In the dynamic markets in which businesses of all sectors compete today, a company’s strategy must be understood by the entire organization - and it must be translated into departmental, team, and individual goals, so that each person can contribute to its implementation.
We all know that the world turns a little faster each day; what was new yesterday will already be outdated tomorrow. Companies face immense, serious challenges. The buzzwords are artificial intelligence, the Internet of things, automation, robotics, and above all, speed. Since the turn of the millennium, brands, customer relations, and therefore product development have changed at an ever-increasing pace. This places established companies under tremendous pressure, as existing business models in every sector are under attack from all directions, by competitors who don’t even have these older companies on their radar. Uber has declared war on traditional means of transportation worldwide, and so far, in many countries, legal measures have been the only thing keeping the taxi industry alive. The same goes for the hotel industry: under attack by Airbnb around the world, legal restrictions are also the only reason established companies have been able to stay in the fight for customers. Paypal, Apple Pay, Google Pay and Fintech companies undermine banks’ business model, while Amazon makes life harder for retailers around the world and has now set its sights on logistics companies like DHL. Since Tesla showed that building electric cars was possible and the German automobile industry (among others) proved that combustion engines haven’t kept up with the social requirements of the 21st century, Germany’s most important industry is also at a crossroads.
The list goes on, but one thing is clear: Strategies developed even just a few years ago are no longer valid. Five-year-plans, which essentially depend on expanding an existing business by five to seven percent each year, are no longer viable. Of course, our view of the past is critical, but the rules used to focus on expanding existing businesses while developing new ones slowly and surely. Today, businesses simply don’t have that kind of time. And the strategy is about far more than incrementally developing existing brands with better products and services, thus continuing to optimize efficiency.
As rapid innovations continue to characterize the disruptive world of VUCA (Velocity, Uncertainty, Complexity, Ambiguity), companies in all sectors must constantly reinvent themselves with extremely dynamic brands, over and over again. They must fundamentally change the ways, means, and approaches they use to run their businesses. Of course, companies still pursue long term goals, which we call “North Stars.” These goals can include becoming the financial services provider with the best multi-channel offer in the world, or for an auto company, becoming the first to build re-usable rockets. The strategies for achieving these goals are continuously and iteratively developed, and constantly adapted to changes in the market. They must take the company’s transformations into account.
All together now!
The greatest challenge, however, is to transplant a business strategy from upper management’s laptops into the overall organization. Especially in a manner that ensures that each area, department, and team, down to every single employee, can break down the strategy into something they can use in their own setting. Each member must be aware of the North Star and have clear knowledge of how they can contribute to reaching it, if the entire organization is to effectively pursue its strategy. More traditional channels of communication, such as inefficient and fragmented communication passed down from middle management to team leaders and down to employees, are no longer enough. Neither is posting in the intranet. These methods honestly never really worked well in the past, nor did they play an important role in the success of a company.
That has all changed. A company’s strategy must be broken down and translated into individual goals for each team and each employee, so that each person’s work, development, and individual capabilities can directly impact the implementation of the strategy and the company’s ability to reach its goals.
Traditional talent management did not help established companies anticipate challenges or tackle them successfully. Companies did not invest in better personnel recruitment, training, and development with the required speed, agility, and innovation.
That is why we need a new, people-oriented company operating system that doesn’t decouple individual empowerment from the company’s business strategy. Talent management had the important task of improving performance management. This often meant working with employees to set individual goals, which in many cases came with financial incentives. But often, these individual goals were only loosely connected to the company’s strategic goals, if they were related at all. This meant that employees were very committed to acheiving their personal goals, but this commitment often had no effect on acheiving the company’s goals. Furthermore, company leadership and employees would often have an annual meeting at the start of the business year, in which they would set individual goals for the next twelve months. Then they would work towards their goals to the best of their knowledge and in good faith, but without ever considering whether these goals always corresponded to the immediate market situation, which could change radically over the course of the year. The annual meeting was often the only opportunity for feedback over the entire year, meaning these individual goals weren’t updated later on. Despite rapid and often surprising changes to markets and customers, the goals would remain static. Money and staff time were simply invested incorrectly.
The new operating system for smart organizations must closely link business strategy with individual empowerment. Our Strategy Mobilization Solution Package does just that: Strategy Mobilization ensures that the right employees work on the right, future-securing tasks, while aligning individual development with company development. This is the only way to ensure that resources are used successfully and lucratively.
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Full focus on Business Power leads to inspiring visions and excellent strategies - but without solid execution from your organization the promised impact on your company´s success will stay out. On the other hand efficient HR solutions will not boost success if they are not properly synced with your business requirements. So a deep alignment between Business Power and People Power should be the guiding principle for each and every organizational transformation.
Maximum transparency and comprehensibility are the most fundamental requirements for establishing a business strategy in an organization and ensuring that all employees act in accordance with it. People.OS enables you present your strategy in a format that is fully tailored to your employees’ needs. In doing so, you lay the foundation for successfully implementing the strategy.
Any relevant initiative that contributes to the company’s success is clearly outlined and described using the appropriate media, so that the relevant parts of the organization can consult it at the touch of a button. Employees and teams relevant to the strategy’s implementation can be addressed through the dashboard, directly and on a daily basis. Lengthy and inefficient channels of communication that relied on middle management are a thing of the past.
A strategic initiative’s success naturally depends on the skills of the employees involved. People.OS collects feedback and uses public profile data and job descriptions to learn employees’ strengths, and pro-actively helps attract the best people for each initiative. This is a factor that shouldn’t be underestimated, and which has an inevitable impact on speed and quality.
People.OS allows each employee to set goals and tasks that contribute to the strategy’s successful implementation. The contributions panel allows goals and tasks to be attributed directly to the business strategy. This motivates the entire organization to contribute decisively to the company’s strategic success.
People.OS provides managers responsible for strategy with relevant overviews and evaluations, such as the most strategically relevant topics, an overview of participating employees, and detailed progress reviews, for example. This ensures that data-driven decisions about your business strategy become the basis for strategic decisions.