Six Tools Sucessful Companies Rely On

One of the biggest gaps in accelerating corporate performance is the failure to communicate strategic direction consistently. Employees want to contribute, and they want the organization to succeed. Clear direction enables faster implementation, and a better response to unexpected problems and changing conditions.

The BP oil spill, the largest in US history, provides a dramatic example. Mechanical and design problems began weeks before the disaster. Dealing with this required teamwork, but the interests of workers did not align, and it was unclear who was in charge. In later testimony, rig workers repeatedly described that there was a natural conflict between BP, who had fallen behind schedule and was over budget, and Transocean, who earned a leasing fee for every additional day of drilling.

Having multiple companies involved made the BP situation unusually complex, but our clients face similar situations every day when divisions or functions are not well aligned.

Here are six tools successful companies use to ensure that their strategic direction is understood, internalized, and acted on.

1. Shoot high and set aggressive targets

• In what business or category can you be the “best in the world?”
• What “feels most worth doing” (and not just in profit terms)
• Think long term (“almost anything can be done in 20 years”)

2. Paint a vivid picture of where you are going, and why. Communicate your vision consistently, often and through many different channels to customers, employees, investors, suppliers and partners. Use metaphors and exemplars. Show videos; point out a work team that’s headed the right direction. Make it tangible and exciting.

3. Identify a few major actions that will be your first steps in moving toward your long-term goals. Consider making a “no turning back” move, as Kimberly-Clark did in the 1970s when it sold its paper mills to focus on consumer products.

4. Help each player understand his or her role in achieving the vision. This can cascade down naturally and need not be a time consuming exercise. As each leader makes strategic, investment and policy decisions consistent with the vision, they should work with the layers below them to make choices consistent with this context.

5. Celebrate both large and small successes. Give a verbal pat on the back, handwritten note, or other recognition every week. Recognizing small steps in the right direction will accelerate progress and build momentum.

6. Stay alert to feedback from employees, customers and investors, and be ready to revisit or adjust the direction as business conditions change.