Sometimes I miss the old paper map days. Long family trips in my childhood had special status when Dad would ask for navigation help. I did not get the job very often because my brother was an ace navigator, which made it most memorable when it happened. I remember unfolding all the pleats and trying to triangulate where we were from road signs, then projecting how far we had to go to get to our next stopping place. I do not think I ever qualified for detour work. Mostly, I recall that we never really knew exactly how far or how long, but we were generally certain about our direction. That’s hard to imagine in this age of Waze and Google Maps. They seem to know everything, even junk on the side of the road. I guess I just liked the mystery of it.
This week, I have been reflecting on the idea that direction stands above mass and energy (speed) in the momentum equation. Reflecting on the idea that without clear direction, the rest of it does not really matter. An object must have definite direction to have momentum.
When I interviewed scientist Marcus Mendenhall for the Bizzics podcast, he observed that before he could accept that momentum is truly applicable in business settings, one of his key concerns would be direction. What could business possibly present that would compare to compass points N,S,E, and W? The question stopped me in my tracks. I had no easy answer at the time, and I have not stopped thinking about it.
Geography still works in business on some level. Companies move into new geographies all the time. Sometimes just a new neighborhood or business district, other times into entirely new cities, states, or countries. I remember when Pinnacle Bank moved into three new states (and seven high growth markets) through a single acquisition. Larger organizations are even more ambitious than that. But what if you are not making geographic moves, or you have just made one and have high expectations for a new market? How would you define a direction then?
It might be a weak answer for my friend Marcus, but from my experience most businesses use graphs to define their direction. To magnify time-based goal setting, most companies create a graphical “map” of performance in a specific metric against a time axis. Metrics might include market share, gross top-line revenue, or the number of clients, contracts, or subscriptions. Management can visually discern if they are headed in the right direction, if the rate of movement is adequate based upon line slope, and other nuances. The compass points are not provided for the management team, it must make its own decisions on the most important things to measure.
The maps I prefer include two performance variables, plotted against each other, with one identified as something you would not want to lose at the expense of the other. For instance, most companies I know would not be willing to sacrifice client satisfaction for market share gains. When you have the resources to acquire competitive market data and display it in a 4-quadrant grid, you begin to get a sense of the “zero sum” nature of momentum. You can see who is gaining and losing market share and client excellence, everyone striving for the upper right quadrant, where they have the greatest market share and the highest client satisfaction. The same exercise can be done with a number of different variables. Your call, and it may take some time to settle on it.
My experience with Small Business owners is that a clear sense of direction is extremely difficult for many. Some are simply hoping to get through the end of the day, others are searching for growth opportunities but are not strategic or selective about them – as long as it produces more than last year. Some end up acting on so many immediate opportunities that they cannot possibly fulfill them financially or operationally. High energy with no specific direction will not build momentum. Your energy will dissipate into the atmosphere without moving your company anywhere.
One thing I know for sure is that we may have not known exactly where we were, or exactly how far we had to go, but we never, ever, left our house without a map. SMART goal setting is a perfect start, and make sure you are looking past the end of the month or the end of the year. Personally, I like the three–year plan, adjusted every year for new realities and desires. We are certainly not Waze, but Bizzics has lots of information available to help you understand the terrain you intend to cross – industry trends, risks, opportunities, comparative statistics. Reach out so we can be your navigation partner.
