A Chiefs of Staff (COS) main responsibility is to work closely with the CEO to implement a framework that enables this communication and collaboration; so that CEO can then focus more on the growth agenda. At its core, the Chief of Staff responsibility includes:
Get execution done on various strategic initiatives & objectives. A strategic initiative is a critical project that will impact the future growth of the company.
Help the CEO to be more productive by making sure that weekly, monthly and quarterly reviews & planning exercises are conducted on-time.
Substitute CEO in a critical meeting
The chief of staff role is catching up the popularity among many growing organizations after being commonly practiced in the military, governments and fortune 500 organizations.
A Chief of Staff (COS) role is different from the executive assistant role. A CEO needs someone who can look into the business and company performance horizontally along with him.
Job Responsibilities of a Chiefs of staff
Help the CEO & leadership team in identifying the right initiatives & objectives to work on.
Help the CEO & leadership team remain focused and complete the identified initiatives & objectives.
Amplify and improve CEO communication
What a Chief of Staff should NOT do
Book air tickets for CEO
Manage CEO calendar
What type of people you can hire for Chiefs of staff role
An ex- entrepreneur who has failed to scale. If the person is from your industry and matches your values and principles, don’t think twice in hiring the person right away. OR
An experienced executive who has been in the role of COO.OR
A 7 to 15 year experienced manager with commendable leadership & planning qualities.
When you need a Chief of staff
Typically, you need a chief of staff when your team is getting bigger every month and its harder to align people with the company agenda. Here are some signs when you need a chief of staff:
You are adding 10 to 100 team members every month.
Your leadership team is growing.
As a CEO, you are spending a considerable amount of energy in thinking and keeping your leadership team and beyond on the same page.
You are burnt out as CEO as there are too many things on your plate.
As CEO, your decision making is getting slower every day. And you feel that everyone is focused on their department performance, but no one is looking for the horizontal performance of the company.
The first 180 days agenda of your Chief of Staff
Once you have hired your Chief of Staff, its time to build the relationship and provide the required training. Here is the agenda for the first 180 days:
Give him the required business overview.
Clearly communicate the CoS role to the entire organization.
Arrange 1-On-1 meetings with all the people in the leadership team and high potential managers.
Make sure the Chief of Staff is there in monthly and quarterly business reviews.
Help the Chief-of-Staff build the relationship with the leadership team and required credibility internally and externally before CoS starts representing you.
Post 90 days allow CoS to represent you in monthly and quarterly meetings.
Take your new Chief of Staff to series of lunch, dinner, and drinks.
After 24 to 36 months, move your CoS to a new leadership role, hire a new CoS and making the old one train the new one.
What is stopping the CEOs, Functional Heads and managers to get work done faster? And why CEO’s are constantly frustrated that people in the various teams are not collaborating but sitting in silos; resulting in the slow movement of work and business outcomes?
It’s all because of the operating system(a.k.a the way work gets done in the company). The company Work Operating System(WOS) is pending for update for a long time. The legacy organization can become more smart, ready for the new era and more dynamic by improving or even overhaul your current Operating System.
Here are the top 5 ways you can re-inventing your Work Operating System(a.k.a the way work gets done in the company):
Give more autonomy to people to define the plans and KPIs they should be chasing. Your job as a team head is to give directions and make people learn how to define the actual “business-impacting” metrics and action plans. And to review the same every week/month. So make sure that teams are “loosely coupled but tightly aligned.”
Adopt Agile principlesin the way you execute your annual operating plan and strategic initiatives. Move agile beyond IT function, and implement it in your sales, marketing, HR and operations.
Replace internal emails with tools like Slack or Microsoft Teams. The average employee checks their email 36 times an hour and receives 304 emails a week. Emails are now used by people to showcase how busy they are and lead to more bureaucratic culture.
Set the cadence of business reviews across the company, not just at top level. And run the meetings in the data-driven way by implementing frameworks like OKR.
