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Performance Monitoring

When Strategy Stalls, Lead with Conviction

The best well-run businesses suffer periodic strategic decay.

Lizwe Nkala

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Conviction

A phenomenon of ‘strategic drifting’ can happen almost undetected, taking the business slowly offline with its markets and positioning.

How do you detect strategic drift?

You always need to see a fit between what you do and your customers’ needs. Invariably, the fit is evident in your costs to reach customers and the turn rate of your products on your sales scorecard.

Further, the more fit you have the higher the propensity of market adoption of your new offerings. Lack of traction on the above is a sure sign that your strategy has gone into orbit.

Re-strategise or lead?

The lead-time to re-formulating strategy and embedding it is long and tangible results may only be seen later.

Leadership, on the other hand, is instant, hands-on and gets the troops realigned to a new reality much faster.

Organisations are creatures of habit. Old behaviours in people take time to change and can frustrate strategic rejuvenation if not led with conviction from the
top team.

Focus on the right scorecard

The early days of strategic refocusing requires galvanising coordinated actions across the business to prepare it for a new strategy.

Measure and reward leadership for communicating and driving a new vision, structuring and aligning teams and being hands-on, before you focus on performance metrics.

Related: How The Strategy Pyramid Will Help Bring Your Ideas To Life

 

Lizwe Nkala is an influential corporate strategist working at executive and board levels of large corporations. He is the MD of Flamingo Moon Consulting and a founding partner of the Strategic Thinking Institute, where he coaches executives and presents tailored strategic thinking seminars and webinars, and provides strategic thinking tools and templates on a subscription basis for corporate clients. For more, visit www.flamingomoon.co.za

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Performance Monitoring

8 Lessons Rugby Can Teach Us On Achieving Peak Performance In Business And Life

Business is the ultimate test of wills, focus, determination and pushing through the pain when things get tough. In fact, if you can take lessons off the rugby field and into the boardroom, you’ll be a better entrepreneur.

Simon Hurry

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Building your own business from scratch is tough. It really is not for people who enjoy predictability, low risk and comfort. There are often times of doubt, discouragement and outright confusion, accompanied by frequent unpredictable moments that can challenge your sense of humour and test your resolve.

So why do it then? Because you can. Because there is something in it that just makes the effort worthwhile.

I’ve been on my own entrepreneurial journey for the last ten years. I’ve always been interested in how human behaviour affects performance and so I’ve been drawn to work in competitive environments. These have included both the corporate world and sports, and I’ve learnt that there are a lot of overlaps between the two.

As an ex-rugby coach and someone who is currently still involved with international and provincial rugby, there are a lot of rugby lessons that are extremely valuable in the business world.

If you want to achieve peak performance in life and business, here are eight key lessons that you can learn from rugby.

1. It’s all about overcoming resistance

What gave you the belief that just because you had an idea that you knew would change lives and make money, the universe would lay down a red carpet for you and invite you to dine at the table of greatness?

In this scenario, setbacks come as a surprise, competition is seen as unfair and you discover alarmingly that the economy and your bank manager, strangely enough, are geared towards debt and failure rather than success.

You are the only one who believes. Remember that. This is your desire. If you don’t like being tackled you shouldn’t play. The same with your business. If you don’t like the hard hits, pick employment.

Related: 5 Things Businesses Can Learn From Rugby

It’s up to you to get it to work and that means you are about to learn to push through: Three steps forward, five steps back, ten steps forward, two steps back, four steps sideways, one step forward…

Remember This: If you don’t believe that your destiny lies in your idea, you will give up. Guaranteed.

2. Passion does not last

Getting psyched before a game is all good and well. Yes, it makes you feel invincible, indestructible and as close to superhero status as humanly possible. But in the end, passion is just an emotion, and emotions can change. Very quickly in fact, especially after your first hit.

Don’t get me wrong. Passion is a fantastic emotion, but to base the success of your endeavours on an emotion is naïve and even reckless.

There is nothing glorious about the hard graft, no matter how you paint it. It’s sweaty, bloody and thankless. This is why desire is so important. Desire is deep seated and rooted in purpose, not emotion. It fuels the hard graft.

Remember This: People only care about what you do with the ball, not what you did to win the ball.

