303: Ron Price — Strategic Execution

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Hello. Hello again everyone. We're talking about strategy. Getting into strategy today with Ron Price. My name is Bill Gal Gallagher, Scaling Coach, host of the Scaling Up Business podcast. I'm your host for the show and friendly neighborhood Scaling Coach all things growth, everything to do with growing your business, developing your people, the strategy, leadership and optimizing cash for the business is kind of the subject of our show. We bring our show to you every week. All the shows and more are available wherever you're listening now. Whether you're watching it on YouTube or Facebook or LinkedIn or whether you're getting it on a platform like itunes or Stitcher or somewhere else like that, we try to be everywhere like it and subscribe to get them every week. If you want to go find out more, read the notes and find additional resources, you'll go to scaling coach.com all right. I really want to welcome Ron Price. Welcome to show Ron. Ron is a multiple author, longtime guru and expert in like helping companies grow and scale and that kind of thing. He's led quite a few companies through process this and he's written a lot of books on the subject. I think nine overall now five in the world of leadership and strategy. His latest book, Optimizing Strategy for Results is what we're talking about today. And that book is coming out right now. As you're listening to it, it's probably available or just about to be available for you. So thanks for joining us on the show, Ron.

Thank you, Bill. It's great to be with you today.

So Ron, where are you today?

I'm in Boise, Idaho.

Boise. How's everything in Boise today?

It's Great. We had 60 degree weather today so we're happy when that happens.

Yeah, it's pretty good this time of year anyway.

Yeah.

Right. So we're going to get into the book for a minute. But before we do that, we talk a little bit about kind of the arc of your career. So people have a little richer background than, you know, than my. Like you've written a bunch of authors and help. Written a bunch of books and help people talk a little bit about how you got your start and, and how you've got. I could tell by the gray hair that you didn't just get out of college.

Yeah, that's right. I'm, I'm, I. I don't like to say how many years, over 45 years that I've been employing people, but it's been quite some time now, actually. I got my start with my dad, Bill. My dad was a lifelong entrepreneur. He loved business. In his particular case, he worked one summer in a Pontiac automobile factory. And after one summer there, he said, I will never work in a factory again the rest of my life. And he became an entrepreneur really because he wanted to live his values. He got into truck tire retreading and he wanted me to get involved. I said, no, I don't believe in it. I see all that rubber along the road, I don't believe in that. So he said, come on, let's take a drive. I grew up in Lansing, Michigan. So we drove from Lansing to Detroit and we picked up every piece of rubber that we could find on the road. And what I discovered was that over 90% of the rubber we picked up was from new tires, not retreads. And then he told me why retreads are more reliable. He had me sold and I learned business there and I fell in love with all of the strategy and the cash management and how you think about growing it. We eventually grew. We had four manufacturing factory factories across the state of Michigan. And at one time I think we had about 60% market share. And so it was a wonderful experience for a young man and always treasure those years that I had with him.

Yeah, and then you went on. So you got some experience. You went on. Talk about some of the continuing career and some of the work that you've done.

Yeah, you know, I've had what most people would consider a very eclectic career, but it's always been tied back to talent and strategy. Those are the two things I've been passionate about. I actually studied for the lay ministry and I spent nine years in full time church work helping churches develop strategy and helping churches scale. And it was interesting because a lot of times in that kind of environment, they're not so open to the academic or the more intellectual side to things. So it's a great challenge. I fell in love with the whole idea that talent plays such a big role in the successful execution of strategy. So that in the 80s and 90s, I took a deep dive into studying talent. I studied a lot of different thought leaders, got poked and probed and tested and assessed it a whole bunch of different ways, trying to understand how we can recognize the uniqueness of individuals. And that eventually led to me becoming the first a leader, a vice president, but eventually the president of an international company that was growing internationally through the 90s. I led that company from 1989 to 2000, and not only did I get to think about strategy and talent in the context of North America, but we opened business in eight different countries and I got to play the game all over again over and over and see whether or not we could do it in different cultures. And that was exciting. That eventually led to me retiring from that and starting an executive coaching business, which I ran for 18 years. And as a part of that, we did a lot of strategy work, a lot of talent, a lot of leadership development. I eventually opened up an office in Shanghai and built a business. In 2009, we opened that, I built that business, eventually divested myself of ownership and retired from it in 2018, and just three months ago sold out the last of my shares in that business. So that was a wonderful experience as well. And then when I thought I was getting ready to slow down and I was all done, I accepted a new role of an international business that right now has a presence in over 100 countries. And I'm helping them to relook at the whole process of strategy and growth.

