Once you’ve built some great goals, you need to communicate them to the organization. Operating in silos leads to missed opportunities.
Once you’ve built some great goals, you need to communicate them to the organization. People in your department need to understand how their own goals, as well as the goals of their colleagues, tie to the broader organization goals. Operating in silos leads to missed opportunities. Sometimes you’ll find people are working at cross purposes. When communicating goals, provide broader strategic context for why goals were chosen and how they tie to the broader organization success.
I worked with one client that was really focused on changing their business performance. They wanted to improve their gross margins. So they got everybody together and made sure they understood how everybody’s goals tied to this higher-level gross margin goal. The supply chain team was given goals around making their top products more profitable. The marketing team was given a goal of emphasizing the most profitable products in the portfolio. Product teams were given SKU rationalization goals to thin the portfolio and remove less profitable products. The sales team was given the goal of selling the more profitable products.
Everyone in the division knew what everybody else was doing. It prevented arguments, like sales reps demanding low margin products or sales reps yelling at product teams for removing a SKU. All goals were communicated by the business unit president at an all-hands meeting. They all heard the same message at the same time.
For your organization, get your business unit and partner organizations together. Compare goals. Figure out how you’ll communicate it to your entire organization at the same time, so everyone knows and understands the context. Having this clarity at the highest level and making sure that all the goals are aligned is going to reduce conflict in the organization and improve the likelihood that you hit your numbers.
Want to learn more about setting business unit goals? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to set business unit goals. The entire course is available at LinkedIn Learning. Enjoy!
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Goals can make sense in isolation, but when you add them all up, you may be asking for unrealistic results from your team. Watch out for conflicting goals.
It’s important to reality check your goals. Goals can make sense in isolation, but when you add them all up, you may be asking for unrealistic results from your team. You’ll need to evaluate how department goals impact one another. If you set a goal for revenue growth, and another goal for cost cutting, you may have created an impossible situation for the team. They can’t spend money to drive revenue because they’re so focused on cost cutting. It’s this kind of reality checking that leads to more reasonable and achievable results.
What I’d suggest is get all your organization’s goals together on a whiteboard. Start with the high-level corporate goals, then lay out your business unit’s or department’s goals. Lay out adjacent business units or functions. Look for dependencies. Look for supporting goals and look for conflicting goals. Go through the same exercise for the teams in your organization.
For supporting goals, make sure there’s no overlap. You don’t want people working on redundant things or getting double credit for going after the same work. For places where there are dependencies of goals, make sure the first goal is properly resourced so the follow-on goal can be met. Also lay out for that second goal the risk in hitting it if the first one isn’t achieved.
In situations where you have conflicting goals, try to get them aligned. You can eliminate one of the goals or carve out the impact of one goal on another. For example, if you have a cost-reduction goal, lower the revenue goal since you can’t market as much since you’ve decided you’re not going to spend. It’s this kind of reality checking, where you take a step back and look at the overall goals and the behaviors that are driven, that’s going to increase the likelihood you hit your most important goals and don’t cause frustration for your team.
This reality check is something that I see people miss all the time. They lay out their goals, their goals are smart, they’re focused, and they understand the behaviors they need to drive, but they never take that extra minute to say, “How do these goals impact one another?” If you do that kind of integrative thinking and look across all your goals, you’re going to spot the trouble spots and understand what you need to change before you launch your team out on its work.
Want to learn more about setting business unit goals? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to set business unit goals. The entire course is available at LinkedIn Learning. Enjoy!
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Why are memorial services celebrating the life of a loved one who has passed always convened around candlelight, music, and poetry and not around bright lights, PowerPoint presentations and spreadsheets?
Why are memorial services celebrating the life of a loved one who has passed or that bring communities of diverse people together after a tragedy like a human-caused tragedy or natural disaster always convened around candlelight, music, and poetry and not around bright lights, PowerPoint presentations, and spreadsheets? Memorial services are meetings around the most significant emotional and spiritual events in our lives – not about budgets or cost overruns that seem insignificant in comparison. They serve to help people who might or might not know each other find a sense of presence with change and hold hands to risk moving forward. Change always involves grieving the death of something old and mustering the courage to accept the birth of something new. I think it’s time to shed some new light on how we meet to achieve change.
Nothing would be more un-business-like than convening a business meeting in candlelight with music and poetry and nothing would be less human-like than convening a memorial service in bright lights with agendas, charts, and graphs. We need to recognize that not all meetings are the same. I think there is a practical business lesson here – at times our task requires us to be impractical and un-business-like. Those times are turning points in the life of an organization when change, creativity, and innovation become a survival necessity and people need to support each other as human beings in changing themselves.
