We’re two full weeks into the new year and I’m curious, how is the strategy and operating plan you spent all Q3 and Q4 working on progressing? You nailed it, right? Everything is just as you expected and things are moving forward just as you planned.
I didn’t think so.
So, like many others, you feel tempted to double down on what worked before or chase every opportunity with the hope that it will “future-proof” your business.
Stop.
Remember the Cheshire Cat, “If you don’t know where you’re going, any road will get you there.”
You DO know where you’re going because your goals didn’t change. You still need to grow revenue and cut costs with fewer resources than last year.
The map changed. So you need to find a new road.
You’re not going to find it by looking at old playbooks or by following every path available.
You will find it by following these three steps (and don’t require months or millions to complete).
Return to First Principles
When old maps fail and new roads are uncertain, the most successful leaders return to first principles, the fundamental, irreducible truths of a subject:
- Organizations are systems
- Systems seek equilibrium and resist change when elements are misaligned
- People in the system do what the system allows, models, and rewards
Returning to these principles is the root of success because it forces you to pause and ask the right questions before (re)acting.
Ask Questions to Find the Root Cause
Based on the first principles, think of your organization as a lock. All the tumblers need to align to unlock the organization’s potential to get to where you need to go. When the tumblers don’t align, you stay stuck in the dying status quo.
Every organization has three tumblers – Architecture (how you’re organized), Behavior (what leaders actually do), and Culture (what gets rewarded) – that must align to develop and execute a strategy in an environment of uncertainty and constant change.
But ensuring that you’ve aligned all three tumblers, and not just one or two, requires asking questions to get to the root cause of the challenges.
Is your leadership team struggling to align on a decision because they don’t have enough data or can’t agree on what it means? The Behavior and Culture tumblers are misaligned with the structure and incentives of Architecture
Are people resisting the new AI tools you rolled out? Architectural incentives and metrics, and leadership communications and behaviors are preventing buy-in.
Struggling to squeeze growth out of a stagnant business? Structures and systems combined with organization culture are reinforcing safety and a fixed mindset rather than encouraging curiosity and learning.
Align the Tumblers
When you diagnose the root causes you find the misaligned tumbler. And, in the process of bringing it into alignment, it will likely pull the others in, too.
By role modeling leadership behaviors that encourage transparent communication (no hiding behind buzzwords), quantifying confidence, and smart risk taking, you’ll also influence culture and may reveal a needed change in Architecture.
Modifying the metrics and rewards in Architecture and making sure that your communications and behavior encourage buy-in to new AI tools, will start to establish an AI-friendly culture.
Overhauling Architecture to encourage and reward actions that expand that stagnant business into new markets or brings new solutions to your existing customers, will build new leadership Behaviors will drive culture change.
Get to your Goals
It’s a VUCA/BANI world AND It’s only going to accelerate. That means that the strategy you developed last quarter and the operational plans you set last month will be obsolete by the end of the week.
But the strategy and the plan were never the goal. They were the road you planned based on the map you had. When the map changes, the road does, too. But you can still get to the goal if you’re willing to fiddle with a lock.