Connect with us

Leadership Conversations

If We Are To Have Real Growth And Development Nationally …. We Must Grow Our SME Sector.

Published

on

ladies and gentlemen, I have noted that the title of opening plenary is: Entrepreneurship, Innovation And Growth: Unlocking The Potential In The Jamaican Economy. Implicit in this I suppose is the message that entrepreneurship and innovation have something to do with growth?
Is that an assumption that one could fairly draw?

Well I suppose that that is what we are currently hearing…we are told by the economic growth council to unleash our entrepreneurial spirit….we are told by the world bank to become more innovative….we are told by various members of the political directorate to take more risks and invest in new areas….so….it would appear that everybody is seeing the link between entrepreneurship and growth.

The private sector organization of Jamaica and the Jamaica banker’s association are finally reaching out to small and medium size entrepreneurs to get them to formalize their operations….all good…all commendable…but will it work? is it some form of magic bullet? or is it the beginning of a new paradigm that must be adopted by the entire society in order for us to secure our mature development as a society?

Let’s take a good look at where we are…lets set the historical context for the progress that we are trying to achieve….but first. let me take a moment to talk about the establishment of the access to finance facilitation panel that has been set up under the auspices of the PSOJ by the Jamaica bankers association with tremendous support from JMMB.

It is important to note that the current definition of the SME sector is business entities having between 1 and 50 employees and an annual turnover of less than one hundred and fifty million dollars….

The aim is to bring greater awareness of the SME sector to the governments access to finance reform agenda and to provide input and support for the adoption and expansion of the access to finance program across various stakeholder sectors through a process of education, facilitation and coordination…

The project has two streams. Access to finance…. and a reverse factoring program which is being developed in conjunction with DBJ …. receivables are a real big issue with SME’s….cash flow continuity is critical to the life of a small business…
We hope to foster better relationships between the banks and small businesses.

Simplify the credit processes to make them easier and more transparent for MSME’s …

We want to train the MSME’s in formalizing, regularizing and structuring their business processes and unlock additional capital to allow for business expansion…

The program has been rolled out and will continue with a series of workshops to facilitate all of the above and to create a user friendly and harmonious relationships among the stakeholders…

I am asking our business sector to suspend its cynical disbelief and support this program fully as it can be a valuable tool to reduce the marginalization and inequality in our economy …

Back now to our historical context.

I submit to you that every successful and progressive society stands on three pillars …three foundation stones…the state….the community and ..the market…the market being the private sector ( commerce)…

If those pillars or foundation stones are not properly balanced and proportional to each other the progress of the society will be threatened.

For a society to be successful…the state must be strong, effective, facilitative and corruption must be controlled…the community must be educated and skilled, united in common goals and the degree of marginalization and inequality must not be so great as to be an insurmountable barrier to the success of the average citizen with ambition and drive…

The market (the private sector) must be innovative…agile…well capitalized and technically competent and well regulated…

If these elements are not present…there is a great potential for social disorder…individualistic and selfish behavior, corruption and antisocial activity…

For almost all of the six decades since Jamaica’s independence, the pillars …the elements referred to above have been unbalanced…

We started out in 1962 with a fairly strong private sector…but one that was substantially foreign owned…
a state that was inadequate in its preparation …..and unsure of its purpose….and a community that was exceedingly marginalized and full of inequality…..and yes we had growth.

But i submit that we made the mistake then..that if we are not careful we will make now..we had growth that was not inclusive…and since then by various experiments and adventures we have built the state into a towering giant that attempted to control the commanding heights of the economy and is the largest employer of low wage workers….

As a consequence of our excursions into uncharted and strange waters, we squandered resources on various experiments and adventures…and we wasted our patrimony on badly executed attempts thereafter by the state to borrow money and spend its way out of a stagnating economy as well as a badly executed effort to liberalize the financial sector…
The state became an inefficient and corrupt behemoth …and the private sector became a co- conspirator in the corruption …dependent on the state for its existence and ignoring true entrepreneurial capitalist endeavors in favor of lending money to the state and living off licenses and special privileges…..all this while the community grew increasingly marginalized…and individualistic in its indisciplined and divisive behaviors….

