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Friday, November 22, 2013

Are Strategic “Leaps of Logic” Leaving You Dazed and Confused?

By: Gail Stout Perry

Have you ever known someone whose brain works faster than they can talk or write?  They often appear to be making leaps of logic when actually, their brain is working through logical steps but they are only communicating their first and last thought in the flow...not the thoughts in the middle.  I have found that many CEO’s suffer from a similar “problem.”  Often, they have a strategy in their heads yet it appears to others that they have made a giant leap from vision to KPIs or initiatives.   So while the CEO usually understands how the pieces fit together, most employees are not mind-readers and cannot follow the “leaps of logic”.

This point was vividly illustrated to me in a phone call I had last week.  A CEO called to say he wanted to use a balanced scorecard – he had seen a competitor company achieve outstanding performance which they attributed to their use of balanced scorecard.   Furthermore, he had already figured out the five most important KPIs for his own company...and he asked if we could help him get the managers and employees in his 36 locations to understand and get motivated to take action in alignment with these 5 KPIs. SIGH....I knew it would be a long conversation but he was so sincere and motivated that I dove in and began to try and pull the “middle part” out of his head by asking him questions.

He had a very clear picture of the future state of his company and his descriptions were compelling and detailed.  As we talked, I began to loosely translate his word images to strategic objectives...I could almost create a strategy map from his stories.  And that’s ONE point:  A strategy map tells a story, it paints the picture of the organization’s future state and how it plans to get there.  He seemingly skipped this and other important steps when he leaped from vision to KPI’s and, therefore, he was missing the logical linkages.

Furthermore as I helped him cross-walk his 5 KPIs to the potential objectives,  I was able to show him that his KPIs were all in the results perspective(financial and customer)...he hadn’t fully considered the  driver KPIs that would be needed until I asked enough questions to start teasing the driver strategic objectives out of his head.  In other words, he was asking his employees to focus on end results without articulating a strategy to achieve those results.

After about an hour he said, “I get it.  I skipped the middle part and that’s the MOST important part. I was told that there is a LOT of work to get to meaningful and strategic KPIs but I didn’t understand the middle part.  It is truly important.”   Eureka!

And one final point that I made ....and which he definitely understood:  no matter how smart and fast-thinking he is, if he doesn’t involve his team in the creation of strategy and the strategic balanced scorecard, they will be unlikely to buy-into or actively engage in improving the company’s performance.  He knows that he must SLOW DOWN and let other not only catch up, but have a SAY in strategy and KPIs. 

Are you a fast-thinking CEO who “skips the middle” or do you work for someone who does?  You may enjoy other real stories and examples in the The Institute Way:  Simplify Strategic Planning & Management with the Balanced Scorecard.

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Gail Stout Perry

Gail Stout PerryGail Stout Perry

Gail is co-author of The Institute Way with over 20 years of strategic planning and performance management consulting experience with corporate, nonprofit, and government organizations.

Other posts by Gail Stout Perry

Contact author Full biography

Full biography

Gail is co-author of The Institute Way with over 20 years of strategic planning and performance management consulting experience with corporate, nonprofit, and government organizations. She served as a Senior Associate with BSI from 2008 until 2016.

Gail became interested in operations, efficiency and patterns as a toddler struggling to participate in her mother’s kitchen.

“I tried to explain to my mother how to better organize her kitchen. She was wasting motion plus the kitchen wasn’t user friendly to me, its newest user who could not reach the things I needed to be self-sufficient—so, she had to help me. Mom could have saved herself work if she’d accepted my recommendations.”

During her career in aerospace and defense, Gail developed deep experience in operations, finance/accounting, information technology, human resources, purchasing/inventory management, manufacturing, engineering design, and sales and marketing. Today she consults with Fortune 500 companies, large military commands, government agencies and nonprofits.

“My diverse experience helps me be a better consultant by bringing new ideas and solutions to my clients when I see a connection or pattern to something I’ve experienced or observed in another industry/sector. There are common denominators, operations and issues across organizations. Just last month, I heard the same operational issue from a Fortune 150 and a city municipality—two organizations that couldn’t be more different.”

With clients in diverse sectors all over the globe, Gail’s adept at quickly understanding business models and cultural norms, and creating a positive impact. Prior to joining the Institute, Gail owned and operated Perry Consulting LLC, a North Texas firm focused on providing performance improvement consulting services to the nonprofit sector. It was in this role that she first realized the transformational power of an integrated strategic balanced scorecard while working with her client, Susan G. Komen for the Cure, to improve its strategic planning, performance management, budgeting, and employee alignment processes.

“I’ve learned how to quickly absorb information and get my head around an organization, what it does, how it does it, its key processes and challenges, and learn its unique culture and language. And I have a way of explaining things that makes the seemingly complex simple.”

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