Recapturing the Humanity within Strategy (Post 1 of 3 on Fast Strategy by Doz & Kosonen)
Upon reading hundreds of articles on management innovation, I have noted a recurring theme about how culture drives strategy. Zappos, Southwest, and Valve, to name a few, are repeatedly cited as companies that have demonstrated the importance of culture. In these companies, culture not only drives strategy, it also grounds and guides it. Culture provides the cohesion, consistency, and purpose that is needed when one is operating in a context where change and uncertainty is pervasive. Strategic agility is no longer an option if companies wish to not only survive, but thrive. And, since culture drives strategy, then culture is an essential part of strategic agility and thus plays a critical role in building a company’s capacity to perform. Fast Strategy (2008), by Yves Doz and Mikko Kosonen, further strengthens the case for culture and its role in building strategic agility.
One definition of “culture” by Merriam Webster dictionary is “the set of shared attitudes, values, goals, and practices that characterizes an institution or organization”. Although the word “culture” was only mentioned a handful of times in Fast Strategy, the authors unpeel the concept and zero in on the human behaviors that underlie and create company culture. Specifically, they discuss how companies should recognize the need for fostering cognitive shifts and harnessing emotions. Contrary to what most would expect to find in a book about strategy, for Doz and Kosonen, human cognition and emotions are “powerful levers to rebuild strategic agility”.
Essentially, Doz and Kosonen remind leaders that in order to create change and remain agile, companies must invest in the people that make up their organization. The book is grounded in over 150 interviews, small groups, and background research focused on four technology companies (IBM, Nokia, SAP, and HP). From their research, they find three key dimensions of strategic agility: strategic sensitivity, collective commitment, and resource fluidity. The authors explain that leaders must recognize the very human side of rebuilding those capacities; and human behavior can either prevent or enhance your company’s capacity to be strategically agile.
As someone who is drawn to literature on the human aspect of organizations, Fast Strategy was a breath of fresh air. The authors artfully tie in the very human dimensions to strategy, producing a work that is respectful of the complexities of both the human and the organization. As a whole, the book serves as a powerful message to leadership that strategic agility is not possible without a deep understanding of human behavior in organizations. And, such an understanding can in fact not only drive but ground and guide strategy.
In the coming two weeks, we will delve more deeply into “Mobilizing Minds” and “Energizing Hearts” as key factors for rebuilding strategic agility in your company.
In brief: “Mobilizing Minds” is about how rebuilding strategic agility is “primarily a cognitive task”. In other words, rebuilding strategic agility requires a shift in perspective, and, thus, needs to be addressed as such. This is especially true when agility is lost during times of momentum and success. “Energizing Hearts” explains that emotions are a powerful lever to rebuild agility that is lost as a result of stagnation. Companies that tap into emotion effectively can re-energize and strengthen the three dimensions of strategic agility. Doz and Kosonen have effectively tapped into the human underpinnings of culture as a wellspring of strategy.
Next week’s topic: “Mobilizing Minds”
By Mo Sook Park, Staff Writer