Strategy Drives Improvement?

Earlier this week I was due to run a workshop but because of a mix up I had to allow someone else to do it for me.

The topic was to explore the linkage between Strategy and Improvement and in planning for the event (which ultimately I did not undertake), I was given the time to reflect on another reason why improvement programmes go wrong - this being that the various areas improved have no impact on the organisational trajectory and therefore the net effect is like the proverbial 'arranging the deck chairs on the Titanic'.

An example I was made aware of was given me by a friend last night who had worked with one of the 'Big 5' consultancies and had been tasked with transforming the administrative processes in the business's headquarters in Switzerland. Very quickly he realised that the real problems lay with the root and branch sales activities which were spread out across Europe. However, he diligently worked through the improvement programme, charging some £500k, and the overall effect on the bottom line was nothing as the company ran out of cash and closed.

This demonstrates that if you choose to improve the wrong thing, you will improve nothing! Therefore, being clear about the Strategic Issues facing the business is almost more important that rapidly moving to action and actually doing something!