The Power of Keeping Your Word

In the past, the business world held a strong emphasis on keeping promises. Unfortunately, today, it seems that commitments are easily broken at the slightest inconvenience.

Many of us have witnessed this trend, even though there are occasional benefits when someone lets us off the hook. However, there’s a valid reason for concern. A corporate culture where trust in one’s word is waning can spell doom for the bottom line.

Consider this phrase: “I’ll do it because I said I would.” These words are rarely spoken in our modern times.

Instead, we find ourselves in a world that prizes authenticity and the bravery to share our innermost emotions. These qualities are essential for building trust on a personal level in the business world.

But there’s another, equally important kind of trust – one rooted in reliability, integrity, and trustworthiness. Think about a bridge from your childhood that holds sentimental value. You like to visit to kindle fond memories. However, driving across it becomes a different story if the structure has deteriorated.

All of this comes back to the requirement to keep promises, in a “no-matter- what” frame of mind.

An organization responsible for maintaining and certifying bridges essentially “promises” a safe experience. But this notion extends beyond bridges. Every company has its own set of standards that its audience relies upon.

Down at an individual level, we actually want employees to follow through on their commitments just because they said they would. Why? Because when they do, the organization operates effectively.

However, this character trait is becoming increasingly rare and is seldom discussed. Nevertheless, we all know individuals who embody unwavering reliability.

They show up on time, seldom forget their promises, and treat any lapses as grave execution errors. When mishaps occur, they immediately apologize and implement measures to prevent future repeats.

Where does this level of commitment come from? Unlike most, they take their word seriously, as if it truly matters.

But they may not always be seen as “nice” people. Instead, they often expect those around them to uphold similarly high standards, which can be somewhat annoying. Regrettably, they mistakenly assume that everyone is striving to keep their word.

They’re mistaken. Even though Donald Trump, for instance, frequently makes unfulfilled promises without facing consequences, it doesn’t seem to harm his popularity. Some even like him more for it, rewarding him with a growing follower count and lots of Likes.

Here are some reasons why following his lead might not be wise:

  1. The majority of people are not sociopaths. They care about others and are mindful of how their actions affect them. In your organization, it’s crucial to cultivate an awareness of the consequences of unfulfilled promises, both at the individual and corporate levels. Support your staff in comprehending and sensing the impact of their unmet obligations on all stakeholders, and take action with those who struggle in this regard.
  2. Habitually disregarding the importance of one’s word weakens personal power. It makes you feel like your fate is entirely determined by circumstances, leaving you feeling powerless. Over time, you may forget what it means to be a strong, dependable individual, which can negatively affect your mental well-being.
  3. When disinterested employees rise through the ranks, they propagate a dysfunctional service culture. Why? Because prioritizing others over oneself requires effort. Customers are often strangers, making service quality unpredictable. In most organizations, service levels depend on whether a customer encounters the right person on the right day.

In contrast, exceptional companies prioritize their customers’ welfare and go the extra mile. For them, service is a matter of personal and collective integrity – a facet of character worth nurturing and defending at all costs.

While finding individuals who consistently deliver at this high level is challenging, the benefits experienced by customers far outweigh the costs of attracting them.

In 2023, only a select few organizations can be trusted to consistently uphold their promises, but they become memorable. They’ve invested in building an internal culture of integrity, which serves as the foundation for exceptional service.

Note: the article was inspired by a Gleaner column by Francis Wade published on September 17, 2023

Crafting a Vision: Beyond Tactical Moves

In the ever-evolving landscape of business, some voices argue that the concept of strategy is becoming obsolete, overshadowed by the rapid pace of change. Yet, beneath this assertion lies a reluctance to engage in deep, thoughtful planning—a sentiment that betrays a certain intellectual inertia. How can we reshape this perspective, sparking a transformation in those who seem trapped within it?

Imagine participating in a 5k race. At the starting gunshot, you witness young runners dashing forth with an incredible burst of speed. A mile or two later, however, you find them struggling, on the brink of exhaustion, while you maintain a steady jog, passing them by. They fell into a common trap: assuming a long-distance race can be conquered by a series of short sprints.

The truth is, successful long-distance running requires a series of well-informed decisions. Every step carries consequences, and a misstep can lead to failure.

This analogy seamlessly mirrors the distinction between tactical maneuvers and strategic planning in an organizational context. To prevent confusion, businesses must delineate these concepts clearly.

Distinguishing Between Short-Term Tactics and Long-Term Strategy

Modern tendencies have led to the casual labeling of everything as “strategic,” a practice that dilutes its significance. Consider the phrase “strategic goals for the week.” Yet, placing a fancy veneer on a shrub won’t yield a salad.

