Should you ever find yourself looking back at recent performance results with disappointment, first congratulate yourself. You’re self-aware enough to know you have an issue that needs attention. Now, it’s time to quickly move on to action with a practical first step being to diagnose root cause problems.
In my experience as both banker and consultant, I’ve found that performance issues tend to have their root cause in one of five areas. If you suspect that your enterprise is underperforming to its potential, you can use the following STEPS (Strategy, Talent, Execution, Product, Structure) to find areas of opportunity that will allow you to act purposefully in putting your organization back on track.
Strategy: Am I executing the right business strategy? In its simplest form, strategy is about aligning monetizable solutions to markets that need them. Growth in both number of clients and revenue comes when strategy involves either applying current competencies to new customer markets and/or developing new competencies that are of value to the company’s existing markets. Any relevant strategic initiative has an ROI. In evaluating strategy, size the prize, and assess required costs with the prize being profit potential and cost equaling time, development and economic investment.
Talent: Do the competencies of your leadership team and the composition of your overall company talent investment align with strategy? As a company grows and/or as the environment around it rapidly changes, it’s common for an enterprise to find itself under resourced relative to critical competencies. Invest time and resources in coaching and development while remaining objective regarding talent evaluation. Take action that may be necessary to top grade and/or add depth in key leadership and functional roles.
Execution: Is your execution effective and efficient? Ensure that tactical execution aligns with strategy. Don’t be accidental. Establish metrics and KPI’s to ensure traction and formal operating rhythms that allow for inspection and monitoring. Systemize forecasting processes and template “gap closing” initiatives and “activity sprints” to allow for purposeful course correction when necessary.
Product: Are we delivering an acceptable value exchange to our chosen marketplace? Be wary of ignoring product lifecycles. Limit new product development investment to ideas that meet all of three critical qualifications. First, products must be relevant to the market. Otherwise, demand will not exist. Second, you must have the capability to deliver the product solution either based on current competency, or one that can be readily developed. Otherwise, you’ll struggle to get to market. Finally, products need to be profitable. If the market won’t pay an adequate return for your product or service, drop it.
Structure: Are we organized to deliver performance results? Are structural points of accountability in alignment with organizational priorities and is span of control practical given what needs to be managed, coached and inspected? Ensure that both formal and informal organizational structures align with critical business objectives, and that your structure is appropriately scalable and elastic. Remember that most organizations are structured perfectly to achieve the results they are presently generating. It may take change to produce change.
As business leaders, we’ll all face challenges from time to time. Be one who sustains success by separating yourself with a keen sense of awareness, objective application of curiosity and a willingness to take necessary action. ●
Jerry L. Kelsheimer is President and CEO of MMG Healthcare Solutions/Medic Management Group
