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Learn about the four enablers of strategy - systems, structure, capability, and culture - and how they impact organizational success.
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The Four Enablers of Strategy 24 February 2014
The Four Enablers of Strategy 3 2 1 4
Enabler 1 - Systems • Systems are the language in which the organization talks to its employees • Systems exist to underpin productive behaviour • Regardless of what is said in speeches and employee bulletins, people believe the message that comes from systems • People will observe any system change through a ‘lens’ of beliefs to interpret ‘what management’s real intention is’ and form judgments against their set of values • Based upon the actions taken by management or by employees, Systems will emerge that are either can be authorised or un-authorised (without responsibility, accountability or authority)
Enabler 1 - Recommendations • Design systems with the origination's people in mind If you don’t have this option, engage in sufficient and extensive consultation. Be prepared to make system changes based upon that consultation • Consider the message that employees will take from the implementation of a system, as well as from the system in use
Enabler 2 - Structure • Management is accountable for ensuring that employees have clear answers to the questions: • What is my work? • How am I going? • What is my future? • The Leadership Team is accountable for ensuring that management have clear answers to the questions: • What am I responsible to deliver through my team’s efforts? • Do I have sole authority to delegate work and assign tasks to my direct reports? • What is my role with respect to holding my direct reports accountable and how will I be supported by my manager (i.e. the next-up-manager?
When Structure Breaks Down Levels of Work “As Is” “Should Be” Costs to the Business • Causes confused accountability • Focus on problem solving rather than strategy and design conversations • Multiple disconnected initiatives ... perpetual sense of being very busy • Inability to anticipate – sense of “always catching up with yesterday” • Failure to leverage the full talent of the leadership team • Tendency for problems to be pushed up to higher levels for resolution rather than solve at right level • Sense of frustration and boredom, managers look for other challenges CEO V IV CEO GM GM III MGR MGR II TEAM LDR TEAM LDR I Value Destruction
TARRs and TIRRs • Task Assigning Role Relationship (TARR) – carry the accountability and authority to assign tasks to others. • Task Initiating Role Relationship (TIRR) – carry responsibilities to initiate tasks but do not carry neither accountability nor authority to assign tasks to others.
When Structure Breaks Down Jim General Manager Roger Manager Jane Planning Officer
Enabler 2 - Recommendations • Establish minimum authorities for managers and adhere to them strictly • These may include: • Veto power of the appointment of new team member; • Sole authority to assign tasks and delegate work to team members (i.e. a clear TARR); • Principle authority to recognize, review and reward performance of team members within policy; and • Power to initiate the removal of a team member (i.e. termination) with the action to be taken by the next-up-manager • Monitor and control TARRs and TIRRs from getting out of control outside of the authority of the manager
Enabler 3 - Capability • Capability is… • Our ability to act based upon our skills and knowledge; • The choices we make when deciding how to act; and • Our ability to balance the type of work we undertake between people, scheduling and technical responsibilities.
Enabler 3 - Capability Behaviour (How I do what I do) What others see you do? Observable behaviour? Actions? Verbs? Determines Our Action S K E W We Respond Thinking (Why I do what I do) What is top of mind? What concerns you? What do you think about? We Think T V M Our Attitude Values (What drives what I do) What is important? What you value? What matters? Motivations (What shapes the context of why I do what I do) What I hold true? How I see the world?
Capability for all Types of Work Getting things done through others Bringing things and or people together in the right place and time to optimize effectiveness Delivering output directly through ones own technical skills and knowledge
Enabler 4 - Culture “The shared values, norms and expectations that govern the way people approach their work and interact with each other.”
But outcomes are more reliably predicted by this Most managers focus only on this Culture is Not Climate Climate Culture Based on perceptions Based on shared beliefs “How things are around “What’s expected (or valued here” or assumed) around here Example: In this Example: People in this organization, people are organization are expected or rewarded in proportion implicitly required to compete to the excellence of their rather than cooperate job performance Easier to change Harder to change Short-term implications Long-term implications
Culture or Climate Climate... what is above the surface Culture... what is below the surface
How People Experience the Organization Defines Culture
Managing Culture – 4 Step Model • Determine the gap between current and preferred culture • Interpret prevailing mythologies regarding people’s experience with systems, structure and capability • Test interpretations through consultation • Make small and continuous improvements within systems, structure and capabilities and monitor for change
How can the Enablers be used to Move People through Change?
Other Questions to Check for Strategic Effectiveness • Is there one or more enabler that you perceive to be fixed, that you must alter the others to accommodate for? (i.e. people are fixed or systems are fixed) • Does the organization lack the capability to implement change? • Are systems given priority over people processes? • How has your organization leveraged the 4 Enablers during its most recent strategic initiative?
How does your business leverage the Four Enablers?
