Strategic Planning: An Executive Function?
Learning on the Job #4
In the cognitive science world, planning is an executive function. Traditionally, the same goes in a business context.
Reflecting on our 2016 planning process and learning more about executive functions from a cognitive perspective, I’ve realized it is pretty dangerous to leave strategy just in the hands of business execs. Allow me to expand and I’m curious what you think…
What are executive functions?
Our executive functions are a suite of cognitive processes that come together to accomplish a goal. It starts with being able to set the goal and plan for how to accomplish it. It continues with our ability to sequence our activities and then problem solve, handle unforeseen events, manage our time and override knee-jerk reactions to get them done. This can be for things that take a matter of minutes (preparing a bowl of oatmeal) or more complex (putting together a dinner party for 16 people).
This whole process happens fluidly in your brain, each cognitive ability operating in their own right as well as interactive with each other. Let’s take that dinner party as an example. My planning relies on my working memory (I put the roast in at 4pm so it should take it out at 6pm when guests arrive) and the ability to be flexible allow me to adjust my plans (oops, guests are running late, I should turn the temperature down so it doesn’t overcook). When broken down like this it is easy to see how with properly working executive functions, we can individually accomplish complex goals. (And when they are dysfunctional, it can be pretty debilitating and challenging to get anything done).
How does this apply to an organization?
Let’s zoom out to an organization: a group of people that come together to accomplish a complex goal. Just as with our individual brains, the organization relies on goal setting, planning, flexibility, problem solving, working memory and reasoning to accomplish those goals.
Here’s the pickle. The organization doesn’t have just one brain. It has tens, hundreds or thousands of them. To handle this dispersion of cognitive abilities we’ve separated out tasks across departments and seniority levels. Typically, the executives make the plans (let’s serve roast for dinner), the managers outline the steps (here is the recipe and have it ready for 6pm) and the individual contributors take the actions to accomplish them (buy the roast, preheat the oven, season it and put it in the oven).
Here’s the second pickle. By dividing out the tasks, it becomes much more difficult to do each effectively. What does the employee do when the butcher is out of roast? How do you decide to adjust the seasoning? What if one of the guests that shows up is vegetarian?
Why make planning a company-wide function?
Now, let’s get back to my strategy planning experience. It was something the whole company was part of. My team and I had a series of meetings to discuss our goals for the year, key projects for the quarter and who will do what. As a company, in addition to sharing our plans, we then launched a SoapBox Challenge for all employees to provide their ideas on what was missed. We made it a company affair.
Through this process we operated as one organizational brain. It took more effort but yields far better results. First, we have a better plan. We were able to tap into the insights and experiences stored in everyone’s brain. As the host of the dinner party, it is helpful to know what guests liked last year and what is in season today. These are things only our chefs and waitstaff can tell us.
Second, we will have better execution on that plan. By being part of the process, each brain now has context to make the many decisions and actions needed to accomplish the goal. Food will be hot, perfectly seasoned and exactly what was ordered despite missing a few ingredients and people showing up late. The dinner party will be a resounding success! (okay, that’s my final dinner party reference :)
Bringing the whole company into the planning process enables the organization’s executive functions (i.e., the collective brain) to work effectively. Conversely, leaving strategy just to the execs risks making the organization ineffective at meeting its goals.
The challenge now is how to do this at scale. I recognize that being a smaller organization, I had the luxury of spending hours with my team discussing and debating our plans. I know this isn’t as easy in large corporate. In past experience, I’ve learned about strategies in massive Town Halls or been handed a laminated version of our strategy to hang by my desk. Not exactly a welcoming invitation for input.
What I do know, though, is that there are lots of ways to engage employees on their ideas. Host discussions with small groups, run a company-wide ideastorm or use an idea software like SoapBox. Big, small, one time or ongoing, employees have great ideas and making strategy planning a company-wide function just seems smart to me.
So I’m curious, how have you made your annual planning a company function?
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This is what I’m learning on the job at SoapBox and am sharing this because I believe learning = fun = success.
Share your thoughts and this post to multiply our learning.