The average manager spends up to 210 hours preparing for and doing annual appraisals, a process that makes employees spectators in their development. Ditch your annual appraisal process and implement the new-age agile PMS where goals are set every quarter and feedback and coaching session between employee and manager are done more frequently.
It’s true, Strategy execution is not rocket science. The problem is that consulting companies who want to own the keyword “strategy”; wants to show this as a big complex thing in this world that they can bill their clients with millions of dollars by putting the army of consultants.
In a nutshell, Strategy its about “where you will earn money from” and “how you will earn it” in present and future. Your strategy largely depends on the stage of your company. As Ried Hoffman puts in, every company goes through the following stages:
1) Family 2) Tribe (3) Village (4) City (5) Nation
When you are family or at the tribe stage, your strategy is to
(a) Validate that your product or service has demand in the market
(b) Generate revenue to survive OR raise the money from bank/VC to survive for the next 12 to 24 months.
(c) Try to find the repeatable sales & operational model for your product/service
When you are at the village stage, your strategy is to
(a) Create a repeatable model to do sales and service your customer
(b) Keep doing it faster and better
And when you are at the later stage of company growth, ie at “City” stage or “Nation” stage, your strategy is not just to generate the cash from existing product/service, its also about creating new products/services adjustment to your existing market OR to creating new products/services that will diversify your business.
But, is there a guarantee that your strategy will help you to become the market leader. No, because it also depends on the market/economic cycle and conditions. But if your execution cycle matches with the market/economic cycle(means your timing is right), your company will be the part of the those few success stories.
To deliver your strategy at any particular stage, you have a model with 4 standard steps: 1) You identify your vision(the big-arrow) for 12 months(when you are at “Family”, “Tribe” or “Village” state) or next 36 months vision(when you are at “City” or “Nation” state) 2) Once you define your vision, you identify the 3 to 5 major company-level goals(also called focus areas or strategic objectives) that will help you to achieve our vision(the big-arrow) 3) The 3rd step is to identify the major project/programs/objectives that will help you to achieve either of our company-level goals. And define metrics & milestones that will help us to achieve those project/programs/objectives. 4) And the 4th and last step is to follow the review cadence(process) to make sure that work gets done on the defined milestones under the defined project/programs/objectives.
In most of the companies today I talk to or work with at qilo, the above stated 4 simple steps are not followed or followed partially. Coming from the software development background, where today software is delivered in Agile fashion; its a surprise for me. If a small to complex piece of software can be delivered nowadays with high predictability; what stops companies from delivering their annual or 3-year strategy in the agile fashion?
I see 3 major reasons for it:
1. The CEO, Strategy Head/PMO/Chief of Staff is unaware that there could be a better way to deliver the 12 months or 36-month strategy.
2. The CEO, Strategy Head/PMO/Chief of Staff knows there is a better way, but reluctant to try and do the required change management.
3. The CEO, Strategy Head/PMO/Chief of Staff knows there is a better way, but don’t know the exact know-how.
In case of option 2 & 3, companies either hire an independent consultant or hire a big consulting firm to help them. Today with the help of technology backed solution, companies can deliver their strategy on a year-on-year basis without much external help. The only thing which is required is the willingness to change and try – because “if you will not change, nothing will change”.
We often hear the term ‘Business that isn’t growing is dying’. But is it really true, or is it just a way to create an unnecessary hype around the culture of expansion and commercialization?
The truth is that no business can survive in stagnancy. It must constantly change, evolve and keep up with market expectations and industry trends. As Jeff Bezos (founder of Amazon) mentioned,
“In today’s era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility, that’s it.
Because nothing else is sustainable, everything else you create, somebody else will replicate.” So it is clear that no company can just create a product and service, and expect lack of competition. The only way to survive in a competitive environment is to constantly grow and adapt to changes, but what does growth really mean? Is it only revenue growth and expansion, or can is it a more holistic form of growth?
