Ah, my first Blog! I love it, but I wonder if this will be of use to any of you…that is those of you that are reading this missive.
So, it is Tuesday, June 20, and I just returned from a meeting in Halifax, Nova Scotia. It was a very successful meeting, with interesting dialog among terrific colleagues. Nearly half of the meeting focused on strategic dialog, driven by the concepts in the book Blue Ocean Strategy, by W. Chan Kim and Renee’ Mauborgne. It is a very disciplined and interesting approach to striking out into uncontested market space. The real core of the book is about value innovation.
Though the dialog was great, I always find myself in a quandary (borderline frustration) because we invariably and quickly tumble into a discussion on the “next big thing to do” before we all agree on whether or not we are making progress toward our envisioned future—or even working in the domains of our core purpose. We seem to move to a “white board” to post and act on a new approach, but rarely spend the time talking about where we are in our own “success curve.”
At the airport and on the plane home from Halifax, as well as on recent conference calls with colleagues, I found myself in discussions where the dialog surrounds the “next big thing,” or how to make money. No question that these are the underpinnings of staying in business…no doubt about it. However, we are becoming increasingly focused on the “stuff” we produce, rather than the bigger question of the real value that our associations bring to our members, and more importantly, to their world. How can we possibly provide value innovation when we don’t know how to measure value, or if we are delivering it?
Jim Collins, in his recent monograph on Good to Great and the Social Sector, pointed out how challenged he was with clarifying “success” for not-for-profit (NFP) organizations. In the for-profit world, it is about shareholder value, dividends, market share, and net performance—measures that have clear metrics to track and monitor. In the NFP world, those traditional measures still have merit, but they should never be the primary measure of the success of our organizations. They are secondary to our real purpose in existence, what Collins calls our “hedgehog.” That is, the real purpose of our existence, and the real value that we provide to the outside world.
It seems that we are getting lost in the battle for day-to-day survival, or marginal growth, and don’t refocus the attention of our boards on measuring the real value that the organization provides to society. Collins says we should focus our attention on “outcome measures.” That is on measures that point to organizational success. They are, without a doubt, much harder to clarify, and even harder to measure, because they are often qualitative in nature, and represent transformation of segments of industries or society, or even lives.
Next time you meet with your board, or key management team, ask them to do a quick exercise. Ask each them to write down, in less than 200 words, if they think the organization is successful, and if so, what the indicators are that point to that success (or failure). Then compare the answers. Check for two things:
1. Are they the same or similar, and if not, how do they diverge? Do they share a common understanding?
2. How do the measures track with progress toward an envisioned future of the organization and its long term goals?
My guess is you are in for a surprise. Personally, I think if we have a clear understanding of what, as an organization, we are trying to achieve, and have a clear understanding of whether and where we are successful, then the “next big thing” will come quicker. Stop the madness! Don’t chase another brass ring until you know if you even know what the brass ring is, and how to measure if you are even closing in on it.