Bloated, Busy, and Drifting? It’s Time to Rebuild from the Inside Out.
“When commitments are clear, decisions are easy.”
Core commitments should be at the heart of every business. These are the non-negotiables around which the company operates and to which it adheres. In athletic performance, having a strong, defined core (the muscles around the centre of your body) enables you to operate at a higher level for longer. The same applies in business; having a robust set of defined commitments understood by all stakeholders allows you to operate consistently at a high level over a sustained period.
In reality, many companies possess a somewhat vague set of values, mission statements, and commitments that are either outdated or not fully understood by all stakeholders. This leads to employees being less engaged, clients being underserved, and shareholders receiving suboptimal returns on their investment. If the core of a business is robust, all stakeholders are negatively affected.
Companies get this point by stealth. They have in the past done work on a mission statement, they have laid down some values previously, and they have defined what they should be delivering to their clients. However, these activities were likely undertaken from a marketing perspective, possibly with the assistance of an external brand consultant. They are not only outdated but also one-dimensional in their presentation and articulation. They, therefore, will not be present in the current business in the way they could and should be. Their impact will be minimal.
Reframe: What are we not?
Adolescent companies (those that have been in operation for over 5 years) can tend to become bloated by trying to deliver too many services and products to an overly broad market. They grow organically based on the opportunities that arise, rather than following a pre-agreed strategic plan. While this is understandable, there comes a point when this approach no longer benefits any of the core stakeholders. Employees feel overwhelmed, clients/customers feel underserved, and shareholders believe they are receiving a lower return than they should.
At this point, companies have a binary choice to make: continue as they are or step back and define what will stay and what will go.
The simple question we pose to our clients when we start working on redefining their core commitments is, ‘What is not future-fit?’ The same question can be applied to services, products, processes, and people.
The premise we instil in our clients is that what got you here probably won’t get you there, so you need to start to focus on both what you want to be famous for going for and at the same time shed what isn’t going to serve the company you want to become.
When asked how he created the incredible statue of David, Michelangelo was reported to have replied, “It was easy; I just removed the pieces that didn’t look like David.” He shed the marble that wasn’t needed to create the statue.
Rethink: What is true for all stakeholders?
The key to creating a strong set of core commitments is to stay stakeholder-neutral and ensure that each commitment serves each stakeholder group equally well. You need a set of obligations that engage each group equally well.
The questions you should periodically consider are:
1. Does your current vision, mission, or purpose resonate equally well with all your stakeholders, or does it, in reality, only excite the shareholders? For instance, if you are committed to being the leading XXX in the South-West, is that equally beneficial for your employees and current clients, or is it merely of interest to your shareholders?
2. Are your values/principles ones that resonate with your customers, or are they just an internal set of behaviours that have been created from an HR/Culture perspective?
Are they so generic they have no real value? I.e. honesty or customer-focused.
Do you customers/clients actually experience these when they interact with you?
Are they differentiated from your competitors?
3. Do you need to reconsider the promises you are making to your various stakeholders?
Are you investing enough to retain and develop enough A players?
Are your clients and customers getting enough value to stay loyal?
Are your shareholders receiving an adequate financial return?
These core commitments will need to evolve because the market, your competitors and your stakeholders’ expectations will not remain static for long.
Refocus: Keep telling your story
Reviewing and updating your core commitments is only half the job. There is no point in being the best kept secret, so it is crucial that you become proficient at communicating ‘why you’. This communication may take place across multiple platforms and in different forms (verbal, video or written), but regardless of the format, the key is ensuring you address the recurring thought stakeholders have, namely “what’s in it for me?”.
You need to be very comfortable and skilled at articulating the value you can bring to each of the different stakeholder groups succinctly. You probably need to do this more frequently and to a wider audience than you currently are. It is very hard to ‘over-communicate’ why you, as it’s probably the most impactful piece of comms you can put out.
Core commitments are always a work in progress, and like your tactics and budgets, they should be regularly reviewed to ensure their continued relevance. If these are properly defined and effectively communicated, leadership becomes easier as everyone understands what you stand for and what’s in it for them.
