Some thoughts on strategy, leadership, and corporate culture.

Entries categorized as ‘Business in Vancouver: Boardroom Strategy’

BIV Boardroom Strategy: When it comes to company vision, get wildly courageous

February 2, 2010 · 2 Comments

[read time: 3 mins]

Motivation and inspiration are closely connected to doing meaningful work. For most people, doing meaningful work translates into achieving something either on a personal, local or global level that makes a difference. As business leaders, part of our job is to provide a vision for what the long-term goal and benefit of being part of our company is.

Enter the concept of the Wildly Courageous Decision (WCD)™. A WCD is a powerfully worded statement that describes the long-term goal, 10-25 years out, that your company is striving to achieve. It’s bigger than revenue, bigger than profit, bigger than market share; it’s what the company will stand for after years of hard work and dedication to its purpose.

As day-to-day challenges and opportunities get in the way of a clear picture of the future, your WCD acts like a lighthouse for your business, allowing you to stay on course in the roughest seas, knowing that any movement towards your long term goal is far better than allowing the turbulent seas to decide your destination for you. In this way, the WCD acts as a strong filter for decision-making.

Your WCD is a destination, and your corporate strategy and goals are what link your current reality to the WCD. Make it wild, so that you can easily create excitement about it.  Make it courageous, something that requires some bravery to achieve. By taking the big risks your competitors aren’t willing to achieve, you’ll stand out from the crowd and attract positive attention. And last but not least, make it a decision. A vision or a goal denotes the possibility of failure. A decision is just that – a decision that it will happen.

Here is a step-by-step process for helping you discover your company’s Wildly Courageous Decision:

Step One: Choose your “Type of WCD”

Choose which of the five types of WCD’s might work for your company:

  1. Compare to a company in another industry you admire: “The Apple of the consulting world.” (this is our company’s WCD)
  2. Compare to overall company (as a division): “Most profitable division of GE.”
  3. Target or end state: “To become world famous.”
  4. Competitor driven: “We’re going to beat Nike.”
  5. Internal transformation: “Transform this company from a technology distributor into the best diversified high-technology company in the world”

Step Two: Brainstorm

For each of the WCD types you have selected write down any ideas or phrases that come to mind and create a first draft list of potential WCD’s. You may end up with two or three different WCD’s that might work for your business. That’s okay as the next step is to test out your draft statements.

Step Three: Test Each Phrase

Test each potential WCD using the following criteria (a “no” for any of the five criteria rules it out):

  1. Is it wild? Do you feel enthusiastic and excited when you read it out? Is it bold, and bordering on unattainable? Does the path to achieving it seem unclear right now (that’s okay)?
  2. Is it courageous? Does thinking about the steps it will take to achieve it frighten you a little? Will bravery, a dauntless spirit and the ability to endure adversity be required to achieve it?
  3. Is it a decision? Are you willing to commit to this? Is it a concrete decision we can make to stay focused and on target until we achieve it?
  4. Are you thinking far enough into the future?
  5. Is it clear? Will people get it right away?

Step Four – Select the Most Compelling Statement

Read through each of the potential WCD’s that passed the test, to find the one that’s most compelling. Tweak the wording a bit if you think it needs work.

Step Five: Get Feedback

Share your newly crafted Wildly Courageous Decision with the other members of your leadership team to get their feedback. Are they as inspired as you are? How might they reword the statement? What might the organization start doing differently today that will reflect your new WCD?

I’m interested to hear about your success developing your own WCD. Please post the WCD you come up with in a comment on this blog post.

BIV Boardroom Strategy – WCD – Feb 2010

Categories: Business in Vancouver: Boardroom Strategy · strategy
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BIV Boardroom Strategy: Execution: the missing piece of the corporate strategy puzzle

January 26, 2010 · 1 Comment

[read time: 3 mins]

This is the time of year when many businesses are deep into strategy planning. It’s the perfect time to talk about the missing piece of the strategy puzzle: execution.

The more time you spend focused on strategic planning the more you will start to notice a trend. Let’s call it the “10/90 Rule.” 10% of the value of strategic planning is in the creation of a solid plan that outlines strategic direction and priorities for the coming year. 90% of the value of a strategic plan comes from an organizations ability to effectively execute that plan.

