Greetings from sunny San Diego! Today we launched The 2016 OPEN MINDS California Management Best Practices Institute with a pre-institute seminar – Reinventing Your Organization In A Complex Market: A Guide To Building A Sustainable, Performance-Driven Organization, led by me and my colleague, OPEN MINDS Senior Associate Sharon Hicks. The seminar was focused on helping executives to reinvent their organizations for sustainability in the future by answering questions like – What is your vision for your organization in the years ahead? What is the future that you are planning for? And, how do you successfully transition your organization to thrive in that future?
First, the process of developing that “future vision.” What it takes to be successful and sustainable are basic questions that many executive teams don’t have a ready answer for, but there is a best practice for creating that long-term vision – from concept to vetting against the market realities (see Where Is Your Organization’s “West”? and Do You Have A Vision?).
Second, incorporating that future vision into your strategy development process. From objectives to implementation, there is a best practice model for planning (see Strategic Planning – Just As Critical As Ever and The Leader’s Challenge: How To Develop & Implement A Successful Strategic Plan).
Third, planning for the unknown using scenario-based planning. Using this time-tested planning technique is a way of preparing your organization for the “unexpected” – and prioritizing future investments (see In Planning, ‘Keep Your Powder Dry’ and Is Your Team Forward Thinking?).
Fourth, there is the process of selecting new service lines for investment – and the process of developing and launching those service lines. Diversification is an issue that threatens many organizations that have an unhealthy reliance on one payer, one consumer group, or one service line. Changing consumer expectations, new financial models, and new legislation mean that reliance on one service line can quickly make an organization terminally unique. A key part of diversification is new service line development. The ability to evaluate and modify current services – and to develop new services to meet the challenges and opportunities in the market – is a skill paramount for meeting the future (see Diversification & New Service Line Development and New Service Line Development From A To Z: Tips, Tricks, & Advice).
Next, there is the issue of estimating the scale that your organization needs – and the financial resources to make that scale a reality. How big is big enough? Just like your strategic vision, the answer to this will be unique to the organization asking the question. Organizations need to be big enough to be sustainable and picking the right size is related to value – the actual/perceived benefit of your service versus its cost. And since the required scale of organizations to be successful is inching up with the consolidations in the field, securing capital required to achieve that scale is also an essential (see How Big Is Big Enough? and Innovation Success Formula = Strategy + Marketing + Scale).
Last, there is the issue of effective implementation of your strategy to achieve your organization’s market positioning of the future. Execution is the difference between theory and success. Execution is the right people, with the right skills in the right jobs doing the right things. This means having a vision for change and a concrete plan for execution with timelines and assigned responsibilities – and having buy-in from your team. The only way to execute the plan is to make sure the major strategies and objectives of the organization are fully aligned, and that the team (both leaders and followers) are using the same “game plan” (see From Strategy To Action and Taking Your Team From Info To Action).
Stay tuned the rest of the week as we report from California on the best practices for managing your organization – we’ll be discussing Optum’s latest service delivery innovations, integrated service delivery models, and how technology innovations are shaping the market. Couldn’t join us in San Diego? Premium and Elite Circle members can access all event presentations online after the event, and you can follow all the action live on Twitter @OPENMINDSCircle – #OMCalifornia.