Better Strategic Reviews

“It’s hard to remember your original objective was to drain the swamp when you’re up to your [bleep] in alligators...”

How do you keep your eye on the strategic “ball?” Everyone tells you to watch the forest as well as the trees, but its a hard thing to do. There are so many tactical issues to deal with, we tend to put strategic reviews off. After all, if a strategic issue is really important, it will bring itself to our attention. Won’t it?

Yes, it will. Unfortunately though, strategic issues tend to bring themselves to our attention in the form of crises. Like key customer defections, competitive break-throughs, and precipitous sales declines. The whole purpose of regular strategic reviews is to identify strategic issues so they can be dealt with before they become crises.

In many companies, strategic reviews tend to be internal affairs. But there are two problems with these.
(1) Most business unit leaders are reluctant to expose themselves to a potentially image-damaging review by peers with whom they may be in competition with for the next promotion. Subordinates are safer participants, but may be less productive due to a reluctance to voice what may be seen as criticisms by their superiors.
(2) Insiders can find it hard to be truly objective—they tend to over-value strengths and under-estimate weaknesses.

Adding outsiders can increase the value of a review. Some smaller companies use all outsiders, in the form of an informal “board of directors.” This can be a good solution—you are probably more ready to listen to people you’ve personally selected and who you are not competing with. Of course, you have to be ready to reciprocate and help them do the same for their businesses.

But just inviting a few professionals (from vendors or non-competing businesses) to participate along with your people can improve your review. If its too much trouble to form your own group, several vendors will be happy to provide one for you. Here in Cincinnati, I know Tim Shepelak (T.Shepelak@TheGrowthCoach.com) facilitates inexpensive sessions to help professionals and business owners do regular, periodic strategic assessments.

At the far end of the spectrum are strategic reviews conducted entirely by outside consultants. For this kind of review, internal people contribute mainly by answering questions and providing information. The results of outsider reviews can be very objective and enlightening, but expensive.

Some other thoughts:
You can reduce the frequency of strategic reviews if you are staying alert to your environment. Attend industry meetings. Continually ask your customers and vendors (1) what you are doing well, (2) what you could do better, (3) what the competition is doing (when was the last time you had someone check out your competitors’ websites?) and (4) what’s changing in your industry.

You can reduce the scope of strategic reviews by concentrating on one functional area per review; even separating operations from sales/marketing can significantly reduce the effort.
Strategic reviews can be painful. But every time I do force myself through the exercise, I always end up with business-building, money-making insights that totally justify the effort. If you’ve got a suggestion for easier or more effective strategic reviews, please share it with me, and I’ll pass it on in a future e-mailing.