I’ve been reading my Harvard Business Review again (goshdarnit, I love my HBR!) and I came upon an interesting article in the March 2015 issue I wanted to share with you. It’s about why your company’s strategy fails in execution.
The article talks about how your organization can have the clearest, simplest objectives, the most logical and easy-to-comprehend strategy, and still, employees can’t get the job done. Why does it happen?
Authors Donald Sull, Charles Sull and Rebecca Homkes offered some interesting theories based on results of a survey taken by 8,000 managers in more than 250 companies. Here are their thoughts:
Departments work well, but not together – Apparently, companies are very good at managing up and down the silo. The operations department is charged with a task and they can work to get it done without an issue. But when accomplishing the objective relies on cross-departmental work, that’s when things get sketchy. Apparently, the minute that operations department looks to sales or distribution to complete a portion of the work, everything goes south. Managers claim that team members outside their own departments are only about as reliable as vendors. Agility across business units is a frequently neglected component.
Success doesn’t necessarily mean sticking to the plan – Too many companies put objectives down on paper and then worship it as Gospel. I loved the authors’ turn of phrase when they wrote, “No Gantt chart survives contact with reality.” That’s so true! The Grand Plan can’t anticipate every curve ball its thrown, and managers should be encouraged to deviate from the path if it means achieving success.
Don’t measure how much you communicate, measure how much the team understands – I was particularly fascinated by this one. The authors used the example of a CEO beginning her monthly meetings with a review of the objectives. But when her management team was asked to describe the firm’s strategy and objectives in their own words, fewer than 1/3 were able to cover two major points. Wow! I’m already contemplating how to fix that…
The wrong qualities are being rewarded – Most organizations reward for past performance, but findings of this survey indicate that the companies most likely to accomplish their objectives do so because their managers show great agility in responding to challenges. That particular behavior is, in many organizations, not rewarded.
Execution should be driven at every level – The article sites the importance of “distributed managers” in accomplishing objectives. These are not just managers that lead disciplines and navigate cross-functional areas well, but also technical and domain experts who are key influencers in getting things done.
So, there are where the problems lie. What to do about them? This the Revolutionary question that needs answering. Is your manager looking out for these land mines?