3. Control the ‘controllables’

A rugby ball is peculiar in that it has an unpredictable bounce. Life is like a rugby ball. One day it can stay in the field of play and you win the game. The next day it bounces out and you lose the game. Same ball. Same circumstance. If you don’t understand this, it can mess with your head.

If you try and control what is impossible to control, you will simply blow your mind, and your mind is your greatest weapon. Don’t give it an impossible task.

You can control what you do every second of the day.

You can control how you respond.

You can even control how you play the game.

You cannot control people.

You cannot control the economy.

You cannot control what is going to happen tomorrow.

In fact, your real genius will lie in how you handle the unknown and the unpredictable.

Remember This: Do what you can to control the bounce but don’t take it personally when it does not go your way. Just respond.

Related: Servant Leadership – Will You Serve?

4. Hit or be hit

If you’re passive in the tackle, hesitant or just put your head down you can get yourself into serious trouble, even break your neck.

Don’t avoid problems, tackle them. The key here is to ensure that they don’t build up momentum. The faster they are going, the bigger they seem to be. Hit them early.

Move towards them, get yourself into position and hit them hard, making sure you take them to ground, otherwise they can keep going.

Remember This: Fear is a killer when it comes to the hits. The problem is only as big as you make it out to be.

5. Play your game

rugby-rules

Rugby is unforgiving to the team that tries to play a game plan that is borrowed from another team. The best teams in the world build a plan around who they are. They don’t force a game plan on the team, they take an individualised, tactical approach.

Your individuality is your greatest competitive advantage. Build everything around who you are, but keep an eye on why you are there. This is not an ego trip. You are there to get the job done better than anyone else.

Remember This: Use your uniqueness to craft an approach that is close to impossible to replicate by your competition.

6. Rugby has rules

In rugby, every time you break the rules you lose possession of the ball. Do it continuously and you can lose a player. Do something really bad and you never see the player again.

Innovation and invention are key change drivers. It’s what allows entrepreneurs to disrupt a market and attract new customers. But, contrary to the myths out there, disruption is not about breaking the rules; it’s about exploiting the rules.

The team that usually wins knows how to use the rules to their advantage. The same in business. So, if you really want to disrupt, change the rules. Ignore or break them, and you may find yourself with very little left and a whole lot of angry fans.

Remember This: The rules define the game. They make the game possible. Take the time to understand them. Then exploit them to your advantage.

Related: 4 Ways To Continuously Develop When Running Your Start-up

7. Play into space

A crowded space on the field is busy, dirty and messy. It’s where you stand the greatest chance of losing the ball. The key in rugby therefore, is to create space. It is space that allows you to gain ground and set up a chance to score. Yes, the busy space is inevitable but to make it ‘normal’ is foolish and unnecessary.

You want minimal contact and maximum space. It’s the same in your business.

De-clutter and simplify. Keep things tidy. Do everything you can to avoid complex, messy situations that can bog you down and cost you unnecessary energy. But this will only be possible if you have a clear, tactical vision that keeps you moving into clear space that is easy to dominate. It has to be part of your thinking and planning. If you just ‘wing it’ you might be alarmed to find yourself in an expensive version of U9 rugby.

Remember This: Always look to create fresh space. Just make sure you are running in the right direction.

8. Know who you want in your team

Rugby is played by 15 players who are on the field to each play very distinct roles. Each role is an important piece of the larger puzzle and demands a very specific skill set, physical attributes and mental approach. You cannot simply just change position. Yes, some roles do allow for more flexibility and a fullback can play flyhalf. But a lock will never be a hooker or a prop. The best in the world play one position. Only.

Do you know who you need in your business or are you relying on ‘jack-of-all trades’? This may be great for a Sunday pickup game but if you’re aiming for the big leagues, plan properly. Don’t think for a moment that your generalist will suddenly become a specialist either. That is the quickest way to destroy talent. Ask any player who has been labeled a ‘utility back’.

Remember This: Specialisation is not an evolution. Be prepared. Start with great people who know exactly what they’re doing and put them exactly where you need them.

Pulling it all together

Above all else, never forget why you’re playing the game. Prepare to win. Practice to win. Play to win. Stay humble. And never forget that personalities make the game.

