Transformation starts at the top, success bubbles from the bottom

One of our client CEOs once told us, “We know our problems. We know the solutions too. But we’re still not able to set things right in our transformation projects.”  

Call it failure of execution, poor implementation or simply not walking the talk, this inability afflicts even relatively successful organisations. Most of them have well-defined strategies, whether carefully documented or etched in top leadership’s minds, but what is the path from there? How do organisations ensure that their plans are not forgotten or put on the back burner, but lived, breathed and put into action by employees on the ground? 

The boardroom phenomenon and how to cut through the hierarchy  

In most organisations, employees are completely excluded from the process of strategy development and formulation.  

A recent survey showed that in around 60% of companies, plans are formulated by a small group of senior management. The CEO and other C-suite members sit together in a boardroom or at an offsite location brainstorming and fleshing out plans. 

These plans are later communicated to employees through formal documents or inspirational speeches. However, being unaware of the thinking behind them and how they came about means they are unable to identify themselves with the strategy.  

This top-down approach to planning is one of the main reasons why strategies so often fail to come to fruition. However, it is possible to make the strategy development process more inclusive and participative, and to ensure that everyone has a comprehensive understanding of the company’s intended direction and the reasons behind it. 

Organisations tend to focus on channels of communication that run from the CEO’s office to employees at lower organisational levels, but few realise the importance of upward communication and informal channels, or the grapevine. 

Facilitating two-way communication channels within organisations 

So how can management both become more aware of what operating teams are thinking and motivate them to become more involved in implementing strategy? The answer is simple – to ensure that there is two-way communication across the organisational hierarchy. 

Many organisations have tried to encourage upward communication, with suggestion boxes, grievance cells, employee surveys or inviting staff to email the boss with feedback. However, the key is creating an environment and culture within the organisation where employees feel comfortable sharing their concerns. 

Rather than depending on ad-hoc and voluntary efforts, consider holding formal group sessions periodically, where employees deliberate the company’s future and the different options available.  

While not all suggestions will make the cut, it’s likely that the exercise will result in some valuable ideas and insights, which could make a positive impact on future plans. Even if people at a lower organisational level may not know what the best course of action to take is, they are often the best placed to know what won’t work.  

They can point out where the risks and gaps lie in conceptual transformation strategies, anticipating what might go wrong or what clarifications in the process are needed at a practical level. The input gathered from a series of such sessions can then be summarised, filtered and brought to the top level, so that upper management can take it into account while formulating plans. 

At Renoir, we believe that involved and engaged employees help organisations take a more holistic and informed approach to planning. By collaborating with your teams to create systems and processes for bottom-up feedback, our goal is to lay the foundation for sustainable success in your transformation initiative.