Would You Invite Employees to Vote on Strategic Direction?

Weekly Business Insights from Top Ten Business Magazines

Extractive summaries and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since 2017 | Week 355 |  June 28-July 4, 2024 |  Archive

Would You Invite Employees to Vote on Strategic Direction?

By Alexander Loudon | MIT Sloan Management Review | June 19, 2024

Extractive Summary of the Article | Read | Listen

Executives often resist engaging employees in strategic planning due to fear of losing control and speed. A participative approach takes more time and is more complicated. However, excluding employees from strategic planning may hinder strategy adoption and overlook valuable input.  We need a new and fresh playbook for strategic planning — one that breaks from tradition and actively loops in employees. Let’s explore why and examine four keys to doing this well.

1. Bring the human touch.  Develop a simple, coherent strategy and align the operating model to deliver on this strategy, simplifying the organizational structure.  Appreciate the genuine collaboration. And we need to learn to lead with vulnerability, sharing doubts and reaching out to others for support while also investing time in building trust and understanding within teams. That included developing the content of the strategy while investing in collaboration.
2. Engage employees in a genuine way.  An organization’s approach to engaging employees in strategic planning should align with its DNA — its version of “how we do things.”  To engage employees effectively, companies should make the strategy relevant to their personal ambitions and daily work. Clarify the benefits for people, and address any concerns that affect their interests. Hubert Joly, formerly the CEO of Best Buy, emphasized linking employees’ dreams and motivations to the company’s purpose and strategy — a move that was instrumental in the company’s successful turnaround.
3. Plan slowly for fast delivery.   Detailing plans marks the transition from developing a strategy to human beings actually delivering on it. In this step, the number of people involved grows exponentially, and the strategic project’s scope and deliverables become concrete. This shift can revive fundamental strategic debates with the people who will be involved in the delivery. Although facilitating these debates requires time and a process, leaders must mobilize the employees involved in execution in order to take strategy beyond documents and workshops.
4. Learn and adapt.  Once the strategy is in full execution mode, some rigidity in strategic choices is a good thing. Consistency in choices is essential for human engagement. Still, consistency shouldn’t hold leaders back from fine-tuning to make the choices work.  Strategic planning is ongoing work that requires flexibility and learning. It also requires experimentation, honest reflection, and frequent pivots. During implementation, insights emerge regarding what works and what doesn’t. New external developments may emerge that require a strategic response, so the organization must continually adapt the strategy.

Successful strategic planning goes beyond making the right choices — it’s about putting your people at the heart of it. 

3 key takeaways from the article

1. Success in strategic planning treats strategic planning as an ongoing process of learning and doing rather than a one-off activity. The planning cycles become shorter, often happening quarterly rather than yearly, to adapt to lessons learned and external changes. Successful companies are adjusting their strategic planning rather than dropping it altogether.
2. Executives often resist engaging employees in strategic planning due to fear of losing control and speed. A participative approach takes more time and is more complicated. However, excluding employees from strategic planning may hinder strategy adoption and overlook valuable input.  
3. We need a new and fresh playbook for strategic planning — one that breaks from tradition and actively loops in employees. Four keys to doing this well are: bring the human touch, engage employees in a genuine way, plan slowly for fast delivery, and learn and adapt.

Full Article

(Copyright lies with the publisher)

Topics:  Strategy, Decision-making, Strategy Implementation