For unit 1, we are asked to read the article "How to Have an Honest Conversation about Your Business Strategy." The article discusses many obstacles which often prevent successful implementation of high-level strategies in an organization. Agilent Technologies’ Systems Generation and Delivery Unit (SGDU) was one major organization focused on throughout the article. The vice president and general manager of SGDU was being held responsible to create a single global company from a set of fragmented businesses located around the world. Much strength was noted early in the process but quickly problems emerged. The new departments did not give the needed attention to new businesses. The senior management team was slow to make decisions and no one was taking responsibility for performance of the developing businesses. Additionally, throughout the company there was an inability to openly talk about business performance. These obstacles can often prevent successful implementation of high-level strategies in a variety of organizations. Organizations often try to make changes however, most initiatives fail to uncover the truth and they lead to superficial change. There are solutions to make the change a reality.
The article talks about what is needed for organizations to have honest conversations. The “Strategic Fitness Process” was created to help senior executives enhance their capacity to implement strategy quickly and effectively. This process fits the organization to the strategy and increasing the capacity of the organization to learn and change. Solutions involved crafting conversations that matter and driving change, one step at a time,
The article states that business and the people inside of them don’t learn to change unless they have the courage to confront difficult truths. That is exactly what the article was about. Following the steps of the “Strategic Fitness Process,” will help an organization support productive, organization wide conversations about the barriers to performance. The first step is to start the conversation with the leadership team. To drive results, the senior team needs to set the direction, resolve conflicting views about priorities, and create the context and culture that will enable the organization to deliver results. They need to be able to dig in and solve fundamental strategic issues. The strategic Fitness Process starts with a one day meeting where the senior team develops a statement of strategic and organizational direction. Following this, they are asked to draft the best managers to collect data and engage the organization in a conversation. A one day training is offered for the new task force in interviewing. Also, the task force identifies who it would like to interview. Step 3 in the process is the data collection period. The task force interviews people throughout the organization making sure that the people in the conversations are protected. The individuals conducting the interviews are considered to be the spokespeople for the people being interviewed. Step 4 is the task force data consolidation meeting. The task force identifies major themes in the interviews and prepares feedback. Using a fishbowl format, the interview team comes together to discuss present major themes. The senior management team does not interrupt this discussion and may only ask clarification questions at the end of the discussion. They are encouraged to take notes and to listen. The senior team conducts an analysis of the root causes of the issues identified and develops an integrated plan to address them. The senior team then presents their plan to the task force and receives feedback from them. The senior team then announces change plans to the “top 100” and begins to implement the change. Finally, the senior team periodically repeats the process and extends it into subunits.
There are many benefits that come from open conversations are enormous. Adopting the principles is the first step in creating the kind of dialogue that needs to build the collective commitment that drives rapid change, improved performance and organizational vitality.
Reference:
Beer, M., & Eisenstat, R. A. (January 01, 2004). How to have an honest conversation
about your business strategy. Harvard Business Review, 82, 2, 82-9.