The lesson is simple. Organizations exist at two levels of reality. The most obvious surface level represents the brightly lit performance stage on which human beings act out their defined roles. It consists of structures, organization charts, systems, goals, regulations, policies, plans, and job descriptions. These elements are visible and difficult to ignore in our day-to-day work. There is a deeper underlying level of reality, however, that is only visible in candlelight. That fragile flame reflects the spirit of loving, compassionate, forgiving, respectful, and collaborative human beings conscious of their common mortality and their insignificance in the face of the night sky. Any change strategy is more likely to be effective if we could work with these human beings and not the entrenched role players who have a stake in the status quo.
We look more like each other in candlelight than we do in the roles we play under the bright stage lights in the conference room. In this light, people are more open to change and ready to support each other in risking it. Issues like trust, poor communications, broken relationships, lack of employee engagement and buy-in, and leadership development are barriers to change that are amplified in bright light and defused in candlelight. These barriers are surface-level issues that can only be addressed at the deeper level of organizational reality. To prepare people to transcend these barriers and achieve real and sustainable change, it is necessary to reveal them as human beings beneath their business suits. Shouldn’t our meetings about change topics be more like memorial services that invite emotional and spiritual presence than agenda-controlled and facilitated meetings that intentionally deny that presence?
We need to better appreciate the effect of how we illuminate our meeting places. For decades I have been experimenting with ways to bring the spirit of candlelight into meetings where it makes sense to do so. I have just published a book entitled A Place for T: Giving Voice to the Tortoise in Our Hare-Brained World where I share my learnings. My book launch events communicate my message with a simple experience. I begin my presentation in a brightly lit room with shuttered windows. On a table in front of the room, I have lit candles. After a short PowerPoint introduction, I shut down my computer, turn out the room lights, play reflective music, and let my audience sit in silence before I continue. Now those flickering flames become the focus of attention. Then I ask them to share what they experienced with the change in lighting. They naturally get it and awaken to the deeper level of reality without me lecturing to them.
Our human consciousness is mirrored in those candle flames. They awaken the human being within us. People who sometimes feel lost, unappreciated, and alone in the roles they play, sense a call home to what they really care about. Now I can talk to an audience that is prepared to be intimately connected to what I have to say and prepared to engage in meaningful dialogue. Isn’t this what organizational leaders really want – to have employees who are intimately connected to what they have to say and fully engaged? But I fear these leaders are a bit afraid of the darkness and don’t trust what might emerge.
Lack of trust might be the biggest barrier to change. If you want trust, then trust. Creating candle lit meeting places challenges leaders to let go of the need to control and trust the natural capacities of employees to do what is right and good for the organization. As I look back on my experiences, I have developed a much greater appreciation for the potential inherent in the natural emergence of change as a product of learning and for the natural emergence of leaders as needed. In their busy lives, employees might have forgotten how to talk to each other, what conditions they need to learn together, and how to lead in their own way. But if the lighting is not blinding them to the fragile candle flame, they will help each other naturally remember that they already know these things. I have seen this emergence happen too often to ignore it. We just need to create the meeting conditions, a meeting place, that invites the conversations we need to have, not the ones we assume we should have. The most critical condition might be how the ‘place’ is illuminated. I think senior leaders need to muster the courage to occasionally turn down the house lights and risk being un-business-like in candlelight. We all look better in candlelight.
Dr. Robert H. Lengel is Associate Professor emeritus at the University of Texas at San Antonio, president of the consulting firm LeaderWork Inc., and author of the new book A Place For T: Giving Voice To The Tortoise In Our Hare-Brained World. He holds a BS and MS in aerospace engineering, an MBA, and a PhD that blended oceanography, environmental management, leadership and organizational dynamics in business. For more information, please visit www.APlaceForT.com
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A commit goal gives your team a clear target to aim for, while a stretch goal gives your team an incentive to go above and beyond.
A goal setting technique designed to provide predictability and generate excitement and upside potential is setting commit and stretch goals. The commit goal is a promise of what will be delivered. It’s non-negotiable. Missing it has big consequences. The stretch goal is something for the team to aspire to. If they reach it, the rewards can be really large.
Let me walk through an example of what this can look like. Let’s say we have a corporate profit target of $150 million. Each business unit is given a portion of that target. And when you add those up, it’s $155 million because we want to have a hedge in this situation. Those are commit numbers. One business unit has a $40 million commit and a $45 million stretch. Let’s say at the end of the year they come in at $41 million. Well, they get 20% of the extra bonus that’s available because they got one million of the five million possible.
Let’s say another business unit had a goal of $50 million as their commit. They come in at 45 million. It’s a bad year. No bonuses and poor reviews are going to follow in the performance management process. Another business unit has a $27 million commit and a $30 million stretch. They come in at $32 million through some really good luck and a lot of hard work. That team should get 166% of the possible bonus if it’s an uncapped bonus structure.
The final business unit has a commit of $38 million and a stretch of 45 million. They come in at 40 million and they get a 28% of the available bonus. The corporate result of this entire goal-setting structure is coming in at $158 million on a corporate commit of 155 from this business unit.
When you look at setting these commits and these stretches, it’s pretty clear that the team knows what they have to hit with the commit. They understand what the consequences are. Having the stretch gives them that incentive to work even harder and deliver above and beyond.