There is no question in my mind that the near catastrophic failure of our economy up to the last decade is a consequence of the imbalance described briefly above, and it would be worth our while to effect a study of our economic history to elicit detailed lessons so as to prevent a repetition in the future….

It has been due to the disciplined and enlightened work of strong leaders from both our public and private sectors and the enormous sacrifice and pain of our ordinary citizens that we have drawn back a little bit from the edge of the precipice …..

And ladies and gentlemen…any medium size external or internal shock can easily draw us back into the abyss…..any major international crisis involving the north American market ….or volatile oil prices…any serious natural disaster …
or …our failure to control corruption and crime and violence in short order…. can take us right back to square one…..and worse…

So …today this is where we are in economic terms….

Inflation at the rate of 3.9% at the end of April GDP growth of 2% for final quarter of last year with a projection of 1.5% for first quarter 2019 ….PIOJ estimate of 1.9% for financial year 2019 interest rates at all-time lows….country running fiscal surpluses and cash reserves ratio reduced twice in last six months….country is awash in liquidity …. investment is increasing …real estate is booming …. banks are buying insurance companies…insurance companies are buying banks…employment is increasing…

So what’s the problem?

Well…folks…the problem is that we are still suffering from the same difficulty of inequality and marginalization….good things are happening…but they are only happening for a minority of our people in the business sector….and that’s not development is it?

It may be growth …but it’s not sustainable development…. this has happened before…we had growth in the nineteen sixties, but it excluded most of our people and created fertile conditions for the development of social disorder…growth must be inclusive…the door to development must be opened wider…

In Jamaica today we have a highly informal sector comprising some 43% of Jamaica’s GDP in 2006…probably more now if you look at the money flows that the banks are reporting …

Our SME’s employ 70% -80% of our workforce….they represent 97% of all tax paying entities and are a significant contributor to our GDP….

But….only they get 11% of private sector credit and only access 26% of bank loans….so the majority of our SME’s are outside of the economic blanket…. illegitimate children of our unbalanced society and our marginalized economy…

We don’t have time today to go into the cultural history of our economy and the reasons why the SME’s have been left out …but what we can speak to is that the consequences of that neglect include corruption and indiscipline…crime and a lack of national commitment…

Worst of all …. ladies and gentlemen…SME’s are the fertile incubators…the spawning grounds for innovation and entrepreneurship…so if they are stifled we are stifling our future…

Ok…so if you are following my logic so far ….and if you are still awake. Then you will agree that if we are to have real growth and development nationally …. we must grow our SME sector…and the ingredients for growth exist.

The fact is that since 2016 there have been over one hundred interventions to assist MSME growth and development …. ranging from access to finance measures taken by the DBJ through institutional strengthening efforts …access to markets assistance …. capacity building and the reduction of informality of their processes…. however, ……these measures have not been taken up by the MSME because of various reasons including but not limited to……… Lack of awareness. Uncertainty and fear…and inability to conform…

So…our task is to push the access door for them and it must be done.

The sustainability of our growth depends on it …. the mature development of our country depends on increasing equality and reducing the wide variances of wealth.

The only feasible way to break out of the low wage trap is to empower our entrepreneurs and innovators to monetize their ideas and access capital.

Foreign investment is welcome but it’s just that …. foreign investment brings capital but its value added is destined for elsewhere….

We at the PSOJ believe that it is our task to reach out to our new businesses and to nourish them to viability…the state cannot do it by itself.

It can create the right facilitative environment and we must push for that…but the state doesn’t understand capitalism and profit…the private sector does ….and we must take up the challenge and build our own future from the tremendous birth right of creativity and energy with which have been blessed.

Fundamental to this effort is the need to map and unleash the assets that are trapped in our inner cities and our market districts.

Much of our global renown for creative culture and our sporting accomplishments come from the inner cities…and yet we continue to ignore these talents and force them to take their skills to the entertainment capitals of the world.

