Chronicles from a Caribbean Cubicle
New Thinking from Framework Consulting
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Beware: there are some fundamental misunderstandings being passed around about long-term strategic planning which make it seem impractical.
The impact on the C-Suite? Disagreements. Misalignment. And executives who forego long-term planning because “it takes too much time.”
Recently overheard: “I can’t argue with the importance of long-term planning. But…
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You are someone who is already a long-term thinker, working in a for-profit company. Unlike many, you don’t need to be convinced about the importance of long-term thinking. Somewhere early in the past – childhood, early career – you embedded the idea in your thinking. Now balancing short and long-term thinking is a part of your character.
But this may be why you are confused. Others around you don’t share this trait. In fact, you feel like a fish out of water – always harping on the need for long-term thinking, sometimes asking inconvenient questions.
You can’t understand why others don’t share your concern. And it’s not that you are particularly ESG, sustainable or anything like. Nor do you come from an old-school. You sense that the company would make better decisions if it had more than the usual 3-5-year plan.
But how do you convince others in the C-Suite, and the board, to think with an additional lens?
Tune into this episode as I tackle this wicked problem.
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Have you ever left a strategic planning retreat feeling invigorated, only to find that the excitement fizzles out? Despite the initial enthusiasm and belief in the positive change that was about to ensue, weeks later, the essence of those profound discussions becomes a distant memory.
The baffling reality is this: a gathering of bright, dedicated individuals, all ardently striving to make a meaningful difference, encountered an unexpected descent post-retreat. The perplexity of this decline seemed insurmountable, leaving one pondering what went awry. <more>
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You are someone who is aware of the 17 Sustainable Development Goals (SDGs) announced in 2015 by the United Nations. Their value is not in question – they are objectives the entire world hopes to realize.
But recently, Secretary General Antonio Guterres declared that the SDGs are on the path to failure.
Launching a special edition of the Sustainable Development Goals (SDGs) progress report, he warned that their collective promise made in 2015 of a more green, just and equitable global future, is in peril.
“Unless we act now, the 2030 Agenda will become an epitaph for a world that might have been,” he said.
Like others, he offered a number of prescriptions. However, they aren’t likely to move the needle on disappointment looming on December 31st, 2030, the date on which they are supposed to be achieved.
Those of us who know about long-term strategic planning are horrified by the lack of progress, similar to everyone else. But for us, there’s more. This failure was inevitable due to fatal design flaws. By violating the fundamental principles of our narrow discipline, the UN cannot avoid the unfortunate situation it finds itself in.
Despite the tireless work by thousands of well-meaning people, a slow-moving disaster is taking place in real time.
However, with six years to go between 2023 and 2030, there is a vanishing opportunity to declare victory at the end of the decade. How? Continue reading to understand why a “hard reset” could save the world from disillusionment.
Read the full complimentary article at this link. https://open.substack.com/pub/longtermstrategy/p/the-problem-with-the-sustainable?r=1m184&utm_campaign=post&utm_medium=web
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As a dedicated board member, you actively contribute to meetings and aim to make a meaningful impact. However, there are moments when you find yourself quietly frustrated, wondering if the discussion has veered into the minutiae, and then even further into micro-details. Why does this happen?
While the topics at hand may be interesting, you understand that such operational details are better left to middle managers who specialize in these functions. The board’s role should be holding these managers accountable, not getting lost in the weeds.
After an hour or two of discussion, you may find that little progress has been made. This can leave you shaking your head in disbelief, thinking that there are more productive uses of your time.
So, how can you address this issue before your frustration reaches a breaking point?
Board members have limited time, often juggling other important responsibilities. Therefore, it’s crucial to engage in high-leverage discussions. Your participation should be reserved for tackling the most challenging and intractable problems. If discussions jump around with random advice, it’s a sign that something needs to change.
It’s important to note that your fellow board members are well-intentioned, smart, and experienced. They can provide valuable insights on various topics. However, the aim should be to make significant decisions during board meetings, not to offer scattered tips.
Some board members believe that major decisions only come into play during unexpected emergencies. While these situations demand immediate attention, boards can also proactively influence decision-making.
One effective approach is to require your executives to develop long-term plans. Short-term plans tend to be incremental, as discussed in my May 2022 column, “Five-Year Plans Aren’t Strategic. They’re Dangerous.”
For inspiration, consider Kennedy’s lunar challenge in 1961. This ambitious goal led to the creation of the Apollo program and spurred innovations in various fields. To foster big decisions, challenge your CEO or MD to articulate a bold, long-term vision for the organization.
Few top executives have been trained in this kind of thinking. Some offer vague visions with no concrete plans, while others attempt to rebrand five-year plans as “long-term.” As a discerning board member, you should seek game-changing commitments that transform industries and elevate your company’s performance.
While board members may be eager to make significant decisions, many C-Suite executives might not be ready for such audacious goals. They are often promoted based on their ability to deliver short-term results.
You can encourage a shift in mindset by introducing the concept of “big, hairy, audacious goals” (BHAGs) with long-term horizons. While this may seem unconventional and risky to some, it’s the right approach. As a board member, your role is to challenge assumptions, ensure the credibility of plans, and evaluate end-game scenarios.
Your collective expertise can add rigor to the management team’s plans and elevate the quality of discussions. Over time, this focused process can lead to game-changing outcomes, making board meetings inspiring and far less frustrating.
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.
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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.
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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
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Your business offers a product or service. Regardless of how well your offer sells, you wonder whether or not you are leaving money on the table. In other words, are you charging the best price possible?
This question is often left to opinions, chance, or comparisons with competitors. These choices unfortunately indicate the lack of a defined philosophy.
Alex Hormozi’s book, $100m Offers, provides a simple way to think about the challenge of setting prices. If you have a sense that your company should reconsider its thinking, keep reading.
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Your company has once again begun to look to the future. It’s shaken off the post-COVID blues and must now position itself in its industry with a fresh strategy. But all of your executives are not convinced that hard choices must be made. How can you persuade them?
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