This begs the question: if 90% of a plan’s value comes from successful execution, why do so many organizations focus on creating a plan and fall short when it comes to execution? Unfortunately, most of the time there exists a Grand Canyon-sized gap between what needs to be done to execute the plan successfully, and the approach within the organization to making it happen.

Here is a four-step process to help you make the shift towards execution:

Step 1: Clearly Define Actions and Accountabilities

Without clear action steps connected to each objective, owned by a person, with clear dates, budgetary requirements, and metrics, most plans are simply position papers on “where we should focus for some period of time”. Focus on fewer priorities attached to realistic budgets and time frames. The pay-off will be a powerful momentum that builds as people start hitting target dates, versus the motivation drop that comes with consistently missing accountabilities.

Step 2: Connect the Strategy to People

The second challenge of execution is having the right people in the right places to handle the action steps required within the plan. Start by bringing the organizational chart into the picture during the planning process, and demonstrating an openness and willingness to shifting roles and responsibilities. Avoid the trap of assigning accountabilities to people by default – instead, choose the people who have both the motivation and the competence to produce results. Ensure people understand what is expected of them, and reward them when they produce great results.

Step 3: Create a Culture of Change

Creating a culture of change requires openness to exploring possibilities outside of the framework of “how we do things here.” At the same time people would far prefer to be engaged in the process of change versus simply being told that changes are coming.

Work on improving candour within your organization by encouraging, supporting, and training on difficult conversations. Ensure that the leaders in your company are following through and demonstrating openness to candour and new ideas. Align your day-to-day decisions and actions with the priorities outlined in the plan – especially those that people are skeptical of, and others should follow suit.

Step 4: Review, Evaluate and Revise

The current pace at which industries, markets, competitors, and the economy is changing puts pressure in the form of a reality check against your strategy plan. Even plans that were strong at inception get sidetracked and what was once a solid plan now ends up as a binder collecting dust on the shelf. Schedule quarterly strategic planning follow-up sessions that are designed to review, evaluate, and revise the plan and provide a check and balance around individual accountabilities. Schedule them early, and demonstrate follow-through by placing equal importance on the follow-up meetings as you did on the original planning session.

The success of your strategy plan is inextricably tied to your organization’s ability to execute against that plan. A less robust plan executed flawless will trump a complicated plan left in the filing cabinet any day of the week.

If your organization has faced some of the challenges discussed in this article and you’re interested in reading more on this topic, I’d recommend reading “Execution: The Discipline of Getting Things Done” by Larry Bossidy and Ram Charan.

BIV Boardroom Strategy – Execution – Jan 19-25, 2010

Categories: Business in Vancouver: Boardroom Strategy · strategy
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BIV Boardroom Strategy: Corporate culture is critical to implementing business strategy

December 15, 2009 · 1 Comment

BIV Boardroom Strategy, Dec 15-21, 2009 – Corporate culture is critical to implementing business strategy

[read time: 3 minutes]

As you start to develop your business strategy for the new year, look at all of the factors that can support it, one of which you might not have linked directly to your strategic initiatives in past years: your company culture.

Strategy and culture both affect a company’s bottom line. While a strong culture can’t replace or act in lieu of a strong strategy, there are several ways that you can leverage your culture to support and drive strategic initiatives.

Here are nine ways you can leverage corporate culture to drive strategy.


Employee engagement

Engaged employees have higher commitment levels. They’re willing to go the extra mile, are consistent performers and are more likely to buy in and commit to the strategy and long-term goals of the company. Improve engagement to achieve your strategic initiatives by ensuring that you’re providing employees a direct line of sight to how their work contributes to the company’s growth.


Accountability

This is a key factor in the successful execution of strategy. The critical first step in leveraging a culture of accountability: translate strategic initiatives into objectives and actions, make sure all your staff members know what’s expected of them and hold their feet to the fire from the word go. Being able to hold others accountable is tougher than it sounds, especially since the first step is to lead by example: do what you say you were going to do, when you said you would do it.


Values, vision and mission

We all know that our company values, vision and mission are only as valuable as they are easy to understand, remember and repeat. Spend some time ensuring that leaders not only know the values, vision and mission of the company, but that they understand what they mean and how they connect with strategy. Here’s a great way to leverage a strong vision and mission: start looking for, talking about and rewarding real examples of employees living out the vision and mission.


