Organization Leaders Should Focus on Objectives, Not Strategy
Our obsession with strategy is sorely misguided. Many executives make the mistake of thinking “If our strategy is clearly determined, nothing can go wrong.” That line of thinking has sunk many an outsourcing ship.
So many books, speeches, presentations, and consultants are focused on strategy. It’s no wonder that the business world has become obsessed with that word. In the foreword to a popular business book, the authors note that they always “start with the same simple question, ‘What is your strategy?’”
That should never be the first question. Putting strategy first will produce the same results as ready, fire, aim. The right order is:
Mission.
Objectives.
Strategy.
Strategy has always been third; never first. And the more emphasis that is put on mission and objectives, the easier it will be to develop the strategy.
“If you get the objectives right, a lieutenant can write the strategy” is most often credited to General George Marshall. He was an extraordinary military leader and the recognized architect of the Allied victory in World War II. But Marshall also believed in the importance of objectives when he was Secretary of State and architect of the rebuilding of Europe, President of the Red Cross, and Secretary of Defense. A recipient of the Nobel Peace Prize, George Marshall was undisputedly one of the most effective leaders of the twentieth century.
Although military leaders are responsible for this approach, it isn’t just a military thing. We have worked with private and public organizations around the world. They include the elite and the mundane, the large and the small. Invariably, ineffective organizations do not have clear objectives. During an effectiveness engagement in Atlanta the CEO of a national professional services firm became ever more exasperated as he heard his nine direct reports articulate nine noticeably different mission statements and struggle with their own department’s objectives. Leaders of the core functions in highly profitable organizations are invariably obsessed with their objectives, but they have met with vice presidents of functions supporting them of that may talk strategy but are not able to articulate their department’s objectives. The surest way to improve any organization’s performance is to take the time to get the objectives right. Employees at any level that do not know and understand the purpose of the organization and its objectives will not perform effectively, and they certainly will not be able to make the best decisions about outsourcing—or anything else.
Many of us, however, are responsible for executing, and the strategy is rightfully left to us. No significant activity should be initiated without a strategy, but it is impossible to determine an effective one unless it is derived from clear, specific objectives. Here is a simple way to get to the strategy:
Verify or define the mission—the main purpose for which an organization exists. The mission should make sense to management, employees, and customers. Missions are relatively long term oriented. For most businesses they should also be valid tomorrow, next month, and for at least a year. If there is some doubt about the mission, then take time to make sure everyone is on the same page.
Establish objectives—the specific and measurable deliverables that are essential to fulfilling the mission. Objectives should be customer driven if not jointly established and also clear to management, employees, and customers. Most importantly, objectives must be measurable.
Now the optimum strategy—the systematic plan of action to attain specific objectives—can be developed.
Those who have the responsibility for executing must also have the authority to adjust or even change the strategy in response to what they experience as they work towards achieving their objectives. We should also note that a strategy is no more than words unless the execution of the strategy includes the requisite structure, resources, processes, and procedures or tactics.
Establishing the right objectives is the first responsibility of leaders. Leave the strategy to those responsible for executing.