Challenge this tendency, as I did in a Gleaner column on January 23, 2022, titled “Why Short-Term Strategy is a Misnomer.” I explored the incongruity of coupling these two words. The essence: tactics span a few years, while strategies encompass a much longer horizon. In this article, let’s assume the cutoff point to be five years.

With this test at hand, a stark truth emerges: most companies lack written strategic plans.

Yet, both tactics and strategies remain essential in a thriving organization. However, their demarcation extends beyond time frames. They stand as separate disciplines, and interchanging them can lead to an unsustainable sprint, endangering the future. To avert this, let’s scrutinize their individual roles.

Strategies: The Architects of Transformation

The concept of BHAGs—Big Hairy Audacious Goals—commands attention. Defined by visionaries Jim Collins and Jerry Porras, these goals entail transformative results, forming a roadmap for a company’s metamorphosis. The Sustainable Development Goals set by the UN for 2030 in 2015, and Jamaica’s Vision 2030, forged in 2007, stand as prominent examples. Echoing through history is President Kennedy’s 1961 moonshot declaration, propelling humanity to the lunar surface within a decade.

Strategic plans are purposely designed to realize such audacious visions. But modernity demands them to be credible in new ways. Why?

An attainable plan provides a solid foundation, a platform of trust that validates visionary aspirations. In a world numbed by the barrage of daily promises from advertisers, credibility is paramount. Mere proclamations hold no sway; substance is demanded.

Additionally, the translation of grand plans into immediate actions is pivotal. This is where tactics come into play.

Tactics: The Craftsmen of Incremental Change

Execution of any long-term commitment mandates swift short-term actions. These actions exist independently from ingrained habits and routine, daily processes.

Realizing BHAGs necessitates altering these operational elements. These micro-transformations constitute tactics, to be executed by your team.

However, this is easier said than done. Overcoming inertia to scale these long-term commitments is a formidable task.

Case in point: If a company is perpetually reactive, progress is hard to sustain over years.

Similarly, if an organization’s status quo has endured for eons, kindling enthusiasm for BHAGs seems to be an impossible pursuit.

The crux is that achieving long-term aspirations hinges on tactical modifications, demanding adept change management.

While strategies and tactics are distinct, they must remain united without being confused. This unity is the compass guiding an organization toward its envisioned future.

In summary, the narrative of a road race underscores the vital distinction between strategic vision and tactical maneuvers. By untangling these concepts and skillfully blending them, organizations can chart a course toward their ultimate goals. As you reflect on your organization’s journey, remember, it’s not about doing either the sprint or the jog—it’s about the seamless, synchronized dance between the two that propels you forward.

This article is based on a similar column published in the Jamaica Gleaner. It’s available behind the newspaper’s paywall.

Why Does HR in the Caribbean Need a Major Reset?

A New Contribution| A Fresh Reputation

You are a Caribbean HR Professional who has noticed the respect finance professionals receive in the C-Suite. What they say seems to matter.

As a result, your colleagues in the finance department can see a clear path for themselves to the C-Suite. From accounting analyst, to manager, to director, to CFO, to CEO/MD.

But the same isn’t true for you. In fact, the total number of HR managers to gain a promotion to the CEO level in anything other than a small company is negligible.

By contrast, a recent survey showed that some 52% of UK CEOs have finance backgrounds. But this wasn’t always the case.

Back in the 1980’s accountants were just not that important in companies. They were merely the bookkeepers.

However, they undertook a deliberate effort to upgrade their profession. Using technology and analytics, their value increased as their contribution became essential. New regulatory requirements didn’t hurt.

In other words, they undertook a reset.

What would it take the HR Profession in the Caribbean to do the same?

Fortunately, it already has a business partner. According to research, most CEOs want more from HR Departments. But when surveyed, they only complain “HR is not being strategic enough.”

But what can you do with that vague level of feedback? Here are some specifics gleaned, in part, from my experience hosting the CaribHRForum community and also from leading executive team retreats for two decades.

Evidence-Based Diagnosis

Data is a common element in all great strategic plans. Fortunately, this aligns with most HR Professionals who also would like to use more than anecdotes. The importance of data is something that they now recognise. But, it’s not enough.

I have seen a pattern that repeats itself in over 50 strategic planning retreats. HR presentations are seldom based on analytics and data. Why?

It’s a fact: many HR jobs below the C-Suite don’t need these skills. The result? Before joining the executive ranks, HR professionals have had little practice.

As such, a significant gap may become apparent when they are promoted. Other departments are now competing for the same resources and attention. The counterparts have already been using evidence-based and analytical language to gain approval from top-level executives.

By contrast, CHROs struggle. A vicious cycle can even occur when they request better software but are repeatedly denied. Why? They can’t make the case for a positive ROI…because they lack the data the missing tools would provide.

Unfortunately, CEOs are not likely to identify this problem independently. Like Finance before it, HR must establish a strong business case for a major reset to stop the vicious cycle.

