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You get the strategy you ask for

Incentives and governance for a living strategy.

Bruno Pešec
Bruno Pešec
2 min read
You get the strategy you ask for

If your organisation defends its strategy instead of updating it, start by looking at what you reward.

Most executive teams ask for confidence.

The paper should be crisp, the numbers should hold, the recommendation should be singular. The manager who walks in with "here is what we assumed, and here are the two assumptions I am no longer sure about" gets a harder hour than the colleague who walks in certain. Everybody in the building learns that lesson within a year.

So you receive confident papers. You approve them. And then you wonder why nobody warned you when the market shifted, customer habits changed, or a competitor moved.

Strategy stops being a working document at that point and becomes something closer to a sacred object. It gets presented, referenced, and protected. What it no longer does is change when the world supplies new information, which was the only reason to write it down in the first place.

The cost lands as delay. Your competitors are not beating you because their analysis was better. They are beating you because their organisation surfaced the bad news in March and yours surfaced it in September.

The good news is that this is a governance problem, and governance is yours to set.

Put three standing questions on every strategy paper that reaches you.

  1. What are we assuming, and which of those assumptions would hurt us most if it turned out to be wrong?
  2. What have we learned since we last discussed this, and what did it change?
  3. What would we have to see to change course, who is watching for it, and how would it reach this table?

Then do the harder part. The first time somebody brings you evidence that a strategy you personally championed is not working, your reaction sets the price of honesty for the next two years.

Thank them in front of their peers. Change something visibly. People will draw the right conclusion faster than any communications programme could manage.

A senior leader I worked with put it plainly to his executive committee: I would rather be embarrassed in this room than surprised by the market. That sentence did more for their strategy process than the process redesign did.

None of this asks you to hold your convictions loosely. Strong opinions are part of the job, and a leadership team without them drifts.

What it asks is that your organisation can afford to tell you when one of your opinions has stopped being true.

Ask yourself who told you something inconvenient this quarter.

If nobody comes to mind, that is the finding.

StrategyInnovation

Bruno Pešec

€1B in new revenue. €28B in new markets. One focus: profitable innovation.

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