I was having a conversation recently with an executive who was struggling to get his arms around why his company wasn't getting the results they wanted. As with any organization, the dynamics behind such an equation are complex. But through a consultative session, we were able to begin sorting through his thinking. One aspect of this process allowed one key component to emerge: Relevance.
His organization is on stable ground relative to revenue generation…but it had hit a plateau that he wasn't comfortable with. In review, he firmly believed their KPIs were solid. Nothing needed to change on that front. He felt his leadership team had a strong commitment to sustainability and to reaching their stated 10-year vision (BHAG or Big Hairy Audacious Goal). As the conversation continued, I asked him: How relevant is your company? It turned out to be a key question that helped him find the missing variable to his complex equation.
Relevance is many times the forgotten variable because most leaders really do believe their organizations are relevant. There's almost an automatic assumption that says, "Of course we're relevant! Otherwise, we wouldn't be here…" Or…"Our customers love us! Just look at our revenue
As a result, the concept of 'relevance' can easily fly under the radar. We tend to think of it as a lump sum: "This" + "That" = Relevance. But it's a multi-dimensional concept vs. a simplistic one. Your company might be very relevant in one area and totally irrelevant in another area. For instance, relevance defines the degree to which your organization can create sustainability. It defines the degree to which you're able to create and innovate. It defines the degree to which your organization is poised (or not) to attract the best and the brightest talent (and it's the degree to which you are able to retain that great talent).
During your Annual Planning Sessions, consider entertaining the ways in which your organization is relevant. When you hear your team declare that the company is indeed relevant, help them challenge their own assumptions.
The answer to "How relevant are we?" can be a rigorous and multi-faceted conversation. Whether you're willing to dig into this complicated equation may be the key indicator to how relevant your organization truly is…or isn't.