I talked in the last blog about looking for the needle movers that really drive your business. Yet, there are so many situations where the team knows these don’t exist and sets out to create a transformation strategy. I will talk about how to build that in the coming weeks, but today I want to focus on the essential preparation phase where you create the space for a transformation and buy time.
Most transformations are triggered by new leadership, external events or an incumbent team deciding to stretch for the next level of performance. What you do before you have the new strategy can make all the difference to your stakeholders. Whether that’s your team and their receptivity to change, your shareholders and their readiness to back bolder plans or your Board and key supporters understanding and advocating the new direction. Confidence in you and your team really matters in these moments. Your strategy work will need deep thought and careful preparation. It can’t be rushed but you rarely get to stop the clock on performance in the meantime. So how do you approach this dilemma and use it to your advantage?
First, create an anthematic but execution focused workplan for the year ahead. Create expectations of a strategy reset and clear timeline, but meanwhile focus on a short list of near-term accelerators. You can unlock real value in the short term by galvanizing incremental energy against the best thematic ideas you have. The leader needs to be both auditor (objectively testing for the areas with greater impact) and editor (removing political and nice to have activities that dilute focus). Bring it together in a short list of must win battles, theme them and communicate constantly. Opportunity and progress. Recognize and nurture the incremental energy and focus.
Second, add real flesh on the bones of this approach with accessing your hidden treasure trove. Data driven deep insights into your reality with the consumer and customer. So many organizations have plenty of data but simply don’t use it enough or in the right context so that people ACT. I call it a treasure trove because you always find an incredible number of highly practical, actionable ideas that can be worked on in short lead-times. If your program creates directional themes, this workstream defines the specific opportunities. Work to unite sales, marketing and supply chain around the opportunities and ask them to solve some of the simple barriers that have held back progress. By focusing exclusively on what’s in market or imminently launching, everything is by definition actionable. Blend external and internal data. Blend the customer and the consumer perspective. Look over time not just in short run data periods to see what’s really happening. By working to a practical product level (SKU is often too deep, product line often most meaningful) and cutting data from every angle you will reveal multiple opportunities: share under trades in key formats and channels, pricing out of line with your guidelines and strategy, regional variation, emerging formats and underpenetrated innovation. We deploy this playbook every time we work on strategy or M&A deals. The insights come in days and weeks. The approach creates short lead-time activity to get your results moving. At the same time, the process generates confidence and resources that support your more ambitious strategy once it is developed. Since you are looking at growth accelerators for your core and activity already in-market, it is almost impossible to create regretted moves or undermine your long-term thinking.
In this process you galvanize incremental energy from your campaign and the expectations of a transformation. You channel it near term to greater commercial success with incremental wins. You prepare the way for the culture and implementation your strategy will need, and you create space to work through the detail of your future transformation. Rather than wait for the strategy, you get started on building the foundation for it.