Operationalizing Strategy with a Systems Perspective

While there are many books and much research on Organizational Development, this system view combined with some validated learning over time is a powerful way to look at organizational challenges as a coach / consultant.

Here are some brief definitions and then some validated learning from my experience:

Brief Definitions

• Business Outcomes - the outcomes desired from the business strategy selected.
• Org Structure - the structure of power and authority to facilitate decision making.
• Incentive Systems - rewards for individual and group performance.
• Work Systems - how people get work done in the organization.
• Collaboration Systems - systems to overcome the friction to collaboration introduced by the org structure.
• People Systems - hiring, firing, development, HR systems - both tactical and strategic.

Validated Learning (observations and experiences over time)

• Business Outcomes are required to even think about the other dimensions; and interestingly, in my experience even some top leaders can struggle to articulate these so it may require some elicitation and dialogue. I like to use the pithy "operationalize strategy" when discussing this topic.
• Incentive Systems usually mirror Org Structure fairly closely.
• The Org Structure will help determine both Work Systems and Collaboration Systems; however, Collaboration Systems have a stronger relationship because they must overcome the friction introduced by the structure itself. 
• Incentive Systems and People Systems strongly impact everything else except Strategy. 
• People tend to focus first on Org Structure and Work Systems because they are the most visible, tangible, and even "fun" to work with.
• Each organization design decision made will impact the other dimensions so as the design is created, the entire system must be reevaluated. 
• Organizations are typically good at People Systems when it comes to tactical training and development, but more powerful levers are hiring, firing, and strategic training needs. 
• The most common constraint on change involves Incentive Systems.