Performance management and rewards

Your strategic plan for the year is full of initiatives and actions designed to take you where you need to go. What gets measured gets done, so use current performance-management practices to influence how corporate business objectives get translated into action across departments or business and involve each department in creating performance measures to generate buy-in and increase accountability and success.


Physical space

We don’t often consider how things like office space contribute to the bottom line, but it could be worth your while to note how your physical environment supports or contradicts your strategy. Does your office space reflect the innovative, forward-thinking ideas represented in your plan? Does your plan encourage or even require a flattened organizational structure, when all of your upper-level executives, including the CEO, have offices on the same floor, away from all others? Examine how you can rework your physical space to encourage successful execution of your strategy.


Decisions and authority

How easy is it for employees to navigate the levels of official and unofficial power in your organization. Are the people responsible for doing the work empowered with decision-making authority? Do the unspoken behavioural norms make it difficult to get things done or approved before the “by when” dates? Increase the chances of achieving objectives on time by aligning lines of authority with strategic initiatives.


Counter-culture

With every culture there is a counter-culture – a group within the organization that opposes or is critical of the organization’s norms and values. Be aware of these counter-cultures and leverage them by allowing them a voice that holds you to a higher standard of performance. Learn the lesson from Toyota and reward employees who find problems, announce them to everyone and work toward a solution that works consistently.


Leadership

When it comes to buying into strategic direction, employees will always look to their managers to lead by example. Leverage this opportunity by acting with discipline and following through on your commitments. Take performance management seriously, hold others accountable and make sure you’re focusing on the priorities you and your teams have agreed on.


Communication

The way we think we should communicate and the way we actually communicate are key to your company’s culture. Leverage the communication norms of your culture by using the mediums that people really respond to. Make sure the emphasis is on the actions expected from what’s being communicated. Clarify goals and provide consistent updates on outcomes.

The best strategy without the right cultural platform to executive upon it is simply an intellectual exercise. If you’re the CEO of a large company you’re probably far away from the reality of the culture of your business. Start by asking your frontline staff, “What is the culture of our business?” And then work your way back up the hierarchy. •

Mike Desjardins is the driver (CEO) at ViRTUS (www.virtusinc.com), an organizational development consulting firm with expertise in strategic planning and implementation, leadership development, change management and succession planning for medium to large organizations. He regularly blogs at www.mikedesjardins.com. This column was co-written by Shannon Lawder, a certified coach and the content director at ViRTUS.


This article from Business in Vancouver December 15-21, 2009; issue 1051

Categories: Business in Vancouver: Boardroom Strategy · strategy
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BIV Boardroom Strategy: A selection of the best books on strategic planning

November 5, 2009 · 2 Comments

Mike

[Total read time: 4 mins]

There is no “right” strategic planning methodology that works for every company or organization. In fact, using a blended approach to create a customized methodology will likely yield the best planning framework for you and your company. The question becomes, “Where do I start?”

There have been five key books on strategy written in the past 10 years that provide perspectives on how to approach strategic planning. Here is a brief synopsis of each book, and why it’s worth reading.

Good to Great (Jim Collins): Collins refers to this book as the book he should have written first. Good to Great describes in detail the steps that good companies have taken to become great. From leadership to confronting the brutal facts, simplifying strategy, adding in discipline, understanding the role of technology and discovering what builds momentum with your business, Good to Great covers the complete strategy canvas at a high level, simplified in a way that will allow you to share your company’s strategic priorities with everyone in the business.

Built to Last (Jim Collins and Jerry Porras): Before Good to Great, Jim Collins collaborated with Jerry Porras to write Built to Last. This book is a study of 18 visionary companies and how they differ from their key competitors. The core philosophies are:
•stop reinventing the wheel and instead develop and document the core procedures that can withstand changes in personnel;
•stay focused on your core values while trying new things; and
•focus on the long-term goal – the BHAG (Big Hairy Audacious Goal) – a 10- to 30-year goal of the organization that is so large and so far in the future that it bears that moniker.

