Strategy, engagement and performance

In a recent study conducted by Wharton, researchers found that one of the key obstacles to executing a strategy effectively was the lack of ownership of the strategy or execution plans among key employees. Numerous studies of staff engagement also indicate that creating a line of sight between employees and business strategy is a key driver of engagement. But what does it really mean for employees to have this line of sight?

Clearly we are talking about two different levels of connection when we refer to "ownership" of strategic plans and having "a line of sight" to those plans. There will be people within and, often, stakeholders outside the organisation, who will expect to have a clear understanding of the relationship between what they are expected to do and the way in which this contributes to the overall organisation's goals. Their motivation, engagement and ability to make sense of their own role will be enhanced if they have a clear line of sight from their objectives to the organisation's goals. In many organisations, there will be a cultural norm which implies that almost all employees (with very few exceptions) have this clear perspective. Performance planning, review and reward systems will be designed and operated to ensure that these connections are made and reinforced.

Ensuring that this line of sight exists is very valuable. "… a Watson Wyatt poll of 14,000 employees across Europe has suggested that those companies that provide their employees with a clear ‘line of sight’ when it comes to vision and direction tend to have a much more committed, engaged and productive workforce….. Organisations with superior financial performance measured by total shareholder return, market premium and employee productivity will, more often than not, have a more engaged workforce…. The most important driver for ensuring employee engagement was strategic direction, with other key drivers of engagement being employer communication, the attention given to customer focus within the organisation and performance management….. "

"Ownership" of strategic plans, I would argue, takes place when employees are involved with the planning process at an earlier stage, a deeper level of engagement and when there are more options "on the table". It is about understanding that you are "dipping your pen in the pot" and contributing to the raft of decisions that make up a strategic plan. Ownership of this kind can not be faked: stakeholders will invariably understand if they are being involved in a sham process and they are likely to feel exploited, demeaned and disenchanted with leaders and the organisation as a result.

For leaders the questions remain:

• Who should own our plan?


• Who needs to be involved in creating it?


• Who must review our plan?


• Who needs to be consulted?


• Who must feel they own it?


• How do we create a wider sense of ownership?


• How can I communicate about our plan in a way that builds understanding and commitment?

... but never "pretend" to involve stakeholders. That way leads to ruin and is tantamount to a lie.