Business Case Studies, Executive Interviews, Charles Spinosa on Strategy Execution

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Executive Interviews: Interview with Charles Spinosa on Strategy Execution
September 2008 - By Dr. Nagendra V Chowdary


Charles Spinosa
Charles Spinosa,
Group Director Vision Consulting.


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    This phase transforms two common business activities. First, managers tend to focus on telling their employees about the state of the business and market and make weak requests based on their views. In promise based management, managers focus on getting employees into action. Meetings do not start out with dissertations about the nature of market reality. They start out with orientations that lead to requests. Second, since promise-based managers move to action before having a complete picture of the market, many more of the actions are tests to see how a market will react to a new offer.

    Managers need to begin thinking more about their businesses as ongoing experiments and less about executing the same recipe day in and day out. Even within strategy execution, as parts of the strategy are executed, the results are drawn on to make adjustments of the strategy. We call the second phase of promise based management 'making it happen. The performer organizes his team by making requests of them, collecting promises from them and then checking in daily on how they are doing with their promises. He does not check in task by task, but rather on their confidence on fulfilling their promises. He insists on honest reports and probes on the basis of the statement of confidence. Too much confidence draws as much probing as too little. The main performer probes for the lessons that his performers are learning in fulfilling their promises. The main performer regularly checks in as well with his customer to learn if her situation has changed or to report changes he recommends based on the work his team is doing. The phase ends when the performer informs the customer that he believes he has fulfilled his promise. In todays business environment, many managers see themselves as rolling up their sleeves and fulfilling the terms of a promise. Since promise-based management focuses on satisfying the customer, not just fulfilling terms, and on conversation, performers and customers constantly meet to say what they are learning and to collaborate in making adjustments. The customer says what she is learning about the companys overall adjustments to the markets. The performer reports on what he is learning about what his team can do. There are program plans and critical paths to be watched, but promisebased managers monitor by asking about lessons. Making it happen transforms status meetings into brainstorming sessions.

    The last phase is closing the loop. Because the goal of promise based management is satisfying the customers ultimate concern, no promise is fulfilled until the customer declares her satisfaction or dissatisfaction and offers feedback. Completion is never a matter of finishing off a task list and handing the work off. Both internal and external customers frequently shirk their responsibility of assessing work done. No one likes giving negative feedback. Under promisebased management, customers give feedback most often before the same team present at the promise. Managers who are accustomed to perfunctory feedback or annual reviews usually need to learn to make strong thoughtful assessments in order to become promise based managers.

  • What are the five qualities of a good promise? How relevant are they for todays complex business environments?
    There are five basic qualities of a good promise, which is a promise with a strong sense of obligation and shared understanding. Promises are:

    Public. They are best when made before a relevant team of equals, for instance, the chief executives team. Others know and honor what each other is doing. Public promises also put identities at stake. There is some fear of losing face for failing to fulfill. But more importantly when a performer takes ownership of a promise, that defines how colleagues see him. Public promises become the means to building an identity.

    Active. Promises must be actively vetted and negotiated by the customer, performer, and colleagues. Otherwise, performers will tend to make more promises than they can fulfill. Even worse customers will evade their responsibility to monitor and assess. In another reversal of our legal intuition, in promise based management, a customer who accepts a weak, unvetted promise is at fault, not the performer.

    Voluntary. Generally performers feel a personal duty to fulfill promises made voluntarily. Customers need to work to create the space for a performer to decline. Promise based management puts a premium on honest communication on all sides.

    Explicit. Though the goal of promise based management is to satisfy customers general concerns, promises need explicit terms around which performers can organize teams to begin both learning and executing. Without explicit terms, there is no learning that can lead to taking care of a customers ultimate concern.

    Mission based. Customers and performers should see themselves asmembers of a single team to accomplish a broad goalmattering to both. Making requests and fulfilling promises is not just a job; it is forming a temporary partnership. It actively builds a relationship of shared matter and intention. All actions are understood in terms of the ultimate shared goal.

    Most people think that the best way to handle complexity is with streamlined, recipe like business processes. That does not work. Within any process, managers constantly look for ways to excel. Teams develop loyalty to their managers and organizations and try to make them look good. Markets, competitors, and technologies shift. With all this happening, managers make alterations in roles and activities that favor their insights. Old equipment, old marketing techniques, old reports remain in place because one group wants them. Consequently, processes fall out of alignment. Managers then develop add on processes for handling the misalignment. We see this all the time. Managers typically develop their own internal IT and marketing staffs for this reason. Promise-based management simplifies complexity without restrictive recipes. Business lines are organized around their ultimate promise to the end customer. The network of recurrent promises is generally as clear as the promises of a small start-up teams promises. When one promise holder wants to change the promise, she coordinates with the others. If she fails to do that, the feedback will quickly catch her. Simplicity is the hallmark of promise based management. Senior and middle managers seldom need to manage more than eight recurrent critical promises. Ask, What is the basic promise I hold to my boss and company? The answer should provide some simplification right now. Finally, with the emphasis on the external customer, promisebased managements tend to have higher customer responsiveness and loyalty than their competitors.

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