Blue Ocean Strategy (W. Chan Kim and Renée Mauborgne): Written by two professors from INSEAD, Blue Ocean Strategy seeks to understand how companies like Cirque du Soleil, Apple and Blockbuster have changed the foundations of their business models and how they approach the market to move from the Red Ocean, bloody from the fight for market share, to the Blue Ocean, where the companies stand alone to compete for clients who don’t fit the traditional mould of their “old industry.” Their strategy canvas approach is designed to narrow down the key factors that you and your competitors use as the defining points of service in your industry. Then, by eliminating, creating or changing these key factors, a new industry is formed that appeals to a customer segment not being served by the existing industry. The short version of this would be to say that this is the story of the game-changers in their industries and how they did it.

Mastering the Rockefeller Habits (Verne Harnish): Harnish’s first book is based on the one-page strategic plan that John D. Rockefeller had each of his key executives complete at United Steel. The book details how to create a plan that summarizes your 30-year, three- to five-year, one-year and quarterly goals, along with supporting SWOT analysis, financial information (budget and actual) and accountabilities. The real magic is that all of this can fit onto one 8 1/2 x 11 page.

Execution (Larry Bossidy and Ram Charan): Execution speaks to one of the core reasons that most strategic plans fail – a lack of accountability and execution.
Many people think execution is the tactical side of business, best left to those people below the senior team in the organizational hierarchy. Bossidy and Charan argue that execution should be part of an organization’s cultural fabric, starting in the CEO’s office. The book describes a series of behaviours and techniques common within businesses that demonstrate a high level of execution of their plans.

Each of these books has a summary online that does a great job of breaking down the key points and practical applications. What the summaries won’t provide are the examples of real companies whose products and services you recognize and can relate to. Reading some or all of these books will help you relate the decisions made by other successful companies to the strategic challenges your organization is facing today.

PDF of Column BIV Boardroom Strategy – Nov 3-9, 2009

Categories: Business in Vancouver: Boardroom Strategy · strategy
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Boardroom Strategy: Strategic planning for business and life.

October 9, 2009 · 1 Comment

BIV Boardroom Strategy – Oct 6-12, 2009Mike

[Total read time: 4 mins]

In the last two decades, efforts to meet the challenge of reducing the complexity of strategic planning brought about two new approaches: The Balanced Scorecard by Kaplan and Norton in 1992 and Mastering the Rockefeller Habits by Verne Harnish in 2002.

Both approaches simplify complex plans into templates that are consistent in format but different in content depending on the organization and individual position. Both have been used successfully in thousands of organizations.

Encouraged by the success of the template models used in the Balanced Scorecard and the Rockefeller Habits models, we started to research the intersection between personal and professional goals and how self-interest and motivation could be aligned with the long-term vision of an organization. We took the findings of our research and created the ViRTUS One Page Focus Plan. Its distinction lies in the alignment of personal values and passions with business and career objectives.

If you’re having problems executing your strategic plan, a one-page plan might be just what you need. If you want to create your own focus plan, here are the areas it needs to cover.

Core values: What are your business core values – the values that are evident throughout your business in interactions internally and externally? What are your personal top five core values?

Objectives for the year: Get clear on your top five financial and three non-financial objectives for the year – decide on the objective, one action you can do this quarter to get you closer to reaching it, who will do it and by when.

Helps and hindrances: Think about the people, circumstances, habits and behaviours that provide you leverage toward your goals or get in the way of achieving them. What are you already doing, and what can you start or stop doing now to clear potential potholes and bring you closer to reaching your objectives?

Intention-action statements: Having the right intention but failing to take action is simply hoping something will happen without taking steps toward creating the outcome. The easiest way to shift this is to focus yourself on the habits and behaviours that link directly to the outcomes you’re looking for.

Relationships: Make the choice to improve your connections to the key people in your life who support you toward the success you are looking for as a leader, colleague, spouse, parent, relative and friend. Who are you going to connect with this quarter, what are you going to do and when?

Sharing resources: Researchers in the field of positive psychology have long known that helping others leads to increased happiness. Sharing resources is about finding ways to use the talents that we have to support others without the expectation of monetary gain. With whom will you share your resources? What will you do for them and when?

Gratitude and appreciations: Research into the science of happiness has shown us that expressing gratitude and appreciation contribute to measured higher levels of happiness. What are the things you appreciate and are grateful for in your life?

Return on heartbeats: Heartbeats are the ultimate non-renewal resource, so how we choose to spend them should be a conscious decision. Make the conscious decision to spend time doing things that bring you joy in life. Trips, time with friends, sports, hobbies – all things that make you feel happy, energized, alive and enthusiastic. What will you do?

