Better Roads Digital Magazine
Issue link: https://read.dmtmag.com/i/85913
S+ra+egy: do you have one? W FinancialDistrict Planning is vital to compete in this construction market By Brian Moore hen FMI asked contractors what they thought about long-range planning in the face of the 2009 recession with survival — often referred to as "hunkering down" — at that point, there were also those who affirmed the benefits of long-range and short- range planning. Given the outlook today, what will your strat- egy be five to 10 years from now, or even over the next three years? Hope is Not a Strategy These days, we often hear people say they hope business will get better. Who doesn't? However, I am not an advocate for sitting by and hoping. I have learned that many firms have a strategic plan but no real strategy. We often say, "your firm is perfectly designed to get your current results," but consider the potential benefits of focusing like a laser on just one strategy — ensuring excel- lence in your operations. It is a low-risk strategy with high rewards. Here are a few things to think about when beginning the strategic reinvention process: advantage? team? Examine what you should be doing to cre- ate an organization that is sustainable in good times as well as the inevitable bad times. to changing context or economy. strategic direction. to leverage their individual contributions. Strategic Thinking for Better Strategy For some senior executives, their own thoughts about strategy are inextricably linked to the firm's strategy — even if that strategy is not written into a formal plan and shared with others. It is easy to see strategic thinking and strategic planning as 36 April 2012 Better Roads many of the answers were bleak. Although most everyone was concerned the same thing. However, they are two different but complementary processes, and both can be learned and put to effective use. Briefly, here are the differences: Traditional strategic planning tends to be: (an action plan), - ten in the interim, of an organization. an organization. Purpose adds depth, richness and direction to strategic action. 5. Innovation. The fragmented nature of the construction industry and a generally shared belief that construction is fundamentally a tac- tical business limit the infusion of innovation as a competitive advantage. Strategic thinkers practice the ability to reframe their perspective to look at systems, processes and markets in a - derstanding of the context in which the company Strategic thinkers practice the ability to reframe their perspective to look at systems, processes and markets in a unique way. Strategic thinking is: - able, seeing the world, - als' ability to identify both opportunity and risk, Identify where and why the game has changed for you, and review your capabilities: Strategic thinking is not hard to describe, and some of the keys elements include: 1. Vision. The ability to envision a future is a fun- damental skill of strategic thinkers. Without it, leaders are purely opportunistic and reactive. 2. Pattern recognition. Strategic thinkers must be trend spotters, able to recognize patterns that emerge in social, political, economic and technological change. This ability to "connect the dots" among seemingly unrelated trends, think through the implications for the busi- essential to strategic thinking. 3. Seeing risk. A key component of strategic thinking is the ability to take a clear-eyed, real- istic view of an organization's risk profile. Stra- tegic thinkers have a constant, restless sense of low-level paranoia that drives them constantly to test their assumptions and beliefs about the risk of the business. 4. - tioned ability of strategic thinking is the ca- pacity to create a unifying sense of purpose in operates. One of the first steps is to prepare the background information to define your com- pany's environment. Before you can understand where opportunity exists, you must fully under- stand the 4Cs of context: The 4Cs of Context: Climate: All the external factors and forces that influence your business, e.g., economic forecasts, surety capacity, commodity prices, politics, demographics. - ers, e.g., changes in buying behavior, unmet needs, drivers of their business and industry. - gressiveness, pricing patterns, key staff chang- es, etc. e.g., strengths, weaknesses, aspirations, re- sources, key differentiators. I have often found that many executives in a firm believe they have a pretty good understand- ing of the 4Cs for their firm off the top of their heads. However, with deeper research and discus- sion, they are often surprised at what they didn't know or didn't think about that might impact their strategies. Brian Moore is principal with FMI, management consultants and focuses on consulting with contractors and construction materials producers Contact: 919-785-9269; bmoore@fminet.com.