How to Communicate Your Strategy More Effectively

Strategic clarity accounts for 31% of the difference between high and low performing companies.

The more effectively you clarify, communicate and cascade your business strategy the more likely it is to be implemented as planned. But you may not currently be relying on the best way to pass along your business strategy. There’s new research that could point you in a better direction.

Remember the old-fashioned kid game where you communicated via tin cans and a string? And there was also that other telephone communication game where one child whispered to another who passed along the message to a third and so on. By the time the message reached the end of the circle, it was almost always unrecognizable from the original version. This example illustrates one of the risks of relying too heavily on the cascading principle of communicating your organization’s business strategy.

Several years ago a major 60,000 response study was conducted by Charles Galunic of Insead and Immanuel Hermreck of Bertelsmann to better understand how strategy could be most effectively communicated across the workforce. Here were the results…some expected and one quite surprising to us.

  • The strategy was better understood by higher-level employees, employees who were happily engaged in their jobs and who had an overall positive view of their company. This made sense. Engaged employees and those with a lateral view of the organization typically have an easier time understanding, digesting and implementing corporate strategies.
  • Long tenure at a company did not necessarily predict that the employee would “get” the strategy better than newer hires. This was interesting to us because some leaders mistakenly assume that newer employees need more hand-holding when it comes to strategic change and execution.
  • Job conditions, especially opportunities for further development and a clear career path, strongly affected how well understood and supported the strategy was among employees. We found this result interesting. It tells us that leaders should ensure development opportunities and career paths are adjusted and aligned with any strategic changes as part of the strategy communication and cascading process.
  • Confidence in top management was also a significant factor. This aligns with our organizational alignment and employee engagement research. You will know you are headed in the right direction when employees understand the company’s plans for future success, believe the organization will be successful in the future, understand how their job helps the organization achieve success and know how they fit into the organization’s future plans.
  • And, finally, here, from our perspective, is the unexpected result of the survey—direct managers play a far less important role in strategy communication than company leaders.

For those who seem to blame managers for employees becoming disengaged, less productive and at risk to leave, strategy communication and execution is a case where senior leaders need to take charge and play THE major role.

Employees like to hear about company strategy from those who are most in charge of crafting it and making it happen…firsthand, not second- or third-hand. Employees want to hear the real version from executive leaders. They want the straight, unadulterated version, not one that has been watered down and re-interpreted through the cascade of information dissemination. Senior leaders have the authority; they have the credibility; they are in a position to know; and they have the answers to employee questions because they are (or should be) the company’s business strategy experts.

Don’t rely on old-fashioned, unproven methods of communicating the strategy that will guide your company into the future. The message is too important to be garbled by ineffective messengers. Bring your executives in direct contact with the work force, ideally in a forum where questions can be asked. This is the way to ensure the right message reaches the right ears without the possibility of miscommunication.

To learn more about strategic clarity and communication, download The 3 Big Mistakes to Avoid When Communicating and Cascading Your Corporate Strategy

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