A philosopher once said, “If you don’t know where you are going, any road will take you there.” So how do you figure out where you are going? I think it starts with asking the right questions. The key people at any business need to ask themselves a few basic questions about their organization. These questions and their answers can help a company define why it exists, what it is good at and, most importantly, the answers can provide a set of guidelines to use in situations where the right thing to do is not readily apparent.
I don’t believe there’s any magic to this process. It’s really just remaining clear-headed and staying focused on what you’re trying to accomplish.
So what are the right questions?
- Why does our company exist?
- Whom do we serve?
- What are our core values?
- What are our core competencies?
- How do we operate and use our core competencies to serve our shareholders?
- How does what we do benefit our shareholders?
- If we make a certain decision, where might it lead us?
How these questions are answered and communicated affects the actions of a company’s management and staff. In positive operating environments, the answers provide clarity for employees so that they know what is important to the company and are able to perform according to plan. In difficult times, knowing the corporate focus serves as a compass to keep the organization on course.
What we’re talking about are the core values and principles that a company develops over time. These values and principles, in turn, can become the guiding philosophy that leads to a sensible, long-term business plan. Once again, this does not mean that growth and profit shouldn’t be primary goals or that poor performance can be excused because of mindless devotion to a plan that is inflexible. What it does mean is that, generally, growth and profit are the natural outcome of a clear focus, precise strategy, well thought-out business plan, and good execution.
A plan that is not too loose and not too tight is a good description of the type of focus we’re talking about. Tight enough so there are consistent principles by which a company operates, but loose enough so that within those principles a company can react quickly and respond to changing circumstances.