Interesting. So what prompted you, if you've done nine books and five in this realm, why this book?

This book? Strategy has always been sort of a love hate relationship for me. I know it's really important, but oftentimes I'd get into the middle of a strategy process with one of my companies or somebody else I was working with, and I'd feel like we. I always refer to it as walking through a field of mud. Each step you took, it got heavier and heavier and at some point you said, well, let's just figure out how to get out of this field as quick as we can. I also had a lot of experience with organizations that would do some part of strategy well, but would struggle with other aspects of it. They might be really good at creating the plan, but they were poor at execution. Or some that were great executors but never wanted to Take the time to build the plan. So I always wanted to sort of solve this puzzle. And I had two colleagues I was speaking with. One was a colleague that I've done a lot of innovation work with. His name is Dr. Evans Baya. He was in charge of innovation for Applied Materials for a number of years. He had 400 scientists around the world, and he was applying strategy principles to his innovation work. And then the other was Tim Wahima. And Professor. Tim is a professor at the University of Nairobi in Kenya, and he's done strategy projects with 70 organizations over the years. And we got together, having a glass of wine together and talking, and we decided there's some things we wanted to say that we haven't read anywhere else, we haven't heard anywhere else. And of course, we respect all of the other great strategy writers. But there's some things we wanted to talk about in our book that we thought would be new, that would make it easier, that would solve that conundrum of people getting stuck along the way. So we wanted to chunk it down into doable, practical parts that we could help people with, and that's why the book was written.

So do you feel like the book is addressing one core thing or just breaking strategy into a repeatable process?

The book is looking at, first of all, the role of strategy in the business, in the world that we live in today, where things change so fast. How do you do it when. Well, and not put a lot of time in that you feel is wasted later because the whole environment changed on you. That's the first thing. Second thing is, we wanted to look at strategy through the eyes of how you organize people around the strategy steps so that it's easy for them, so that you don't put somebody into a job that's hard. And. And that you recognize the unique contributions they make. And how do we plot that out? So we did it by breaking strategy down into seven unique stages and talking about the activities, the tools, and the people for each of those stages.

Well, let's get into some of the examples and the stories then for this as we kind of bring this to life. So as we were getting ready, you talked about a variety of them, but the first one that came out was a commercial construction company in the Northwest. Would you share that with. With me now?

Yeah, I. Part of what was informative to me for this is that this was a construction company that really did a pretty good job of managing their projects. They had wonderful project management software and skills and disciplines.

Most construction. Right.

Has something you don't survive without it.

Yeah.

But when it comes to developing a strategy for the company overall, they had not done that. And I learned early on that you meet people where they're at, you help them to advance where they're at, you don't. There's no such thing as a perfect strategy. You just make progress. So we got talking about their purpose. They wanted to build beautiful buildings. They wanted to leave a legacy. We talked about their values. They never really thought about those much. So I brought a stack of magazines. Some of them were car magazines, some of them were construction, Some of them were Lux, were style magazines. And I had them go through and pull out pictures that they thought represented their values. And so they pulled out a bunch of pictures. And of course, what happens is when you're doing something silly like pulling pictures out of a magazine, you quit thinking so hard and you start to be a little bit more creative. So they pulled these pictures out and arranged them. And we let that be our discussion about what do they want to stand for, what do these pictures represent to them? And out of that, eventually we got down to three core values that they decided would guide what they did as an organization. And that was just one example of how we take them through the process. One of the things we think is important is to have a long term vision. So we had them look back in their history and tell us what are they most proud of and what has changed over their history. And then that same period of time, we had them look forward and they developed an idea of what they wanted the world to be saying about them 10 years from now, and what they wanted their employees to be saying about them 10 years from now. What was fascinating about this, Bill, was that this was in 2006. And part of what they said they wanted people to be saying about them was their advancement in technology, that they had figured out how their employees could work from home, they could work remotely. 2006. And they had a great vision of where they wanted to go. And then what happened in 2008, 2009, the recession. And who got hit the hardest in the recession? Construction. So they had a terrible storm that they had to weather in 2008, 2009. But they had this core set of values and their vision and their purpose that they held on to. And they just kept saying, we don't have to change who we are, we just change how we do it. And by 2012, they had tripled again in size.

