Employees best "Get" Strategy from the Top
Josh Bersin
Global Industry Analyst, I study all aspects of HR, business leadership, corporate L&D, recruiting, and HR technology. ?
A (results published in HBR) by Charles Galunic of INSEAD and Immanuel Hermreck of Bertelsmann just discovered some important findings about the value of "cascading goals" in creating employee alignment.
They looked at a variety of factors which may or may not contribute to employees feeling connected and committed to the company strategy. All business leaders know that unless employees totally understand where the business is trying to go, their efforts are often misaligned and they often feel disengaged from the company's mission.
When employees are fully committed, their engagement goes up, and they deliver what we call "discretionary effort" and passion to help achieve goals.
We all know what it's like to get excited about the company's strategy (and we have all been in situations where we either don't get it or don't believe in it). It makes a huge difference in our own personal level of energy, creativity, and ability to add value.
(I remember my years at Sybase in the early 1990s, and the words of the founder Bob Epstein inspired me every day.)
Well what the research found was interesting:
- The most important factor in fully engaging employees is direct communication from top leadership. When top executives directly engage employees (through email, speeches, conference calls, and meetings) employees best accept and understand the strategy.
- First line managers, who often try to communicate strategy through a "cascading" process, had the least impact on employee's commitment to strategy. While many companies try to get mid-level managers to deliver the message, their research shows that this approach is among the least valuable.
- Job conditions, such as the availability of training, developmental opportunities, and other artifacts that confirm strategy, have a large impact on employee commitment.
This research confirms several things you should think about:
- You, as a leader, have far more influence than you may believe. Your ability to clarify and explain the strategy, deliver the message, and engage your own people is critically important.
- Cascading "goals" and "strategies" may work to a degree, but they do not substitute for strong communication directly from the top.
- Don't just "talk the talk," also "walk the walk." If your strategy involves an intense focus on customer service, for example, employees will expect to see training, time, systems, and support invested in customer service programs. Without this investment, the strategy does not become real.
Over the last five years many companies have focused heavily on implementing complex "cascading goals" programs through the use of talent management software. (SuccessFactors being one of the most active in this area.)
What this research suggests is that such programs do not necessarily drive alignment or engagement in the company's strategy as much as we may have believed. While we certainly want everyone focused on the right goals, there is no substitute for top-level communication and heavy investment in local training, support, and systems needed to drive success.
Several of our clients in the last year have started to dismantle their complex "cascading goals" programs because they are too rigid and hard to change. In today's volatile and agile work environment, I think it's most important for top leaders to communicate regularly and give line managers the flexiblity and resources to manage people locally.
We call this model the "agile model of management" - and this research further validates that companies are moving this direction faster every day.
You can follow me on Twitter at @josh_bersin or visit our website at https://www.bersin.com.
Retired Human Resources Leader, Corporate Trainer and Coach
11 年This article is on target, emphasizing the need for leaders to communicate the strategy to employees and that employee development and alignment of systems is key. What is also extremely important in my own experience is the education of employees about who the competitors are, how your company is different (why the customers choose you instead of a competitor-- your business differentiation or value proposition); how they (employees' jobs fit and how they can contribute to unique customer value in line with the strategy. They need to be using and developing skills that they want to use and develop, and have active involvement in anticipating and solving problems. Knowing, contributing to, problem solving and growing -- can help create lasting engagement.
CEO/Founder
11 年Nothing alienates employees more than being disconnected from leadership. While paychecks provide an incentive to show up and perform minimally, it is the connection and the belief that we are a team aspiring for a common goal that motivates employees to go the extra mile. Ask your front line employees what connection they have with the head of their department? If there is no connection, how can that department function to its potential? I think that being “Seen” also has a big impact on employees. I once worked in an organization and was 1 floor away from our “C” level department head. Not one time in 4 years did I see that individual on our floor. Communication comes in many forms and leaders must utilize them if they truly want to be the best and lead the best.
President at Geo Surfaces SE
11 年Leadership is everything and communication from the top must come quickly. This is no different than any sports team (players and coaches) it takes both to create a winning situation but only the coach develops the game plan. By having direct communication from leadership, front line employees typical engage the situation quickly enabling direct movement toward the new directive. Most new directives require training but we see too much generic solutions. Specific direction and communication from leadership should also enable mid management to organize the right training and path for the right employee in their given situation.
Salesforce.com Certified Application and System Architect
11 年The technology solution alone will never be the answer. It still takes strong human process and direct communication. The larger the company the more the leader will have to use some form of technology to communicate but I like the clarity this gives to the message coming directly from the leadership.
Great article. I found it particularly interesting to note that first line managers, who often times are the direct managers, have less impact in communicating strategy and objectives than top level management.