Celebrations: Most organizations, teams and individuals are guilty of forgetting to celebrate the wins they achieve. Celebrating success is one of the easiest ways to maintain and boost motivation toward goals that seem out of reach. What will you do to celebrate your success?

Conventional wisdom says, “Keep what happens at the boardroom table at work, and keep what happens at the kitchen table at home.” But let’s face it, the lines have been blurred for years. Let’s accept the blending and choose to plan how being successful in our organizations and at home asimultaneously leads to a better outcome for you and your company. •

Mike Desjardins is the driver (CEO) at ViRTUS (www.virtusinc.com), an organizational development consulting firm with expertise in strategic planning and implementation, leadership development, change management and succession planning for medium to large organizations. Column was co-written by Tana Heminsley, a ViRTUS mentor and executive coach specializing in strategic planning, change management, leadership development and executive coaching.

(This article from Business in Vancouver October 6-12, 2009; issue 1041)

Categories: Business in Vancouver: Boardroom Strategy · human resources · strategy
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Business in Vancouver: Why your strategic plan failed and what you can do about it.

September 15, 2009 · 2 Comments

PDF of actual column in Business in Vancouver: Sept 15th-21st, 2009

Mike[total read time: 4 mins]

The conversation normally begins like this, “We’ve tried strategic planning in the past but somehow it allows seems to fall by the way side. No matter what method we try, the same result occurs. What are we missing?”

From it’s military genesis to strategic planning as we know it today, the reason for it is always the same: we need to know where we want to end up, how we’re going to get there, what resources we need, and who can help us make it happen. From small entrepreneurial businesses to large public entities, strategic planning is critical in shaping the future of your business. As I say to new clients who haven’t put a planning methodology in place, “you wouldn’t go on a road trip without a destination and a map or GPS, so why are you running your business without a plan for where it will end up and how you’re going to get there?”

There are five key reasons that most strategic plans fail. The good news is that each and every one of them is avoidable.

1. Lack of accountability. Without direct accountability, more specifically the name of a person who has agreed to complete a series of actions around an initiative, strategic planning leads to great ideas for the future with no one to see them through.

2. Lack of follow-up. In as short as three months changes in the economy, industry, market, or company can render a strategic plan full of holes that no longer link to reality. The result of this is a lot of three-ringed binders being hidden on shelves. The trick to keeping a strategic plan dynamic is to schedule quarterly sessions to review, evaluate, and revise the plan.

3. Lack of execution. Once everyone leaves the strategic planning retreat the day-to-day realities of running the business start flooding into their Blackberries and iPhones. Without agreed upon actions that link each initiative to reasonable timelines, you’re left with a framework with no method to execute on it. It’s tantamount to wishing something would occur but not ever taking any steps towards making it happen. Enter into strategic planning with the following mindset – planning is not about the plan, it is about the execution.  A 10% plan executed with authority is far more valuable than a 100% plan left on the shelf.

4. Lack of buy-in. Without the buy-in of the people who can actually make the strategic plan a reality, the exercise is moot. Create buy-in through involvement in the planning process, and with clear communication about how each person on the team can contribute to the successful execution of the plan.

5. Lack of connection to operations. Without connecting how the strategic plan naturally extends from the existing operations and responsibilities internally, it’s doomed to always be just out of reach of the organization. Most people wake up each day wanting to do a good job at work and looking forward to contributing to the long term sustainability of the business – help them see how key initiatives fit into their day-to-day.

There’s a great quote from General David Petraeus, commander of the Multi-National Security Transition Command Iraq, from the book The Gamble by Thomas Rick which sums up many of these points: “there are three enormous tasks that strategic leaders have to get right” Petraeus said one night in Baghdad, “the first is to get the big ideas right. The second is to communicate the big ideas throughout the organization. The third is to ensure proper execution of the big ideas.”

So if planning is about the alignment and execution, start by asking yourself, “What is our system for planning?  How does our system drive behaviour and measurement that tells us early on about execution effectiveness? Is our strategic planning system heavy on communication, reporting, metrics, review and revision so we can’t ignore it, forget about it, or avoid accountability around it?”

Next month we’ll introduce a planning process that will allow you to match personal goals with divisional and organizational goals – all on one page. Stay tuned.

