The importance of “how” in organisational success

By Jonathan Pearce, Co-Founder & Principal Consultant at Alignment Cubed.

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Introduction

If you asked employees independently, you’d like to believe the majority of them would give a similar definition of what your organisation does, and most could give a good crack at articulating why it exists. Yet when it comes to how the company intends to achieve its purpose, deliver value and compete to win, just how quickly would divergence surface?

What if you could distil your complex strategic intentions into three easily understood and memorable sentences that could be adopted by the entire organisation so that they could serve as the lenses through which every decision could be evaluated?

The "How" is a pivotal component of effectiveness that often remains nebulous and poorly defined manifesting in misalignment, reactivity, short-termism, inconsistency, micromanagement, and apathy among staff. The antidote to these undesirable organisational aberrations is Strategic Anchors. These are the guiding principles that connect an organisation's 'Why' (purpose) to its 'What' (actions). They serve as the highly actionable bridge between strategic intent and operational execution, offering a coherent and straightforward framework for decision-making across the enterprise.

What are Strategic Anchors?

The concept of Strategic Anchors draws inspiration from various leadership and organisational theories. Simon Sinek's ground-breaking work "Start with Why," introduces the Golden Circle model consisting of 'Why,' 'How,' and 'What.' According to Sinek, organisations often understand what they do and how they do it, but for him the critical differentiator lies in knowing why they do it. The 'Why' serves as the foundation, the core belief or purpose that motivates an organisation to exist.

However, to translate this purpose into action and achieve a unique market position, organisations need also to be crystal clear on their 'How'. In "The Advantage” Patrick Lencioni emphasises the importance of 'How' in organisational success. He argues that clarity in how an organisation plans to succeed is pivotal and it is the game plan (a.k.a. Playbook) that helps an organisation fulfil its purpose and achieve its vision.

 When CEOs and leadership teams lack a clear 'How,' they often find themselves at the mercy of opportunistic decisions and tactical objectives that might not contribute effectively to their long-term vision. Strategic Anchors fill this gap by providing a robust yet flexible framework for making choices that serve the organisation’s broader aims. They serve as the lenses through which every decision is evaluated, ensuring consistency and focus across all organisational layers.

Put simply, Strategic Anchors are the distillation of the complex strategic intentions into (usually no more than three) short, straightforward, easily understood, and memorised sentences that are owned by the entire organisation. Unlike tactical objectives, which may be numerous and more immediate, Strategic Anchors encapsulate how a company differentiates itself in the marketplace. They are long-term in scope and serve as thematic pillars to which all objectives, tactics and decisions should align.

Real Life Examples*:

  • Sigma-Aldrich (pre-Merck): Leadership in life science & high technology, obsession with service, passion for process improvements
  • Southwest Airlines; cheap tickets, fast turnaround, friendly service
  • Apple: premium user experience, seamless ecosystem integration, sleek design
  • Amazon: customer obsession, continuous innovation, operational excellence
  • IKEA: design for the masses, functional and lean, self-service
  • Airbnb: Community trust, accessible travel, local authenticity
  • Nvidia: Pioneering AI and deep learning, ecosystem development, sustainable innovation

(*The actual internal language used by these organisations might be worded differently.)

What advantage do Strategic Anchors bring?

Have you worked in organisations with departments who have conflicting priorities that have emerged organically and independently, from guesswork, localised problems, and personal agendas? How frustrating is it to be part of an organisation that is continually reacting, frequently pivoting and changing priorities influenced by market trends, competitor activities or shiny short-term revenue opportunities?

Strategic Anchors serve two critical roles: they function as decision-making criteria and as alignment mechanisms and fundamentally enable an organisation to:

  1. Prevent Distractions & Maintain Focus: Strategic Anchors play a crucial role in maintaining focus within the organisation. They are the lens through which every strategic and tactical decision is evaluated. When faced with opportunities or challenges, the leadership team can refer to these Strategic Anchors to assess alignment and coherence. This is essential for prioritising resources effectively and ensuring that the entire organisation concentrates on strategic objectives and aligns its efforts towards common goals. Simultaneously, these anchors serve as a safeguard against potential distractions, such as unaligned opportunities or initiatives, ensuring that the organisation remains on course and dedicated to its core mission. In doing so, organisations avoid the pitfall of reactive or opportunistic decision-making that can deviate them from their long-term vision and goals.
  2. Foster Organisational Alignment: These anchors extend beyond guiding leadership decisions; they are integral to fostering a sense of shared purpose across the organisation. By establishing clear strategic priorities, they enable a unified understanding of what is important, ensuring that all departments and levels within the organisation are working cohesively towards the same objectives. This alignment is key to achieving organisational harmony, with every member contributing effectively towards the collective vision and strategic direction of the company, with everyone rowing in the same direction.
  3. Empower Individuals & Teams: Strategic Anchors empower both individuals and teams by providing clarity on what matters most. This empowerment allows staff at all levels to make informed decisions confidently and independently, reducing the reliance on micromanagement. As a result, a culture of trust, autonomy, and responsibility flourishes. Employees feeling valued and capable directly leads to increased job satisfaction and productivity, fostering an environment where innovation and proactive problem-solving are encouraged.

In today's rapidly evolving business landscape, the ability to maintain focus, foster alignment, and empower employees is more crucial than ever. Strategic Anchors offer a powerful solution to these challenges, providing clear heuristics for decision-making and a shared language for organisational strategy. By distilling your complex strategic intentions into three memorable sentences, we believe you can transform how your organisation operates, thinks, and competes. Do not let your company's potential be limited by strategic ambiguity or misalignment. Embrace the power of Strategic Anchors and see your employees become more focused, aligned, and empowered to drive your organisation towards its mission. How much of a game-changer could that be?

Alignment Cubed provides unique support to busy biotech CEOs and executives, providing them with an accelerated pathway to organisational alignment as they scale and become more complex, and priorities conflict. To understand how Alignment Cubed can help you, contact Jonathan or Majid. 

Want to dive deeper yourself?

The following resources cover a range of topics including leadership theory, organisational behaviour, innovation, and strategy. They provide a mix of academic and practical perspectives that can help you deepen your understanding of the concepts discussed in the article.

  1. The Advantage by Patrick Lencioni.
  2. Works by Roger Martin including Playing to Win.
  3. Works and articles by Michael Porter including Competitive Strategy and Competitive Advantage.
  4. Start With Why by Simon Sinek – introduces the concept of the Golden Circle, particularly the "Why" component, serves a similar purpose in providing a clear, concise statement of an organisation's purpose.
  5. Made to Stick by Chip & Dan Heath – introduce the SUCCESs model designed to help create ideas that are memorable and impactful.