Let’s look at different dimensions of growth that a company needs:
The most common concept when anyone thinks of growth regarding business is revenue growth. Revenue growth for business is extremely important. It’s a competitive age. Businesses not only have to compete with each other to stay ahead of the curve, but they also have to compete to hire the best and most productive and talented employees. To hire and even retain such talent, their salaries should be lucrative with constant raises and benefits. With growing inflation, revenue growth is an absolute necessity. Furthermore, the lack of revenue growth can lead to declining profits, equity, employees, goodwill or a combination of all.
While revenue growth is extremely important it’s not the only factor of growth in a business. It is equally important that each individual within the company grows in terms of skills, expertise, and productivity levels. This highlights the growth culture within a company, and growth culture is crucial. Consider this: employees join a company for salary, and benefits, but also to learn, grow and improve. If a company does not challenge its employees to strive, learn and constantly perform better, then they lose interest, and the work atmosphere becomes stagnant. The best and brightest minds don’t even want to work at such a company, and if this situation occurs, you will see all your talent flocking to change jobs. That is why a growth culture with constant challenges and aspirational objectives is a must in every organization.
Every business that needs growing revenue, can only achieve it by growing customers. Businesses need to grow their marketing strategies, sales efforts, and overall performance to attract new clients while retaining old clients. But that isn’t possible if your customer outgrows your company’s ability to meet its demand. Often market demands for certain products increase, and if a company cannot grow to scale their supply, they lose their clients to a competitor. This is especially true for B-to-B models.
GROWTH OF TECHNOLOGY
We cannot consider any advancement in today’s age without talking about technology. Going digital and constantly evolving technologically is essential for every company. More than a billion people are connected on social media platforms, one-third of the population uses smartphones, and Millennials and Gen Y are all about technology. If a business doesn’t constantly keep up with the latest innovations, then it stands to lose an immense number of potential customers. Technology provides the benefits of higher engagement, increased data security, better time management, and detailed analytics, just to name a few. The importance of digitization is so widely recognized that most companies are expected to have a Chief Digital Officer soon. And the only way for a business to survive in this environment is to follow these trends or lead in creating new ones through the adaptation of the best and latest technology.
Now that we have looked at the different aspects and dimensions in which an organization has to grow, we can see that they are all interlinked, and crucial to the survival of any business. But how can such growth be achieved?
The simple(but not easy) way is execution. Any company that isn’t focused on the discipline of execution cannot grow. But how can a business instill a culture of execution? The answer lies in OKRs (Objectives and Key Results). OKRS are a tool or a framework used to define the main goals or focus of a company and measure the performance based on the execution of these defined objectives. But how should these objectives be defined? The same goals are often not necessary for every individual as they are for the company. One of the ways to implement OKRs is to do it in various levels.
These can be:
What is the vision of the company? Why was it founded and what is its purpose? This is what the driving focus of everything should be in the long run. This decides what your company’s primary objectives are, in alignment with the vision of the owner or founder, which truly defines the purpose of that company. Some key aspects of these are:
Summarizes the vision of the company.
Set for 1 to 3 years aligned with your vision
We don’t define the Key results for company objectives.
These are objectives set for the CEO They can be objectives like revenue goals, minimum growth targets, expansions, acquisitions, increased goodwill etc. They must be in alignment with one of the company objectives.
These are objectives set separately for every team in the company. They are created in tandem with the annual objectives of the company, in order to ensure their execution. Every team through it’s own set of objectives and key results works together to contribute towards the company’s annual goals. These OKRs are monitored by executives and can help them quantitatively judge the progress towards the company’s objectives. Some key aspects of these are:
Objectives set quarterly.
Managers own the objective and key results are owned by people under him or in different teams.
Growth initiatives which need cross-functional collaboration can also be created as OKR’s.
Used to align the aim of every team to the aim of the company.
Individual Learning OKRs
These are objectives set for every individual employee which fulfills the learning agenda of the individual. If every employee works towards its success, through individual learning goals, it clearly enhances their professional growth and in turn their skills & capability. This allows for smooth execution and easy monitoring of performance. Some key aspects of these are:
Very precise in nature; Easy to understand.
