Companies face different challenges on the journey of business evolution. Some of these challenges are framed in the technical, market and economic environment. We can speak to the volatile, uncertain, complex and ambiguous forces in the business world, the so-called VUCA forces that shape the realities for every enterprise.

Another set of challenges is often framed in the strategic and cultural realities of the organization. These derive from the everyday thought and behavior of people at every level of the company. These challenges surface in conversations about:

-     Major strategic choices and decision making

-     Resource allocation priorities and resource development

-     Targets for business growth, performance and change

-     Risk management in the context of business evolution

-     Human capital and benchstrength matched to plans

Each of these challenges poses as some kind of opportunity if boards and management have a little strategic resolve. If we could put strategic resolve in a few words, we mean:

-     Courage to move beyond norms and convention

-     Energy and a sense of urgency to make advances

-     Accountability in thought, action and outcomes

-     Respect for the challenges and for passion for solutions

-     Curiosity to tap into opportunities and competencies

Strategic resolve can be expressed in scenario analysis and planning, innovation research, service process analysis, customer engagement, project collaboration, business model research and other good practices. But the heart and soul of strategic resolve is found in the leadership mandates of the organization and the engagement of people in the serious work of making strategy happen. Focusing on results, no matter the challenges or speed bumps or tradition, is what the strategic resolve is all about.

Popular wisdom holds that CEOs ascend to the executive mountain top with a combination of management and leadership assets. This combination of knowledge, experience, perspective and relationship capital serves as the foundation of judgment.

From sound judgment, better CEOs create real strategic and economic value for their stakeholders – employees, investors, customers and suppliers. From sound judgment, they shape their company’s strategic agenda for growth, performance and change. And, according to a recent expose by Business Week, they engage in practices tied to:

-     Innovation

-     Customer Focus

-     Productivity

-     Risk Management

-     Organization

A sense of urgency, smart execution, competitive savvy, resilience, strong resolve, collaboration, thoughtful readiness, cultural respect, diligence, insight and communication help. Bringing up executive talent is a critical imperative that deserves serious and specific sound engagement, and in companies large and small, the evolution of C-suite benchstrength has to be a strategic priority.

The CEO of the Future

Building executive-level competence is all about experience in specific management and leadership assets. The CEO of the future will not emerge from a simple formula of skillsets, but rather a dynamic formula of unfolding competencies and evolutionary thought. The capacity for relationships, the credibility of influence and the confidence of personal leadership are all part of the equation.

Nonprofit governance is gaining a lot of attention these days. One reason is the cloud of uncertainty that goes along with economic conditions, political evolution and market challenges. Another issue is the desire for greater board effectiveness by nonprofit stakeholders, consistent with concerns of corporate board governance.

Research on board strategy and leadership points to at least five areas of board engagement that are especially essential for nonprofits:

1.   Foresight and Understanding –

The context for meaning and decision making.

2.   Organizational Perspectives –

The resources, culture, process considerations.

3.   Construction of Strategy –

The elements of direction, integration and execution.

4.   Focus on Cause-and-Effect –

The measures of intent, activity and impact.

5.   Board Thought and Behavior –

The interaction of people, ideas, systems and value.

Boards are accountable for management guidance, general compliance and mission discernment. They are also accountable for the evolution of the nonprofit organization, taking care of the near-term and getting ready for the long-term. The competencies of individual board members and the collaboration of board members and management provide the crucible for strategic leadership at the governance level.

From: Dewar Sloan Working Paper on Strategy and Nonprofit Boards

A review of customer and category research suggests several basic themes in the formation, integration and execution of service strategies that drive value creation; each of these deserves more deliberate analysis:

1. Service Culture and Sense…

What the organization believes about the nature, relevance, and impact of its service to customers.

2. Service Proposition and Focus…

What the organization promises, delivers and engages with customers under the rubric of service.

3. Service Competence and Practice…

What the organization builds, dispenses, maintains and advances through deliberate service management.