We have trapped our best and brightest in the prisons of depressed areas and keep them there with states of emergency and politics…

If we spent one third of the money recently spent on infrastructure …if we had spent it instead on our human capital and improvement of the depressed areas. The return on capital. The reduction of crime and violence.

The modification of the deviate behaviours would be the growth rocket that we keep wishing for…ladies and gentlemen .it is people that create growth. Not machines…not money. It is time that we understand that successful capitalism puts people first …. that growth and development must strive for inclusiveness or else our efforts will contain the seeds of failure…

The time for new thinking is now…and the time to act differently is here…let us open our minds to the possibilities of our own people and give our entrepreneurs the fuel to make our growth sustainable…
thank you for listening.

Speech Given By Howard Mitchell, President The Private Sector Organisation of Jamaica To The 4th Business And Management Conference – Mona School Of Business And Management.
Jamaica Pegasus June 10th, 2019

Continue Reading
Click to comment
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Leadership Conversations

The Global Economy – The Economies In Which Businessuite Top 100 Companies Operated

Published

on

The Labour Force Is Growing Less Than Before, And This Will Weaken One Essential Engine For Growth.

Welcome to this press briefing. We have just released, and it is on the internet, our Annual Regional Economic Outlook for the Western Hemisphere. This is a bit like the WEO, but for the region. And here we have two important messages, two key messages.

Need To Rebalance Macroeconomic Policies In The Region

The first one is that there is a need to rebalance macroeconomic policies in the region. And the second one is the urgency to press on with structural reforms to boost potential output growth. And I will explain this. The monetary policy part of the first message, the rebalancing applies to several of the flexible exchange rate and inflation targeting countries in the region with different degrees of intensity. The second message, the urgency to deepen reforms for growth, really applies to almost all economies in the region.

Over the last few years, the region has successfully weathered a series of major shocks in the world economy. They showed resilience and they have adopted really macroeconomic policies in most countries that are at the top of the frontier of what we know. And so far, largely the region has stayed in the sidelines, on the sidelines of global geopolitical tensions.

Now growth in the region is moderating as most economies are operating back near their potential. What is concerning, however, growth in most countries is expected to return to its low historical average and this will not help with the region’s macroeconomic, fiscal and social challenges.

Overall, we expect growth in Latin America and the Caribbean — if we exclude Argentina, which has an important rebound next year, and Venezuela with its own dynamics — growth will moderate from 2.6 in 2023 to 2.2 in 2025, going through 2.6 also this year, 2024. So, we’re going back to the lower part of the 2 percent around these baseline projections. We see the risks to near-term growth tilted to the downside, partly reflecting global risks, including importantly the persistent geopolitical tensions.

Turning to inflation, in line with global trends and also reflecting the effect of tight policies, inflation has fallen markedly since the peak of mid-2022, and it is near the target in most countries. However, it is not a target almost everywhere.

In the region, I would say that the last mile of this inflation has been rather long. We expect to continue to see easing of monetary policy, but gradually on account of sticky services and inflation expectations not being perfectly re-anchored and also because inflation risks are generally tilted to the upside, reflecting basically commodity price volatility — the factors that I mentioned before of geopolitical risks and also new risks of fiscal slippages.

So, with the output gap and inflation gap mostly closed, what should policymakers do?

We think that they need to focus on rebuilding policy space and working on boosting potential growth – the messages I mentioned at the beginning. This means rebalancing the policy mix and pushing forward with structural reforms.

Let me elaborate a bit more on the policy mix. The current combination of macro policies is generally not everywhere, but generally tilted toward tight monetary policy while fiscal policy remains loose. Although the earlier tightening of monetary policy by the region’s central banks was essential to bring inflation down, inflation is now close to target while monetary policy rates remain elevated in many countries. At the same time, however, public debt levels are high and will continue raising if we do not have fiscal consolidation.

So, at this juncture it is necessary to rebalance policies, starting with strengthening public finances. Most countries have quite ambitious fiscal consolidation plans, but their implementation –so from plans to reality — has been in such a way that they have been pushed back. It is crucial in the region that these plans proceed without further delays to rebuild the buffers while protecting priority public spending, investment, and social spending. Strengthening the current fiscal rules is also important so they can deliver these consolidation objectives.

