Collaboration and dialogue

When embarking on developing a purpose-led strategy, keep in mind that focusing solely on developing a purpose statement and strategy without thinking about people and culture will undermine the transformational power of purpose.

The power of purpose to inspire and motivate people can only be realised if people are truly part of the process of developing both the purpose and the strategy that follows. Our experience tells us that it is important to set the intention to become purpose-led from the top, but a purpose-led organisation also recognises that everyone has the desire to contribute and are collaborators in fulfilling the purpose.

Foster an environment of shared responsibility

Collaboration requires not only trusting, listening, and being more inclusive but also being prepared to let go of power.

There can be a misconception in organisations that developing the strategy represents the brainwork and executing the strategy the more menial work. This can endow teams leading on strategy with a sense of authority. And while this authority may appeal to a desire and drive to create a real and positive impact, this power dynamic, real or perceived, can blindside the most brilliant and considerate strategist.

Collaborating and being more inclusive can help to foster an environment of shared responsibility and also help more people in the organisation to understand the relevance and application of the purpose and the strategy to their functions / departments. The development of the strategy then becomes being part of the process of cultivating a purpose-led culture, rather than being seen as something that sits above culture.

Don’t let metrics substitute for strategy

In addition to limiting ideas and contributions, another potential consequence of not involving colleagues in the development of a strategy is the tendency for people to replace strategy with metrics. We have noticed that once the metrics to measure the strategy are defined, the conversation can shift to focus on how well the company and teams measure against the metric and the intention behind the metric is all but forgotten in the day-to-day operations of the business. This surrogation can undermine the strategy and any desire and commitment within the organisation to become purpose-led. More broadly be mindful not to ‘control’ or ‘solve’ for purpose through measurement and metrics. These are important inputs but not the whole solution.  For more on how to think about metrics and measures see: Assessing progress in becoming purpose-led

The team leading on the strategy development must hold the tension of balancing a deliberative, top-down approach with the openness and curiosity of an inclusive approach. This may slow progress initially but by including employees in the development of the strategy they develop a deeper understanding of how the strategy supports the purpose, are more likely to make day-to-day decisions that support it and can appreciate how metrics represent the thinking behind the strategy, not the strategy itself.

Thaw the ‘permafrost layer’

Middle management, sometimes described as the ‘permafrost layer’ or ‘clay layer’ are frequently blamed for purpose and strategy getting stuck. The view is often that middle management “just don’t care enough”. This narrative needs to shift. One way of helping to shift this is to ask “who or what is freezing them?” And what role can the way in which the strategy is developed play into shattering these barriers? This can open up a much more meaningful, effective, fruitful conversation about what blockers companies are putting in the way that is stopping middle management from committing.

All too often what becomes clear is that middle management is the group that is stuck with the unresolved tension between purpose and profit. They are being asked to inspire their teams about the strategy and purpose, but they also retain the pressures of meeting short-term financial targets or cost-cutting objectives. As one director noted, “It is as if we are asking them to pat their head and rub their tummy at the same time.” People cannot commit if they are getting contradictory information. See: Purpose-led Culture

Embrace healthy, creative conflict

While a common purpose can bring coherence to strategy, this must not be at the detriment of people’s sense of autonomy or the entrepreneurial spirit in a company. This tension often surfaces in organisations that have historically grown through acquisition for example. There can be a tendency to unwittingly constrain people’s creative spirit and autonomy, turning purpose-led organisations into ‘cult-like’ environments or perceived to be overly controlled by the centre. While we believe it is important that a company’s purpose (north star) creates cohesion, it’s equally crucial that people and business units are able to express their own individuality in a purpose-led environment, as otherwise, we can lose much of what is unique and vital about us. This capacity for vitality is central to enlivening organisations and unlocking the innovation and latent creative potential within organisations, creating new possibilities.

If there is strong resistance, stay curious, seek to understand why there is resistance and be open to and challenged by what can emerge. If a strategy is being led by a central team it is crucial that business units contribute, bringing their differences into healthy dialogue with the central team and other business units. For a more detailed discussion on how to create space for this see: Engaging the Leadership and in particular The importance of dialogue