John Di Julius, author of What’s the Secret? – a good book on service, suggests that the real secret in all of this is service aptitude at the employee level. Others suggest that the magic derives from attitudes, engagement and principled behavior. In terms of your strategic agenda for growth, performance and change, the plan for service is at the heart of things – where your ideas, people and value come together in the mind of the customer.

By simply taking in the news, one would probably miss a few things that are positive in business today. Beyond the chafe about the economic meltdown, political malaise and industrial decline are some impressive themes:

1. Companies have discovered or rediscovered their ability to address tough problems under pressure. Managers who have not experienced economic stress before are learning what can be done under the gun of resource constraints and calendar tension. That is a great thing.

2. Companies have discovered or rediscovered their ability to create new strategic and economic value from ideas. Call it the discipline of innovation or the deliberate practice of solution integration, the net effect is driving more opportunities for evolution. That is a great thing.

3. Companies have discovered or rediscovered their ability to engage the hearts and minds of people. Matching the many challenges of growth, performance and change with the readiness and resolute courage of talented people is a powerful engine for business sustenance. Great.

As the editor of Fast Company, Robert Safian, notes in his March 2009 commentary, there is much to cheer about, and indeed there is. Strategic leadership that is prepared and resolved to match strategy, culture, resources and structure with the realities of the business environment and a smart set of natural goals will take most companies to the next level.

Three decades ago, Peter Drucker outlined a series of thoughts about strategy in his book Managing in Turbulent Times.  The principles he advanced are quite applicable today, with some interesting reflections on the circa 1980 era of uncertainty:

• The need for adaptive strategies for dynamic settings.
• The relevance of technical, social and economic forces.
• The structural realities of socio-economic progress.

In strategy leadership and governance, circa 2009, we have what seems to be a perfect storm of uncertainty.  The storm links a torrent of economic, social, political, market and technical factors into the practice of business planning and decision making.  Given this context, what should executives, program managers, board members and partners consider as they direct, integrate and execute their strategic agenda?  The standard answers to this question include a duet of contemporary management themes.  The first theme focuses on framing foresight, insight and adaptive capacity.  This is a matter of getting ready for change… and being flexible as it occurs.   The second theme relates to increasing the resolve to develop capacity that will be needed to absorb the challenges that arise. 

We address these themes in Prepared and Resolved, 2007.  And, Donald Sull defines these concerns through his forthcoming book, The Upside of Turbulence.  The common themes are readiness and resolve, the capacity to evolve.

And the simple truths remain - the turbulent times we are facing are part of an always-unfolding set of realities, a context of VUCA, or volatility, uncertainty, complexity and ambiguity.  Better companies will survive, prosper and sustain in a turbulent world, with the readiness and resolve to press-on regardless.

In a recent (11/10/08) Business Week cover story, strategist Michael Porter poses and good question about the political and economic direction of the country…Where is the Strategic Thinking?  More to the specifics…

1. What are we doing about the constraints that degrade America’s entrepreneurial strength?
2. What are we doing about the continuing erosion of educated citizens and foundation learning?
3. What are we doing about the principle disconnects between technical, social, political and economic policy?

Porter argues for some reality-based strategy analysis of national challenges, resource management concerns and the many factors that shape and drive the country’s competitive stance in the world.  The balance of national planning and global leadership?  Or the stab at national leadership and global development?  These are important questions at every level of the political/economic discussion.

Stepping Into the Cauldron

The optimist would suggest that we live in interesting times, and further, that we have some exciting frontiers.  In our precepts of strategic thinking as outlined in Prepared and Resolved, the opportunities for advancement are framed by two things – business reality and natural goals.  Our business reality is painted with VUCA – the volatility, uncertainty, complexity and ambiguity* of the world today.  Our natural goals remain, in balance, the economic performance, competitive edge, customer relevance and corporate stewardship of the realities we guide and represent.  These are touchpoints for every organization today.

