Leadership – Piloting the Motorcycle in a Specific Direction:  Part 3

First, leadership is about “leading people, not managing things”.

In previous posts/discussions, I introduced this thought – ALL successful leaders, or leadership teams, provide the same four “leadership whats” for their organization(s) – just like riding a motorcycle.  The “whats” are as or ,more important than a leaders traits, “leadership hows”.  The four “leadership whats” include:  (1) pilot the organization in specific direction(s); (2) provide thrust/power to move the organization in the desired direction; (3) manage/mitigate risks of piloting the organization; and (4) make changes in the organization’s direction, thrust and risk based on current and anticipated situations/changes. 

Each of these four “whats” can be broken down into finer and finer specifics. The last post, Part 2, discussed the initial three “whats” in ‘piloting the motorcycle in a specific direction’.  Arguably, piloting the organization(s) in the proper direction(s) is the most important “whats” a leader, or leadership team, provides.  If an organization does not have direction, or is being piloted in the wrong direction, then success will be fleeting.  But what are some specifics that leaders provide to establish the proper direction(s) of an organization?

Leadership Cycle

Leadership Cycle

 

 

This post/discussion focuses on the last two “whats” – Strategy and Operational Plans

You might think that organization/business strategy is easily defined and well understood, but even a cursory look on the internet will prove you wrong.  Definitions are abundant, not always similar and sometimes vary vague.  So for purposes of this post/discussion, let’s define strategy as:

‘The art and science of determining or planning an organization’s overall (1) scope, road map, and goals, (2) branding, business and organization models,  (3) effective use of limited resources, and (4) performance measures to achieve its vision, mission and strategic goals.’

First and most important, an organization cannot be all things to all people.  So setting a strategy chooses the organization’s scope – focusing ‘where it will play and where it will not play’. This is a further refinement of the organization’s vision and mission to the point that the organization can produce strategic plans (road map) and goals.  Second, as a result of setting its scope, road map, and goals, strategy defines its business model (how it operates), organization model (how it is structured), branding (how it will be known).  Third, strategy provides direction, with some specificity, in how its limited resources will be acquired, retained and used.  And the last part of setting an organization’s strategy is determining the diverse measurements to use in evaluating its strategic performance.  This process of setting strategy is repeated by each business unit and major department to define and align their strategy with the organization.

The last set of “whats” that provide direction are operational plans (OP), also called annual plans, that are completed by every business unit and department.  Operational planning is the process of defining tactical plans and goals, objectives and performance measurements, and aligning them with strategic goals, objectives and performance measurements. OP describes operations, operation initiatives, capital projects, milestones, performance, and resource requirements during a given operational period, a calendar or fiscal year. An OP also includes a business unit’s and department’s annual operating budget and capital budget. The OP must be a collaborative effort between the business units and departments to insure the plans and budgets are in alignment with each other.

In the next post/discussion, we will introduce the second major “leadership whats” – the thrust/power to move the organization in the desired direction.