Are you consulting with staff for the right reasons and in the best way? Find out why, and at which stages, it is important to consult as you develop your strategic plan.

When I first took a role as a ‘consultant’ – with McKinsey and Company, almost 20 years ago – it never occurred to me to question the word we used to describe the profession, or my role. But, paradoxically, a defining characteristic of the large strategic consulting firms in the eyes of our clients’ middle management was that we didn’t really consult them, and that they weren’t very interested in consulting us!

Increasingly, I take the view that a good consultant is someone that others choose to consult: that’s why we take the name! However, in our day-to-day work, particularly in the social sector where objectives are less clear and where the opinions and perspectives of staff and others is both valuable, and their engagement critical for their buy-in to a strategic direction, we must also continually consult others.

But how much consultation? And at what stage in a plan’s development? With whom, and what to ask? This brief article captures some of the thoughts from elsewhere in this issue of the Quarterly, and also offers further observations on the role of consultation in the development of a good strategic plan.

Why consult others?

The image of the ‘strategy team’ huddled away in a locked room before emerging with the ‘strategy’, like Moses descending Mount Sinai and with predictably similar outcomes (Moses broke the tablets in frustration), is probably apocryphal. In fact, I have heard it asserted that we have gone too far the other way: discussing strategy with everyone. Indeed, I have seen plenty of ‘strategies’ that seem to be no more than a summary of the views of everybody ‘consulted’ along the way, which is clearly unsatisfactory.

There are three main reasons to consult others in the development of strategy.

Firstly, to learn. Others will have information and knowledge that those tasked with the development of the strategy don’t have. This knowledge must be drawn on if the strategy is to be well-informed and credible. Consultation to learn involves consulting experts.

Secondly, to decide. Strategy involves choices, or it should! As noted elsewhere in this issue of the Quarterly, it is about focusing an organisation that could go in multiple directions around clear goals. Those developing the strategy may need assistance in making those choices, or they may need to consult those who are ultimately responsible for the choices made (for example, the board). Consultation to decide may involve consulting experts, or it may involve consulting decision-makers. It is important to distinguish ‘consultation to learn’ from ‘consultation to decide’, whoever it is with.

Thirdly, to inform and engage. A strategy that is not understood or accepted by those who have to implement it is arguably worse than useless. In most for-purpose organisations key stakeholders are taken on the journey, in a thoughtful and engaging way, so that they understand the process, the decisions and the outcomes. Again, it is vital to distinguish this reason for consultation from those above.

Note that all three reasons can inform a particular consultation, discussion or interview. But it is important to distinguish them, and not to muddle them, least of all in the mind of the person or people being consulted.

Don’t set wrong expectations

Importantly, neither the person developing the strategy or the person that they are consulting should be confused about the reason for the consultation.

If someone believes that they have a role to play in making decisions, they will be disappointed to discover that they have not been heeded. In many cases that we have been involved with (sometimes through our error) staff have been asked very open questions about the best strategic direction for the organisation very early on in the development of the strategy. The intent was to inform and engage, but it appeared that expertise was being sought, or even that advice on decisions was being elicited.

One of two things happened. Either a frantic effort was required to claw back control of the strategic direction into the hands of those tasked with developing it, generally with some form of veiled ‘mea culpa’ to staff; or every view had to be reflected in some way, leading to a ‘camel’ that tried to incorporate or refer to every smart idea or suggestion raised. In some cases we have seen executives apparently mislead staff (generally by mistake) by seeking perspectives that they already know they are going to ignore. Our observation is that people usually see through that!

In some cases we have seen executives apparently mislead staff (generally by mistake) by seeking perspectives that they already know they are going to ignore. Our observation is that people usually see through that!

Consultation does not preclude or obviate the need for leadership and decision-making

As noted, strategy is about choices and focus. In our sector we only rarely hear “bad ideas”: most people can identify a dozen ways that things might be addressed that are currently being ignored, or that things could be done better. Usually with a price tag.