Michael Porter’s question is a good one for the leadership of the nation.  Who will come together to construct the answers that will make sense for individuals and society?  And, how will we get “prepared and resolved” for change?

* Wikipedia: VUCA

One of the great leadership issues of this era reflects on how we get our organizations prepared and resolved for change.  Leadership expert John Kotter explores the growing relevance of readiness behavior in his 2008 book, A Sense of Urgency.  In a business world shaped by technical, market and economic uncertainty, Kotter strongly suggests that complacency and/or “false urgency” can wreck an organization.

• Complacency is “…a feeling of contentment of self-satisfaction, especially when coupled with an unawareness of danger …”
• False Urgency is “…built on a platform of anxiety and anger, and behaviors that are energy-consuming but not at all productive.”

In contrast, a true sense of urgency is characterized by people moving on critical challenges in a manner that delivers results now.  Kotter suggests that a true sense of urgency is shaped by a set of feelings and a set of thoughts; the feelings are essential.  Engaging people in the challenges of the enterprise is a cultural practice.  And so the formula goes, give them the facts and win their hearts and minds.

The “urgency prescription” Kotter provides is comprised of four leadership elements:

1. Bring Outside Reality into Focus…

        - Engage people in the real challenges and concerns

2. Behave in Ways that Match the Challenge…

        - Demonstrate a balanced sense of true urgency

3. Frame the Upside Opportunities and Prospects…

        - Move on the problems and discover the possibilities

4. Tackle the Problem of Skeptics and NoNos…

        - Remove or neutralize the barriers to urgency

Better, Smarter, Faster

Kotter points to the cultural sense of urgency that drives sustainable business evolution.  He suggests that the true sense of urgency separates high performance companies from those with strategic disabilities.  This is the same general argument we make in Chapter 08 of Prepared and Resolved.  The resolute leadership of an organization builds a cultural sense of urgency into the temperament and capacity of groups and individuals.  Further, a clear mindset of readiness and some forward-focused behavior helps power the organization to build and rebuild strategic and economic value for the stakeholders.

Five of Five Stars

A company’s strategic agenda represents its framework for engaging the people of the enterprise in the work of business growth, performance and change.

Engagement brings together the cultural and structural forces of the organization, matching strategy and resources with:

The Evolving Considerations of the Business

      Marketplace and Enterprise

The Goals and Objectives of Stakeholders

      Strategic and Economic Value

A management view of enterprise engagement covers such matters as forward planning, decision making, problem solving and planned innovation. Resetting the strategic focus, behaviors and energy of the organization is what enterprise engagement is all about.

A governance view of enterprise engagement covers broader matters including accountability and sustainability.  The measures for enterprise accountability must recognize near-term and long-term intentions.  Sustainability is about business evolution, and it is enabled by enterprise engagement.

Enterprise engagement begins with purpose.  Strategy connects people with a powerful sense of what the organizations stands for and where the business is headed.  It blends together critical behaviors including membership responsibility, intentional discovery, respectful and enthusiastic relationships, discretionary efforts and effective collaboration.  These behaviors are learned in the context of a strategic agenda that is backed by thoughtful, engaged and purposeful leadership at every level of the enterprise.

Further discussion on enterprise engagement is provided in my 2007 book, Prepared and Resolved: The Strategic Agenda for Growth, Performance and Change, dsb Publishing.

1. The value of thoughtfulness that inspires people
2. The value of relationships that help engage people

Beyond all the media hype and clatter is a simple and profound story of life experience that connects the dots between what people could do, and what they should do. We deal with this question in Prepared and Resolved, in business terms, and the Pausch Effect pushes these matters to another level, a personal and professional level of principle and insight.

There are ethical and spiritual constructs woven into the message of the last lecture. People of faith will sense the story behind the story immediately, not at the end. And people whose charge it is to engage other people in the work of their lives will find a certain call to readiness, persistence, courage and optimism. The Pausch Effect is powerful, and it should provoke every reader.