Yeah, it's really great. So I hear creating in that, getting clear about the things they really care about and figuring out who they'd been and how they were going to operate and where they were going to go. And then through the evolution of that, adapting to all the changes in the world that. That were taking place.

And in their particular case, what became obvious to me is that they're pretty good on the execution side. They do that all the time.

Yeah.

What they weren't so good at was looking out into the future and thinking about where they're going and why they're going there. So that's what we focused on.

Yeah. Really, really great. Well, so lots of things have changed for a lot of people have had to adapt. And as we're getting ready, you talked about an innovation consulting business. Tell me about the evolution of that business and the work there.

Yeah, so we had a business that was doing innovation work for companies, but it was very, very labor intensive, very much in person. A lot of experimentation at what appeared to be the need to do it with each other in the same room. And they'd done several successful programs. They were in the middle of a program when the pandemic hit, and all of a sudden everything was shut down and it was going to be an aborted project and potentially an aborted business. And so they talked about, how do we adapt in this kind of an environment that's constantly changing. They didn't, again, they didn't change their core beliefs, values, vision, or purpose, but they said, how do we do it a different way? And so, as many of us have done, they started to experiment with ways that they could do it virtually. And they didn't just go to Zoom, but they explored a lot of different options in terms of how you use polls and breakout rooms and whiteboards and all of the different tools that you can learn to use inside of Zoom. And they got that program all the way to graduation day. And graduation day was in December of 2021, and it was the first time they were all together again physically in the entire program. So they. They changed their how they rethought their how the way they communicated in between those sessions changed the way that they collected information, the way that they engaged people in small groups. They added coaching with individuals as a part of that innovation project throughout to keep people connected in a way that really, it's changed what they're doing forever. Now that they can go back to in person, they've adopted more of a hybrid approach approach where they're using the best of both worlds.

That sounds like methods, tools, and execution, adaptation to strategy. So the strategy isn't dislocated by the present circumstances.

Yeah, exactly. And I think this is part of. One of the people that I admired and I've read is Harry Mintzberg, who wrote the Rise and Fall of Strategic Planning. And in it, he juxtaposes that in the 90s, everybody was all excited about strategy, but in the early 2000s, they said, no, things are moving too fast. It's a waste of our time. And what he brings out in this book that we elucidate is that you need a little bit of both. You need the stability and the flexibility. And if you learn how to do that, you can still achieve your big picture by how you pivot and how you adjust what you're doing based on the circumstances that are happening around you. And I can't tell you, Bill, how many times we've seen companies do that, where it's sometimes a little tweak, it's a little added service here or a different way of delivering a product here. And other times it's something much more dramatic, something much more disruptive. But you don't have to give up your vision just because the pathway to get there has changed.

Yeah. And we have certainly seen a few people who did that. I think you could probably break down all business owners, leaders in the last couple of years who reacted in one of two main ways. Right. The one we saw adapted and said, all right, this is what we got. Now, whatever my personal beliefs are about what should or shouldn't be, and I knew what I got to do, so I'm going to move my restaurant to a little lean to outside in the parking lot, or I'm going to wear my mask, or I'm going to take temperature or any number of adaptations and evolution. I'm going to move online instead of in person or write all that, the world of it, and they might not like it, whatever, but they said, this is what's going on, so let's deal. And then the other one said, I don't like this. This is going to be over. I'm going to wait this out or I'm not going to operate into this thing. And they waited until it was too late, or they shut down. And I definitely saw people. And, and, and I have to say, like, my first judgment is, oh, you made a mistake. But it's certainly a valid thing to say, I don't want to do business like this. I'm going to go out of business. It's a personal choice. Right?

Right, that's correct. Yeah. One of the great Stories that came out of this was a pizza place in Chicago, who, of course, making pizza during the early shutdown, before we figured out takeout delivery, all those kinds of things, they were kind of stuck. And so they said, well, what are our assets? What do we have to work with? And they discovered through ideating that they could use their ovens to actually make shields for people who needed to wear a shield and a mask. So they ended up starting to make shields using the same equipment. And coming out of the pandemic, now they have two businesses. They have their TV business and their shield business.