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Performance Monitoring

Learn From The Best: This System Helps Google Measure Their Success

Setting goals within a company is easy. Communicating these goals effectively and measuring the extent to which they have been attained is not nearly as easy, though. That’s why Google uses Objectives and Key Results.

GG van Rooyen

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During the (very) early days of Google, ex-Intel employee John Doerr introduced the young company to a management system called Objectives and Key Results — OKRs for short.

Rise of the OKR

“Kleiner Perkins had just invested in Google, and as a strong advocate of OKRs, I offered to introduce the OKR system to Larry, Sergey, and the leadership team,” recalls Doerr. “The entire company was standing around a Ping-Pong table and I walked them through the goals, benefits and implementation details of OKRs. Larry and Sergey saw the value immediately.

“They liked the idea of having a quarterly set of priorities for the company. It took a couple of iterations, but we figured out the right cadence and model and to this day, Larry writes his own personal OKRs and Google’s corporate OKRs every quarter. In my experience, this is a trial-and-error process and it usually takes a company one to two quarters to figure out.”

The concept wasn’t new, not even during the early days of Google. In fact, it had been around since the 1970s. Intel COO and business legend Andy Grove was looking for a way to improve focus within the organisation. How could he keep all employees accountable and focused on the same goals.

The answer was a new system called Objectives and Key Results, which had been created inside the organisation. It was a great success and many prominent business people became huge fans of it (including John Doerr), but it was really when Google started using it that it truly gained widespread appeal. Google, after all, is seen by many as the Platonic Ideal of the modern organisation.

Related: 5 Inexpensive Ways to Create a Company Culture Like Google’s

Basics of the OKR

So what are Objectives and Key Results exactly? There is nothing particularly novel or groundbreaking about the system, but it packages typical management ideas in a way that makes them accessible and measurable.

Here’s how it works. Around five objectives are selected every quarter (the timeframe is important), and each objective is given a set of ‘key results’ that are measurable and can be scored.

So it might look something like this:

Objective:

Increase traffic to the company’s website.

Key results:

  • Create a Facebook page and Twitter account that can drive traffic to the website
  • Build an audience on Facebook and Twitter through regular posting and sponsored posts
  • Write at least four blog posts per month for the website
  • Create effective Google ads promoting the website
  • Create three items of sponsored content for posting on popular new sites that will drive traffic to the company website.

From the above it should be fairly clear what ’objectives’ and ‘key results’ are, and how they are related. An objective, within the OKR context, is an outcome that is specific and highly desirable, but not particularly measurable. A result, meanwhile, is a measurable activity that will assist in the achievement of the objective. In other words, key results are a list of actionable items that will lead to the achievement of the overall goal.

Employees are scored on each key result, with the maximum score being 1, and the minimum 0. A good score would be 0,6 or 0,7 (any higher than that and you have to question whether the chosen key result was too easy.

Key results should be tough but attainable), but the process is much more important than the actual score. Also, low scores should be used to reassess what the company is spending its time and resources on. Why are scores low? How crucial are these results? Should we be focusing on different key results to get to our objectives?

Related: How To Know If You’re Focusing On The Wrong Types Of Staff Skill Enhancement

OKR in practice

how-to-achieve-objectives

Although the implementation of OKRs will differ slightly depending on the company you look at, most systems tend to have the following things in common:

OKRs are selected on a quarterly basis: To maintain momentum and ensure that everyone is always actively working towards the achievement of a goal, the timeframe of an OKR should be relatively short. Knowing that a deadline is always on the horizon keeps everyone focused and accountable. Some companies have monthly OKRs, but most tend to settle on quarterly objectives.

They have hard, non-negotiable deadlines: There’s no point in setting monthly or quarterly OKRs if employees know that deadlines can be shifted if necessary. In order to maintain focus and urgency, deadlines need to be absolute.

Everyone gets about five quarterly OKRs: Give employees too many objectives and they’ll lose focus, or become utterly overwhelmed. John Doerr recommends four to six OKRs per quarter.

OKRs are public: A lot of companies — including Google — choose to make OKRs public. Google makes all employees’ OKRs (including those of the founders and other C-suite executives) available for everyone to see. They can all be found on the organisation’s internal directory. Scores are also public, which reinforces commitment and ensures accountability.

