Our last posting talked about consistency.\u00a0 We talked about identifying \u201ccritical success factors\u201d . . . operating principles that, when applied consistently, are at the core of a company\u2019s success.\u00a0 But operating principles are only half the equation.\u00a0 They are the front end, the input side of things.\u00a0 They are the consistent activities that produce a consistent result.\u00a0 A consistent result, yes, but is it necessarily the result we want?\u00a0 It may not be if there is ambiguity, confusion, or disagreement about what we\u2019re trying to achieve.\u00a0 For more on this, please read below.<\/p>\n
\u201cGoals produce results, not activities.\u201d<\/p>\n
We might go that quote one better and say, \u201cWell-defined, highly focused goals produce results.\u201d\u00a0 A well-crafted set of operating principles is a good start, but they\u2019re only useful if they are molded and targeted to produce a very specific result.\u00a0 After all, nobody cares about all the great, really clever stuff we did to achieve the result.\u00a0 They only care about the result.\u00a0 In fact, conventional wisdom tells us to always begin with the end in mind.\u00a0 So we should start with the result we want, then work backwards to design the operating principles that will produce that desired result.<\/p>\n
Think of this as your North Star.\u00a0 It\u2019s that reliable navigation aid that you can count on to guide your thinking, your planning, and your decision-making.\u00a0 It\u2019s that thing that sets you apart, that you know you can deliver, and the marketplace trusts you to provide.<\/p>\n
In our last posting, we noted that operating principles are the \u201crules of the road\u201d for a business.\u00a0 They are the way we do things, the way we conduct our business, not just this year, but every year.\u00a0 Year after year after year.\u00a0 Therefore, the result produced by our operating principles must also be consistent year after year.\u00a0 We\u2019re not talking about vision, or mission, or values here, nor are we talking about a strategy.\u00a0 We\u2019re talking about results that define us in the marketplace . . . results that are our identity.\u00a0 They are our North Star.\u00a0 They are, in fact, our \u201ccompetitive advantage.\u201d\u00a0 The Southwest Airlines operating principles we discussed in our last posting are all aimed at delivering their competitive advantage . . . low cost airfares.\u00a0 It\u2019s the North Star that guides everything they do.<\/p>\n
Some other examples.\u00a0 Imagine a high school that graduates 98% of its senior class every year, year after year.\u00a0 The challenges may be different every year due to changing budget requirements, staff turnover, changing student demographics, etc., but not the results they expect.\u00a0 A 98% graduation rate is who they are.\u00a0 Failure is not an option.\u00a0 It\u2019s ingrained in their DNA.<\/p>\n
Or think of a general contractor who claims to bring his projects in on time and on budget, always.\u00a0 His clients have never been disappointed by missed deadlines or budget-busting surprises.\u00a0 Never.\u00a0 Not once.<\/p>\n
So sound operating principles deliver a specific, desired result, which is your North Star (competitive advantage).\u00a0 Sounds easy, but sometimes our North Star doesn\u2019t shine so bright.\u00a0 If your North Star is a little hard to locate, or if it\u2019s a little fuzzy and difficult to follow, call me.\u00a0 We should talk.<\/p>\n","protected":false},"excerpt":{"rendered":"
Our last posting talked about consistency.\u00a0 We talked about identifying \u201ccritical success factors\u201d . . . operating principles that, when applied consistently, are at the core of a company\u2019s success.\u00a0 But operating principles are only half the equation.\u00a0 They are the front end, the input side of things.\u00a0 They are the consistent activities that produce<\/p>\n