Interesting, interesting, interesting. It's funny, of all the businesses that could be, like, immediately, you would think pizza, pizza delivery, takeout, like, the easiest thing in the world in so many places. In fact, some of our places here, they develop more elaborate things for the pickup. But that was a piece of cake compared to.

Absolutely. Yeah. And if you remember, in the early days of the pandemic, everything was shut down. You could not deliver pizza.

It wasn't our home, and it got real quiet everywhere. Right.

So I admire that they didn't give up. I admire their creativity. In their particular case, they really did have a dramatic change in the nature of their business, and it gave them the kind of financial resources so that when things came back into a little bit more normalcy now, they could have both businesses operating.

You know, what I'm struck with is don't ever kid yourself that you have no choice to say, well, this was forced upon me and I had no choice, and that's what I had to do. No, you always have a choice. If you decided you didn't want to be in business and you got out of business, that's your choice. And in most cases, somebody else is taking over that business is operating. I can think of many examples right off the top or places that closed and then another business moved in there. But you can bet when we look back on this, we will see that many businesses is open and operated, and we have plenty of evidence for that. The fact that we just are in a profound labor shortage. Right. We just don't have enough people, and it's not all accounted for by people retiring early. Right. That's not that many people who are.

I can't. I think you're exactly right, Bill. It is a choice. And it depends on whether we want to try to find a different pathway. More often than not, I think the pathway's there. It just needs to be discovered.

Right, right. And you have that choice, like, oh, I don't want to Operate under those conditions, Totally fair. Right? But I think being a victim about it is not fair. But I suppose that's a choice, too.

I've been a victim, and I've not been. And I like not being one more.

It does feel like it's a bit of a state of mind. All right, let's. These stories are great. So let's talk about the global distribution company out west that you worked with. Tell us about that company.

So this is a company that is over 30 years old, and the original owner had passed away. And now it's a question of where are we going from here? Are we. Are we just going to try to coast into the future? They recognized that if they didn't develop some kind of a new vision of where they're going, that probably their days were numbered. So in this case, because they had not done serious strategy work for a number of years, we said, we need to slow this process down. We need to give a voice to more of the employees. We need to bring in customers, let them have a voice in the conversation. So we actually spent four months talking about their purpose, their values, their vision. After the second month, we began to overlay that with a situational analysis of what are they doing well? Where are they struggling? What does their world look like? What are their relationships with their customers? How strong are they? Who are their competitors? What kind of competitive forces could they be facing because of their industry evolving? And what kind of a marketplace are they operating in in terms of economics and politics and demographic changes? How could all of these influence the way that they think about the future? We have an interesting exercise that we go through with them, then, that we do oftentimes with our clients, because most people don't think they're very creative, and we want to prove to them that they are. So we end up with five strengths, five limitations, and five opportunities and five challenges. Traditionally, that would have been referred to as the SWOT analysis. We just use a little bit different terminology. We take strength number one and combine it with opportunity. 1, 2, 3, 4, 5. Challenge. 1, 2, 3, four, five. So you've got 10 relationships to strength number one. And we say come up with three ideas for how to respond to each of those combinations. Everybody can come up with three ideas. Then we go to strength number two and do the same thing, strength. And we go all the way through our five strengths and our five limitations. By the time you've done that, you've got over 200 ideas. And we've had that done in half a day where they have over 200 ideas in half a day. And the energy is crazy because of the way that you go about doing that. What it teaches me is that a lot of times the greatest creativity comes out of just a little bit of structure. This still gives people space to think. And then, of course, now you've got to sort those. So we sort them according to major themes. We eventually narrow them down. We want to eventually get them down to. These are the three big themes that if we went forward with these, it's going to put us into a wonderful future. And then for those themes, we develop objectives. We develop one goal under each theme and then objectives under those goals. And then now we're ready to go do some more serious strategic planning based on this process we've gone through. So we go big and then we zero in and we're very analytical. Then we go really big with creativity. Then we contract again into just a few priorities. Now let's pursue those priorities and really make them change our business in the future. So that's the first. That's the front end of the process. Now you create the plan and you create your dashboards, and you make sure that you've got good metrics, that you've got a good rhythm for monitoring and talking about problems and challenges and maybe new opportunities that popped up that you hadn't seen. And so we have a rhythm depending on who we're working with. That's either weekly, monthly, or quarterly. And then finally, our final stage in the process is to go back and evaluate and learn. What are we learning about ourselves? What are we learning about our customers and about the marketplace? How do we keep getting better over time? And I think strategy, when it's done well, you've never finished it. You just keep revisiting things as you keep growing. And it's like an upward spiral.