A timely implementation of this fiscal consolidation is critical not only for fiscal sustainability, but also for supporting the normalization of monetary policy and the credibility of the frameworks more broadly. With fiscal policy moving in the right direction, most central banks will be well placed to proceed with the monetary policy easing that we expect, while remaining on guard, of course, against risks of re-emerging price pressures.

The Urgency To Press On With Structural Reforms To Boost Potential Output Growth.

Let me now speak about the second point, that is the need to press with structural reforms and I will go from need to urgency. As mentioned before, medium-term growth is expected to remain subdued, reflecting longstanding unresolved challenges which include low investment and especially low productivity growth.

Also, the region is suffering shifting demographics that will slow growth further. The labour force is growing less than before, and this will weaken one essential engine for growth. The impediments for growth are many and country specific, some are more common, and that reality is confronted with an ongoing reform agenda that is thin in many countries. This could lead to a vicious cycle of low growth, social discontent and populist policies. So greater efforts to advance with structural reforms are needed to boost potential growth and raise living standards.

We see that strengthening governance is a priority that cuts across all areas of growth. This includes, for example, reinforcing the rule of law, improving government effectiveness, and, importantly, tackling crime more efficiently. Improving the business environment and public investment is also needed to increase overall investment. While reducing informality and making labour markets more attuned to more productivity gains is important. This part of the labour market is also really important for women labour force participation, because this is one of the sources to offset the demographic headwinds.

Positioning The Region To Fully Harness The Benefits Of The Global Green Transition And New Technological Advances.

These reforms will also be essential in positioning the region to fully harness the benefits of the global green transition and new technological advances. It is disappointing that until now mining investment, for example, in the region has not picked up despite the new opportunities for green minerals. This suggests, and I quote here, “we can do better,” as the IMF Managing Director stressed in her initial annual meeting speech, that also applies to our region.

From our side, through policy advice, capacity development, and financial support, we are ready to continue engaging, supporting countries in their efforts to strengthen their macroeconomic frameworks and increase economic resilience and growth opportunities.

Rodrigo Valdes, Director, Western Hemisphere Department (WHD), IMF
Presentation made at a press briefing for the Regional Economic Outlook for the Western Hemisphere.

Continue Reading

Businessuite News24

Transforming Vision Statements: Choosing the Right Vision for the Right Time

It’s not that you lack vision yourself—after all, your success is built on envisioning possibilities and pursuing them. But translating that personal energy into an organizational vision that resonates with others is a different challenge altogether. Should you simply rewrite the vision statement, or is there a better way to achieve meaningful impact?

Published

on

As a leader, you recognize the importance of inspiring your team with a compelling vision. Yet, you may find that your company’s vision statement, despite its lofty aspirations, fails to inspire meaningful change. How can you craft and communicate a future that genuinely motivates your team to take action?

The Challenge of an Inherited Vision Statement

Imagine you’re a newly promoted CEO. Among the many responsibilities you’ve inherited is a vision statement. While it might look passable on paper, it has yet to inspire you, let alone your team, to embrace new behaviors or think differently.

It’s not that you lack vision yourself—after all, your success is built on envisioning possibilities and pursuing them. But translating that personal energy into an organizational vision that resonates with others is a different challenge altogether. Should you simply rewrite the vision statement, or is there a better way to achieve meaningful impact?

Here’s a fresh approach to this age-old leadership dilemma.

Understanding How Vision Truly Works

A powerful vision fundamentally transforms how we experience the present. Think about the difference between a Friday afternoon in the office and a Sunday afternoon. The former often feels better—not because of the immediate circumstances but because of our anticipation of the weekend. This sense of future anticipation changes how we perceive the present moment.

That’s the kind of shift you want to inspire in your stakeholders. You want them to feel energized by the future you’re describing, just as you are. The hallmark of success is when individuals take initiative, make sacrifices, and go beyond their job descriptions—not because they’re told to, but because they’re inspired to.

