TPMusings

There was a terrific column in Harvard Business Review (HBR) recently that addresses the pro’s and con’s of off-site strategic planning meetings. This brings back some memories for me, as I often received push back from my CFO when I would begin investigating our annual retreats. “Why can’t we save some money and just have it here?” he would ask. My answer would always be the same, “Because it just isn’t as effective.” 

 

The author agrees with me. She bemoans that as a result of the current economic crisis, many companies are cancelling strategic retreats, and trying to address the issues with short meetings during normal business hours. 

 

Few can disagree with the benefits of being off site as a way to both spur creative thinking and get away from day-to-day distractions. (Known as the Hawthorne effect, scientific studies show that a respondent’s behaviors improve based upon the fact that they are being studied.)  

 

Let’s start with the pros and cons she references for off-site meetings:

Hunkering down is not a strategy. Management needs to pro-actively create a strategy to take advantage of the opportunities presented by changing market conditions. Working on strategy on-site, where hunkering down is the order of the day, will not be as productive.

Management alignment is critical and at risk. Alignment is a business basic, but with everyone running at 150% pace in lean organizations, alignment can drift. Are you talking more or less? And are you talking about the right things? Are you talking about the priorities for the company or just trying to keep your head above water? Mixing in a dose of uninterrupted social time at these events can foster relationships, strengthening day to day communication when back at the fort.

Creativity is more important than ever. The playing field has changed. Fostering creativity is best done when people are free from distractions like client and employee issues.

Pure ROI. The focus created at an off-site is beneficial and hard to duplicate. If the meeting results in a focused set of aligned strategic priorities, the event will more than pay for itself. 

 

The arguments against an off-site strategic planning retreat for management are summarized as:

Managers are talking more than ever now. Developing a strategy is a process, not an event. We are iterating our strategy on a daily basis. No need to move bodies to do this.

It wouldn't be prudent to spend money on a hotel, food and facilitator. The bottom line is the bottom line. Right now, an off-site is an unnecessary expense.

It sends a bad message to those still on-site. It can send a conflicting message to staff about cost containment. And while you can do your best to communicate the value of strategic planning off-sites to employees, it's hard to understand without experiencing it.

 

So, my conclusions? 

1.    Do not postpone or skip your strategic planning session. Strategy is as important---if not more important---than ever. It is a meaningful event. Successful off-sites build employee loyalty and camaraderie. When I think back on my positive business experiences, they cluster around positive team interactions happening during off site sessions. Also, much greater work happens when employees are unencumbered by both in-the-business and personal obligations. If financial pressures are a concern, dial down your location to a private---yet accommodating---location rather than the resort you may have chosen in better years. One of the best sessions I attended in years past was held at a country club. Quiet, luxurious, and yet low key. (And no, don’t plan golf as one of your socializing activities. It definitely doesn’t send the right message, and isn’t that socializing outside of the three others in your foursome!)   

2.    Involve your staff back at the office. Part of the conflicting messages surrounding off-site planning meetings comes from the process of choosing who goes. Start early and involve more of your staff and field people in the process by having them gather information or create task force work to provide detail and context to the process. Then hold an employee meeting upon your return to review what you decided, uncovering the process of how you got there. 

3.    Finally, seriously cost constrained companies may decide to try an on-site retreat. That’s OK, but build in some after-meeting social activities with the team. Social interaction is important in team-building; it improves communication and trust. Don’t shortchange the process.  

 

Melissa Raffoni’s HBR article “This Year's Management Off-Site: Necessary or Negligent?” is linked HERE