One thing I invite you to do is to create a commit and a stretch for all major metrics for your organization. Ensure there are consequences for missing the commit. Make sure there are rewards commensurate with hitting the stretch. By laying out these goals and letting people know broadly across the organization what the commit and stretch are, as well as the consequences and rewards, you can drive exactly the behaviors you want to hit your higher level goals.
Want to learn more about setting business unit goals? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to set business unit goals. The entire course is available at LinkedIn Learning. Enjoy!
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Sitting on the balcony of our apartment in New Westminster, Canada, I hold my baby boy and reflect on the past few months. After everything that happened, I’m amazed that I made it through without breaking down mentally. I recall founding a new business while my girlfriend navigated a challenging pregnancy, and my father fought terminal cancer.
My emotions were erratic, and I felt pulled in different directions, trying to be present for my girlfriend, dad, mom, and clients all at the same time. Things spiraled downward, and my father passed away shortly before the birth of my son. I was overcome by a mix of grief and joy, and at the same time, we relocated from Germany to Canada amidst the start of a global pandemic.
This was in the Spring of 2020, and I realized that a few mindset shifts helped me navigate these challenging months. Adjusting your mindset allows you to focus on thinking smarter, more complex, with more ingenuity, and finding multiple paths to success. Let’s explore four mindset shifts that will help you succeed.
Embrace JOMO, because YOLO
The first shift is from FOMO to JOMO. The fear of missing out is that feeling when everyone around you is raving about a new artist, and you feel like the only one who hasn’t heard of them. But you buy tickets, just in case, because everyone else is doing it, and you don’t want to miss out.
If we allow fear to drive our decisions, we waste our biggest asset, our attention, on things that don’t matter. In business, this can lead to poor job performance, lack of career advancement, or even job loss. On a corporate level, FOMO can lead to “me-too” strategies, with companies copying whatever their competition does first. However, success comes from clarity, direction, and differentiation, not copying others.
To shift from FOMO to JOMO, the joy of missing out, we need to define our priorities in life and business. Writing them down helps us crystallize our thinking, understand what matters to us, and how we can achieve our goals. This becomes our go-to resource for decision-making, as we evaluate opportunities based on whether they help us reach our goals.
Overcoming Perfectionism with Speed and Agility
The second mindset shift is moving away from perfectionism and towards speed and agility. As a strategy facilitator, my role is to assist businesses in achieving their future goals. When clients ask me how long it takes to create the perfect business strategy, I tell them the truth: it’s impossible to achieve perfection. We can align a business around an 80 percent strategy and leave the remaining 20 percent for uncertainty. This gives us enough direction to get started and make progress.
In business and personal situations, we must be able to adapt quickly when unexpected events occur. When COVID-19 first hit, we had to decide: wait it out, or pull our relocation to Canada forward, and move within days. Our perfectly planned relocation had to make space for a new reality: we acted swiftly and learned as we navigated the uncertainty of moving to a new continent under lockdown conditions. Prioritizing speed and agility over perfectionism will help you move forward, learn from mistakes, and succeed over time.
From Scarcity to Abundance Thinking
The third mindset shift is from scarcity to abundance. In business, an abundance mindset is crucial for creating a winning strategy. It’s about exploring possibilities, curiosity, and daring to dream. It’s about creating hope. Allowing ourselves to be in an abundance mindset will bring about new perspectives, thoughts, and discussions that were previously unclear to us because we listen deeply and build on each other’s creativity.
Abundance also helped me deal with the emotional rollercoaster in 2020. While I traditionally dealt with my emotions by myself, I wanted to seek out additional resources this time. It might sound obvious, but my next move was a sign that I was starting to embrace an abundance mindset. I reached out to a psychologist. As an additional resource in my life, she helped me sort the emotions and embrace both joy of being a dad, while still mourning the loss of my own father.
From Fixed to Growth Mindset
The last shift is from a fixed to a growth mindset. Instead of thinking in limited terms and absolutes, a growth mindset allows us to see mistakes as learning opportunities. Instead of thinking “I failed” or “I’ll never make it,” we can find new ways of doing things and try something different without giving up. When I was younger, I had a fixed mindset, and I struggled with understanding many things. However, I realized I could do something about it and became an avid reader and embraced learning to overcome my fixed mindset.
Instead of making statements and trying to fit things into what we already know, we should ask questions like “What am I missing?” or “How could I use this negative experience and turn it into something positive?” In a growth mindset, we understand that nothing is too hard. By adding perspective and time, we can figure things out, even if we don’t know how at first.
Making Mindset Shifts Happen
How can we implement these mindset shifts in our lives and where would they be most useful? Adam Grant, a leading organizational psychologist, suggests two concepts: challenge networks and confident humility.
A challenge network is a group of people around us who can disagree with us in a constructive way, providing honest feedback without being aggressive. They help us question our assumptions, identify blind spots, and counterbalance potential weaknesses in our thinking. By building a reliable challenge network, we can tackle speed and agility in execution and learning.