But here’s the hard truth: a traditional vision statement alone cannot deliver this kind of transformative impact.

Rethinking Vision: Introducing the Three Levels

Most organizations begin with what can be termed a “Level 1 Vision”: a concise, polished statement, often a few sentences or paragraphs, that attempts to summarize the future. However, these statements are frequently vague, generic, and uninspiring. They might sound nice but leave people either indifferent or skeptical. Some may even feel the statement describes what the organization has already achieved, rendering it irrelevant.

A better approach is to think of the Level 1 Vision as just the “headline” of a more detailed vision framework. Here’s how to expand it.

Building a Level 2 Vision

To create a meaningful vision at this level, gather your leadership team for an offsite retreat and focus on a specific long-term horizon—typically 15 to 30 years in the future. Work together to describe a vivid picture of what success looks like at that time. This Level 2 Vision goes beyond a brief statement; it provides several pages of detail, potentially including visuals, videos, or other media to bring the future to life.

The key here is collaboration. By involving your leadership team, you not only create a shared sense of ownership but also tap into a wider pool of creativity and ambition. A well-crafted Level 2 Vision should reflect the aspirations of your entire C-suite, energizing everyone involved.

However, many organizations stop at this stage. While the Level 2 Vision is more compelling than a simple statement, it often becomes an overwhelming list of aspirations. Without prioritization (and reduction), it risks becoming unrealistic, leading to cynicism rather than inspiration. Some employees may even dismiss it as “the CEO’s wish list.”

To avoid this pitfall, you must take the next step.

Evolving to a Level 3 Vision

The “Level 3 Vision” transforms lofty aspirations into a credible, actionable plan. This involves narrowing down the vision to a focused set of achievable targets supported by a strategic roadmap.

This process requires tough conversations. Your leadership team will need to negotiate priorities, confront trade-offs, and align on a clear path forward. Engaging a skilled facilitator can help ensure these discussions are productive and lead to consensus.

The outcome is a vision that stands apart from your competitors. A Level 3 Vision includes:

– Specific, measurable results: Clearly defined goals with tangible metrics.

– Milestones: Key achievements along the journey to the ultimate vision.

– A strategic pathway: A roadmap showing how to get from the present to the desired future.

– Team alignment: Full buy-in from your leadership team, ensuring commitment to execution.

With this, your vision evolves from an abstract dream into a realistic plan that inspires action.

Communicating Across the Three Levels

Once your Level 3 Vision is established, it’s crucial to communicate it effectively. Each level of vision—Level 1, Level 2, and Level 3—has a role to play depending on your audience and context.

For example, a Level 1 Vision offers a concise, memorable summary. Think of Vision 2030 Jamaica’s tagline: “…the place of choice to live, work, raise families and do business.” It’s short, evocative, and easy to recall.

A Level 2 Vision, on the other hand, provides more depth. Vision 2030 Jamaica expands on its tagline with four National Goals and 15 Outcomes, offering stakeholders a richer understanding of the country’s aspirations.

Finally, a Level 3 Vision delivers the detailed roadmap necessary to ensure credibility and guide execution.

By mastering these three levels, you can tailor your communication to inspire stakeholders while maintaining clarity and focus. Avoid the mistake of using the wrong level for the audience or situation, which can lead to confusion or disengagement.

Conclusion

Transforming vision statements into actionable, inspiring frameworks requires more than polished language. By embracing a three-level approach, you can align your team, inspire stakeholders, and chart a credible path to the future. Choose the right level of vision for the right moment, and you’ll not only communicate your aspirations—you’ll make them a reality.

Intrigued? Interested in more? Visit the JumpLeap Long-Term Strategy Podcast and Newsletter.

Francis Wade
Jump Long-Term Newsletter and Podcast
http://blog.fwconsulting.com, http://fwconsulting.com

Continue Reading

Businessuite News24

Why the Customer Is Not Always Right: My Leadership Perspective on Saying ‘No’

Published

on

As a supply chain professional and strategic leader, I’ve spent years navigating the complex interplay between customer satisfaction, operational efficiency, and business profitability. One of the most important lessons I’ve learned is that the mantra “The customer is always right” can be a double-edged sword. While it emphasizes the value of customer-centricity, if applied indiscriminately, it can lead businesses into a cycle of inefficiency, overextension, and unsustainable practices.