Transformational Innovations

But these analytic capabilities are just the beginning. The Caribbean experiences a significant loss of productivity due to invisible friction. HR has an opportunity here.

For example, workers who struggle to predict their commutes accurately are prone to showing up late. If their on-time presence is required to start work, then the cost of being tardy is high.

The conventional HR approach would be to conduct interviews with employees and encourage them to leave for work earlier. But a department focused on analysis would recommend investing in a minibus exclusively for employees.

HR should keep their focus despite the possibility of objections that the move encourages laziness. Why? The actual inquiry is whether the expense is a worthy investment, based on a clear cost-benefit analysis.

HR needs to take a proactive stance as shown in this example, which is the approach CEOs want. It’s a fact that most departments have people-problems that they can’t solve alone. They require the help of HR professionals with advanced skills and predictive data.

The way the company operates can be changed by these interventions. The crucial point is that they anticipate the needs of the executive team like CFOs are expected to do.

People Predictions

HR can begin planning the organisation’s strategic future once practical measures and data are in place. For example, the Caribbean has a demographic problem looming. Our current population is not being replaced due to insufficient childbirths.

Most HR professionals are unaware of this fact. Does it matter?

Yes – the trend points towards a future with more competition for talent. This has the potential to cause wage inflation. Or a decrease in migration from the region. Or more migrants from other countries. To say it another way, there’s a potential strategic threat forming.

This fact was mentioned during a recent long-term strategic planning session. But not by HR.

However, as an HR Professional, it’s important to track these types of predictions and impacts. In fact, you could function like a CFO, but for everything regarding people.

Your company will find you indispensable if you acquire these skills. However, you will also have the opportunity to experience the gratification that comes with conquering a difficult challenge in your journey towards becoming a highly respected professional. Or even a member of the C-Suite.

This article was based on a Jamaica Gleaner column published on 8/20/2023.

Will CSRD Have an Outsized Impact on Strategic Planning?

You have heard of CSRD (the Corporate Sustainability Reporting Directive), at least in passing. As a new reporting requirement, it calls for your company to submit annual non-financial information, starting in just a few years’ time.

As someone who cares about long-term environmental and social impacts, you like where this is going.

But you are concerned that it will turn into a bureaucratic slog, in which laudable goals are lost in a tsunami of reporting requirements. Far from inspiring staff to do the right thing, you imagine it becoming a war of attrition between staff and some faceless regulators.

After all, you have seen this happen before. So, you have every right to expect that the same thing will happen again.

In this article, we’ll look at concrete ways for your firm to benefit from CSRD and its impact on strategy. There are many early actions to take to prepare, but they have something in common. They all rely on your understanding of the intent behind the framers of the standard – The European Financial Reporting Advisory Group (EFRAG).

In this article I’ll suggest the standard is a “nudge” in a positive direction which can empower your leadership team, strategic planning staff and all stakeholders.

(This article was published in full on the JumpLeap Newsletter website.)

Ep 8 The Hidden Impact of CSRD on Strategic Planning – Audio

The article is available as a written newsletter on the JumpLeap Newsletter.

You have heard of CSRD (the Corporate Sustainability Reporting Directive), at least in passing. As a new reporting requirement, it calls for your company to submit annual non-financial information, starting in just a few years’ time.

As someone who cares about long-term environmental and social impacts, you like where this is going.

But you are concerned that it will turn into a bureaucratic slog, in which laudable goals are lost in a tsunami of reporting requirements. Far from inspiring staff to do the right thing, you imagine it becoming a war of attrition between staff and some faceless regulators.

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

The Surprise Way CSRD Impacts Strategic Planning

You have heard of CSRD (the Corporate Sustainability Reporting Directive), at least in passing. As a new reporting requirement, it calls for your company to submit annual non-financial information, starting in just a few years’ time.

As someone who cares about long-term environmental and social impacts, you like where this is going.

But you are concerned that it will turn into a bureaucratic slog, in which laudable goals are lost in a tsunami of reporting requirements. Far from inspiring staff to do the right thing, you imagine it becoming a war of attrition between staff and some faceless regulators.

After all, you have seen this happen before. So, you have every right to expect that the same thing will happen again.

In this article, we’ll look at concrete ways for your firm to benefit from CSRD and its impact on strategy. There are many early actions to take to prepare, but they have something in common. They all rely on your understanding of the intent behind the framers of the standard – The European Financial Reporting Advisory Group (EFRAG).

In this article I’ll suggest the standard is a “nudge” in a positive direction which can empower your leadership team, strategic planning staff and all stakeholders.

The article is published in full here.

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

CEO: Who cares if you “win?”

The world is changing fast, and “winning” in business may already be a fool’s errand.