Confident humility is having faith in our capabilities while appreciating that we may not have the right solution or may not be addressing the right problem. It involves having enough doubt to re-examine our old knowledge and enough confidence to pursue new insights.
Implementing these mindset shifts can have a significant impact on our lives. Embracing JOMO helped me avoid distractions in business and prioritize what mattered, resulting in more quality time with my family. Adopting an abundance mindset allowed me to see options that would have otherwise been invisible when starting a new business. A growth mindset helped me rise to the challenge of being a first-time dad in my mid-40s. Finally, speed and agility helped us avoid overthinking and instead move to Canada, even under the most challenging circumstances.
To implement these mindset shifts, we need to have faith in our capabilities while being open to new insights. By doing so, we can transform hopes and dreams into reality and create winning strategies in both business and our personal lives.
Alex Brueckmann is the founder and CEO of Brueckmann Executive Consulting, and the author of “Secrets of Next-Level Entrepreneurs” and “The Strategy Legacy” (Fall 2023). He is a keynote speaker at the intersection of business strategy, leadership, and empowerment. Brueckmann is an alumnus of EBS European Business School (Germany), and holds certificates in change management, leadership, finance, organizational development, and strategy from INSEAD (France), and Harvard Business School (USA).
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Setting goals for supporting functions helps link people’s roles and the work they do every day to your department’s larger goals.
It’s easy to focus on big departmental goals, but not everyone on the team can directly affect those numbers. Setting goals for supporting functions helps link people’s roles and the work they do every day to that broader departmental goal.
To do this, it requires you to break those big goals down into component parts. Assess which supporting activities make that big goal possible. With those activities identified, you can proceed to set goals for those supporting groups. That will help them drive departmental alignment around that bigger goal.
For example, I know one organization that was trying to reduce their costs by $100 million over a two-year period. Now, not everyone in the organization owned a budget, and they were asking, “How can I contribute to hitting that big number?” Everyone in the organization had to contribute something. They looked at those supporting functions and tried to understand what activities does that function do that drives that higher-level cost number?
The supply chain group understood that if they increased their inventory turns and improved their truck fill rate, it would make their operation more efficient, which would then allow the broader organization to take some costs out. The manufacturing team looked at their processes, and they understood that if they cut the line changeover time, it would make their process more efficient, again, contributing to reducing costs. The real estate team even chipped in. They looked at space utilization, and they deferred some new expenses to future years. Every group had a smart goal that linked their work to that higher-level $100 million cost reduction goal.
Something I encourage you to do is to take a big goal for your department or your business unit and think about the support teams that contribute to hitting that goal. Build out a process map and understand how the support teams’ work impacts that big number. Then be sure that their individual and team goals are tied to those drivers of hitting your larger goal.
When you pull everybody together and understand how they contribute, then make it clear to them how their goals drive that business unit goal, you’re going to get more alignment and excitement around the work they do and hopefully help you hit that goal more easily.
Want to learn more about setting business unit goals? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to set business unit goals. The entire course is available at LinkedIn Learning. Enjoy!
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There are two major types of goals you can set for your business unit: quantitative and qualitative goals.
When you set goals, there are commonly two types: quantitative and qualitative.
Quantitative Goals
When you set goals that are quantitative, they’re going to focus on things like financial results, operational metrics, customer dynamics, or quality. You can typically track these types of goals pretty easily. That doesn’t mean you don’t have to be thoughtful about these metrics. A focused set of critical driver metrics is more valuable than a broad set of less relevant metrics that your team can’t affect.
Let me share an example. Let’s imagine you have a sales team. The overall goal for the division is to grow revenue. The driver metrics that affect revenue are price and volume. Now, we’re talking about the sales team here. They have no control over product price. If you just give this team a revenue goal for their business unit, it won’t focus their efforts appropriately. It could lead them to argue or complain about pricing policy. That’s just not productive. The business unit also doesn’t control customer service. Using total revenue for this team’s goal isn’t fair because they don’t control all of it.
When you go to set the sales team’s goal, focus their goals on what they can control. In this case, it’s new sales volume. Think about that sales team going out and trying to get more customers. The driver metrics, for their ability to acquire customers, are things like the number of prospects they talk to, the number of sales calls they conduct, and the conversion rate from a prospect to a paying customer. By focusing on these driver metrics for this sales team and focusing it on what they can control, you’re going to get better results.
When you think through your metrics for your business unit, think through the drivers. Consider the team’s ability to control those drivers. And make sure the goals you allocate to them are only focused on that which they can control. If you build your goals this way, you’re going to get a more concrete set of goals that your team feels empowered to actually drive.
