Contenu connexe Similaire à Goal Summit 2016: Goals – The Missing Link Between Strategy and Execution (20) Goal Summit 2016: Goals – The Missing Link Between Strategy and Execution1. © Copyright 2016 Donald N. Sull
Goals: The Missing Link
Between Strategy and
Execution
Don Sull
MIT
@simple_rules
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Which is the biggest obstacle to executing
your company’s strategy?
q Lack of performance culture
q Activities do not support our strategy
q Lack of agility
q Inability to work across silos
q We have a strategy
Results
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Goals drive execution in four ways
Blinder Link
Bold
Hypothesis Signal
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Source: Survey of 8265 respondents in 305 organizations. Number of respondents varies by question.
Blinders drive performance
92%
87%
44%
35%
Specific
Handful
Regular
feedback
Ambitious
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% of employees who answered “Make ambitious commitments even if you are not sure how
to achieve them”
Imagine you were giving advice to a newly hired manager. What suggestion
would you give about making performance commitments?
Source: Survey of 5385 respondents in 192 organizations.
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59%
11%
8%
5%
5%
1%
Past performance
Technical expertise
Acting with integrity
Political connections
Ability to adapt to change
Pursuing ambitious goals
Factor that most influences promotions
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Links align activities to strategy
Source: Survey of 8265 respondents in 305 organizations. Number of respondents varies by question.
84%
66%
46%
42%
Developed goals with my
boss
My goals link to my unit's
goals
My boss explains how our
goals support company
strategy
Know company's top 3
goals
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If a strategy falls into
a company and no one
understands it, does it
make a difference?
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R. M. Cyert and J. G. March, 1963, A Behavioral Theory of the Firm, (Englewood Cliffs, NJ: Prentice Hall)
Conservative goals narrow search
• Incremental improvements
• Me-too innovations
• Cost reductions
-----------Goal-----------
--------Status Quo-------
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-------Goal-------
R. M. Cyert and J. G. March, 1963, A Behavioral Theory of the Firm, (Englewood Cliffs, NJ: Prentice Hall)
Ambitious goals trigger broad search
--------Status Quo-------
• Disruptive innovation
• Creative solutions
• Build new capabilities
• Business model innovation
• Rapid learning
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Goals guide iteration
Source: Survey of 8265 respondents in 305 organizations. Number of respondents varies by question.
27%
28%
34%
50%
Discuss difficult issues
openly and honestly
Consstently analyze
variance from goal
Met regularly with boss to
discuss progress
Revise goals more than
once per yearSet goals
ExecuteCourse
correct
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Goals for coordination
Source: Survey of 8265 respondents in 305 organizations. Number of respondents varies by question.
12%
21%
35%
Can learn colleagues'
performance
Can learn colleagues'
goals
Key partners
understand our goals
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1
2
1 1 1 1
3 3 3
4
3
6
5
7 7
10
0246810
#ofOrgs
0 .2 .4 .6 .8 1
% Public
N = 58 orgs
Organizations that created its first goal after start of quarter and organizations with fewer than
10 goals are not included. Deleted goals are not included.
% of Goals in Org that are Public
2015 Q4
Transparency
Goals want to be transparent
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Strategy
• Develop strategy for
execution
• Ambitious but not delusional
• Maintain shared strategic
context
ResultsGoals
Leadership capabilities
• Master goal setting best practices
• Provide useful feedback frequently
• Lead discussions to course correct
Performance
management
• Linkage of goals to compensation?
• Promote on ambition? Performance?
Resource allocation
• Allocation of money and talent linked to
goals
• Resources reallocated on same cadence
as goals are revised
Data analytics
• Tailor data to goal-specific metrics
• Draw on multiple, external, real-time data
sources
• Ensure data is timely, granular, and credible
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Risks of goals Steps to manage risk
Decrease cooperation • Hire and promote team players
• Decouple compensation from individual goals
• Visualize interdependencies
Cut corners • Strong checks and balances for key risks
• Fire leaders who cut ethical corners
• Make goals and performance transparent
Inhibit learning • Mix mastery and performance goals
• Don’t link compensation directly to mastery goals
• Reduce target completion rate
Decrease intrinsic motivation • Employees generate own goals
• Encourage tinkering
• Align goals to inspiring mission
Short-term focus • Link quarterly goals to longer-term strategy
• Break long-term goals into shorter sprints
Tunnel vision • Multiple metrics per goal
• Ongoing discussion of weak signals and anomalies
• Tolerate some positive deviance
• Encourage tinkering
List of known risk from Ordonez, L., Schweitzer, M. E., Galinsky, A., & Bazerman, M. (2009). Goals gone wild: How
goals systematically harm individuals and organizations. Academy of Management Perspectives, 23 (1), X–X