| "body"> | | | | must we achieve financially?", "what must we deliver |
| Businesses need teams. With the pressures to deliver | | | | for our customers to achieve our financial goals?", |
| higher revenues, greater customer satisfaction, | | | | "what must we excel at operationally?", "what sort of |
| enhanced operational efficiency and faster speed to | | | | culture and leadership will enable our strategy?" etc. |
| market, success requires more than the brilliance of | | | | Teams that regularly debate these types of questions, |
| any individual. But even when leadership teams consist | | | | and actively consider the causal linkages, are more |
| of the company's best and brightest, high-quality | | | | able to identify where new issues need to be |
| teamwork at the top remains elusive for most | | | | addressed, and see emerging gaps in their thinking. |
| organisations. Why? | | | | Consequently, they react more speedily to address |
| Leadership teams that bring together strong individuals | | | | key strategic issues before they become really |
| can be the best - and the worst - of worlds. When | | | | significant barriers to performance. |
| each individual just delivers on his or her own | | | | 3. "What is our implementation plan?" Research shows |
| competencies, however effectively, the team is not | | | | that effective strategy implementation remains a key |
| truly functional. It's the 'synergy' created between | | | | concern for most CEO's3. Perhaps this is because the |
| talented individuals - the tapping of the collective | | | | nitty-gritty of strategy implementation is rarely explored |
| potential - that lies at the heart of successful leadership | | | | by top teams. Questions such as "which elements of |
| teams. | | | | our strategy require teamwork, and which don't?", and |
| So, what's the key to creating this synergy? We | | | | "what should be handled cross-functionally versus |
| believe, quite simply, it's talking that creates great | | | | functionally?" are crucially important and winning teams |
| teamwork. What sets high-performing teams apart is | | | | robustly debate these issues. They also seek |
| their ability to engage in high-quality conversations: | | | | agreement over other details, including performance |
| conversations which go beyond an exchange of | | | | measures, resource allocation, governance and |
| information to those that have the power to transform | | | | decision-making boundaries. Agreeing regular |
| performance. | | | | check-points to review progress, learn from |
| We have found that teams who engage in regular, | | | | experiences and ensure people are delivering as |
| quality, focused debate about their strategy, capabilities | | | | agreed is also vital - many teams invest too little time |
| and behaviours are significantly more successful than | | | | ensuring they actively reflect on and manage their |
| those that don't. And, we know that when teams fail | | | | performance. |
| to effectively discuss a course of action, wider | | | | Case Study: |
| business performance inevitably suffers. | | | | A leading international medical equipment company |
| The job of leadership is to ask and answer the right | | | | appointed a new President for Europe to drive growth |
| questions. Below, we suggest the kinds of strategic | | | | in an 'underperforming' business. Shortly after his arrival |
| questions teams need to explore in order to create a | | | | he called a meeting of the top team to discuss |
| platform of effectiveness. Many of these may appear | | | | business objectives for the next three years. With a |
| obvious, yet experience tells us that frequent ambiguity, | | | | background of 5-6% annual profit growth the team |
| inconsistency and disagreement in these areas are | | | | were given new goals nearly twice what they had |
| significant factors in team underperformance. | | | | been delivering. The President asked each Regional |
| CONVERSATIONS ABOUT PURPOSE & | | | | Director to prepare their sales and marketing strategy |
| STRATEGY | | | | and present this at the next management meeting. |
| | | | With support functions present, and some |
| 1. "What is our purpose?" Without doubt, a clear and | | | | re-negotiation of the details, these plans were signed |
| compelling purpose attracts, energises and retains | | | | off and the three Regional Directors asked to report |
| great people; without it, even excellent teams | | | | progress on a monthly basis. However, after 12 |
| frequently have low levels of collective energy and | | | | months, growth had improved only marginally. |
| commitment. One piece of research2 shows that 70% | | | | Under pressure from Corporate office, the President |
| of executive teams lack clarity on what they are | | | | invited a trusted former colleague to take a look at the |
| aiming to deliver to customers. Ironically, even the | | | | business. Through a series of confidential interviews he |
| presence of corporate mission and value statements | | | | discovered that - despite their markets being |
| don't always ensure this. As market conditions change, | | | | remarkably similar - one region was achieving volume |
| competitors reposition themselves and new threats | | | | growth by 'bundling' high-margin and low-margin |
| and opportunities open up, questions like "what type of | | | | products together, while the other two divisions were |
| business do we want to become?", "what do we | | | | simply driving sales by reducing costs across the |
| want to achieve together" and "who do we want to | | | | range. These differences in order management and |
| beat?" help create shared purpose. Yet few teams | | | | product batching were further impacting supply and |
| take the time needed to create this type of clarity | | | | distribution; providing the business with an unwanted |
| upfront. The implementation challenges that many | | | | reputation for poor service. Support functions were |
| teams experience can frequently be traced back to | | | | therefore spending much time 'fire-fighting' customer |
| the need for these fundamental, ongoing | | | | and operational problems. |
| conversations. | | | | Facilitating a working session with the management |
| 2. "What is our strategy?" Most senior teams take | | | | team the advisor was able to open up a debate on |
| time out each year to discuss strategy. But, often, the | | | | the best sales and marketing strategy for the business |
| "talk doesn't walk". With corporate strategy documents | | | | as a whole, together with the best approach to |
| frequently inches thick, and with little relationship | | | | implementation across manufacturing and distribution, |
| between functional strategies, it's no wonder that | | | | service, finance and HR. With alignment across all |
| implementation can be slow and messy. Strategy - | | | | parts of the business the team were able to move |
| both its management and measurement - is best built | | | | forward in a more coordinated and united way that |
| on a simple model and a shared language. And, a | | | | ensured customers were at the centre of their thinking. |
| growing body of evidence suggests that leadership | | | | Results improved dramatically. |
| teams who adopt this approach outperform those that | | | | Parts 2 and 3 will discuss conversations about |
| don't. The most effective teams focus their strategic | | | | capability and behaviour, and how a leader can create |
| conversations around a few simple questions that help | | | | the environment for high performance. |
| create an integrated approach. For example; "what | | | | |