You are a company leader who has risen through the ranks. You enjoy the competitive side of running an organization. Why? There are obvious winners and losers defined by a P&L scorecard. Plus, you have tactics and strategies to choose from. And finally, you can see a clear correlation between your efforts and results.

But what if the changes taking place in the world are making a mockery of the race you are mentally contesting? Keep reading if you want to stay ahead.

Why You Are Like Usain Bolt

The 100m dash is undoubtedly one of the purest forms of gamified athletics ever witnessed.

But before the Olympics were invented, people just ran. There were no medals,

or clocks, or heats, sponsorships, television appearances, etc. Over time, these elements were added in and made this human invention appear real.

Is the game of business also fabricated? If you are a CEO, you are probably immersed in it, without question. Let’s take a step back, and outside of it, for a moment. Maybe we can discern its outline and see some shortfalls.

Ask yourself the following: Who are you competing against? Who are the winners? The losers? The middle-of-the-packers?

What do you use to measure the score? How long is the timeframe? When do you feel pangs of jealousy as opponents pass you by? Do you enjoy the intellectual, social and emotional challenges?

Notice your reaction and write them down. You might become a bit nervous as you draw this picture. Why? Because you may uncover the motivation behind your accomplishments and believe that too much insight is bad.

These feelings are natural. Most hard-driving, over-achieving, Type-A’s who tend to lead organizations don’t spend time reflecting on their competitive nature. It’s taken as a given.

Here, I speak from experience. When I finally came first in my class at Wolmers after five years of effort, I saw myself as the winner…the one who crossed the line ahead of others when it counted the most. I didn’t question it for a moment, even though I gave up playing Sunlight Cup cricket for a year to achieve the goal. Today, I wouldn’t.

Why You Are Not Usain Bolt

But the truth is that business is not an actual game. While this mental construct can be energizing, there are definite limits to seeing it this way.

Just ask Amazon.com. Reports have emerged that Jeff Bezos’ empire is about to be dismantled by the FTC. Why? Apparently, they have determined that the company is taking its winnings from one area and using it in another. Unfairly.

Consequently, the US Government may use antitrust laws to redefine the game Bezos has been playing. Remember, they did just that to Microsoft and AT&T, among others.

If you have a strong competitive streak, it could be time to step away to re-imagine the game you have been unconsciously and unwittingly engaged in. Here are some strategic reasons to revisit this construct now.

Reason #1 – You Become Blind

When a fresh substitute enters your environment but doesn’t look like a competitor, you miss seeing them. C&W dismissed the arrival of Digicel because the new entrant was playing a different game top leaders didn’t recognize.

Reason #2 – You Become Short-Sighted

If you study your current competitors too closely, you end up following their every move. And stop being creative.

Reason #3 – You Live in Short-Termism and Endanger the Planet

Your imaginary game is probably more of a sprint than a marathon. If so, long-term planning may be repeatedly delayed.

As such, Europe’s Corporate Sustainability Reporting Directive (CSRD) requires companies to pay attention to their carbon footprint. Indirectly, they are pulling organizations into their Green Deal objective of climate neutrality by 2050.

This move implies that corporations have been playing winner-take-all games for decades, which now endanger our well-being.

As you enter this new game (by choice or by necessity), you may find that it’s not the zero-sum contests you have been enjoying. Instead, you’ll be joining companies which are focused on the triple P bottom-line – Profits, Planet and People.

Unfortunately, this is not the kind of “competitive strategy” taught in business schools. By contrast, it’s more a function of high-quality collaboration and cooperative outcomes.

In this context, it may look foolish to persist in the old game of massive profits or personal wealth. On a globe threatened by global warming, who cares?

Fortunately, you can “re-gamify” yourself and go in a different direction. You could still “win”, but so could everyone else in the entire world.

https://jamaica-gleaner.com/article/business/20230806/francis-wade-winning-business-fools-errand

Why CEO’s Need to Care Less About Winning

The world is changing fast, and “winning” in business may already be a fool’s errand.

You are a company leader who has risen through the ranks. You enjoy the competitive side of running an organization. Why? There are obvious winners and losers defined by a P&L scorecard. Plus, you have tactics and strategies to choose from. And finally, you can see a clear correlation between your efforts and results.

But what if the changes taking place in the world are making a mockery of the race you are mentally contesting? Keep reading if you want to stay ahead.

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

Why CSRD May Be Critical to Your Business Strategy

You have heard of the Corporate Sustainability Reporting Directive or its acronym, CSRD. You know that it has something to do with the EU which means that you haven’t paid it much attention. It’s far away.

However, this could be a mistake. This new standard for disclosure reaches into some unlikely places for all companies who do business with the continent. In this article, we’ll look at the impact on your corporate strategy.

You can find prior articles at https://blog.fwconsulting.com

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe