People ask me all the time what I consider to be the biggest challenge facing today’s business leaders.

I don’t even hesitate on this one. It’s the automatic assumption by most business leaders that we still live in a fairly predictable world.

Think about it. Six months ago, who would have thought that Toyota would be in the position it is today?

Here we have one of the largest, most successful, most respected companies in the world. And now it faces a crisis that is not just destroying its hard-earned reputation, but could well put it out of business.

That’s unthinkable! And yet it’s happening right before our eyes.

Sales of Toyotas are plummeting. The U.S. government is launching a full-scale investigation into the company’s business practices. And a tidal wave of lawsuits around the faulty floor mat/throttle issue is about to be unleashed.

If Toyota is found to be at fault, and if it turns out they had knowledge of the defective design and did nothing about it, punitive damages could run into billions of dollars. Not even Toyota could withstand that kind of a financial hit and still survive.

I’m not saying the unthinkable will happen. But the possibility that Toyota could go out of business in the near term is very real. And that’s the kind of world we now live in.

Leading a business in this kind of environment requires a new way of thinking. Considering that most business leaders still view the world as fairly predictable, the question becomes how do we train ourselves to think differently?

The answer is simple — pause, think, focus, run.

• Pause. Make it a habit to back away from the day-to-day and evaluate what is happening outside your industry as well as inside.
• Think. Constantly challenge your beliefs and assumptions about what you know to be true about your customers, your markets, your industry and the way you do things inside your organization. Take nothing for granted.
• Focus. Identify opportunities to add value to your customers in ways that nobody else is doing. Identify significant initiatives that support leveraging those opportunities, and get and keep everyone in your organization clear on achieving them.
• Run. Implement quickly, with focus and flexibility, knowing in advance that your new initiatives will not unfold exactly as planned.

Then repeat this process.

During the think phase, develop the habit of engaging in scenario planning. Ask questions like. “What would happen if our biggest competitor suddenly went out of business? What is taking place in other industries or other parts of the world that we could use to transform our industry?”

Many companies do this once a year during the strategic planning process. In today’s world, that will no longer suffice. When a company as large and seemingly invincible as Toyota can have the rug pulled out from under them so quickly, it’s clear the old rules no longer apply.

Pondering the imponderable should become an everyday occurrence in organizations. To be a successful leader today, thinking the unthinkable must become a way of life.

I love the Olympics. I am fascinated by curling (although like most of you I can’t quite figure out the rules). I love the thrill of the downhill, the luge, the speed skating, hockey, and the snowboarding events. And I am especially enthralled when I watch the Olympic athletes visibly get clear on winning.

Did you notice Lindsey Vonn at the top of the slope? Eyes closed, arms moving, legs bending as if she were already traveling down the slope in just the manner necessary to win? She was using a practice known as ‘success visioning’. She was imagining the course, every twist, every turn… and how she would successfully meet the challenge of it and win the race. Olympic athletes have used success visioning for decades; since the time Roger Bannister broke the world record for running the mile in less than 4 minutes in 1954.

Premier athletes the world over know the power of getting clear on winning BEFORE they get in the race. They imagine it. They get clear on what it looks like, what it feels like, and what they must do. And it works because your brain is amazingly powerful. Once you are clear on winning, your body will follow. In many ways, it can’t not follow. Your brain does not know you can’t run faster, ski quicker, make higher jumps…it only knows what you tell it and your body steps up to deliver.

Winning also requires practice. Winning for an athlete means he/she is in top condition. It is likely they have practiced their race thousands of times. They are eating the right foods, taking care of themselves, and making progress almost every day towards their goal. Lindsey did not just sit around for a year, jump up, and ski her race. She got clear on goals, met them, and then set new ones. She spent her time and energy towards achieving them. She stopped doing things that got in the way. She stayed focused.

Are you clear on winning in your business? Do you know what it looks like at the end of 2010 when you have been insanely successful? What are the key operating achievements you will have accomplished; what will your company culture be including in regards to the attitudes, beliefs, values, and operating principles; what skills/knowledge/abilities will exist in your organization; what organizational structures will be in place; what work processes and metrics will be used; what tools, systems and technology are necessary; what products will be in market (existing and new); what products will be in development; who will the customers be; who will the competitors be/what types of companies will you compete against; what will the brand represent?

Get clear on winning, your body will follow.

Is it obvious to you and everyone on your team and in your company what it will take to win a gold medal? If not, what race are you running?

When I speak to CEO groups, trade associations, and industry conventions, this is one of my favorite questions to ask.

Why? Because I love the reaction from the audience. They look at me like I’m nuts!

Questioning the sanctity of best practices in a roomful of corporate leaders and managers is like walking into a Boston Red Sox convention wearing a New York Yankees cap. Or walking into a Microsoft Corp. strategic planning session with an iPad in your hand. I might as well criticize mom, apple pie, and puppies.

But I don’t ask the question merely to provoke a reaction from the audience. I ask it because it may prevent someone from going out of business.

In the 1980’s, when Japan was eating our collective lunches in one industry after another, best practices played a critical role in helping American companies develop better quality products. We wouldn’t be where we are today had our business leaders not embraced the concept of studying what works best and applying what they learned in their companies.

Over time, however, best practices have become somewhat of a sacred cow. We rarely (if ever) take the time to re-examine them and see whether they still make sense for current market realities. And in today’s high-speed business environment, accepting anything on blind faith — even a best practice — can be fatal.

Let me clearly state that I am not advocating that business leaders do away with all best practices. Just the ones that get in the way of achieving your strategic goals and objectives. Here’s one that I see all the time.

During strategic planning, a common best practice involves conducting research in your industry to determine where the opportunities and threats lie. Who could argue against this practice? After all, in order to plan the future you have to understand the present.

The problem is two-fold.

One, this kind of research is almost always conducted by experts in their field who bring a boatload of preconceived ideas and assumptions about the way the industry operates. Two, this practice fails to take into account that your next biggest competitive threat may come from an area not even remotely related to your industry.

Do you know anyone who uses a fax machine anymore? Fifteen years ago, the makers of fax machines didn’t worry about a little blip on the horizon called broadband Internet. They were too focused on important industry issues like baud rates, printer quality, and the cost of replacement ink. They never even saw e-mail coming.

So when I work with clients on strategic planning, I strongly recommend they make a list of everything they absolutely know is true about their customers, markets, and industry. Then I suggest they have a non-expert research each and every one of those truths. For example, have the CFO look at customer data. Or have the sales manager look at purchasing practices. It’s amazing what a fresh set of eyes can see!

Each researcher shares their information with the management team. They explain the approach they took, the data they found, and any recommendations they have. Then I ask, “What questions do you have as a result of your research? What do you believe is possible to do that you aren’t currently doing?”

Why is it so important to have non-experts conduct the research?

Because experts are human, and as humans we don’t believe what we see. Instead, we see what we already believe. We constantly seek to prove what we think is right, and as a result we miss critical data and limit our success by getting locked into ideas and assumptions that may no longer be true.

So here’s a new strategic planning best practice: research what you know to be true, both inside and outside your industry, and do it with non-expert eyes. My guess is that 50 percent of your “facts” will turn out to be wrong, especially if they’re more than two years old.

The business world changes very quickly these days, and so should your best practices. Otherwise they may well become your worst enemy.

Which best practices are getting in the way of your success?

Have you ever lost a top performer to a competitor?

I see it happen all the time, even in good companies. Surprisingly, it rarely has to do with money. More often than not, it’s due to indifference, apathy, or neglect on the part of a leader or manager.

Why the neglect?

Because most leaders and managers focus the majority of their time and energy on the low performers. It makes no sense when you step back and look at it, but leaders are either trying to correct mistakes, deal with behavior issues, or simply get wayward employees back on track with the results they’re supposed to be producing. As a result, they fail to give their winners the time and energy they deserve.

If you want to keep your winners, make sure they feel acknowledged and appreciated. Here’s how.

1. Identify your winners.

Almost every company has the salesperson who regularly makes his numbers but leaves a trail of angry customers and disgruntled co-workers in his wake. And almost everyone knows the manager who gets the short-term results but drives good employees away with her abrasive personality. Clearly, there is more to winning than just producing results.

Performance consists of two distinct components — what employees do and how they do it. Many employees excel in one area or the other. Top performers excel in both. They produce outstanding results while demonstrating total alignment with the values and culture of the organization. They get things done AND do it in a way that respects, supports, and empowers others.

2. Show your appreciation.

The biggest mistake most leaders and managers make is taking their top performers for granted. Partly because they are absorbed in putting out the ongoing fires caused by problem employees. And partly because the winners are so busy getting things done that they rarely make waves.

To show your appreciation, recognize your top performers on a regular basis, both publicly and privately. Tell them how much you appreciate their hard work and ability to get things done, and hold them up as role models to other employees. Send them handwritten notes, small gift cards, or other incentives. They go the extra mile for you, so go out of your way to make them feel wanted and appreciated.

3. Remove their roadblocks.

For top performers, nothing is more frustrating than a lack of information, resources, or management support. Check in on a regular basis to make sure your best performers are getting everything they need from you and their co-workers to get the job done. At the same time, make sure their needs are getting met in the areas of training and professional development. Look for ways to give them new assignments and special projects that will broaden their skill sets and enhance their value to the company.

4. Get inside their heads.

When top performers leave to go to another company, it’s rarely for more money. Far more often it involves dissatisfaction with something in their work environment. To keep your best people from jumping ship, get inside their heads and find out what really motivates them and what they enjoy most about their work.

Do they want increased authority or responsibility in their current position? Do they want more opportunity for professional development? Do they want to lead a team, department, or division? Perhaps they would like to have more time off to spend with family. Or maybe they want to get involved in some type of community service on behalf of the company.

Check in regularly to assess their morale. Ask questions like, “What do you like most about working here? What do you like the least? If you could change one thing about your work situation, what would it be?”

Obviously you can’t make everyone happy all the time. And it may not be feasible to provide what your superstars say they want. But an honest effort on your part to understand and meet their needs will help your winners feel wanted and appreciated. And that can make a big difference the next time a competitor comes calling!

Three Strategies for Creatively Recognizing Employees

Valentine’s Day is for lovers. Usually we stay away from the topic of ‘love’ at work but we’re talking about positive recognition here, not the stuff that gets you in a sexual harassment lawsuit!

Smart leaders and managers know that it’s a good time to show your employees some love as well. In other words, let them know how much you appreciate their hard work toward achieving your organization’s goals. (You did set the goals in January, right?)

Recognition doesn’t have to be big, time-consuming, or expensive. In fact, the most meaningful recognition often comes simply from saying “thank you” for a job well done. But there are times when the situation calls for more than just a simple verbal acknowledgment. There are a lot of things that get in the way, but you do need to do it.

Here are three strategies for letting your employees know how much you care.

1. Start small.

Start by saying “thank you” on a regular basis. Over time, change what you say and how you say it so that it doesn’t become routine. Be specific. Instead of, “Nice job,” say, “Nice job on the quarterly audit. I know you worked incredibly hard to get it in on time.”

Recognize individual accomplishments with a short e-mail note or comment in a team meeting. Send the employee a handwritten note of appreciation, and send a copy to your boss. How many of us have those handwritten notes saved away because they are so rare and really do mean something? Leave a sticky note with a snack thanking the person for his or her efforts. Leave a message on their desk that the employee will receive first thing in the morning.

Give small gifts such as cards, desk toys, picture frames, gift cards, or chocolate. To make sure your gift will truly be appreciated, check out the employee’s work area to see what types of things they display. Or find out where they go for coffee in the morning or lunch at noon. A gift card to a favorite coffee shop or restaurant shows that you are observant and thoughtful.

2. Get Personal.

For performance that requires more than your basic pat on the back, orchestrate a thank-you letter or e-mail from senior leadership. Have the company leader call the employee with personal thanks. Make sure the employee is recognized publicly perhaps in a company e-newsletter, on the intranet, or at an all hands meeting. Send flowers or a gift basket on behalf of the company to the employee’s home.

Offer the employee an assignment or project that will stretch their current skill set. Give them an increase or change in responsibility and authority. Offer them an opportunity to shadow someone in a job they want to have next. Increase flexibility of work hours and/or occasional comp time (hint: employees really like this one).

Give employees a relevant book inscribed with a message from leadership recognizing their accomplishment. Allow them to observe a team or project that would represent a big promotion (and thus a learning opportunity to observe). Arrange for your manager or a senior leader to take your group out to lunch or dinner to celebrate a team accomplishment.

3. Use Peer Recognition

It is just as important for employees and teams to recognize each other as it is for leaders and managers to acknowledge good work. One good way to recognize a team, department, or organization is to establish a “Caring Credits” program.

At the beginning of the month, give everyone three cards. Employees write notes acknowledging their colleagues for going above and beyond their job requirements, and submit the cards to a designated individual (someone in HR, the team leader, etc.). At the end of the month, the person with the most cards written about them earns some sort of recognition. Distribute all the cards collected to employees acknowledged so people can see the praise they received from co-workers. That way, everyone gets recognized, not just the winner.

Another good strategy involves setting aside some wall space for public recognition. Pick a Friday afternoon to engage employees in creating their own (and your own) “What’s Great?” wall boards.

Employees use the boards to write a brief note about something great that occurred during the week. Notes can include professional or personal achievements or events. Encourage people to contribute to each other’s boards as well as their own, and watch how easily they begin to add to the boards without weekly prompting. The different handwritings and colored markers will brighten up the workspace. And others will stop by just to see what’s new on the boards.

So take a few moments this Valentine’s Day to show your employees some love – the legally appropriate kind! Then look for simple and effective ways to do it throughout the year. A little bit of recognition goes a long way toward maintaining a happy, motivated workforce. Remember, recognition doesn’t have to be big, time-consuming, or expensive. It’s not brain surgery…sometimes it’s harder!

Holly recently contributed to a series of blogs on innovation. She was asked to respond to the question, ‘What is the most dangerous current misconception in innovation?’

…that innovation can only be done by a few, naturally talented individuals.

Each of us has the power to be innovative. There are some simple ways to use the power of your brain to innovate every day. Doing them becomes complex and infrequent not because they require deep expertise or innate abilities, but because we have stripped away the time to pause and ponder. The moments to wander, explore, connect, and trigger our brain to do it differently have been almost completely eliminated from our lives. Think about how filled your current day is. If you aren’t engaged actively with a customer, supplier or employee, you are checking you PDA and responding to the hundreds of emails in your inbox. You might even be doing both at the same time.

We have created a belief structure that it is more valuable to check our PDA constantly even though it is estimated 80% of all email today is spam. We behave as if the most important things to focus on and do are located on that device or in meetings or on email. We feel guilty or believe somehow there is less value in sitting quiet every now and then to ponder future possibilities or get clear on winning or exploring alternatives.

Learning how to think differently requires time. Your brain needs a trigger and then some space to think. I am not talking about a lot of time, so don’t panic. In only 10 seconds or so every now and then, you could effectively think differently.

Keep in mind, however, the more successful you are, the less likely you are going to want to pause and consider thinking differently. This is the underlying reason so many people keep doing what they have always done, even when they see it is no longer working or everything around them has changed.

Learn to ask yourself: “What if…?
…my competitor had this choice? What would they do?
…my employees could change one thing? What would it be?
…the same data can be looked at from a different perspective or angle? What would I see if I were older, younger, a customer, a supplier…?
…my assumptions are wrong? What else is possible?
…I step back and look at the big picture?
…I am wrong and there is another way?”

The most powerful way to trigger your brain is to simply ask it a question. You naturally attempt to answer questions almost immediately. Your brain responds instinctually. Make your questions ones that open you to possibilities, to new ways of looking at the same data, to new interpretations of the same old thing. To do this, you must pause from the running and doing we have often decided has more value.

It’s amazing what you can come up with when you realize your mind is a very playful and interesting place. And you should visit more often. Go brain go.

You can check out all of the ‘Innovation Perspectives’ articles from the different contributing authors on ‘What is the most dangerous current misconception in innovation?’ by clicking the link in this sentence.

In my last blog, I talked about the importance of communicating your strategic planning framework to employees at all levels of the organization. And not just once, but over and over again so that people never lose sight of the goals. I also noted that most employees prefer to hear this information directly from their boss or manager.

But face-to-face communication is not the only method for keeping people informed about where you are going and what you need to do to get there. Smart leaders use a variety of communication tools and methods to keep their most important messages top of mind with employees throughout the year.

Start by setting up a system to remind managers to discuss the goals and strategic planning framework elements with employees on a regular basis. Provide tools and templates managers and team leaders can use in monthly team meetings and in one-on-one conversations. This will take care of the face-to-face communication that employees want and need.

To complement this personal communication, develop some creative ways to keep information in front of everyone. For example:

• Include elements of the strategic planning framework in newsletters, e-mail messages, on your intranet, and within presentations used at team and company meetings.
• Look for things employees use on a daily basis and find ways to turn them into ongoing communication vehicles. Put your mission and values on notepads, paper cubes, and/or mouse pads.
• Develop table tent cards for the cafeteria tables, posters for public areas in the offices, and screen savers that list the company’s three most important strategic objectives.
• Use paycheck stuffers to remind employees of the goals and update them on progress made towards those goals.
• Post a blog on the company intranet that explains your view of the goals and why they are important. Also, use the intranet to highlight examples of people who have achieved significant progress toward the goals and/or performed in a way that “lives” the company’s values.
• Use Twitter to send daily or weekly “tweets” — short, concise reminders of what employees need to focus on or what winning looks like for your organization.

In addition to communicating with current employees on a consistent basis, make sure all new hires receive information about the strategic framework as part of their introduction to the company. For those components of your strategic framework that may change more frequently (such as operating metrics and significant initiatives), update all employees every time there is a change. In addition to what is changing, tell people why.

There is almost no limit to the simple things you can do to communicate the most important messages in the company. Change it up every month so that people don’t tune out your messages because they look like the “same old stuff” they always see. But just keep doing it!

I have yet to see an organization that over-communicates its goals. Instead we start running, and in our busy-ness forget that others aren’t privy to all we are exposed to. When a change becomes evident and employees have not been informed, they are much more likely to fill the void with negative information, which is typically far worse than the truth.

Pausing to communicate frequently will save hours attempting to correct the myths, half-truths, and inaccurate information that spring up when you don’t communicate enough. More important, it will increase understanding of and commitment to the goals you and your management team worked so hard to create.

What are some ways you keep employees informed?

When Shakespeare said that all the world’s a stage, he probably didn’t have employee performance evaluations in mind. But for anyone who has ever endured a less-than-candid performance appraisal, his words definitely ring true.

Giving and receiving feedback is a complex process made infinitely more complicated by our human emotions and reactions. In particular, our fears, uncertainties and doubts about the feedback process can make us very uncomfortable. So when we give or receive feedback, we often appear as though we are on stage, performing a role.

Performance evaluations often feature two primary roles: lead actors (the person providing the feedback) and supporting actors (the individual receiving the feedback). Do you recognize any of the following performers in your company?

“…and the Oscar goes to…”

Leading Actors (providing feedback):

• The Magician disguises her feedback so that the employee can only guess about the real message. “You did great & here’s one thing to work on, but you did great…” In order to minimize conflict and keep the employee guessing, she only slips in negative comments when the employee isn’t looking. The magician typically appears when a manager is afraid of hurting the employee’s feelings or worried about not being liked. The receiver walks away wondering what the show was all about.
• The Corporate Enforcer’s main goal is to protect his “good guy” status. His impersonal “I’m just doing my job and delivering the message; it’s not like I wanted to or that I even believe it is necessary” approach gets him off the hook for having any negative thoughts of his own or opinions about the employee.
• The Hero plays the part of protector while delivering the feedback as if he is there only to help. “Don’t worry, I’ll do it.” He may pretend not to agree with the feedback while backpedaling out of the discussion, and will frequently step in and offer to resolve any issues for the employee.
• The Interrogator asks a series of tough questions, trying to get the employees to figure out what they might not have done well. “Do you think it went well…what do you think others thought? Do you think that was the best approach?” She remains in control by never providing the answer and by not offering any specifics on the behavior(s) in question.
• The Game Show Host prefers a guessing game in which the employee doesn’t really know what the manager is thinking but is expected to play the game anyway. “Guess what I think is your strength? What do you think I want you to focus on?” As with the magician, the employee leaves the meeting wondering what it was all about.

Supporting Actors (receiving feedback):

• The Victim is so hard on himself that any feedback is taken way out of context. “It’s always my fault. I knew I would fail at this.” He often perceives the feedback as a personal condemnation and overreacts.
• The Sheepherder believes there is safety in numbers. “Everyone does it that way.” She finds or at least identifies other employees who engage in the same behavior. This is a perfect way to avoid responsibility & accountability for personal performance & it can be intimidating to a feedback giver since it feels like the whole organization is suddenly against you.
• The Con Man (or woman) creates tangents and diversions by bringing up other projects, issues or behaviors. “Did you hear about what is going on in X department?” The goal is to get the manager off track and avoid the real issues at hand.
• Ex-Spouses blame the other person for anything less than perfection. “It’s your fault. No it’s your fault!” In this scene, the lead and supporting actors both become defensive and stop listening altogether.

Do any of these casts of characters remind you of anyone? All of these lead and supporting roles require sophisticated acting skills. Yet, most people are not consciously aware of when they are performing. So when any of these actors appear on stage, it’s time to yell “Cut!” and re-shoot the scene.

Start by recognizing that the role being played is nothing more than a way of avoiding fears. If you’re the one doing the acting, take a look at the behavior getting in the way of your valuable feedback and try to develop a better understanding of why you do it. If the employee is the one on stage, show some empathy for their fears and then gently redirect the conversation back to the issue at hand.

In Hollywood, a best actor award will definitely advance your career. When it comes to being a great leader or manager and assessing your employees, not so much. Keep the acting to a minimum on both sides and you and your employees will enjoy more honest and productive performance evaluations.

January is a time when many organizations present new and/or updated goals to guide behavior during the year ahead. Often, these goals have been weeks or even months in the making. Yet many leaders feel that all they need to do now is communicate the goals once and then everyone can go back to business as usual.

Not so!

The leader’s job is to consistently support informing, inspiring, and engaging employees in what needs to be done and how. And that means communicating the goals, strategies, and key destination points not just once but on a regular basis throughout the year. At this time of year, I typically recommend that clients pay special attention to the “inform” phase of the informing, inspiring, and engaging process.

Before jumping to the conclusion that communication is one of those “soft” skills that makes employees feel good but doesn’t really impact the bottom line, consider this:
study after study confirms that productivity and employee commitment are highest in the work areas where people are kept fully and regularly informed. In other words, the more you effectively communicate to employees, the better your return on investment.

Research also shows that organizations that communicate effectively outpace those that don’t. A global Watson Wyatt study of more than 267 companies representing all major industry sectors found that a significant improvement in communication effectiveness was associated with a 29.5 percent increase in market value. Plus, companies that communicated more effectively enjoyed employee turnover rates below the averages in their industries. (Not necessarily a problem in this economy, but as things continue to improve, keeping your best employees will go back to being a challenge for many).

Here’s another reason to communicate often: we simply don’t retain information very well, especially with only one exposure to the information.

Tests have shown that immediately after listening to a 10-minute oral presentation, the average listener has heard, understood, properly evaluated and retained only about half of what was said. Within the next 48 hours, this drops off another 50%, to a final 25% level of effectiveness. So after only one presentation, the likelihood of anyone having clarity on organizational strategies and goals is minute at best. Only through constant communication, delivered in a variety of formats, can we hope to create alignment, understanding, and commitment.

What’s the best method for initially communicating goals? According to employees, it’s face-to-face. Most organizations use a variety of electronic and written methods –such as emails, newsletters, bulletin boards and intranets — to communicate with employees. However, surveys show that, even today, employees place significantly greater value on face-to face communication, especially when it comes from the person they work for.

In most cases, the preferred source of information for employees is direct contact with the manager or supervisor. Yet, many employees feel that their managers don’t communicate effectively with them. If not corrected, this dissatisfaction frequently snowballs into lack of trust, mediocre effort, increased turnover, and disengagement from the goals and objectives of the company. So as part of the “inform” phase, make sure your managers and supervisors have the skills to communicate effectively, both in one-to-one and group situations.

Also, keep in mind that communication needs to be two-way. During team and company meetings, set the tone for openness, mutual understanding and respect. Don’t try to force closure during the initial discussion. Instead, make sure that team members have future opportunities to discuss and process the goals. You have probably had several months to consider and digest everything in the strategic framework, but this is the first time many employees will have heard them. Creating a process for people to ask questions a few days after the initial presentation will go a long way toward enhancing their understanding of the goals.

The “inform” phase involves making sure every employee knows the basics of your organization and/or team goals. It does not mean doing a once-a-year communication and then going silent on updates because you’re too busy. Things change frequently in business today. And when changes occur that affect goals, measures, and how things will get done, good leaders take the time to communicate again and again.

A good rule of thumb — when you think you’re communicating too much, you’re only halfway there!

2009 has come and gone, and many of us are taking a huge sigh of relief. Going through one of the worst recessions in U.S. history will certainly take the wind out of your sails. But we appear to have weathered the worst of the storm. And while the economy might not rebound with the speed and vigor we would like, it at least appears to be heading in the right direction again.

So what did we learn from the trials and tribulations of the past year? And how can we apply those lessons going forward? Here are 10 things I believe that leaders need to do differently to position their businesses for success in 2010.

1. Get used to the likelihood there will be no normal anymore. The old business world that most of us knew and loved went away with the recession, and it’s not coming back. To adapt to today’s business realities, question all your beliefs and assumptions, get comfortable with uncertainty, and adjust your expectations. For most, the new ‘normal’ will be slow and sustained growth rather than a hockey-stick curve and it will continue to surprise us.
2. Break the rules. If you’re not breaking rules on a regular basis, your customers and markets have probably already left you behind. The new rule for today’s chaotic markets is to constantly challenge the status quo. Don’t automatically assume that what made you successful in the past will continue to make you successful in the future.
3. Recognize and minimize your “MSUs.” We all constantly MSU (make stuff up) about our company, industry, and markets. During the strategic planning process, put everyone’s beliefs and assumptions out on the table and ask, “What do we think we know to be absolutely true about our customers, competitors and markets? Is it still true? If not, what has changed and how do we need to respond to that change?” Get data and question your long standing beliefs constantly.
4. Embrace social media. Embracing social media can be a real competitive advantage. In addition to instantly connecting you with customers, social media enables you to “mindshare” with industry peers, demonstrate thought leadership, recruit talent and more. Study the social media habits of your customers, and use the appropriate tools to make them part of your community.
5. Expect more transparency. With the advent of social media, you can no longer control public perception by limiting information about your company and products. When you withhold information, today’s bloggers, twitterers and forum posters will make it up for you. The next generation of market leaders will excel at using social media to create transparency and build trust with their key stakeholders.
6. Communicate to fill the void. Today’s employees are beset with doubts, uncertainties and fears about their jobs. If you don’t tell them what is going on, they will fill the void with rumors and misinformation, usually negative. Constantly let employees know where the organization is going and what your plan for winning is. In today’s world, you can’t over-communicate.
7. Encourage strategic thinking. Strategic planning involves a formal process whereby senior management peers into the future and charts a course of action for the organization. Strategic thinking occurs when the entire organization begins to act in concert with the strategic plan. Teach your people to anticipate opportunities and threats while managing the day-to-day tasks that fall within their scope of responsibilities.
8. Make innovation a way of life. Innovation needs to become an integral part of the way you do business, not just a one-time event. Constantly challenge the way you do things, even when they have always worked well. Strive to create new products, services and ideas that have real value for stakeholders. Look for different and novel ways to deal with ongoing challenges. Constantly seek to implement new and better ways of achieving results.
9. Slow down to go fast. In times of uncertainty, prepare to pause, focus, and plan. Learn to anticipate the unanticipated by making scenario planning part of your daily routine rather than an afterthought when plans don’t pan out. Take the time to consider multiple perspectives and engage others who have diverse views. This may feel like slowing down, but will actually help you get where you want to go much faster.
10. Get back to basics. When everything around you diverts you into complexity, get back to basics. Make strategic planning a way of life in your organization. Use a strategic planning framework to drive what you do and where you focus your energies. Constantly check for internal and external forces that may impact where you’re going, what you need to do and how you need to do it. Organize your day around achieving your destination, and focus on informing, inspiring and engaging others in getting there.

Those are my top 10 tips for success in 2010. I’d love to hear what you plan to do differently going forward.

Here’s wishing you clarity, focus, and great success in the New Year!