Michael Lissack
“We learned the hard way that coherence doesn’t come from control systems,” reflected the CEO of a technology company. “It comes from shared understanding of purpose and principles. When we tried to main- tain alignment through detailed plans and metrics, we actually created more incoherence as conditions changed and plans became outdated.” This insight highlights a fundamental shift in how organizations cre- ate coherence. Rather than attempting to maintain alignment through static structures and detailed control systems, coherent organizations develop dynamic processes that continuously regenerate shared under- standing and alignment. Several approaches characterize sustainable coherence in rapidly changing environments: Purpose as North Star: In conditions of high uncertainty and rapid change, detailed plans quickly become outdated. Coherent organizations maintain alignment through shared purpose that provides direction while enabling adaptation to changing conditions. A consumer products company implementing this principle replaced its detailed five-year plan with a clear articulation of purpose—”enabling sustainable well-being in everyday life”—and a set of strategic priorities that evolved based on changing conditions. This approach provided con- sistent direction while enabling teams to adapt their specific initiatives as consumer preferences, technologies, and competitive dynamics evolved. Principles-Based Governance: Rather than attempting to specify all actions through detailed policies, coherent organizations establish core principles that guide decision-making throughout the organization. These principles provide boundaries within which people have significant autonomy to adapt to local conditions. A financial services company replaced its 400-page policy manual with 15 core principles organized around client outcomes, risk manage- ment, and ethical conduct. Teams throughout the organization had flex- ibility in how they implemented these principles based on specific client needs and market conditions. This approach improved both adaptability and consistency of outcomes.
438
Made with FlippingBook. PDF to flipbook with ease