In the supply chain industry, where precision, cost control, and resource optimization are paramount, saying “yes” to every request is not always feasible—or wise. Strategic leadership requires the courage to say “no” when necessary, not as a rejection but as a commitment to long-term growth, team empowerment, and operational excellence. Here’s why saying “no” is essential in supply chain management and how to recognize the right moments to do so.

The Hidden Costs of Saying “Yes”

In supply chain operations, every decision has a ripple effect. Saying “yes” to misaligned requests or the wrong customers can significantly impact your team, your margins, and your ability to deliver. I’ve seen firsthand how overcommitting to unrealistic timelines, excessive customization, or low-margin projects leads to inefficiencies and burnout.

One of the clearest examples comes from taking on customers whose demands exceed their value. These high-maintenance clients often require disproportionate attention, frequent changes, or premium service without paying for it. The result? Increased cost-to-serve, strained resources, and lower profitability. Worse, these customers are typically less loyal, leaving when a competitor offers a slightly better deal.

Overpromising is another common trap. I’ve worked in scenarios where teams committed to deadlines or capabilities that were not operationally feasible in an effort to secure a deal. The result wasn’t just missed targets—it was damaged trust and strained relationships with both customers and internal stakeholders. I quickly realized that when you say “yes” to everything, you inevitably say “no” to quality, focus, and sustainability.

The Strategic Value of Saying “No”

Saying “no” strategically has transformed how I lead and operate in the supply chain industry. By focusing on aligned opportunities, I’ve seen how businesses can reduce customer acquisition costs, improve retention, and enhance team morale. Instead of chasing every opportunity, we should double down on building relationships with customers who value our expertise and share our vision.

This focus will also strengthen your brand. Customers respect partners who prioritize quality, transparency, and integrity over short-term gains. Saying “no” sends a powerful message: that you’re committed to delivering value and maintaining high standards.

When to Say “No”

As a strategic leader, the ability to say “no” starts with recognizing when a request, customer, or opportunity isn’t aligned with your organization’s goals or strengths. Here are the key signs I’ve used to guide these decisions:

1. Misalignment With Core Competencies

Every organization has areas where it excels and areas where it doesn’t. In supply chain, this could mean expertise in temperature-controlled logistics, last-mile delivery, or reverse logistics. If a customer’s request falls outside these capabilities, the risk of failure increases significantly. Saying “no” in these cases ensures your team remains focused on what they do best.

2. Unsustainable Cost-to-Serve

I’ve seen how taking on low-margin customers or high-maintenance accounts can drain resources. When the cost-to-serve exceeds the revenue or strategic value a customer brings, it’s time to reconsider. Saying “yes” to these customers only creates inefficiencies that ripple across the supply chain.

3. Overburdening the Team

In supply chain operations, morale and capacity are critical. If a request would stretch your team beyond their limits, it’s not worth pursuing. Protecting your team from burnout is as important as protecting your bottom line.

4. Jeopardizing Service to Loyal Customers

One hard lesson I learned was that prioritizing demanding or misaligned customers often comes at the expense of loyal, high-value clients. Saying “no” in these instances is about protecting the relationships that matter most.

5. Conflicts With Company Values

In supply chain management, integrity and compliance are non-negotiable. Whether it’s maintaining ethical sourcing, adhering to safety standards, or delivering on promises, I’ve found that saying “no” to anything that compromises these principles is essential for long-term success.

How to Say “No” Strategically

Saying “no” isn’t just about drawing a line; it’s about doing so in a way that maintains trust and professionalism. As a supply chain leader, I’ve developed approaches to declining requests while preserving relationships:

1. Start With Empathy

Acknowledging the customer’s perspective is crucial. For example, I might say, “I understand how important this is to your operations, and I appreciate that you’ve brought this to us.” This approach shows that you’re listening and care about their needs.