The challenge is to sort through the plethora of opportunities and focus on those that are relevant, important, fundable, etc. This requires leadership: it requires that someone (or some group) form a clear vision of where the organisation will head, which can then be the basis of the plan.

This is particularly true at times of uncertainty. As noted in David White’s article about the role of the board in developing strategy; when all others are unsure and muddled, it frequently falls to the board to put a stake in the ground. But, as also noted, the board also need to ‘push the envelope’ when others have become complacent. In either case, leadership is required.

On a related point: focus, choices and leadership will all probably disappoint someone! We have observed the importance, particularly in building ‘social enterprise’ but also in the sector more generally, of being ‘business-like’ in those areas that are not the social focus of the business. For example, seeking to create employment opportunities for the disabled does not mean that poor performance by executives who are not part of this group should be tolerated. Similarly, just because this is a for-purpose organisation, that does not mean that everyone should have equal say, or that we should expect that everyone will have their requests or wishes satisfied.

What questions should you consult on and when?

After many years of using consultative processes to inform strategic direction setting and planning, and having learned from our mistakes, we have a generic framework for thinking about what to consult on, and when; particularly when engaging broadly with staff and clients. Our thinking assumes that ongoing consultation with a broad range of stakeholders is vital to inform and engage, and that it can also offer knowledge and insight that will lead to better results.

Our thinking assumes that ongoing consultation with a broad range of stakeholders is vital to inform and engage, and that it can also offer knowledge and insight that will lead to better results.

Early on in the process it is important not to set the expectation that the consultation is about deciding the direction of the business. The key, generic question is therefore: ‘what are the critical issues that we are facing that you believe this plan must address?’ It is NOT ‘where should we be headed?’

As the direction for the strategy becomes clearer, and the goals firm up, it may be valuable to understand how aligned they will be with the perspectives of the key stakeholder groups. A personalised question such as ‘what would you like to see achieved in the next three years?’ is less risky than ‘what should our goals be?’

Finally, once the direction and goals are clear, planning will certainly involve the buy-in and engagement of staff. ‘What do you think of the goals?’ is asking for trouble (particularly if the strategy is leading in a new, challenging direction), although we have seen plenty of questions posed in organisations that were similar to this! A much better (and more informative) question is ‘what will the greatest challenges be in achieving these goals?’

Above all remember that strategy is about convergence. Diverse views are just that, and are intrinsically at odds with focus.

Respect!

Underpinning all this, as indeed it should underpin all the work done by any manager, advisor (or anyone who hopes that they will be consulted by others), is the critical need for respect.

In this instance, for all those who you believe should be consulted through the process of developing a strategic direction, you must:

• Respect their role. If their role presupposes them to be expert on a particular topic, then they should be consulted about it
• Respect their views. If you elicit them then choose to ignore them, or explicitly go against them, then you have a responsibility to explain why. It may be better not to ask (but see above)
• Respect their needs. They may need to be listened to, to be seen to be involved by their staff, or to know what is going on. Be aware of all these, and explicitly decide how they will be addressed
• Respect their expectations. Vitally, be aware of the expectations that are set in the minds of stakeholders through the consultation process.

Conclusion

A good strategy can easily be undermined by poor execution. The first step in building the will to execute is careful management of the consultation process.

A good strategy can easily be undermined by poor execution. The first step in building the will to execute is careful management of the consultation process.

I recently attended a client staff session at Alzheimers Australia NSW to ‘present’ the final strategy, developed by a colleague who was away that day. At the close there were no questions. I felt a bit dumbfounded (it was a challenging strategy!), and asked why I wasn’t getting any push back or concern. The answer was “well, we developed it so we all understand it”. Perfect.

Duncan Peppercorn was the founding Director of SVA Consulting.

If you’d like to know more, contact us on consulting@socialventures.com.au