Qualitative Goals
In addition to setting quantitative goals, which are pretty easy to set, a lot of times you’ll have to set qualitative goals. You can look at things like major project completion or milestones in completing that project. Sometimes, you want to measure things that are difficult to measure. You’ll have to infer from indirect quantitative metrics whether you’re making progress on that desired outcome. Things like culture are hard to measure, but that doesn’t mean you don’t have to measure it. You can construct a set of indicators that let you know if you’re moving culture in the right direction. You can look at things that’ll tell you if you’re succeeding in reaching that higher-level end goal.
Let me offer a couple of examples. If we’re looking at culture, maybe we create a balance scorecard to measure our performance on cultural improvement. We want to be a top place to work. We want engaged associates. That’s hard to measure. But, we can look at quantitative metrics to tell us how we’re doing. We can look at associate retention, how many people stay in the organization. There are measures out there like a Gallup Q12 poll that can tell you which direction your culture is moving. You can look at things like absenteeism. I can measure if somebody’s not at work, and that’ll tell me if I have a good culture or a bad one. I can look at referral hires. Are people telling their friends, “Hey, you should come work here—it’s a great place to work?” Some organizations have kudos programs where associates reward one another for doing something great. How many people are using that program?
When I look at all of these quantitative metrics together, it gives me an indicator on whether my culture is strong or weak and if it’s going in the right direction. You may have situations where you’re doing a big project. And again, qualitative goals can matter here. Let’s look at implementing a large technology system. We may take an approach where we set goals based on milestones. We may set goals around use case completion, user acceptance testing, and training completion. Setting qualitative metrics is the same as setting quantitative ones. Understand the desired high-level outcome you’re trying to achieve. Think of drivers that point toward that outcome. For the ERP it’s things like “Are you hitting your milestones to get the project done?” For things like culture, maybe it’s several indicators that you tie together and say, “Does this picture tell me I’m going in the right direction?”
Qualitative goals can really help you understand how your organization is doing. Pay as much attention to them as you do to your quantitative goals.
Want to learn more about setting business unit goals? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to set business unit goals. The entire course is available at LinkedIn Learning. Enjoy!
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When you go to set your business unit goals, there are a few principles you should follow. Any goals you set should be SMART—specific, measurable, achievable, relevant, and time-bound.
Performance expectations in your organization are probably pretty high. A key to hitting those expectations is a solid goal-setting process. Setting department and business unit goals requires leaders to translate higher-level corporate goals down to the business unit and then break them down further into team and individual goals. This means defining goals, then linking them to strategy, financial results, and incentives.
Leaders must also sanity check goals to ensure there are no unintended consequences arising from goals that are improperly set. Going from corporate to business unit to individual goals helps drive alignment of activity with the company strategy. For more on team and individual goal setting, watch my course on that subject.
I have one client that was trying to grow internationally. They set a corporate goal for a portion of revenue coming from outside the United States. The business units were each given a target. Functions that supported those business units were given enabler targets, like building a pilot plant in India for the R&D group. If the R&D built that plant, then they could sell product in India, which would help drive the high-level goal of driving revenue outside the United States. Individuals on that project had milestones for their personal goals. By linking the corporate strategy to the business unit to functional goals down to individual goals, the organization had the alignment it needed.
When you’re thinking about the goals for your organization, make sure you’re making those clear linkages from the highest-level strategic goals all the way down through your business unit or function down to your teams and down to the individual level.
5 Goal-Setting Principles
When you go to set your business unit goals, there are a few principles you should follow. Any goals you set should be SMART—specific, measurable, achievable, relevant, and time-bound. These principles improve the team’s understanding of what they need to deliver. These principles also help you ensure you’re able to track performance against the achievement of the goal and gain the team’s commitment to achieving it. There are multiple versions of SMART, but they all get to the same thing—creating clear and actionable goals that matter.
Specific
Specific gets to spelling out the behavior or outcome that you desire. It lets people know what to focus on and what actions are expected.
Measurable
If you can’t measure it, you don’t know if you succeeded. Setting measurable goals also ensures you’re driving the right outcome, like profits versus sales. You’ll get very different behaviors depending on how you measure.
Achievable
Your goals should be achievable. If it’s not realistic, people are going to give up and not even try. They’ll get halfway through the year and say, “We’re off course, so you know what? Forget it.”
Relevant
Goals need to be relevant. This drives the activity that’s tied to a broader organizational goal. If I set a cost-cutting goal for the company, but we’re trying to grow sales, that cost-cutting goal is not going to be relevant or helpful in achieving the broader goal of hitting sales.
Time-Bound
Your goal should also be time-bound. People need a sense of urgency. Specifying time also enables better work and better project planning.
I worked in an organization where we were trying to increase the number of dollars that we were getting back from consumers who owed us money. The goal was specific. We said, “Here is the metric that matters. We need to achieve 100 million dollars of incremental dollars collected.” It was also measurable. We knew exactly what data to get and how we would track it. The 100 million dollars was achievable. Sure, it was a big number, but we looked at last year and we said, “We think we can hit 100 million this year.” That goal was absolutely relevant—one of the bigger goals for the company was driving down our losses. It was really dependent upon bringing in these incremental dollars collected. Finally, it was time-bound. We said, “By December 31st, we need to collect these incremental 100 million dollars.”