2. Be Honest and Transparent

Customers value integrity. If I know we can’t deliver to the standard they expect, I explain why. For instance: “This timeline doesn’t align with our current capacity, and we want to ensure we deliver the quality you deserve.”

3. Offer Alternatives

Declining a request doesn’t mean leaving the customer without options. I’ve found success in providing recommendations, whether it’s extending a timeline, suggesting a partner, or offering a modified solution.

4. Use Positive Language

Framing a “no” positively is a subtle but effective way to maintain goodwill. Instead of saying, “We can’t do this,” I might say, “We can support you in a way that aligns with our strengths, ensuring the best outcome.”

5. Reinforce Commitment

Even after declining a request, I make it clear that the relationship is valued. “We look forward to continuing to work with you on initiatives where we can truly add value.”

In the end, saying “no” is not about shutting doors—it’s about opening the right ones. As a supply chain leader, I’ve learned that the courage to set boundaries is what paves the way for sustainable success. By focusing on the customers, requests, and opportunities that align with your strengths and values, you create a foundation for operational excellence, team empowerment, and lasting profitability. Saying “no” isn’t a weakness—it’s a strategic decision that demonstrates integrity, foresight, and a commitment to delivering actual value. So, the next time you’re faced with a tough call, remember: the power of a well-placed “no” can be the strongest “yes” to growth, focus, and resilience.

The views and opinions expressed are those of the author/s and do not necessarily reflect the official policy or position of companies or clients for whom the author/s are currently working or have worked. Any content provided by the author/s is of their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.

Jermaine Robinson, MBA, CSCP
Supply Chain Management Leader | Supply Chain Services | Supply Chain Transformation | SCM Growth Accelerator

Continue Reading

Business Insights

Beyond Repeated Failure: Defining a Strategy Triad

Published

on

Studies consistently show that most strategic plans fall short.

The reasons are varied, but a common mistake stands out: teams often assume they understand “strategic” planning, only to end up misguided, compromising their organizations’ success. Often, what they call a “strategic plan” lacks real strategic thought.

How Missteps Occur

If you’ve ever reviewed a company’s strategic plan, you’ve likely seen a list of ambitious goals. They may be grouped in catchy ways, but as you read through, doubts surface. Why?

You sense the organization may lack the resources or focus to achieve all these objectives simultaneously. The longer the list, the more you suspect it may be abandoned when daily issues arise, with lofty goals slipping out of view.

Redefining “Strategic”

One way to prevent this common pitfall is to rethink how we use the term “strategic.” Today, the label “strategic” is often used casually to signal importance, so much so that it’s lost its impact, and audiences tune it out.

This isn’t just a communication issue. When teams invest time in a strategic retreat, they expect the final plan to be truly strategic, yet often that’s not the case.

Typical brainstorming sessions encourage a mix of ideas and positive intentions without much structure. The result is often an extensive report of hopeful outcomes, which can look similar to other plans within the industry—ultimately, another reason for failure.

Enter the Strategy Triad

Peter Compo’s book *The Emergent Strategy* introduces a helpful redefinition of “strategic” by proposing a triad approach:

1. Aspiration: A meaningful, challenging goal that requires effort and won’t happen automatically.

2. Bottleneck: The main obstacle preventing the organization from achieving its aspiration(s).

3. Guiding Principle: A decision-making rule to help navigate actions that address the bottleneck.

Consider a store aiming to increase profits. If the biggest bottleneck is low brand recognition, the guiding principle could be to improve brand awareness through multiple channels—online, in-store, and through partnerships.

Applying the Strategy Triad

At a recent strategic planning retreat, a leadership team was challenged to apply the triad. Initially, it was difficult; identifying bottlenecks from new perspectives required collaboration and creativity, especially without cross-functional data, which led them to rely on firsthand experiences. Yet, they successfully defined bottlenecks and guiding principles that empowered employees to align their daily choices with the strategic plan. This alignment is what leaders want but is often rare.

