entrepreneur strategy

“If you always do what you’ve always done, you’ll always get what you always got.” – James P. Lewis

Why do strategic planning? Is it really helpful to plan when things around us are changing so rapidly? Look at the current business environment that is changing as fast as quick change artists in a theatre show.

 The rate of change as we have discovered is so fast that traditional planning horizons just can’t keep up and current planning techniques are obsolete. This means organizations are often caught with their pants down before they can realize on their previously planned outcomes.

 So what has to shift in how organizations approach strategic planning? The answer –they must leave behind their attachment to traditional strategic planning approaches and move toward a lean and iterative strategic management process.

 Here are five principles to help an organization create a strategic adaptation culture.   

 Focus on one goal at a time – Abridge

 Focus is essential in any activity. Confusion results when there are too many directions undertaken at once.

 For example, in the sport of football the single focus is to bring the ball into the end zone and score. Note I was very specific to indicate that it was not to score a touchdown because a field goal could very well be the way to score points as well. During a game the players focus on bringing the ball down the field concentrating on crossing the line of scrimmage consecutively. The goal is to reach the end zone and score – how it is done is a matter of tactics and team work.

 For organizations the same is true. Having a clear and defined goal to focus on means that everyone in an organization will know what is expected of them and what is needed in getting the goal achieved. Keeping the goal simple and focussed allows organizations to create a rallying call for what ultimately matters strategically.

Build a culture that anticipates near term trends – Anticipate

Drawing again from sports, Wayne Gretsky once said, “I skate to where the puck is going to be, not where it has been.” This insight speaks to the element of anticipation. In the context of strategic implementation it means every person in the organization should be responsible for predicting future outcomes and brace for them. A strategy conscious organization should build a culture in which anticipation is encouraged and practiced regularly.

 Empower employees to make decisions based on context – Adjudicate

 It is virtually impossible for any executive or manager to make every decision in an organization. What is necessary is that employees be given the right and freedom to make decisions within the context of a single overarching goal. This means that they must have the ability to make decisions on the fly when changing circumstances dictate. This ability to adjudicate allows for a nimble and focussed organization that implements through the collective wisdom of its members.

 Adjust and pivot in response to new circumstances – Adapt

 The “Ready, aim, fire” business principle was changed in the ‘90’s to “aim, fire, aim, re-fire”. Why? Because it is always best to adjust to changing circumstances using a test and fine-tune mentality. If something isn’t working make changes to get it right and don’t stay long with a losing approach.

 Tactics are stepping stones that provide the pathway to achieve the ultimate goal but also must take into account environmental dynamics to make adjustments. In business environments that are constantly changing, adaptation is essential in shaping a lean, iterative and adaptive plan for an organization to follow. 

 Constant motion toward the designated single goal -Activate

 Finally, organizations are in a constant state of motion relative to their changing environments. Albert Einstein’s theory of relativity is, so to speak, relevant here. (Smile). He postulated that the faster an object is moving, the slower time progresses for that object in relation to a stationary observer.  In other words keeping up with the changing environment requires an organization to be in constant motion – adjusting and adapting to fluctuating changes in order to keep on top of the things that are impacting its success. 

 Keeping in motion means an organization is learning and adjusting to decisions that are in many instances both wrong and right at any given point. Adjustments or deviations from the path are okay as long as the goal is being focused upon.

One of the most amazing stories I read in 2012 was about Felix Baumgartner’s supersonic freefall from a specially made helium balloon. His successful jump from 128,100 feet / 39.040 meters on October 14 broke several records not the least of which was becoming the first person in freefall to break the speed of sound – exactly 65 years after Chuck Yeager first broke the sound barrier flying in an experimental rocket-powered airplane.

Check this short video clip and see what I mean –

http://www.youtube.com/watch?v=FHtvDA0W34I

Felix had a vision all his life of sky diving and piloting helicopters. When he was 16 years old he began sky jumping and built a solid career and skill set in this activity.

So, why I am so impressed by his story? Felix exemplifies the power behind execution and the essential habits necessary in achieving a vision. Here’s what we can learn as entrepreneurs.