By setting that SMART goal, everyone in the organization knew exactly where we were going and why it mattered. When you’re setting your business unit or department goals, take the time to think through every goal and make sure that those goals are SMART.
Want to learn more about setting business unit goals? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to set business unit goals. The entire course is available at LinkedIn Learning. Enjoy!
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Successful challenger brands know where they stand, who they are, and how prepared they are to go to battle. They identify disruptive strategies, make distinctive promises and statements, and create and use a voice that’s unique to them.
For those unfamiliar, challenger brands are those brands in second place, third place, seventh place, all chasing the category leader. Challengers are smaller, scrappier, and most often are brands where ambitions run high, but resources run low. Challengers cannot outspend their competition, so they outthink them instead. They start with a focused business strategy and look for opportunities to disrupt. Challenger brands don’t win by finding ways to play the game better. They win by changing it.
For every successful challenger brand, there are great examples of how they disrupted the status quo. When airlines started charging $25 a bag, Southwest Airlines said bags fly free. When fast food restaurants struggled to get orders right in the drive-thru, Chick-Fil-A built double drive-thrus and staffed them with smiling, helpful, appreciate people who took, checked, and double checked the accuracy of your order with a “my pleasure” at the end. When Blockbuster insisted people loved their neighborhood video rental store and would never go anywhere else, Netflix said we’ll see about that.
Disruption is the calling card for successful challenger brands. Take for example Franzia wines, and their beloved Charles Shaw Chardonnay affectionately known at Trader Joe’s and beyond as “Two Buck Chuck.” At the 2007 California Fair Wine Competition, Charles Shaw’s $2 Chardonnay beat out 350 other chardonnays in a blind taste test — some priced as high as $55 a bottle. So what did Franzia do to the price after winning the most prestigious wine competition in North America? Nothing. Two Buck Chuck stayed at $2 a bottle. When asked why, Charles Shaw winemaker Fred Franzia replied, “We choose to sell good quality wine for $2 a bottle because we think it’s a fair price. We think the other people are charging too much.” Disruption epitomized.
What every challenger brand needs
For challenger brands to lean into disruption and take on their stronger competitors, here are four essentials:
A challenger strategy– To win, challenger brands have to devise a marketing strategy that challenges category conventions and doesn’t simply imitate the moves of the leader or other successful category competitors. Apple didn’t try to out-IBM IBM. Burger King can’t out-McDonald’s McDonald’s. Challenger brands never win by mimicking the category leaders. They win by challenging category convention and attracting the consumers drawn to that disruption.
Leadership teams for authentic challenger brands evaluate the competitive landscape with an eye toward changing something fundamental about the way they approach the business. In doing so, they create a new and distinctive competitive advantage. When this is accomplished successfully, it creates a new and clear path for a unique marketing strategy. Franzia could have marketed his Charles Shaw Chardonnay the way the category competitors did, but he would have missed a significant opportunity for category distinction.
Challenger promises– Challenger brands must also make brand promises that aren’t easily duplicated by competitors. The promise must be solidly grounded in realdifferences created by the company’s state of mind — something it does best or is striving earnestly to do best. The key for success is that the promise must be authentic. It can’t simply be manufactured through advertising.
The authentic difference for the Charles Shaw brand isn’t that it’s an award-winning Chardonnay. The distinction is the company’s ability to sell it profitably for $2 a bottle, and its willingness — even desire — to do so. In a category driven by price breaks and promotions, Chick-Fil-A embraces neither. It promises and delivers exceptional products and service, and believes it’s worth the cost. Its customers agree and, as a result, in 2021 its stores averaged $5.9 million in sales doing business six days a week.
Challenger statements– Challenger brands must be willing to make clear and compelling statements about what they are and what they’re not, who they’re for and who they’re not for. Famous challenger brands such as Red Bull, Southwest Airlines, and Motel 6 are very specific about what they have to offer and who they’re for. They’re also not afraid to position themselves clearly away from customer groups that aren’t in their crosshairs. Red Bull isn’t for ladies having a soda over lunch. Southwest Airlines isn’t for people who like to fly first class. Motel 6 most assuredly isn’t for the traveler who wants something more than a clean room at a great price.
Challenger brands aren’t afraid to limit their appeal at the expense of alienating those who will merely tolerate them. They’re laser focused on those who will love them. The benefit for the challenger brand is a fervently loyal core customer base.
A challenger voice– Challenger brands are willing to amplify their strategies, brand promises, and statements through a unique voice. Their advertising and marketing communications look and sound different from their competitors. They say different things, make different promises, and command a different kind of attention in the marketplace. The state of readiness present in challenger brand leadership not only paves the way for unique and unconventional marketing and advertising, it compels them to seek it out.
