Monday, August 27, 2012

A Leader's Primary Focus – Creating a Sustainable Future for the Enterprise


The Past Shapes Our Present

Over the years forecasting has been the dominant methodology to determine [predict really] what the future of an organization will look like. After forecasting all the possible scenarios a path forward is chosen – the future strategy of the enterprise. 

The strategy is designed to shape future actions, so as to produce the predicted/forecast future. It is a strategy that can be defended with facts, and supported with a credible logic. In this model it is valid, even necessary, to show how the activities and events of the past have given us our present. And, equally valid to show all the options that were considered in deciding on a most likely scenario for a future.

For a forecast model of the future to be supportable with financial investments and other resource allocations it has to pass the "reasonable, feasible, doable" test – we have to be able to say: we have the know-how, we have the resources [or can get them], we know the territory, we have the reputation, credibility and relationships to execute the strategy. 

So we are set, right?  Just execute the strategy, right? Well not quite. 

So what about "the vision thing"? Lou Gerstner is quoted as saying [talking about IBM as its new CEO] that, "the last thing IBM needs right now is a vision… What IBM needs right now is a series of very tough-minded, market driven, highly effective strategies for each of its businesses – strategies that deliver performance in the marketplace and shareholder value”. 

Yet most leaders will readily confess [as Gerstner did] that they want more for their enterprise than the best case scenario forecasts and good past-based execution. Essential though that is, it is not sufficient to unleash the creativity, imagination and passion of the people of the enterprise and create a sustainable business. 

People need an audacious future to live into so as to unleash their genius. That is what inspires us and gives us the "juice" to innovate – no compelling future no breakthroughs, no genius, except by luck. We just have to settle for business as usual.

In my next post I will look at another possibility – creating an exciting future to shape our present.

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