Mike Desjardins is the Driver (CEO) at ViRTUS, an organizational development consulting firm with expertise in strategic planning and implementation, leadership development, change management and succession planning for medium to large organizations.

Jeffrey Kearney is a Mentor at ViRTUS, specializing in strategic planning, leadership development, and CEO Mentoring and Coaching.

Categories: Business in Vancouver: Boardroom Strategy · strategy
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Business in Vancouver: Boardroom Strategy (Aug 4-10th)

August 7, 2009 · 3 Comments

Mike

Boardroom Strategy: Mike Desjardins

Friday, 07 August 2009

Ten tips for leading businesses in turbulent times

There’s no denying these are turbulent times. But there are things that you can do to lead your team and your company to success against the odds.

Here are the top 10 things that you can start doing today to adapt past approaches and lead through to success.

Simplify the strategic message. The easier your strategy is to understand and communicate, the greater the likelihood that it will be executed successfully. The idea is to have people understand what the top three to five goals are for the year. Stephen Covey took this idea one step further in his book The Eighth Habit, in which he describes the concept of a “Wildly Important Goal” – the most important goal for the company this year, which everyone in the company must be able to understand, feel compelled by and repeat. Simplify to make the message easy to spread.

Use a reverse one-, three-, five-year approach. Short-term thinking can drive organizations to make decisions that are not in the best interest of stakeholders long term. This situation is exacerbated in turbulent times. View decisions from three unique perspectives: one, three, five years in the future. Ask your (future) self what decisions you wish you would have made. What do you regret? What advice do you have for yourself?
Drive revenue, reduce costs and monitor cash flow tightly. Drive revenue by getting in front of the market while your competitors are inwardly focused. Reduce costs by looking at each major expenditure in its own light, not based on a sweeping percentage. Educate your top people on how to monitor cash flow. Cash is like oxygen to a business; without it, it’s game over. It astounds me how many executives are able to rise through to the senior ranks without understanding cash flow.

Stand out while everyone else is standing down. One thing that you can count on in turbulent times is a decline in ad sales.

Not only does this mean less clutter and a higher probability of reaching your audience, but when ad sales go down marketing mediums get hungry and drop prices. Lock in long-term contracts now at the lower rates.

“Confront the brutal facts but move forward with healthy optimism anyway.” In Good to Great, Jim Collins writes about being realistic about where you’re at, while at the same time putting together a positive plan to move forward.

Think of it as realistic optimism with three steps:

•be clear about what the situation is today – pretending things are better than they are is ludicrous;

•explain what the changing conditions mean for the organization or for your division; and

•share what the strategy is to move the company forward in the right direction and what each person can do to contribute to the plan’s success.

Operate based on a one-page strategic plan. Distil your strategic plan into one page that encompasses values, goals, relevant financial data, key performance indicators and actions for three to five years, one year and the next quarter.

This is far easier for people to digest than a 50-page diatribe. (For a sample format visit my blog at www.mikedesjardins.com).

Keep your strategic plan dynamic. The most successful companies we work with review, evaluate and revise their strategic plans each quarter.

Adapting your strategic plan to meet changes in the market, industry or company creates a document from which decisions can be made rather than another dusty binder for your shelf.

Be candid and speak authentically. Whether things are good or bad, the rumour mill has a way of spinning them into whatever is easy to pass on. By focusing on the candid facts and how people are being affected by what’s happening, a sense of community and camaraderie can be built around finding a solution.

Cut fast and cut early: Multistage layoffs are far more damaging to corporate culture than one large downsizing. The death of a thousand cuts leaves people constantly realigning priorities each time there’s a layoff and wondering if they’re next. Lead people back to engagement and productivity by listening to what they’re experiencing and helping them regain focus.

Start doing, stop doing, keep doing. When fear sets into an organization it can lead people to the point of inaction or what we call “analysis paralysis.” Have people ask and answer three simple questions: What should I start doing? Stop doing? Keep doing?

If this is a topic that you are interested to know more about, visit this link for a recorded webinar that goes into more detail and examples: www.virtusinc.com/webinars. •

Mike Desjardins is the Driver (CEO) at ViRTUS, an organizational development consulting firm with expertise in strategic planning and implementation, leadership development, change management and succession planning for medium to large organizations.

This article from Business in Vancouver August 4-10, 2009; issue 1032

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