Very short term, perhaps monthly.
No company is formed with a static vision or purpose. Every company has a vision of expanding and growing. Hence growth is not only aspirational but, as the article highlights, essential for every company. As business leader & author, Jack Welch states in his book Winning, ‘Change before you have to’, so that you can remain ahead of the curve and grow. But the only way to consistently achieve growth is to maintain the discipline of execution.
With varying departments, competing employees, bureaucratic processes, execution becomes increasingly hard. That is why a strict framework is necessary to maintain an upward trajectory. There is no better or more customizable tool for this than OKRs. If your business isn’t growing in this fast paced competitive age, it surely is dying. OKRs can be the weapon to stop this stagnancy and ensure constant growth.
We interviewed around 91 Strategy, PMO and Business Performance Heads to understand what actually it takes to actually implement the strategy? While companies will do internal brainstorming or will take the help of consultants to define the strategic direction of the company. But when it comes to execution and actual implementation of the plan that will help them to achieve that strategy, things move terribly slow.
And we didn’t conduct a typical survey but talked to them 1:On:1 to understand the challenges they face. And did analysis after converting our conversations into text and doing text and sentiment analysis on top of that text.
Here are the top 5 reasons which came out of this analysis that leads to the delay in achieving the required revenue growth expected because of strategic direction are:
Missing implementation plan
Existing company culture
Lack of Agile Process to think, act & refine the execution plans
1. Managing Change
Why change management is required? Because you are dealing with humans. Humans which are at top most senior positions with big egos and “know it all” attitudes. The main aim of a strategic plan is to change the way people are doing things and building new habits; with the hopes that it will enable the change in process and see better results from operating in a new way. But things dont move and people struggle to change their habits.
Solution: When you introduce your strategic plan (or operational plan, or merger & acquisition plan, or cost reduction plan – you get the idea – any plan that introduces new initiatives), it’s important to remember that most people aren’t involved in the planning process. The way the plan is initially introduced needs to be carefully crafted so as to address concerns and the what’s-in-it-for-me right away to start out on the positive path to change adoption.
2.Missing implementation plan
You won’t believe, but apart from the sales number plan for the next 3 or 5 years, the plans to achieve the sales targets are not there. For me, it was a surprise; why? Because
(a) Creating the plan is difficult
(b) No one likes to take the ownership of taking the action items
(c) There is no standard, easy & repeatable way to creating the plans linked with strategic directions/goals.
Solution: Implement frameworks like OKR to create a recipe for defining the implementation plan. OKR as framework helps your teams to think, plan, execute the plans every quarter to achieve your strategic goals.
3. Resource Allocation
Doing the resource allocation is one of the toughest jobs for business heads who are ultimately responsible for allocating people to programs and projects created to achieve the strategic objectives. There is no visibility at the strategy head and business unit head level where their people are actually busy and who are the people who can be allocated.
Solution: Take the help of tools and technology to determine the people who can be allocated to the initiatives, programs, and projects.
4.Existing company culture
Company culture cannot be quantified, but you can feel it. Most of the organizations over the years have become bureaucratic, hierarchical and lacks the speed, agility & candor to achieve the required execution.
Solution: Involve an awesome Organizational Behaviour & Development Professional in your strategic planning and implementation phases.
5. Lack of Agile Process to think, act & refine the execution plans
Now, this is where almost all companies struggle. Strategy heads own agenda of strategy, don’t own the people who do the required execution on initiatives, programs, and projects that help us to achieve the strategic goals. Teams(people from different functions) who are execution the plans don’t come together enough on their own and do the required review and course correction of the action plan, which results in the delay of execution.
Solution: Take the help of a habit-forming technology tool that helps you apply the agile process of execution in your teams.
The future of strategy execution is about how you can implement a simple, repeatable process that can be applied at scale to get execution done on your strategic goals.