Why Alignment is Rare

Leadership teams often avoid the challenging, healthy conflict required to build a robust strategy triad. They may take the easier path, creating lists of goals rather than diving into critical strategic planning. Alternatively, when discussions become too heated, leaders may intervene prematurely, cutting off debate and limiting essential buy-in.

To achieve meaningful alignment, it’s important to work through differing viewpoints until agreement is reached. Though challenging, this process builds the intellectual and emotional commitment needed for successful execution. By persevering through difficult conversations, leaders can significantly improve their strategic plans’ success and longevity.

Found this topic interesting? You may want to delve into my long-form content in my JumpLeap Strategic Planning Newsletter/Podcast.

Francis Wade
JumpLeap NewsletterPodcast

Framework Consulting
http://blog.fwconsulting.com : http://fwconsulting.com

Continue Reading

Businessuite News24

Elevate Underperforming Boards: Prioritizing Board Self-Examination

Published

on

Imagine you’ve joined a board, only to discover it’s deeply mediocre. This is your third meeting, and it’s becoming clear that the issues you sensed in the first two weren’t incidental—they’re ongoing. How do you address this underperformance?

Luckily, you aren’t the only one who’s noticed. Some members recognize that long-standing issues have held the board back for years, and while they’ve tried initiating change, nothing has stuck. These are complex, systemic challenges that won’t be resolved by casual discussions, pep talks, or a thoughtful email. Swift, strategic action is needed. But how?

I recently encountered insights from consultant A. Cecile Watson that shed light on why boards need their own strategic approach. Her perspective inspires these key reasons for why your board must implement a self-care plan.

Why Boards Should Prioritize Self-Examination

Boards are often envisioned as serving the organization’s needs. If all members align with this vision, things should function smoothly. Small differences can be ironed out, much like in the “Form-Storm-Norm-Perform” teamwork model, which illustrates the stages groups move through to achieve high performance.

However, boards today face a high-pressure environment, dealing with complex VUCA (Volatile, Uncertain, Complex, and Ambiguous) issues from the outset. While they might receive briefings, individual and group development often gets overlooked in the rush to deliver.

This traditional expectation—that boards serve swiftly, even if under-informed—faces scrutiny in Watson’s latest article. She argues that boards must practice self-reflection and strategy if they’re to excel. Smart people on a board don’t guarantee a high group IQ or EQ; in fact, group performance can suffer if proactive measures aren’t in place.

What does your board need? A new level of self-care. Watson suggests that boards operate as a kind of strategic unit, managing their performance preemptively. Failing to do so only perpetuates mediocrity.

The Case for Board Self-Strategy

Typically, boards focus on “strategic planning” for their organization’s future. Watson’s approach takes this one step further: boards must also strategize for themselves. As a unit, they need the space to address their own evolution.

This doesn’t mean ignoring corporate planning. In fact, I’ve previously recommended that board members actively engage in their organization’s strategic retreats, where they contribute to shaping long-term goals.

Yet, once these retreats end, some boards must adapt as well. For instance, one board I worked with chose to refresh its membership, reducing both the average age and tenure of its members to bring new perspectives aligned with the strategic plan.

In another case, a board had grown complacent. Members showed up sporadically, often unprepared. This lack of accountability permeated the organization, undermining its standards and culture.

Unfortunately, board evaluations alone rarely spark transformation. Instead, Watson advocates for a written Board Strategy, a guiding document that steers the board’s actions.

Creating a Strategy for the Board

Watson advises boards to define a vision for themselves and set measurable milestones to ensure the plan stays on course. While this may sound overwhelming for already busy board members, it’s ultimately about cultivating the right mindset, not rigidly following a checklist.

Adopting these principles can help your board become resilient, better equipped to navigate future challenges, and able to avoid the slow slide into mediocrity that affects many corporate teams.

Enjoyed these ideas? Consider checking out the JumpLeap Newsletter and Podcast with my best longform content.

 

Francis Wade
JumpLeap NewsletterPodcast

Framework Consulting
http://blog.fwconsulting.com : http://fwconsulting.com

Continue Reading

Trending

0
Would love your thoughts, please comment.x
()
x