Need a First Step? Just Follow the Money

As a strategist, one of the best pieces of advice I got in my career was, “When not knowing where to start, just follow the money.” This advice has been working remarkably well for me.

While working for the banking and technology industries, I have been exposed to quite complex projects. Some of them had been running for years before I became involved with them. In one instance, I was asked to review a banking initiative and provide a new strategy that took into account the current organizational context. Providing strategic guidance for key initiatives can be intimidating given the amount of information you have to absorb in such a short period of time. As you drill down into the details, things get even more confusing, making it difficult to know when to stop exploring and start developing a strategy.

Well, in the situation described above, I simply decided to follow the money. I tried to determine where the company was spending its resources. Remember that resources are not only cash. They include such things as people’s time, travel & training allowances, and infrastructure availability. In this case, after some analysis, I realized that the division was rapidly moving towards the spotlight of the organization. As it grew in importance, it did not have the capacity to manage the number of projects it was involved with. In fact, because of the unexpected problems it was running into, it wound up receiving considerably more investments compared to other divisions. I discovered that its strategic importance was growing each day as the number of customers depending on its services increased, and that any disruptions to this division would cause considerable disruptions in some key business units. This situation was happening regardless of general claims in the organization that this project was a yet another simple initiative.

The results of following the money allowed me to carry on with my strategic analysis. Using the data collected in my first step, I was able to map the work of the teams and identify those teams who were aligned and those who were not aligned with the current strategy. I discovered that considerable effort was being spent on activities outside of the team’s mandate. Next, I was able to rationalize the different initiatives and come back to management to discuss where the team should focus their efforts.

Once you take your first step, you can move in different directions and reevaluate your current strategy against proposed changes. This method allows you to go further and develop other types of analysis by looking at how other people are resolving the same problem.

Overcoming Barriers When Communicating Complex Issues

Imagine a situation where you are assigned a new task that you know nothing about. A short while later, a coworker arrives in the meeting room you are in and provides the details of the work. His first words are, "This is one of the most complicated tasks in this organization." Upon hearing these cold words, you freeze and, regardless of how well this person tries to explain what needs to be done, you feel overwhelmed by the complexity of the assignment.

As managers, we need to be aware of a communication trap that may affect how you deal with complex issues within your team. The bottom line is that something can be complex, but not necessarily difficult. I have dealt with skilled professionals who were able to solve complex problems way beyond my imagination. Some of them were even keen to resolve complicated problems and felt acknowledged when they are assigned to these projects.

So, starting a conversation by saying that something is ridiculously complicated assumes that the person on the other side of the table may not have the competence to carry out the task. Essentially, you may be accidentally restricting their ability to do their duty by building an imaginary barrier. When communicating complex issues, you are more likely to motivate someone if you focus on task outcomes rather than assuming the person will do the task in the same way you would. You may find something extremely difficult, but someone else may see it as a challenging and motivating problem. Keep this in mind when dealing with complex issues.

Back to Business, Back to the Trenches

After a short break, I am back and ready to start writing again. I have been away for several weeks travelling to Panama and Brazil. It was a fruitful experience that gave me many new ideas to write about. During my time away, I had the opportunity to speak with many readers from this blog and to learn what they think is most valuable in my articles. Many thanks for the kind words of encouragement and the pleasant conversations. I look forward to sharing some of my experiences in the corporate world with you. Please don't hesitate to comment on my articles or send me an e-mail if you are interested in discussing a specific topic.