In the last 30 years, many concepts were introduced in the companies claiming to have been that final solution that it will accelerate business growth. As part of these, concepts like Enterprise Performance Management, Business Process Management, Balanced Scorecard, and Knowledge Management where introduced in the market and promoted by consulting companies & leading business schools of the world. But they had a low impact on revenue growth, enhancing customer satisfaction and launching new products faster. And have only increased the revenue of consultants & consulting companies.
Nowadays OKR (a goal-setting framework for CEO and companies to get execution done) seems to be the hot topic. And every CEO is talking about implementing the same in their company. OKR is a part of the debate that companies need to adopt agile management practices; so that companies can respond to changing market dynamics faster.
New entrants, especially from developing markets and technology sector companies are moving into traditional companies and leveraging the power of Software+Hardware to disrupt the existing business models. And this is happening right now.
Let’s look at a few statistics that illustrate these changes:
A third of Fortune 500-companies in 1970 were gone by 1983. And many of those that were in the top-10 in 2015, didn’t even exist ten years before that.
The attrition in leadership positions in big companies has more than doubled in the past 10 years.
Google, Microsoft, Amazon, NetFlix, Uber and AriBnB are replacing the Coca-Cola, Big Retail, Media House and Established Hospitality industry Companies as most valuable companies.
Though these 20 year old new-age organizations are leveraging technology to deliver the product/services, they are also challenging the traditional management practices. They are adopting new agile principles and practices that enable them to remain closer to their customers, build a more transparent company and build a culture of thinking, planning and execution in their teams which enable them to move faster than existing traditional mindset companies.
But does this mean that every organization must adopt agile management practices and implement goal-setting frameworks like OKR. To answer this, we must under from where the “agile” as a concept came from.
The agile as a concept was first introduced around 2001 to better deliver the software. Before the agile practice came to picture, software’s were delivered to customers using the waterfall model of development. With the waterfall model, customers used to get the working software after 9 to 12 months. And by the time, they have received the software, customer requirement and business process to which the software was catering has changed. At the end, customer end up paying millions of dollars for something which was not near to what is required.
Then came the Agile way of delivering the software, in which software was delivered every 2 weeks. The customer gets the working software every 2 weeks. And the software developers adjusted to the evolving needs of customers. This resulted in customer end up spending less money and is more satisfied with something tangible for what he is paying for.
I have personally developed the software under the waterfall model and agile models. Frankly, adopting agile mindset was very difficult and was a change. People resisted it because it forced them to be on their toes, be more focused & accountable and forced then to be more collaborative across various teams. And you are clearly able to identify who is not performing within 2 weeks.
Now let’s look at the organizational age-old practice like “annual practices of budgeting & planning” and how it gets delivered by people in the company. Leadership team meets before the start of the financial year, sales targets are negotiated, CEO and management pushed for higher numbers and sales heads push back the numbers given and tried to freeze targets which can be achieved. New initiatives that needs to be completed are decided and everyone goes back happily to the workplace next day.
Think of your annual budget and planning process as software. Currently most companies are trying to deliver the budget & planning by following the waterfall model. A better way is to follow the agile way of quarterly process which is aligned with the company annual budgets & initiatives to be completed. Objectives (a.k.a goal) & Key Results(a.k.a milestones or action plan) to achieve the annual plan are created executed, reviewed & updated every quarter.
Frankly, achieving business results (sales plan, marketing plan, strategic initiatives) are different from programming a software. Unlike software programming, you might or might not achieve result (0 or 1) in a day, week or 2 week. But creating the OKR plan at the start of every quarter and reviewing it every month, will help you understand that will the outcome be achieved or not. Or enable you to understand that if you are all this time, trying to achieve the wrong outcome. The current execution design followed in companies leads people to focus on outcome rather then focusing on input that will lead to that outcome.
If I connect the dots, I have no doubt that adopting the agile management practices and frameworks like OKR(Objectives & Key Results) are much better approach to deliver the required business outcomes. What you think?