KNOW THE EXTERNAL ENVIRONMENT
WHY IT MATTERS
If a driver keeps his head down, never looking out the windows of his vehicle to see what is around him, he won’t get very far before disaster strikes. Leaders likewise know they can’t successfully get to their desired destination until they know where they are, and what surrounds them. They triangulate their position and set their course based on what they see in the environment in which they operate. Leaders who study and know their external environment are more informed when determining their position, where they can take the organization, and how to reach their goals and objectives. Leaders who don’t know their external environment will be unable to see clearly the threats or opportunities that exist around them.
WHAT IT LOOKS LIKE
Leaders that know the importance of their external environment know it takes more to succeed than just having a clear personal vision and an ability to produce results. They recognize they are a small wave in a global ocean of businesses and organizations whose movements ultimately affect and cause ripples for each other in one way or another. They understand that external factors not acknowledged or understood can create havoc. They know the domino effect, for good or for bad, that can transpire from events that happen somewhere else in their industry or the world around them.
Leaders that know the external environment make time to understand local, national, and international events. They tap into news media regularly to learn what is happening. They seek differing points of view to ensure they have a holistic perspective. They think through how current events, in all parts of the world, may affect their organization’s ability to function.
Leaders that know the external environment know the strategic positioning and moves of their competitors. They know who their competitors are, where they are, and how their products and services are evolving and compare. They identify who poses the most threat, and who the new players are in their field. They use this information to feed their own strategic processes, positioning, decisions, and actions.
Leaders that know the external environment are aware of the political, regulatory, economic, and social requirements that affect their organization. They pay close attention to shifts in policies or regulations that could introduce required change. They put in place mechanisms that allow them to take quick action in order to meet compliance standards.
Leaders that know their external environment watch their customers closely. They monitor trends and changes in their behavior. They know what they need, when they need it, and why they need it. They see customer opportunities and avenues before others do.
Leaders that study the external environment track technology advances and interpret their effects. They stay ahead of changes in technology tools, solutions, and platforms. They see where technology is going and plan how to apply it to make their business and products better. They are able to see through the mass of information available to them and identify what matters most.
BELIEFS
BEST PRACTICES
SELF-REFLECTION
WORDS OF CAUTION
PSYCHOMETRIC 360 QUESTIONS
If a driver keeps his head down, never looking out the windows of his vehicle to see what is around him, he won’t get very far before disaster strikes. Leaders likewise know they can’t successfully get to their desired destination until they know where they are, and what surrounds them. They triangulate their position and set their course based on what they see in the environment in which they operate. Leaders who study and know their external environment are more informed when determining their position, where they can take the organization, and how to reach their goals and objectives. Leaders who don’t know their external environment will be unable to see clearly the threats or opportunities that exist around them.
WHAT IT LOOKS LIKE
Leaders that know the importance of their external environment know it takes more to succeed than just having a clear personal vision and an ability to produce results. They recognize they are a small wave in a global ocean of businesses and organizations whose movements ultimately affect and cause ripples for each other in one way or another. They understand that external factors not acknowledged or understood can create havoc. They know the domino effect, for good or for bad, that can transpire from events that happen somewhere else in their industry or the world around them.
Leaders that know the external environment make time to understand local, national, and international events. They tap into news media regularly to learn what is happening. They seek differing points of view to ensure they have a holistic perspective. They think through how current events, in all parts of the world, may affect their organization’s ability to function.
Leaders that know the external environment know the strategic positioning and moves of their competitors. They know who their competitors are, where they are, and how their products and services are evolving and compare. They identify who poses the most threat, and who the new players are in their field. They use this information to feed their own strategic processes, positioning, decisions, and actions.
Leaders that know the external environment are aware of the political, regulatory, economic, and social requirements that affect their organization. They pay close attention to shifts in policies or regulations that could introduce required change. They put in place mechanisms that allow them to take quick action in order to meet compliance standards.
Leaders that know their external environment watch their customers closely. They monitor trends and changes in their behavior. They know what they need, when they need it, and why they need it. They see customer opportunities and avenues before others do.
Leaders that study the external environment track technology advances and interpret their effects. They stay ahead of changes in technology tools, solutions, and platforms. They see where technology is going and plan how to apply it to make their business and products better. They are able to see through the mass of information available to them and identify what matters most.
BELIEFS
- If you don’t know what is happening outside your organization, you will never confidently know what to do inside.
- The most dangerous threats to your work may not originate from inside your organization, but from outside.
- You can’t change and influence what you don’t know. You can’t get in front of what you can’t see.
- If you don’t find time to purposefully remind yourself to lift your view upward and look outward it may never happen.
- Studying the external environment takes more than a quick glance, it takes purposeful time and effort.
- Always take the time to look outside your organization before you take the time to look inward.
- The key to understanding the external environment is to interpret how it all works and fits together.
- You have to learn to take all the information that comes at you and identify what has real consequences, and what doesn’t.
BEST PRACTICES
- Stay up to date on policies and regulations.
- Be aware of world events and happenings.
- Know your competitors, both old and new.
- Seek for a broader perspective of your work.
- Seek local, national, and international perspectives.
- Study the strengths and weaknesses of competitors.
- Help others be aware of your external environment.
- Try to influence your environment, not react to it.
- Identify the strategies of your competition.
- Realize you are competing in a global business universe.
- Stay up to date on technology advancements.
- Track changes in industry best practices.
- Look to outside industry organizations for insights.
- Be perceptive to cultural and social trends.
- Track governmental regulatory changes.
- Stay aware of your business and financial climate.
- Know your competitive advantages.
- Foresee the impact of international issues.
- Engage actively with outside organizations.
- Know the political and public opinion traps.
- Stay current with shifting views of your stakeholders.
- Know the evolving needs of your customer base.
SELF-REFLECTION
- Do I know the events happening in the world and their potential effects, or do I only see what is happening locally?
- Do I realize the interplay the world has on my organization, or do I think I exist in a protective bubble?
- Do I know the status of regulatory issues, or do I feel oblivious to current issues and proceedings?
- Do I know who my competitors are and the moves they are making, or do I fail to track their movements?
- Do I know the shifts in the needs, wants, and behavior of my customers, or do I think they will always stay the same?
- Do I make the time to look at what is happening outside my organization, or is all my time spent looking inward?
- Do I notice and follow where the industry is advancing, or do I get caught standing still?
- Do I connect with others who can help me understand the external environment, or do I try and do it alone?
WORDS OF CAUTION
- Don’t spend so much time looking outside your organization that you lose track of what is happening inside of it.
- Don’t allow “knee jerk” reactions. When external situations arise stay calm and think through your next steps.
- Don’t respond to what is happening externally so frequently that you create havoc inside your organization.
PSYCHOMETRIC 360 QUESTIONS
- What’s going on in the community has a direct impact on the organization.
- I have a good sense of my competitor’s strategy for the future.
- I work to make sure I’m always “in the know.”
- Successful organizations keep an eye on their competitors.
- I keep current on changes in the industry.
- I am always working to understand how the outside world is influencing my organization.