0 minutes read
In many organizations, strategy does not fail loudly. It fades. The boardroom produces a compelling vision. Strategic pillars are agreed upon. Slides are approved. And yet, somewhere between senior leadership and the front lines, momentum dissipates. Initiatives stall. Priorities blur. Execution slows to a crawl.
Leaders feel informed but not decisive. Such perplexity trickles down, and middle managers who stand between ambition and reality fail to take risks falling back to safety. The organization is procrastinating but not due to lack of intelligence but due to lapse of clarity in the midst.
This is called the strategic black hole: the area in which strategy is introduced with purpose, and emerges as noise.
Middle management is where strategy becomes operational reality. It is the layer responsible for interpretation, prioritization, and translation.
When execution fails here, the issue is rarely motivation. It is usually design. Managers are requested to work without clear guidelines, they feel bombarded with data and they also have manual processes that take up their time that should be used in decision making.
This black hole is usually created by three system failures
Strategy is frequently stated as purpose: “maximise shareholder value, become customer-centric, become efficient”. These assertions can be directionally right, but operationally vague.
Middle managers are left asking:
Without a structured framework, strategy remains a narrative rather than a rule set. The managers resort to that which has been used before, old habits, or firefighting. Artificial harmony ensues.
Balanced Scorecard (BSC) training seals this translation gap.
The BSC does not view strategy as a fixed plan, but it interprets it as a collection of related viewpoints, financial, customer, internal processes and learning and development. The structure allows the managers to infuse top-level themes with actual objectives, measures, and initiatives that they can manage.
Strategy is not made simple, but rather made clear.
Despite clear goals, there is a tendency to fail in the implementation process due to a lot of reporting. Middle managers are regularly given heavy performance books: dozens of charts, sliced by region, and product and channel and time period. The intent is transparency. The effect is paralysis.
Nothing will shine when all things seem significant. Managers do not make decisions, but scan. Meetings are about explanation of numbers but not responding to them.
Organizations end up in reporting debt with years of accumulating reports that are not useful, but to delete them seems perilous.
Well-designed Power BI reporting addresses this problem not by adding insight, but by subtracting noise.
Instead of exhaustive views, it creates a decision architecture:
This allows managers to move from interpretation to action. The report no longer asks them to find the signal. It presents it.
The most obscure point of strategic black hole, but, at the same time, extremely destructive: data drudgery.
The time that the middle managers and performance teams spend in correcting the Excel equations and unequal figures as well as interdepartmental toil reduces the productivity of the groups. A larger amount of time is devoted to the preparation of information than to the time it has to be used.
The pressure the greater the rate of decision-making is sluggish. Managers require more information to mask uncertainty that further slows down implementation. The paralysis of analysis sets in but this is not as a result of indecision but because of the cognitive overload that is exhausted before one can make a decision.
The gap between action and insight is removed by Performance Management Systems.
The low value manual work is eliminated by these systems through data integration, validation, and automation of the refresh cycle processes in the execution chain. The managers will no longer need to make sense of the fragmented information within an environment that is under pressure.
Instead, they can focus on what strategy involves, i.e., it involves evaluating trade-offs, reallocating resources and adjusting direction based on real time circumstances.
Decisions are not easy to make through automation. It makes them possible.
The common fallacy between these three failures is that clarity will automatically come with an increase in information or reporting, or effort.
As a matter of fact, clarity is a design preference.
Even the finest strategy will be defeated by its own complexity unless the appropriate effort to invest in skills, tools, and systems is undertaken. The failure of execution is not due to the resistance of people to strategy, rather it is caused by the environment that alignment is cognitively costly.
In order to transform strategic intent into tangible outcomes, then organizations have to explicitly empower their middle-level management with capacity and ability. That means providing:
When these elements are aligned, strategy no longer disappears in the middle. It moves decisively, consistently, and at speed toward execution.
This article was written by one of the consultants at IPC
Whether you're looking for more information or you're ready to start a project, We are ready to help
024 2481950
170 Arcturus Road, Greendale, Harare, Zimbabwe
Get exclusive access to Zimbabwe's latest salary trends, HR best practices, and industry insights delivered straight to your inbox.