Strategic Planning: Why People Matter

‘If Culture Eats Strategy for Breakfast - - Make Sure You Set the Table.’

Culture and strategy are two key elements that shape the performance and success of any organization. But what is the relationship between them, and why do people matter in this equation?

According to an often-quoted Peter Drucker, "culture eats strategy for breakfast." This means that no matter how well-designed your strategic plan is, it will fall flat unless your team shares the appropriate culture. 

Culture influences how people behave and communicate, solve problems and make decisions, collaborate and innovate, and respond to change and uncertainty. Strategy drives focus and direction sets goals and objectives, allocates resources and responsibilities, and defines measures and indicators of success.

The relationship between culture and strategy is not a simple one. It is not a matter of choosing one over the other or of having one dominate the other. Rather, it is a matter of aligning them, integrating them, and leveraging them to achieve the desired outcomes.

How can strategic planning incorporate the people aspect of the organization?

● Start with a clear vision and mission statement – what do we do, and why do we do it? These statements should inspire and motivate people to work towards a common goal and provide a sense of direction and meaning for their work.

● Involve people in the planning process. Strategic planning should not be a top-down exercise but rather a collaborative and participatory one. By engaging people from different levels and functions of the organization, you can tap into their insights, perspectives, and ideas and foster a sense of ownership and commitment to the strategy. 

● Align people with the strategy. Once you have defined your strategic goals and objectives, you need to communicate them clearly and consistently to your people and ensure they understand how their roles and responsibilities contribute to achieving them. You also need to align your organizational structure, culture, processes, systems, and incentives with your strategy so that they support and enable your people to perform effectively and efficiently.

● Develop people for the strategy. Strategic planning should also consider the current and future skills and competencies that your people need to execute the strategy successfully. You should assess the gaps between your current and desired workforce capabilities and design and implement learning and development programs to address them.

● Review and adapt your strategy with your people. Strategic planning is not a one-time event but rather an ongoing process that requires regular monitoring and evaluation. You should track your progress toward your strategic goals and objectives, measure your performance indicators, and collect feedback. You should also review your external environment for any changes or trends affecting your strategy.

Strategic planning is a vital activity for any organization that wants to thrive in today's dynamic and competitive world. But strategic planning is not only about what you want to achieve but also about who you want to achieve it with. By putting people at the center of your strategic planning process, you can create a more engaged, empowered, and effective workforce that can drive your organization toward its vision.

People challenges in executing strategic plans:

● Culture/Team Is Averse to Change

◦ People who don’t like change; that's not new. However, how you tackle it can be – focus on communication. What's in it for them? What will be the impact on them…none of this is new…but say it again and again. The investment in communication up front will have a proven ROI through the process. Think you've communicated enough? Say it ten more times...at least. Think you’re done explaining it, as the team to explain it back.

● Incentive Programs Don’t Align with Strategy/Strategic Results

◦ Not only do programs not always align, but they are also often in conflict. KPIs and balanced scorecards all need to find their way into reward programs (at the appropriate weighting for the impact the employee can make, of course)

● Failure to Clearly Explain How Each Employee Is Adding Value to the Strategy

◦ Communication here again…. I thought we were going to mention this only once. Just proving the ROI on communication. If the team isn't clear on the strategy, they will create their own by what they prioritize and how they spend their time.

● Too Much Focus On Strategy Formulation and Not Enough on Strategy Execution

◦ It is always easier to be the one throwing spaghetti at the wall to see what sticks than the one trying to assemble said spaghetti into a meal. Spend as much time on how you're going to do something as you did coming up with what you're going to do. Even better, do it simultaneously. 

Culture and strategic planning are not mutually exclusive or antagonistic concepts. They are interdependent and complementary factors that shape the success of any organization. By putting people at the center of both culture and strategy development processes, you can create a more engaged, empowered, and effective workforce that can drive your organization toward its vision.