It is time we talk about strategy again. I like how Ken Blanchard and Michael O’Connor wrote in their book, Managing By Values (Berrett-Koehler, 1997) that leaders must think like CEOs. For them, these initials stand for the following groups: customers, employees, owners/stockholders (in the non-non-profit world, think funders) and other stakeholders. When we hold this more global perspective, we remember that strategy is not a singular thing but really the sum of the following three concepts:
- it is an extensively premeditated, carefully built, long term plan designed to achieve a particular goal.
- it needs to be adaptable by nature due to unforeseen variables rather than presenting a rigid set of instructions or tactics which has the potential to create organizational vulnerability.
- it serves an important function in promoting ongoing evolutionary success.
In short, strategy is an adaptable and evolutionary plan.
Now as we grasp this perspective, we also must understand the difference between the following two concepts:
- individual competencies refer to a specific person’s knowledge and skills required to fulfill specific role requirements.
- organizational capabilities are collective abilities of the firm required to execute the business strategy.
We need to hold this perspective because if we want to build and execute an organization’s strategy then sometimes we work at the competency level and other times we work at the capabilities level. Occasionally, we work at both at the same time. Recently, I have noticed that we need to improve the individual competencies level of this work, not just the organizational capabilities.
Furthermore, there are two two stages and two unique choices within the world of strategy. At the strategy formation or planning level, the determination of strategic intent, including such aspects as an organization’s mission, vision, and goals is very important. Sometimes, this planning work is highly planned, i.e. well defined and determined through a preset and well-structured process. Other times, the planning is more emergent, i.e. unfolding and evolving through a dynamic and less structured process especially during complex times. Aaron Olson and B. Keith Simerson. in their book, Leading With Strategic Thinking: Four Ways Effective Leaders Gain Insight, Drive Change, and Get Results (Wiley, 2015) note this depth of clarity about these elements makes a big different in the quality of the plan and within the culture of the organization.
However, as I think about these important choices, I remember what John Doerr wrote in his book, Measure What Matters: How Google, Bono, and Gates Foundation Rock the World with OKRs (Portfolio, 2018). As they explain, “Ideas are easy. Execution is everything.” And I agree 100%!
In summary, strategy only matters if it leads to purposeful action. So the big question this week is the following: Does your organization’s culture support purposeful action that allows the strategy to move from the paper document into key behaviors at all levels of the organization?
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