We recently engaged with Virtual Enterprises International (VEI) to help them scale their impact across the nation. VEI is an incredibly effective live business simulation that integrates with the school day and allows students to become young professionals in a transformed classroom. After 18 years of program design and delivery, VEI has proven its model and expanded to 350 schools nationwide, reaching 10,000 students. But think about it: there are 25,000 public and 12,000 private secondary schools in America. That’s a total of 18 million secondary students. The chasm between the number of students currently served and a population-level scale is vast.
This challenge is classic in the social sector. Highly effective models tend to be resource and human-capacity intensive. Teach for America, a remarkable and well run nonprofit with a $212 million annual budget, still only reaches 750,000 students per year. Many social sector organizations must truly pivot to scale and achieve maximum positive impact.
Building on the great work of many of our colleagues, including Jeff Bradach, we believe these are the nine of the most powerful strategies to scale impact: Continue reading
We think a lot about the relationship between strategy and execution at Converge, reflecting often on the famous quote attributed to Peter Drucker, “Culture eats strategy for lunch”. Execution is about culture and leadership. Poorly executed strategies are not just a shame – they waste precious human and financial resources, are tough on morale, and undercut long-term performance. This think piece from a recent article in Harvard Business Review talks about large companies – the authors surveyed 7600 managers in 262 companies across 30 industries – but the lessons are also valid in the social and public spheres, and in smaller organizations. I found this article to be the most useful thing I’ve ever read on the topic.
A recent survey of more than 400 global leaders found that executional excellence was the number one challenge, heading a list of some 80 issues, including innovation, geopolitical instability, and top-line growth. Two-thirds to three-quarters of organizations struggle with execution. And it’s no wonder: Research reveals that several common beliefs about implementing strategy are just plain wrong. Here are five of the most pernicious myths:
Execution equals alignment
Whereas companies have effective processes for cascading goals downward in the organization, their systems for managing horizontal performance commitments lack teeth. When asked to identify the single greatest challenge to executing company strategy, 30% cite failure to coordinate across units. Managers also say they are three times more likely to miss performance commitments because of insufficient support from other units than because of their own teams’ failure to deliver. More than half of managers want more structure in the processes to coordinate activities across units – twice the number who want more structure in the management by objectives system. Processes to align activities with strategy up and down the hierarchy are generally sound. The real problem is coordination: People in other units can’t be counted on.
Execution means sticking to the plan
After investing enormous amounts of time and energy formulating a plan and its associated budget, executives view deviations as a lack of discipline that undercuts execution. Unfortunately, no strategy survives contact with reality. Managers and employees at every level need to adapt to facts on the ground, surmount unexpected obstacles, and take advantage of Continue reading
We know you probably don’t have time to read through full magazines, so we read them for you. This month we summarize the best of: Rotman Management Magazine, Fall 2014, with a focus on effective innovation.
Rotman has long been one of our favorite publications, with many thought-provoking articles and interviews on design thinking, psychology, consulting, behavioral economics and neuroscience. You can subscribe here – we guarantee your thinking will be sharpened as a result.
The Innovator’s Challenge, Dilip Soman
In the US alone, estimates suggest that as many as 75% of all new product launches fail. The latest research shows that efforts to solve social problems have focused too narrowly on developing solutions and not sufficiently enough on developing a rich understanding of the process that individuals use to adopt solutions. Real consumers are Continue reading
This post is a part of our Think Piece series, in which we synthesize and share the most insightful concepts from our favorite books, articles & thought leaders. The following has been modified from the writings of Roger Martin, The Big Lie of Strategic Planning, Harvard Business Review, January 2014.
“Customers and context are both unknowable and uncontrollable.”
In 1978 Henry Mintzberg published an influential article in Management Science that introduced emergent strategy, a concept he later popularized for the wider nonacademic business audience in his successful 1994 book, The Rise and Fall of Strategic Planning. Mintzberg’s insight was simple but indeed powerful. He distinguished between deliberate strategy, which is intentional, and emergent strategy, which is not based on an original intention but instead consists of the company’s responses to a variety of unanticipated events.
Mintzberg’s thinking was informed by his observation that managers overestimate their ability to predict the future and to plan for it in a precise and technocratic way. By drawing a distinction between deliberate and emergent strategy, he wanted to encourage managers to watch carefully for changes in their environment and make course corrections in their deliberate strategy accordingly. In addition, he warned against the dangers of sticking to a fixed strategy in the face of substantial changes in the competitive environment.
In an effort to get a handle on strategy, managers spend thousands of hours drawing up detailed plans that project revenue far into the future. These plans may make managers feel good, but all too often they matter very little to performance. Continue reading