Part II: Leadership and Organization Development by Design - Organization Strategy

According to Robert Grant, strategy is about winning and strategy links the organization to its environment.

I recall a conversation a year or so ago in which a leader and I were discussing the misuses of the word "strategic"? It sometimes seems that people use the adjective, strategic, to indicate they are visionaries who leave the details to others. Misuse of the term strategic, to borrow a Venita-ism, just "wears me slick". So, let's do a little level setting.

What does "strategy" mean? Robert Grant and Jim Underwood said, strategy is an approach or a plan that answers where and how organizations will compete to make money or create value for their benefactors. For-profit and commercial non-profit organizations also have to ensure they are generating the highest net present value of the organization's future cash flow. Underwood suggests companies who create and execute good strategy are far more successful in achieving the goal of profit maximization than those who do not.

As a quick reminder, Grant wrote the primary benefactors of profits in for-profit organizations are the shareholders. According to Hansmann, in non-profits and government owned organizations the public is the primary benefactor. Non-profits and government owned organizations may also have security holders who are benefactors (e.g., those who have purchased Treasury notes, bonds, T-bills, etc.).

Grant also proposed the firm’s goals and values are or should be directly linked to its strategies. Consequently, developing winning strategies requires significant thinking agility of leaders and staff within organizations. Hickman described leadership as sensing, analyzing, and incorporating environmental changes through processes of interactions between themselves and employees. Yet, he also proposed, while leadership initiates the first steps toward change, employees are expected to be involved as “highly motivated critical thinkers and actors who perform equal but different roles than leaders to meet their mutual goals”. Do you think this sounds like a recipe for employee involvement and engagement? Under these conditions, hoarding information is definitely not a good idea.

So, why should leadership and organization development (L&OD) practitioners care? Great question! Let's assume leadership has a somewhat accurate perspective on the organization's environment. Accordingly, let's also assume leadership has developed a strategy, a critical few strategic goals, and objectives. Let's also assume you have facilitated or they have let you in on their thinking.

Once you are clear about their thoughts, as L&OD practitioners, the job is to ask key questions and provide consultation regarding talent implications and gaps. Why? The reason is alignment. Yes, it is the best way to ensure L&OD work is focused and cohesively meeting the organization's needs. Key questions you could ask and collaboratively answer once you are clear regarding the environment, strategic goals, and objectives include:

1. What must leaders and staff know?
2. How must they behave/act? and...
3. What must they be able to do in order to respond to environmental challenges, execute the strategy, and achieve the resulting key strategic goals and objectives?
4. Which, if any roles, are missing or need to change?
5. How will knowledge, skills, behaviors, roles, and goal accomplishment be reinforced?
6. How will knowledge, skills, behaviors, roles, and goal directives be quickly adjusted as environmental challenges dictate?
7. How will differentiation in rewards for success be leveraged to motivate leaders and staff? 
8. How will you continuously improve and tie outcome metrics to your L&OD efforts?

To be strategic, the big picture or vision is of critical importance and so is some sense of the appropriate level of details or plans. Chaotic and complex times demand some non-linear and inclusive thinking. In these times, to borrow another Amy-ism, we should consider "both/and" when comparing alternatives rather than risk the fallacies of either/or decisions.

After all, truly strategic people should be able to show meaningful outcomes that support their claim of "strategery"! As you may recall, "strategery" was coined by James Downey on Saturday Night Live in a sketch where Will Ferrell played President George W. Bush. The term was later adopted by some in Bush's administration as a joke. Yes, I am joking a little and I am very serious at the same time!

In the next blog, strategic agility will be the topic. Until then, ask and answer the right questions in the right way and be the change you want to see!

Phyllis L. Wright, Ph.D.

View my profile on LinkedIn: www.linkedin.com/in/phyllislajunewright/

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This post contains a phrase I adored from one of my former leaders. Her name is Venita McCellon-Allen. She gave me an opportunity, the encouragement, and the motivation to grow! Thank you Venita. The phrase or Venita-ism is "wears me slick"! This post also contains another Amy-ism from Amy Tawney. She could produce these nuggets of gold in a split second flat. This time its "both/and". Don't you love it!

References


Grant, R. M. (1998). Contemporary strategy analysis (Third ed.). Oxford, United Kingdom:

      Blackwell.

Grant, R. M. (2010). Contemporary strategy analysis (Seventh ed.). Chichester, United      
     
      Kingdom: John Wiley & Sons, Ltd.

Hansmann, H. (1996). The changing roles of public, private, and nonprofit enterprise in 

     education, health care, and other human services. In V. R. Fuchs, (Ed.), Individual and 

     Social Responsibility: Child Care, Education, Medical Care, and Long-Term Care in 

     America (pp. 245 - 275). Chicago, IL: University of Chicago Press. Retrieved from 

     http://www.law.yale.edu/documents/pdf/Faculty/Hansmannthechangingroles.pdf

Underwood, J. D. (2002). The new corporate strategy. Oxford, United Kingdom: Capstone

     Publishing.