QUOTATION 68

MICHAEL E. PORTER ON SETTING YOUR STRATEGY

Use this to help you set clear unambiguous targets.

Michael E. Porter (b. 1947) during his time at Harvard Business School has built a reputation as economist, researcher, author and lecturer. He is, perhaps, most famous for his Five Forces Theory Model, which is a framework for organisational analysis and strategic development. He has said that:

Sound strategy starts with having the right goal.

[and]

The essence of strategy is choosing what not to do.

Michael E. Porter

The above quotation contains two separate, but linked, messages.

WHAT TO DO

  • A great number of managers think that it’s so obvious what the organisation’s overall goal is that it’s not worth considering it in any detail. That’s a mistake. Organisations change, sometimes quickly sometimes at the speed of a glacier. But they change. Therefore, every organisation should annually/bi-annually reconsider and agree what their major goal is.
  • Obviously there will be a series of lower level goals and targets to be met if the organisation’s major goal/s is/are to be achieved. Unfortunately, some managers fail to breakdown the organisation’s goal/s into targets that are meaningful for staff. This lack of clarity means that staff don’t fully appreciate how their work fits into the organisation’s overall goals (see Quotation 44). This can lead to confusion and sub-optimisation. Each organisational goal needs to be defined and communicated clearly to all staff responsible for its achievement, and managers must then break it down into a series of targets for their staff.
  • Use the SMART target-setting approach when defining your targets and those of your staff, i.e. all goals must be:
    • Specific
    • Measurable
    • Achievable
    • Realistic
    • Timely, (with a specified deadline).
  • Often the biggest problem with goal or target setting is that managers want to measure and control every little thing. Learn to say no. Follow Jack Walsh’s advice (see Quotation 30) and concentrate on a few key goals and targets. Fewer goals means that greater attention will be given to each one, which increases the likelihood that it will be achieved.
  • The ability to say no will ensure that only projects central to the organisation’s goals will be sanctioned. However, you need to balance such tight control with the need to take account of changing conditions and unexpected events (see Quotation 65) for new ideas and directions to be identified and evaluated.

QUESTIONS TO ASK

  • Do I and my staff know what the organisation’s goals are and understand the part that we play in their achievement?
  • How precise/clear are the targets I set for myself and my staff?
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