The Vision Handoff

Think vision statements are hokey?

I’m with you. I have seen more useless vision statements than the average bear. But that doesn’t stop us from forcing the issue with our clients. Vision statements are important if you plan to get anyone to help you grow your company. They need to be clear and they need to be worthy of everyone’s best effort. In this post we aren’t going to go into a ton of detail on how to set a vision for your company. That isn’t necessary, because honestly it isn’t that complicated. It may not be easy, but it is pretty simple.

Your vision is where you want to go. It is the destination. The clearer you can’t paint me a picture of that destination the more useful that vision is going to be for both of us. When in doubt, put a number in your vision. Numbers drive out fuzziness and ambiguity. Your vision shouldn’t be to grow. Instead try “top 100 in our industry.” Your vision shouldn’t be industry leading quality. Instead try “win 5 Malcolm Baldridge National Quality Awards.” Get clear and paint a picture your people can get excited about.

For families struggling with how and when to hand the business off to the next generation there are few matters more important than vision. I think these families have two options. They can maintain the status quo, or they can build a STRATEGIC succession plan. That plan must address vision in two very explicit ways.

STEP 1: Determine the state of your current company vision. There are four possible scenarios here.

The Doldrums

This is a situation where mom and dad had a clear vision for a long time and at some point in the recent past we were able to say “mission accomplished.” We checked the box and never really reset the vision for the next big endeavor.

We ran into one such company where the founder had spent 30 years building a very successful and large enterprise. For a long time the vision had been to build an organization that would outlive him. A masterful partnership deal had provided liquidity and capital that opened up all kinds of possibilities for the next generation. But no one had given any thought to where that next generation might want to take the business. Not surprisingly there was little urgency or excitement about the business or about the transition to a new generation of leadership.

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Continuity

This is probably the most favorable scenario. The previous generation set a worthy vision, the kids buy into it and momentum is maintained as the baton is handed from one generation to the next.

In these companies vision is talked about, it drives decisions, there are long term goals, there are usually plans to execute them. But there may have been some lapses in execution. The plans may not have always gotten the attention they deserve.

This is the time to take advantage of the honeymoon period afforded when new leadership is appointed. The transition from one generation to the next has the potential to not just maintain momentum but to greatly increase it if everyone can handle their new roles well. More on that later.

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Ambiguity

There never was a vision, and there isn’t one on the horizon. This is probably the most common situation. It is indicative of the status quo transition model where mom and dad say “just don’t screw it up.”

More than any other scenario this is the one where mom and dad really struggle to let go. And it’s not a surprise. Without any kind of strategic succession plan there is no way to gauge whether the kids are ready. There have been few situations to see them in action driving success in the plan or leading effectively. And without a vision mom and dad worry that the kids will make decisions and evaluate opportunities as well as they did. Essentially everyone is just hoping things work out.

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Betrayal

Mom and dad have a vision, they have been pursuing it, they thought they had buy-in, but now that it is time for the kids to run the show everything is changing. What we find out in these situations is that usually mom and dad weren’t that intentional in communicating their vision for the company. They just kind of assumed that everyone knew where they were going and why. You can imagine that if their own kids didn’t know the likelihood that other employees have a clue.

There is a lot of potential here for the business to suffer if the two generations cannot agree on what comes next. Alternatively the kids may charge ahead after mom and dad let go and the relationship may suffer due to the perceived betrayal.

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Having established which situation you are dealing with the next step has to deal with managing the roles of each generation.

Step 2: Get clear about who the new vision standard bearer will be

Like it or not the person who is championing the company’s vision will be perceived as the leader. If the kids don’t take up this new role as their own a crisis is looming. Sooner or later mom and dad won’t be able to continue in this role, and the resulting vacuum will cause everyone to doubt the next generation’s capacity to lead regardless of how good they are operationally.

A good strategic succession plan will put the kids front and center not just on executing the plan, but also on taking advantage of every opportunity to talk about where the plan is taking us.

It is this change in roles that ultimately determines whether the business gains momentum or hits a brick wall. It affects how many key players stick around and give the kids a chance to lead and how many look for other opportunities after mom and dad leave.

My final encouragement to you is this, there’s no such thing as maintaining the status quo. You are either growing or you are dying. The transition from one generation to the next will either be a good thing for the business or it will be bad. No one is going to say “Eh, they’re doing an OK job. Everything’s fine.”

Find out where you are and start building a strategic succession plan to put your kids in the best position possible for the future. If you need help call us.

Two Ingredient Recipe for Growth

If I were to ask you what the two most important ingredients for growth in business are, what would you say? Think about it for a second.

You’re probably thinking about sales, efficient operations, better marketing, great customer service, or better employees.