They can exist on different levels: OKRs need not only exist at the level of the employee alone. Teams, departments or even the company as a whole could be assigned quarterly OKRs. It’s important, though, not to overcomplicate things — the whole aim of OKRs, after all, is to keep things simple. Start adding layers and layers of OKRs on top of each other, and the whole system will start breaking down. The aim is to increase focus, so keep things simple and straightforward.

Related: 3 Sure Fire Ways To Improve Efficiency And Find Your Business’s Productivity Sweet Spot

The benefits of OKRs

If all of the above sounds like a lot of work, it’s worth taking a moment to consider what the advantages of OKRs are. According to John Doerr, implementing Objectives and Key Results in a company offers the following benefits:

It encourages disciplined thinking: By focusing on objectives and key results, you learn to look at your business in a very disciplined way. The unimportant things fall away and you start to notice what the major goals should be.

Assists with communication: Public OKRs give people a good idea of what the rest of the organisation is working on, which helps to keep all employees on the same page. There’s less chance of a communication breakdown if everyone knows what the responsibilities of everyone else are.

It makes things measurable: Even the most focused goals can be tough to actually track. What does success look like? When can you tick it off the list? OKRs provide measurable indicators that allow you to track the progress of employees in a meaningful way.

It encourages focus: Making OKRs public not only improves communication, but also keeps everyone in step and focused on the same goals.

By using OKRS, you allow the important objectives within your organisation to reveal themselves. This won’t necessarily happen immediately. There will be some trial and error, but by sticking with the process, you should reach a stage where you have a very good idea of what you should be focusing your time and resources on.

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Performance Monitoring

Expand Your Business View By Stepping Into Your Competitor’s Shoes

How do your competitors see your strengths and weaknesses? The answers just might surprise you.

Allon Raiz

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I’ll never forget the level of frustration I felt a few years ago when I arrived at my monthly meeting with my mentor. My team and I had pitched for a major deal, attended meeting after meeting following the pitch, and were then shortlisted for the final round where we had to present once more.

At the final presentation, one of the awkward questions we were asked was to define why we were better than the other two finalists.

Initially, I resisted responding to this question, and instead answered by highlighting the strengths and benefits that we as an organisation offer. They pushed and pushed for an answer, but I stood firm on my decision not to answer the question directly. Eventually, someone across the table said: “But your competitors answered the question without flinching.”

I settled into my seat at the table and asked my mentor how he would have approached that particular situation. “Secretly answer the question from your competitor’s point of view,” he said.

The confused look on my face encouraged him to elaborate on that comment. “You did the right thing by not criticising your competitors in public, but ironically, the gift is in the scenario. You need to be able to anticipate what their answer would be if asked about your weaknesses, and then ensure that you acknowledge, list and work on those weaknesses.”

Related: Business & Leadership Lessons from Kumaran of Spartan

After a long pause, during which I sat and considered his advice, he looked up and concluded: “Most importantly, also anticipate the answer they would have when answering the question: What does your competitor have that you do not currently have to offer?”

Place yourself in your competitor’s shoes (company B), and then answer the following questions about your own business (company A), from company B’s point of view:

  1. What does company A actually do?
  2. What makes company A better than company B?
  3. What are company A’s weaknesses?
  4. What should company A be concerned about?

You’ll be surprised by the information you evoke by partaking in this exercise. Too often, entrepreneurs suffer from the side-effects of drinking too much of their own marketing ‘Kool-Aid’, and as a result, become blinded to not only their weaknesses, lack of competitive edge, and product flaws, but they also end up failing to identify and highlight their less conspicuous strengths, competitive edges, and product benefits.

Entrepreneurs often follow a mechanical routine of only selling the strengths that are listed in their marketing brochure to investors or clients, and very often forget about their other strengths, which their competitors are all too aware of, and have listed as notable threats.

As a business owner, you should be selling and driving all of your strengths, even if they are not all listed in your brochure.

Related: Love Your Competitors…They Are Keeping You in Business

When planning your next pitch, don’t focus solely on the script of your marketing brochure. Spend the day in your competitor’s shoes and use this new lens to identify and list your strengths and weaknesses as your competitors may view them. This is vital information that must be added to your next pitch.

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