. Resources – What actions, support and resources are required to maintain the business into the future?
For instance, if you plan to expand to another territory or introduce a new product or upon the prodding of your son (working in the family business) launch a social media marketing campaign to appeal to a broader, younger, Internet-savvy audience, did you initiate some form of survey for your marketing team whether they are familiar with social media?
How about your sales team? Do they have the experience in generating online leads? And most importantly, does your product make sense for this new audience?
To be continued…