Though these are often present alongside growth they are not the driving force behind growth. The two most important ingredients for growth are a compelling vision and clearly defined values. Although these are intangible, they are respectively, the destination you grow towards and the solid foundation that will support all that growth.

But what is vision? And what are values? Definitions for these vary depending on who is giving the answer. So here’s how we define them at Axiom, in a practical way that actually works to drive small business growth.

VISION

A statement of the projected future of the organization and its place in the world as defined by the leader.

In its simplest form, your vision is the picture you paint me of what your business will look like down the road. What are we trying to get to? The clearer the picture, the more practically useful your vision will be in your business.

What makes the vision statement important? It unites your organization around a common purpose. It provides a “north star” that every department in your business can use to evaluate decisions and performance.

For example, though sales growth is a great contributor to business growth, how much sales growth is necessary to meaningfully progress toward the vision? Is there a goal your team should aim for? Where [what geographic area] should they focus on growing? What products and services should they lead with? Where should the pricing be? With a clear vision the answers to these question come easier.

What qualities make up a good vision? We’ve written on vision before and you can read all about our thoughts on what makes a good vision, here. But if you want the summary version, a good vision statement must meet these criteria:

• A vision statement is a communication tool; the projected future should be clear.

• Some of the best vision statements contain a number or something that can be objectively measured. Numbers are the easiest way to provide clarity about what your future organization looks like. “We want to be philanthropic,” and “we want to be able to donate $150,000 a year to local charities” communicate the same thing, but one paints a much clearer picture.

• It is set by the leader. Rather than being set by committee, a good vision is set by the business owner and leader in chief.

• It must be aspirational. Your vision should describe a future context. It should give the employees working with you something to work towards.

In order to drive growth your vision statement must play a central role in all of your communication. If it just sits on a shelf it will not do anything. If you use it to set goals, to evaluate performance, to judge the fitness of new hires, to decide which partnerships to pursue and which customers to leave… if you actually use it every day it will make a big difference. When vision is recited by leaders in an organization it can unite your people by giving them a purpose to engage with, together.

VALUE(S)

Enduring and unchanging descriptors of a company’s culture.

With togetherness comes conflict and mess. Values are an important ingredient that direct how your people are to act in pursuit of the vision. Generally, values are unique to each organization and are also set by the leader. If Vision describes where you want the company to go, Values describe the company you are committed to being along the way.

There’s no formula for determining what your values are, but there are a few things to be mindful of when setting values.

• Values dictate your culture. Without values, a culture will still exist...it just may not be a culture you want.

• Values should be easy to remember. Choose a word, then briefly describe what it means. For example, one of Axiom’s values is truth, which means we speak the truth even when it’s difficult (to say, and hear).

• Values should be pre-eminent, not pretentious. It’s what we do that matters. This means two things: 1) Values should be public, so we can be held accountable when we fail. 2) Values should influence every company activity.

APPLICATION

Taking from the last bullet point, it’s what we do that matters; the information in this blog is only going to be helpful insofar as you apply it.

In the past, we’ve written largely to an audience of business owners and given practical advice to match. However, we’ve realized there are two groups that have a vested interest here: employees and employers.

To the Employee. The most practical way you can use this information is by “leading up the chain of command.” The phrase comes from authors Leif Babin and Jocko Willink in their book Extreme Ownership. Stated simply, leading up the chain of command means providing your leaders with valuable information they would otherwise not know so that they can support you with the proper tools and resources. In this case, leading up the chain of command means that if your boss hasn’t talked with you about vision or values that’s as much your fault as anyone’s.

Consider asking your boss questions like:

• How do you see our values influencing daily operating activities?

• What do you hope to accomplish with the company? Where are we going?

• What are the words you want vendors and customers to use when they describe their experience with us?

In every instance, these conversations benefit the organization. If your boss cannot articulate vision or values, you have the ability to stress how invaluable they are. If they have vision and values, and but few people know them, you have the ability to help them hone the message and  then rebroadcast it to the entire team.

To the Employer. Vision and values are foundational ingredients for your success. Without them, you handicap your company’s growth potential. Do you have a vision? Do you have clearly stated and defined values? If not, your homework is straightforward. Step one is to draft a vision statement and a short list of values.

If you have vision and values, step two is to ensure that your entire organization is acutely aware of them, even to the point of annoyance. There are many ways to do this.

• Make them public and visible. Put them on the walls and in the public spaces of your office.

• Make performance reviews an evaluation of both technical skills and adherence to values.

• Adjust operating activities to be reflective of your values.

• Build and execute strategic plans to accomplish your vision. It won’t happen on its own.

It takes a great deal of reflection and intention to define and set vision and values. It doesn’t get any easier when having to do this amidst the day to day hustle. Yet the right ingredients for growing your business are within your control. Focus and align your organization around a shared vision and values, then set your sites on growth.