Yeah. I mean. Right. Our work is never really done. Our work on ourselves, our work on our businesses, our work on our plans. It's always a work in progress.

Yeah, that's right.

It's always the next version. And finding that balance between how often you do it and how often you spend. How much time you spend executing is really the. The art, right?

Yeah, it is. And. And I. I think it's a. A target I like to encourage business owners to aim for is that the average amount of time spent on planning, thinking, and talking about the Future is about 20% of the work week. Now, for some people, it's going to be less because of the nature of their work. And for some people, it's going to be more. But if you can spend about 20% of the workweek working on your business, you're going to continually have an unfolding vision of what's possible. And it opens up insights that you just don't get by just responding to what's happening every day.

So your book is organized into three parts, right? Getting ready for the work of strategy, creating the strategy, and then fine tuning it. Is that accurate?

Yeah, that's accurate. We call it preparing for strategy, creating strategy and optimizing strategy. But you're absolutely right.

So let's walk through those seven stages, then that, that break into those three parts and give folks a sense of it. Because I think you're, you're doing a great job of, I think, making it really practical and bring it to life for us.

Yeah. So stage, the first two stages are preparing for strategy. The first stage is your foundations. And that is either revisiting, deepening, or creating your purpose, your vision and your values. And I intentionally use the word purpose, not mission. I think sometimes it's semantics that we get into. But the way we define the difference between purpose and mission in the book is the purpose is why your business exists and it should be something that has the potential to last up to 100 years. The mission is how you apply your purpose to your current set of circumstances. And so we start there. That's foundation. Stage two, which is still part of preparing, is what we refer to as strategic intelligence. And it's where you're a little bit creative. We took the emotional intelligence model for humans and we translated it into a strategic intelligence model for organizations. So without going into all the details of that, emotional intelligence is first about understanding your own emotions than about understanding others. So in our stage two of building strategic intelligence, we say first you want to understand the organization's internal strengths and limitations and we look specifically at its realism. How realistic are we? How aware are we of our current circumstances? Are we in denial? Or do we see things as they are? We look at our systems and our structure. Are our systems built to be able to bear the weight of growth? And we look at the energy or what we refer to as the voltage or motivation of the organization that really correlates to emotional intelligence. On the self awareness side, then the next part of strategic intelligence is understanding the world around you. And there, as I said earlier, we take a deep look into who your customers are, who doesn't do business with you and why don't they, and who may be interested in doing business with you in the Future, who should your customers be in the future? Then we look beyond that to the competitive environment. So the competition is not only the people that are selling against you right now, but it's your supply chain also. Could your vendors become your competitors? Is it possible that your customers could go direct? Because of today's world where customers can learn so much online, could you become irrelevant in terms of creating value? So we want to understand all of those dynamics. Where are the opportunities, where are the threats? And then from there we go to the wider marketplace where we're looking at what are the trends, what are the economic realities, what are the political realities, what are the demographic. I love Daniel Burris, who wrote a book called the Anticipatory Organization in this segment because he talks about soft trends and hard trends. He said hard trends are things they're going to happen no matter what. So demographics is a great example of that. The demographics of what's happening in your business right now are very predictable. You can look at U.S. census, or if you're in another country, you can look at census information. You know what's happening demographically. And because it's a slow developing trend, it's reliable, it's a hard trend. But then the soft trends are things that may end up just being fads. They may be exciting today, but not so tomorrow. So all this is part of developing strategic intelligence around the external environment that you're operating in. So these are the first two stages. This is prepare. You're preparing yourself to create strategy. Now the next three stages are the creation of strategy. It starts with the creative thinking that I described earlier. And that takes us to our strategic decisions where we decide the vital few. And that takes us to developing our strategy execution plan. So those are the three stages in creating the strategy. The last two stages are in optimizing the strategy. That's how do you go about the execution, how do you monitor it, how do you adapt and adjust to changing situations? And then how you keep evaluating and learning the process, not just your strategy, but learning from the process that you've gone through so that you keep improving the way you execute the process yourself. And, and one of the things, Bill, that we've done that is a little bit unique to us is that we then define the traits that we're looking for for a person to excel in each of those seven stages. So obviously in the first stage, for instance, if you have strengths finders, in the first stage, you're looking for somebody who has a high futuristic trait. You're looking for somebody maybe who has a high belief. And so you can use any set of assessments to do this. But we say what are the kinds of people that you're looking where it's their natural tendency or their naturally recurring patterns of thought, motivation and behavior that you can plug them into these stages because they'll be fun and easy for them. Unfortunately, a lot of times what happens in strategies, it's given to one small team and they have some part of it they're good at and the rest of it they hate. And so they get bogged down. So it's, it's learning how to have sort of an overarching team, champion team for it, but then to implement people individually. So this organization I was telling you about, that's a global organization, we actually have 24 people that are part of the strategy team and we pick them based on their talent patterns so that we could deploy them in different subsets as we go through the seven stages to take advantage of what comes easier and more naturally for people. And as you know, that also informs how people should be doing skill development.