Successful challenger brands know where they stand, who they are, and how prepared they are to go to battle. They identify disruptive strategies, make distinctive promises and statements, and create and use a voice that’s unique to them. Just as crucially, they embrace their company culture as a distinct advantage. Changing the game isn’t an easy proposition, but when you build a team that feels empowered, supported, inspired, and even loved, there’s no limit to the havoc you can create for your competitors and the success you can achieve as a challenger hungry to change the world.
Mike Sullivan is president and CEO of LOOMIS, the country’s leading challenger brand advertising agency. For more than 30 years, he’s helped some of the country’s most successful companies build their brands. Michael Tuggle is an award-winning creative director and writer with more than 25 years in the ad world building brands and growing companies. Their new book is The Voice of the Underdog: How Challenger Brands Create Distinction by Thinking Culture First (BizComPress, Aug. 10, 2020). Learn more at theloomisagency.com.
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You put in a lot of time and energy into leading slackers, but you don’t get anything back in terms of results. Your job as a leader is to figure out what will motivate them to perform.
One type of detractor you might deal with is a slacker. These people are in the lower left corner of the leadership matrix. You put in a lot of time and energy into leading them but you don’t get anything back in terms of results. Slackers have the talent to get the work done. They just done care. They’re not motivated to do it. Leaders spend a disproportionate amount of time managing slackers. They require constant supervision and motivation. What’s so frustrating about them is they have the capability to do the work. They just choose not to.
Identifying Slackers
There are some easy ways to spot a slacker. They tend to be smart and have a strong resume. They can tend to be very self-promoting. They might be a frequent job changer. They’re difficult to get work out of because they constantly debate the merits of your request rather than doing the work. They might renegotiate their deadlines frequently. They’re more interested in other people’s work than their own work. They can tend to be outspoken. They annoy other team members because they always wander into that team member’s lane instead of focusing on their own responsibilities. Other team members push back a lot of times on covering for the slacker because they know the slacker has the capability to do the work.
I know one slacker very well. He was me. I had a role where I had previously been excited about the work I was doing. My boss changed my responsibilities. I was not thrilled with those new responsibilities so I started mailing it in. I just didn’t care. I became very frustrating to lead. I absolutely had the ability to do that work. I just wasn’t excited by it. My form of silent protest was to just not do the work and focus on everything else that was going on in the division. I drove my boss nuts. He was at my desk all the time pushing me, asking where the results were. I never had results to offer. If you spot a slacker on your team, get ready for what might be a long, drawn out engagement trying to motivate them and understand what’s going to get them to deliver the results you expect of them.
Motivating Slackers
Your slackers are in the lower left corner of the leadership matrix. You have to put in a lot of time and energy into managing them, and you don’t get anything back in terms of results. The issue with slackers is they’re unwilling to do their job. They drag the team down with their poor attitude. Slackers require motivation.
The leader’s job is to figure out what will motivate a slacker to perform. This can be in the form of incentives or punishments if need be. Slackers need to have expectations and consequences clearly laid out. The leader has to figure out what motivates the slacker. Whether it’s new responsibilities, compensation, or visibility, once a slacker’s motivated, their performance tends to improve quickly because they have the capability to do the work. The leader’s goal with a slacker is to unlock their motivation. Sometimes that includes moving them to a new role or even out of the organization to a job where they’re going to be happier. This requires the leader to invest more leadership capital in the near term figuring out how to motivate this individual.
For example, let’s say you have a slacker on your team. They have a big presentation that’s two weeks late. You sit down with them and you understand that they have the capability to do the presentation. They just don’t seem to be doing it. When you ask them what would excite them about working on that presentation, they tell you, “Well, you always present the presentation. I never get any visibility here for all the work I put in. That’s not a lot of fun.”
Now you have the key. You can unlock that slacker’s motivation. In this situation you might say, “Well, I’ll tell you what—if you finish the presentation, I don’t need to be the one who presents it. You can present it in front of the leadership team.” You might see their performance change dramatically to the positive in that moment. You’ve unlocked their motivation. You understand they want visibility. As soon as you connect the visibility with the work you’re asking them to do, you might see their entire attitude change.
The benefit of more effectively leading a slacker is that they could quickly become a higher performer. They’ve got the skills, just not the motivation. You’re also demonstrating to your team that you’re focused on results and that you will hold people accountable. If you do decide to move that slacker out of the organization because you can’t find proper motivation, make sure their attrition is as positive as possible. Help them transition to that new organization.
Your key as a leader when dealing with a slacker is figuring out with that motivation is. As soon as you know that motivation, you can get them to change their performance.
Want to learn more about developing your team? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to assess and improve your strategic plans. The entire course is available at LinkedIn Learning. Enjoy!
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Joyriders are team members that you don’t invest a lot of leadership capital in, but you also don’t get anything back from them in terms of results.