1.      Preparation

Baumgartner didn’t begin his preparation for his Oct 14^th jump months or even years before it happened; his preparation began with his dreams as a young boy at a nearby airport watching sky divers’ parachute from planes. He signed up to start learning to jump as soon as he was legally able to do so, and eventually enrolled in the military to further refine his skills. Over the years he has achieved so many unique sky diving feats all of which prepared him for his leap from the edge of space on October 14^th.

Preparation is a series of incremental steps which build toward a desired outcome. In general most business people don’t do a great job in preparation. Why? It seems we all can get caught up in our belief systems or gut assumptions without working through the rationale and details behind our decisions and action steps. What eventually snags any hope of progress is not taking the time to prepare the right information and/or skills sets that will advance our desired outcomes.

2.      Knowing how to build an expert team to support you

Felix also assembled an expert team of engineers, flight specialists and even relied greatly on his project mentor Col. Joe Kittinger who holds the world record for the longest freefall.

No one can achieve a vision or goal without the support of others. Even an entrepreneur with an abundance of knowledge and experience will need to rely on people smarter and possess specific insights that make the project team that much stronger during implementation.

3.      Focus and discipline on a few, meaningful priorities

As I mentioned earlier, Baumgartner had a dream – a singular focus on sky diving and he had the discipline to follow through. How often have we seen the “spray and pray” approach in getting things done? Lists upon lists of things to do; yet priorities never get done. Things get started but they never get finished. Chet Holmes in his book, “The Ultimate Sales Machine” wrote – “Success isn’t about doing 4,000 things; it’s about doing a few things 4,000 times.” What this means is focus on a few priorities and dig deep in making them happen. Have the discipline to stay on course.

4.      Courage to take the plunge

I get goose pumps every time I see Felix take his step away from his capsule into space and freefall rapidly to earth.  What a feeling it must have been to take the plunge after so many decades of work toward achieving this final goal.

So, how often do we make excuses, delay or fret over the fear that we might fail in achieving our goals.

So what’s holding you back from achieving your goals in 2013?

What are the top things you should – do better, eliminate because they are holding you back or amplify because you are good at doing it? Once you set your priorities above all else – implement. This is the number one driver in achieving your goals.  Implement with preparation, by leveraging a team, with focus and discipline and with the courage to take the plunge.

Best wishes for your success in 2013!

Even entrepreneurs who know how to raise capital may still not be taking full advantage of the relationships they’ve built with investors. Particularly with angel investors and venture capitalists, there’s an expectation, if not an obligation, to make use of their expert advice to help drive your business to success. Your backers may have crucial expertise as valuable as the financial investment they make in your enterprise.

Types of Angel Investor Expertise

Here are some examples:

Mentoring

Entrepreneurs or CEOs can gain much by asking experienced investors to act as mentors. They can provide great insights into finance, among other things. In early-stage companies, some lead investors or VC firms might provide the assistance of entrepreneur-in-residence, an experienced person who acts as a mentor.

Hiring

As we briefly mentioned above, experienced investors have wide-ranging industry contacts and are better than any executive search agency, not to mention much faster. You can be fairly confident that they can help you with hiring for almost all senior positions, either in engineering or management.

Strategic Alliances

Experienced investors can offer great ideas with regard to forging strategic alliances in the market and also provide you access to the right people in case you do not have your own network of contacts. They can help in providing sales leads, too.

Suitors

You can be assured that experienced investors have considered potential acquisition, or merger, partners before you have. Chances are they even have analyzed the prospective companies for the “best fit” with your company’s offerings. You should seek their assistance in forming a liquidity event strategy as this, in many cases, has been how your investors have made their money. They will also be interested in supporting you as they are interested in getting their money out one day when the time is ripe.

Entrepreneurs have to be on the lookout for a range of accelerators for their business, not just capital although raising capital is critical. Mentors, strategic alliances and other opportunities can come up at any stage and should be leveraged. Make sure you’ve got a strategy in place to take advantage of them.