Organizational Strategy

If you have ever worked a day in a corporate environment, I am sure you have heard the words organizational strategy. It is a phrase that is used in almost every meeting at every level — team meetings, department meetings, division meetings, etc. But what is funny about this phrase is that most people have very little understanding of what it means; both what it means in general and what it means to the organization.

There have been many times that I have worked with various organizations and their employees when questions came up about organizational strategy. Some of the most common questions are: What makes up the organizational strategy? What are its components? What is it? Why do we need it? What does it mean to me and what I do?

Given these questions, it is clear to me that many of the employees did not have even a basic understanding of this phrase, but were being expected to connect to it and execute it in their role every day. And that is understandable. When you think about the phrase organizational strategy, it can be quite overwhelming and even intimidating. It is a big deal. It is critical for any business, as it outlines everything the organization intends to do to achieve its core objectives and goals. It provides the organization with purpose, direction, voice, and momentum and considers the resources necessary to execute the strategy.

I often liken organizational strategy to gas in a car. With no gas, you cannot go anywhere. All the parts of the car are in place to make it go and do what it needs to do; however, no gas means no catalyst — there is nothing there to make everything move. Organizational strategy acts as the catalyst to moving the organization forward.

I’ve always felt that organizational strategy is something that every employee should understand, at least at the most basic level. It is important that each person understand how their role — what they do every day — links back to what the organization is attempting to accomplish. But how do we do that?

As a manager, it was always important to me to meet with each member of my team and talk about their role, their importance in the department, and how our work related back to the overall “big picture” of what the organization was trying to achieve, both in the short and long term. I spent time outlining how each of their roles added value to our success as a team and business. But I did not want this to be all about me sharing my perspective, so I would ask them questions such as, “What do you do that you believe is important to our success?” or, “How would you explain the connection between your role and organizational goals?”. This made the employees take a deep dive and think about why their role was important. It also helped them to take ownership of their work by connecting their role to organizational goal achievement. I made this conversation about them.

JoyPowered® organizations know that organizational strategy must be not only business focused, but also people focused. PEOPLE execute the strategy. PEOPLE get the work done. PEOPLE engage people.

As a leader in an organization, it is our job to educate and ensure that our people understand how they fit into this strategy. That means that we must have a strong understanding of organizational strategy; not only what it means to the organization, but what is and why it is important to success.

Organizations that put people first see better profits, foster ingenuity, and create workspaces where people can put their best skills to work. This is why JoyPowered® organizations create organizational, people-centric strategies centered around mission, vision, values, and culture. These four components are essential in providing employees with the who, what, when, where, why, and how of their purpose in the organization.

Mission

The mission of an organization outlines why an organization exists, what it is attempting to accomplish, what products or services it offers, and other insights as to its purpose. It not only helps keep the organization focused, but also helps educate employees on why the organization does what it does. For example:

• The Coca-Cola Company: “To refresh the world in mind, body and spirit. To inspire moments of optimism and happiness through our brands and actions.”
• Caterpillar: “To enable economic growth through infrastructure and energy development, and to provide solutions that support communities and protect the planet.”
• Whole Foods Market: “To nourish people and the planet. We're a purpose-driven company that aims to set the standards of excellence for food retailers. Quality is a state of mind at Whole Foods Market.”1

Every organization needs a mission statement. Even if you only have one employee, a mission statement is necessary. Missions keep leaders and employees grounded when faced with various decisions. I believe that most people want to do the right thing when faced with a challenge or a dilemma. But what is the right thing? One person’s right is another person’s wrong. Where do I go when I need help on what direction to take?

The answer is the mission. The mission will help employees make solid choices, because it provides them with knowledge of who we are and what we do. This will allow the employees to weigh options and make a choice that is in alignment with the mission. Missions serve an organization’s people just as importantly as they serve its operations.

Vision

Often, organizations that see no value in a vision statement or choose not to have one. Many times, this is because they are not sure about the future direction of the organization or they would rather focus on the “now” rather than the “future.” But visions have a great deal of value, as they provide an insight as to what the organization aspires to — its hopes and dreams, if you will. Typically, visions are inspirational, motivational, and create a call to action for those who are part of the organization.

In my 20 plus years of working with people, two things I know are that people want to be a part of something bigger and that people are emotional beings. Visions play into both of those areas. Visions are really about people; they are a way to get people to buy into what the organization is doing and where it is heading. Visions also give employees a sense of purpose to their work and illustrate the value employees bring in helping the organization achieve future success. For example:

• Amazon: "Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online." 
• Ikea: “Our vision is to create a better everyday life for many people.”
• Patagonia: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”2

Note that in all the examples above, the vision statements appeal to a “bigger purpose in life” and have an emotional pull to them, to tug at your heartstrings a bit about doing good. This is intentional, as it helps the organization get that “buy-in” from employees and stabilizes a foundation for the next element of people alignment — values.

Values

An organization’s core values may be one of the most important areas of organizational strategy. Values, along with the mission and vision, drive everything that an organization does, such as its operations, planning, and decision-making. Every decision, plan, and action taken in the name of the organization should align with its values.

Organizational values are the beliefs and behaviors that the organization has established as its foundational and fundamental norms…or its definitions of good and bad. Values provide a set of “guard rails” for how the company expects employees to think, behave, and interact with others at work. And let’s face it, in today’s world of individualism, we need these more than ever to help ensure employees are aligned with organizational strategy. In working with some of my clients on the development of their organization’s values, I remind them of a few helpful tips to consider.

Do not develop values in a vacuum. Seek input from others inside the organization (e.g., leaders at various levels, managers, front-line employees), as well as outside the organization (e.g., customers, community members, board members). Since these values will apply to everyone and represent the organization externally, getting a broad range of feedback is important.

Values should be easy to understand and remember. You want employees to be able to recall the values when faced with decision-making, problem-solving, etc. so that a solid outcome is reached.

When defining a value, be sure to describe the definition of what the item or action looks like inside the company. For example, if the value is “Transparency,” what does an employee do here at the organization that illustrates transparency? What does transparency look like?

Limit the number of values to no more than five. Many times, values are referred to as “core values,” meaning that these are the most important ones to recall. Having too many values becomes convoluted and can often confuse employees.

Do not rush the process. Given the importance of values and the role they play in the organization, it is important that they are thoughtfully developed and considered. These values will be used in all facets of the organization and rooted deep in operational, financial, people, and sales...