"Pain contributes to a species' survival by triggering
learning and adaptation; it can have the same effect on organizations," (Beer
& Eisenstat, 2004). Businesses must confront uncomfortable truths to move
forward with high-level strategy (2004). It requires communication throughout
the organization, including management throughout all levels (2004). In order
to implement a high-level organizational strategy, the manager must have all of
the facts in creating such strategy.
According to Beer and Eisenstat, conversations must:
- move between advocacy and inquiry;
- remain about the most important issues;
- be collective and public;
- allow employees to be honest without risking their jobs; and
- be structured in a way that creates dialogue (2004).
Keeping
these items in mind, high-level managers should open the flood gates and allow
those within the organization to communicate their ideas and strategies.
Without their input, any strategy is likely to fail. The organization needs
commitment and investment from its employees to successfully implement any
over-arching strategy changes.
In creating a strategy, the higher management should start
by conducting meetings with mid-level and floor-level management. These are the
individuals that will provide the most insight into the issues faced by the
organization. They can provide ideas upper management may not have thought of,
and one could think of these meetings as a “brainstorm” for the organization.
Collecting these ideas in a structured manner will allow for an organized set
of data for later evaluation.
Once data has been collected from mid and lower level
management, the decision makers must begin evaluating. By examining the issues
identified by both upper management and the rest of the organization, a
strategy for change will develop. A clearly defined strategic proposal should
then be submitted to those that provided the initial input. Keeping all levels
of the organization involved in strategic change means everyone remains
invested in the ultimate goals associated with the strategy.
Setting the mission and vision of the new strategy is the
first place to start. Again, this should be a reflection of the data collected
through meetings and the evaluation performed by the strategic decision makers.
Once these pieces have developed, the decision makers should return to their
organization for SMART (specific, measurable, achievable, realistic and timely)
goals that each department can work toward. Combining these goals with tactics
identified by those implementing the strategy keeps everyone engaged and
committed to the organization’s strategic change, making implementation a
breeze.
The most important piece of strategic change, in my opinion,
is keeping a written record of the strategy and its goals, and providing a copy
to each and every person responsible for implementing the strategy. This
ensures that everyone is working from the same set of instructions and will
stay on the same page.
I have seen the detriment to an organization trying to
implement strategic change without communication. A non-profit organization I
was involved in operated by a lose strategy for several years. One of the
directors, at his own discretion, made strategic decisions without consult of
other decision makers in the organization. By the time the decision makers came
together to develop a strategy, the organization had spiraled out of control. I
watched a room full of intelligent, driven individuals develop a strategy for
the organization that included its goals and the tactics needed to achieve
them. However, the “trouble causing” individual was not present for this
meeting, and continued to “drive the bus” as he saw fit.
In less than six months, nearly 75% of the board members
left the organization, including three who went on to start a new organization
focused on strategic implementation of defined goals. The “troubled”
organization has seen a decline in membership, a tightened budget, and
continues to find itself at the whim of one individual. The staff is afraid to
take steps to move the organization’s strategy in the direction set by the
board, because the individual has so much control over the organization, the
funding for their jobs disappears if that individual doesn’t have his wishes
met. The major breakdown in communication, beginning with the individual’s
failure to attend the strategic planning session, has resulted in a
nearly-defunct organization that, self admittedly, is facing dissolution. Had
there been open and honest communication, the organization would be thriving
from the talent it holds in its leadership.
This is just an example of what happens when communications
break down within an organization during a strategic change. Organizational
leaders refused to have the difficult discussions needed to advance the
organization, and avoided the pain associated with the potential loss of
funding – the organization was never given a chance to adapt to change. The
importance of open and honest communication, combined with a commitment and
investment is the best way to move forward in any organization during any strategic
change.
Reference:
Beer, M. & Eisenstat, R. (2004). How to have an honest conversation about your business strategy. Harvard Business Review. Retrieved from: https://hbr.org/2004/02/how-to-have-an-honest-conversation-about-your-business-strategy
