Gary L. Nelson, Karla L. Martin, and Elizabeth Powers have figured it out. In their Harvard Business Review article, “The Secrets to Successful Strategy Execution,” they outline a compelling framework to enhance company performance and achieve goals. If you haven’t read it, I highly recommend diving in.
The authors highlight four critical blocks to boost performance:
- Information
- Decision Rights
- Motivators
- Structure
These four blocks are interconnected and must be addressed simultaneously. It’s intriguing that reorganization, often a manager’s go-to solution, isn’t as effective as clarifying information flows and decision rights. I think of it this way: You can upgrade the machine, but if the operators don’t know how to use it, ask the right questions, who to talk with, and understand the importance of their role, nothing truly changes. Reorganization can certainly be beneficial (sometimes it’s essential for resolving problems), but it must be accompanied by a clear understanding of responsibilities, incentives, information flows, decision making processes, and how new interactions can enhance efficiency.
To execute strategy successfully, managers don’t need to micromanage every detail, but they must establish processes and forums to effectively address all the four blocks. Also, during these times, managers must be hands-on and very savvy change managers, supporting the new era and avoiding patchwork solutions that cling to outdated methods.
It is not the focus of the article, but it is worth mentioning here. Success stems not only from having clarity about the aforementioned blocks and from having great change management processes. It also stems from placing the right people, with the rights skills, in the right roles. Balancing these elements is the key to executing effectively and fostering a thriving organization.