Yeah, I get a picture of it. What I really like there that feels particularly fresh is identifying people by their Gallup strengths themes, their talent themes that to the different stages. So you've got your visionary and belief oriented folks, futuristic types in the early stage, you could have some learner you can have. And then I can also see later or in context and later I can see some folks with strong analytical skills coming up later, the deliberative folks doing the stage five and six and folks with consistency in six and like that kind of thing. All of those playing a different role in there and looking at how they align to that, it's an interesting alignment. Of course, we use Gallup strengths with all of our teams on a pretty regular basis.

I think that's the magic of teamwork. If you remember Peter Drucker writing years ago, the only justification for getting people together is to leverage or exploit their strengths and neutralize their weaknesses. And we all know that, but we really need to use our tools to do it.

Yeah, yeah, well, you know, we'll often have somebody who's got a lot of vision and a strong sense of identity and a great deal of like command and activator as an overall leader of a company or an owner. And then if they're smart, they have people around with things like consistency and deliberative and that kind of thing. And they've learned to use those people to do the execution on things. But sometimes those people are at odds with each other. Right. The one's like, come on already, get started. And the other's like, wait a minute, I'm going to run this thing out across thousands of people and you need to give me a minute to wrap my head around it and to make sure we're doing it right and that, you know, you haven't just shot the whole business on something.

Yeah. And I what I love about assessments, whether it's Gallup or we use TTI Success Insights assessments, whoever it is, what I love about them is they make it less about the person as being a good or a bad person. They make it more about, oh, you're just different from me and it's good. So we learn how to accept and appreciate the difference instead of fuss over it.

Yeah. Well, so there's a whole world of things and you can hear from our conversation there's probably a lot of great stuff to read in the book. The book title is Optimizing Strategy for Results and lots of rich examples and a thoughtful organization of stages of things and then alignment of people to the stage I think is really useful. If you're listening to this on audio. The book is probably out now and available on Amazon or wherever. And of course we've got a website link in there on the screen as well and in the show notes for you to go check out more. Thanks so much for coming and talking with us on the show today, Ron, about the book and about your work. It's been a real pleasure and delight to hear that. So easy and natural.

Great to be with you.

Thanks everyone to our listeners for coming back with us. Whether you're watching live or on the video, you're listening later. As you drive, as you fly, as you work out, whatever it is or you listen. Thank you so much for being part of our audience, all our shows and more@scalingcoach.com all of our other resources, our workshops, our programs, coaching, all that kind of stuff. Scalingcoach.com Big thanks to Vern Harnish for creating this whole scaling up framework in the first place and getting us started down the road. My mentor, Vern Harnisch. And thanks to Wanda Mitchell, getting our show scheduled, produced, out the door, that kind of thing. And the folks at Podfly Productions, Albert Burge on Kadena and Tim McGowan for getting everything together. Thanks. Been awesome and we'll talk to you again next time. Keep scaling up. Bye bye now.

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