In my last blog, I introduced the ‘NOW-Event-Map‘.  This model combines both a forward looking strategic planning model with a retrospective performance reporting model.  At the center of the map is the enduring concept of ‘NOW’.  At the end of the prior blog I promised some thoughts on how the map might be used – besides as an academic thought exercise. 

Results, Results, Results – NOW

The NOW-Event Map starts as a memory or thinking jog.  It should remind practionners that planning is a non-value added activity.  Good intentions, without even better execution, is a waste of time, resources and hope for an organization.  This has been a common theme in a number of my blogs (not to mention other thinkers about strategic planning) [See Notes].  Of course NOT executing a bad plan is a result as well.  Nevertheless, by focusing on the current, or future, NOW-Event, organizations can be results focused.  

Measuring the Cost of NOW

An organization needs to balance the investment in how much it PLANS to do, investing in retrospective PERFORMANCE MEASUREMENT and of course the actual work on the shop floor.  The NOW-Event graphic could be used as a heat map for understanding this allocation of resources.  

The Cost of the Future: Ideally a heat map would show a good balanced mix across the different Cones of Certainty for you organization. 

• HIGH STRATEGY/LOW TACTICAL Investment: How are you converting good strategy into results? 
• LOW STRATEGY/HIGH OPERATIONAL Investment: Conversely, if there is very little effort spent on strategic and visioning activities, are you stuck in a hamster-wheel of the NOW? and the blur of a succession of activities?

The Cost of the Past: On the right hand side of the graphic, the reverse is considered.   

• THE PAST As an ADVANTAGE: Does you organization need good longitudinal information and if so are you investing in it so it is there for you and your successors?
• BUY INFORMATION: Can you buy some or all of the longitudinal information.
• WHITE SPACE: Don’t forget the white space, it represents a loss of opportunity for you.  Are you competitors data mining their 10-year sales information, looking for new markets and brand extensions while you are only focused on next quarter’s results. 

Learning

Results and deciding how much to invest in the past or the future are done primarily to support learning or at least feed back loops.  The following graphic shows 3 learning arrows from past experience (results) to future planning. 

• ACTIVITY & OPERATIONS: The most inner arrow has the greatest relevance because the time between plan (operational/transactional) and result is the shortest. 
• OPERATIONS & TACTICS: The second arrow on the bottom loops monthly and quarterly results into operational and tactical plans. 
• TACTICS, STRATEGY & VISION: The last arrow takes into consideration information from all time periods (real time, monthly, quarterly, historic) on the direction of the organization.  Of the three arrows, the past is the least relevant to these planning process. 

Results Based Management

The above discussion is the basis for Results Based Management (RBM).  Although beyond the scope of this blog, the NOW-Event Map reminds us of the ongoing communication between results and the direction an organization takes.  

There is a cautionary tale of using only one of the above three arrows rather than all of them.  Too much focus on real-time events may lead to organizational churn and over-reaction to anomolies.  Too much focus on long-term results in a lack of responsiveness on the part of the organization to changes.  Too much focus on monthly, quarterly or annual results can lead to the ‘next-quarter-death-march’ for the organization.  

Now that we eliminated all three feedback loops, what is left?  All three feedback loops with the application of professional judgement and cool headed leadership. 

Other Uses for NOW?

What are your thoughts on the utility of the NOW-Event Map.  A pretty but largely academic graphic or a tool to forceably link the planning process with the bottom line.  Let me know your thoughts or other possible uses.  

Notes and Further Reading

• Time to Define Planning Times
  • A Phrankism in which I have declared the definition for things such as operational, tactical or strategic.  
• Anti-fragile Strategic Planning
  • Nassim Nicholas Taleb has written extensively about randomness and about systems.  In his book (and my blog) ‘Antifragile: Things that Gain from Disorder’ he calls strategic planning ‘superstitious babble’.  He goes on to say “… there is no evidence that strategic planning works… (strategic planning) makes the corporation option-blind as it gets locked into non-opportunistic courses of action.”
  • A strategic plan should be the roadmap to make an organization increasingly Antifragile if not at least robust/resilient.  A robust and optionality-attuned-organization can make the best use of circumstances as they present themselves and weather small shocks or even larger negative Black Swan events.
• Strategic Planning: How Not to Waste Your Time 
  • Provides a 3 point overview of how to make strategic planning more useful: 1) The Process is the Plan. 2) Execute… Something.
    3) Less is more and Four Pages is Lots.
• 90 or 99 – That is the Strategic Question
  • What rule of thumb or heuristic can be used to know that you are doing enough Strategic Planning? My proposed answer is somewhere between the 1.0% and 0.1%. Although a full order of magnitude separates these values, a range is important due to the volatility of an environment an organization finds itself in.  
• The SWOT+4 Planning Model
  • A 4 step Information Management/Technology planning questions is overlaid to the classic SWOT evaluation tool. The questions are 1) What does the organization plan to do. 2) How can IMIT support that plan. 3) Is the organization any good at IMIT and is it getting better or worse. 4) What is on the event horizon that will change 1-3?
• Anti-Fragile Risk Management (ARM)
  • Aniti-fragile Risk Management turns traditional risk management on its head as it starts with mitigation. A 7-ARM model is proposed to support organizational resiliency and robustness to whether risks.
• PRMM – How is That Planning Thing Working Out for You?
  • Step 1 of 5 of Practical Risk Management, discusses the importance of incorporating risk management into existing operational, tactical and strategic planning; don’t separate the two.
• Organizations in Four Part Harmony
  • What exactly makes up an organization and how is work done within them? 4 Harmonies are proposed: 1) Infrastructure, 2) Operations, 3) Ad Hoc Activities, & 4) Strategic Thinking/Planning. It is important that these harmonies work in concert.
• Can We Stop and Define Stop?
  • Considers what does “Stop” Mean in the Context of Operational Planning? A 2×2 matrix is proposed composed of 1) Full Stop, 2) Automation, 3) Stopped with Costs continuing & no benefits, 4) Status Quo.