Driving to the End Zone
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This document discusses how running a successful business is like an NFL team that wins consistently through a strategic plan involving all aspects of the organization. It argues that businesses should set a vision for efficiency and waste reduction, create a multifaceted strategic plan to achieve both short and long-term objectives, and measure performance against the plan rather than reacting hastily to individual metrics. The metrics should be used to evaluate whether adjustments need to be made to the overall plan or if issues are only temporary. Finally, it stresses the importance of engaging employees, treating their issues as a priority, and rewarding outstanding performance.
Driving to the End Zone
- 1. Drivingtothe End Zone Runninga successful businessismuchlike anNFLTeam. The successful teamhasits“A” playerbut the focusis noton superstarefforts. The teamhasa game planand the methodologytosucceed. Whenwe lookat the teamsthat justmove the ball downthe fieldplayafterplay andappearingimpossibletostop it isimpressive. Performinginall factionsof the game,defense,offense andspecial teams,isthe only wayto sustaina victory weekafterweek. Whenall the factionsof the teammeettheirobjectives,they findthemselveswinningitall. So whatdoesthat have to do withbusiness? Itisthe same philosophythatisrequiredtosustain successweekafterweek. Businesscannotjumptoreactto differentmetricseachweekormonth. Many businesseswill sometimes lookatsalesandEBIT withlittle regardforqualityandthe costs associatedwithbadquality. Businesswillthenreacttoan analysisthatstatesthe cost of qualityistoo highand place multipleassetsinplace torectifythose conditions. Thenametricwill be reportedthat there isexcessiveinventorycost. Again,some businesseswillreacttothose metricsandput teamsin place to burndownthat poor metric. Thisis the problemwithmanagementby objectives. Manytimes, people willmanipulate the datasothatthe metricgetsbetterwithoutimprovingthe systemthatis creatingthose metrics. The businessesthatwill be the mostsuccessful setavisiononefficiencyimprovementandwaste reduction. Theywill have amulti-facetedplanthatwill be builtaroundaproductionor a service system that will assure all longandshortterm objectivesare metandtheywill measure themselvestothat plan. Metrics are merelya reportcard and a businessshouldnotreactinhaste to attaintheirgoals. If youexamine yourcurrentstate,create a visionof whatsuccesslooklike,andthencreate astrategic planthat supportsthat vision,youwillsucceed. The metricswill tellyouif youare executingtoplan, whetheryourplanshouldchange (because of continuedpoorperformance) orwhetheritisonlya short termdeficittothe entire plan’sexecution. We continuallyattempttoexceedeachpriormonth’s performance butinrealitythatcouldcreate “knee jerk”reactionsthatdestroyyourlongtermstrategic plan. Don’t discardthe metricsbutlookintothemto see if youare observing ashort termeffectof doingthe correct planexecution. If your shortcomingsare a resultof a temporarycomplicationto your strategy,don’tover-react. Examinethe plantosee if itisexecutingproperlyandthenmake small adjustmentstoassure thata trend doesnotdevelop. Finally,alwayskeepapulse onyouremployeesandtheiropinions. We tendto thinkthatwe as managementhave the answersbutmanytimesthe answersare inthe mindsof our employees. Always pursue an engagedworkforce andtreattheirissuesasapriority. Assure there are noethical gapsin your organizationandcommunicate withemployeescontinuously. Neverforgettorewardemployees for theiractionsandoutstandingperformance andthankthemfordoingtheirbest.