Executive Street News

Bringing Passion Back to Corporate Planning

bringing-passion-to-corporate-planningMany well-meaning managers and leaders assume that because members of the organization are “active” that they are also “effective.”  In reality, activity does not equal effectiveness; and it’s not representative of indispensability. It is certainly not representative of furthering the corporate strategic goals. Rather, effectiveness, especially when it comes to strategy execution, is the result of “doing the right things, right”. The right things are the magical mix of routine business duties and those incremental activities and actions that make organizational goals a reality. To accomplish strategic goals, energy must be focused on productive activity related to the accomplishment of sub-tasks that lead to the ultimate realization of strategic outcomes as well as those business essential tasks that are part of the employee’s job description. That takes dedication, commitment and drive. Yes, what we are talking about the importance of creating passion in our workforce for strategic goal accomplishment – and there is research to back up this assertion.

A 2003 MIT Sloan study identified four corporate energy zones that can either stimulate or handicap competitiveness. This in-depth study proved that organizational energy and focus is a critical component to success.

Some key points that arose from the MIT study are worth considering:

  • After more than 50 years of largely ignoring soft factors, like emotions and feelings, organizations are recognizing the powerful role that emotions play in shaping corporate behavior.

  • Corporate leaders are responsible for unleashing organizational energy and guiding it toward key strategic goals.

  • Organizational energy is the combination of the company’s emotional, cognitive, and physical states.  While difficult to measure, organizational energy is evident in the intensity, endurance, and innovation processes of a company’s work.

  • Individual energy, especially of leaders, influences organizational energy. Likewise, the energy state of the organization affects the energy of individuals.

  • It is the intersection of intensity and quality that determines an organization’s energy state, which usually falls into one of four categories – “The Four Energy Zones.”

 

The Four Energy Zones”

Four-energy-zone-quadrantsMost organizations can be characterized as being in one particular zone at any given time. The four energy zones are as follows:

  • Aggression zone (responding to threat)

  • Passion zone (responding to an exciting goal)

  • Comfort zone (coasting dangerously on past success)

  • Resignation zone (has nearly given up)

 

Reference: Bruch, Heike, Ghosal, Sumantra,“Unleashing Organizational Energy” MIT Sloan Management Review, Sept. 22, 2003

 

Strategic goals translate to change. In any strategic transformation of a business (large or small), leaders conventionally focus their attention on devising the best strategic and tactical plans, without regard to the changes their plans may mean to the people of the organization. To be successful, they also must have an intimate understanding of the human side of change management — particularly the alignment of the company’s culture, values, people, and behaviors — to encourage the desired results. Plans themselves do not capture value; value is realized only through the sustained, collective actions of the tens, hundreds, thousands or perhaps the tens of thousands of employees who are responsible for designing, executing, and living with the changed environment the vision and strategy indicate.

These situations impact the people that make up the organization and must be considered and planned for in terms of fostering acceptance within the workforce and moving to our high productivity gear. To reach the magic quadrant of intensity and quality, we need passion in their hearts of our employees and that means work from the leadership team to instill it.