Your Joyriders occupy the lower right corner of the Leadership Matrix. You don’t put in a lot of time and energy but you also don’t get anything back in terms of results. Joyriders can be really tricky to identify. They have a lot of energy and enthusiasm. They seem to constantly be busy. Unfortunately, they seem to work on everything except their core responsibilities. Leaders tend not to spend a lot of leadership capital on joyriders because they seem like they’re delivering results. But at the end of the year they tend to come up short on what was expected of them.
Some ways you can spot a joyrider are they’re high energy, they’re enthusiastic, they’re busy, and they’re social at work. They have broad interests in a lot of different areas. They constantly come to you with new ideas. They’re the first person to suggest launching a new special project. They’re constantly volunteering for things outside of their area of responsibility. They also have a very light track record on results. They’re hard to pin down on their core deliverables and their deadlines. Their teammates end up covering for them and doing the work the joyrider was supposed to be doing. It’s easy to miss a joyrider. The key is to look for a lot of activity and not a lot of results.
How to Focus Joyriders
Leading joyriders involves investing additional time and energy into monitoring this person’s activities and focusing them on their core responsibilities. This means more frequent check-ins and putting more structure and measurement to their work. The additional leadership capital you spend on them is designed to improve their results. Once their behavior’s changed and they start delivering what’s expected of them, leaders can typically pull back and give them the room to operate.
Your goal is refocusing a joyrider on their core responsibilities. Inventory their workload. Reassign or stop unnecessary work that isn’t related to their core responsibilities. Closely manage them against their core duties. Add structure to their check-ins. Have them come in with a list of all the projects they’re working on. Have them articulate what the status is for every single project. And if they start talking about something that’s outside their responsibilities, put a stop to it immediately.
The benefit of more effectively leading a joyrider is that it’s going to surface a core performance problem. You’re going to see where there might be skill gaps or results gaps in what they’re delivering or not delivering. This is also going to demonstrate a results-focused leadership style to the rest of your team. Your team knows this person isn’t getting their work done, mostly because the other team members have to do the work for them. They’re probably not very happy about that. When they see you finally holding this joyrider accountable to doing their job, they’re going to feel a lot better about the work they’re doing. It’s also going to get that extra work off their plate and onto the joyrider’s plate where it belongs. You’re now going to be getting results from a previously non-producing part of the team.
The other benefit is there’s potentially a dramatic performance turnaround here. This person has a lot of energy. They have enthusiasm. Your job as the leader is to make sure you focus it on their most important responsibilities.
Want to learn more about developing your team? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to assess and improve your strategic plans. The entire course is available at LinkedIn Learning. Enjoy!
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Square pegs are team members that require a lot of your time and energy, but they’re not yet delivering the results you expect. One of the biggest benefits of leading a square peg well is you get to feel the satisfaction of helping somebody else grow and develop.
Square pegs occupy the lower left corner of the Leadership Matrix because you’re putting in a lot of time and energy helping them build skills, but they’re not yet delivering the results you expect. Developing square pegs can be fun. It can be rewarding. These people want to perform well. Your job is to coach and develop them to help them build those required skills. Square pegs tend to take to such coaching and development eagerly. Their performance can improve quickly with the right intervention.
Some square pegs lack the skills that are going to make them effective. In those instances, sometimes moving a person to a new role can be your best option. Your goal with a square peg is to fill their skill gaps. Communicate your performance expectations of them and where they’re performing relative to those expectations. Let them know that the status quo is not sustainable. They need to improve their performance. Identify the skill gaps they need to fill. Build a plan with that individual for how they’re going to improve those gaps. It may be training. It may be new responsibilities. It may be coaching from someone else on the team. Set deadlines with them for you to see that performance improvement.
I have one individual who I work with as her executive coach. She had a member of her team who went from being an individual contributor to leading other people. This individual had never led anyone before. He became a square peg. She had to spend a lot of time with him teaching him how to lead other people, how to motivate the members of his team, how to set direction, and set priorities for the work his team was doing. He was in her office multiple times a week. She invested so much more time and energy into him than when he was an individual contributor. The good news was that he wanted to learn these skills. He was excited about leading other people. His performance improved pretty quickly.
The benefit of effectively leading a square peg is that you’re going to be reducing problems for other members of the team. The square peg isn’t getting it done and other people have to pick up the slack. By improving their performance, you’re making everybody else’s life easier. You’re going to take somebody who’s not performing and move them to being a performing member of a team. One of the biggest benefits of leading a square peg well is you get to feel the satisfaction of helping somebody else grow and develop. You’ll help them identify the gaps they need to fill and move them down that path to success.
Want to learn more about developing your team? How about taking an entire course on it? Check out the video below to learn more about the course and get started. Or you can go directly to the course and start learning how to assess and improve your strategic plans. The entire course is available at LinkedIn Learning. Enjoy!
Did you enjoy this post? If so, I highly encourage you to take about 30 seconds to become a regular subscriber to this blog. It’s free, fun, practical, and only a few emails a week (I promise!). SIGN UP HERE to get the thoughtLEADERS blog conveniently delivered right to your inbox!
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