In the second blog post to come out of our Executive panel event on strategic planning, we want to talk about a great question that was asked during the Q&A session at the end that really got the panel and the audience thinking.
The question asked was, “How do you reconcile hitting your metrics with the changing idea of culture?” To expand on that a little bit and provide some additional context, let’s say that at the beginning of the year, you based your KPIs on the existing culture and circumstances. When the end of year rolls around and you are evaluating your progress, how do you measure the success of your strategic plan if you hit all your KPIs but the culture that informed them is no longer as relevant to your mission, vision, and/or values?
In the dynamic landscape of modern business, the challenge of reconciling tangible metrics with the fluid nature of organizational culture is a puzzle many leaders grapple with. It’s important to realize that it's not about labeling strategies as good or bad; it's about understanding where you are and acknowledging progress within the context of a changing environment.
The KPIs you set at the beginning of the year made sense for where you were at the time, but what got you here may not be what is needed to move you farther and that’s okay. Commend yourself for the work accomplished, acknowledging that the journey is ongoing.
Understand the Why
A comment from the audience really struck me and framed the relationship between culture and KPIs in a way that I think will resonate with those struggling to balance KPIs with culture - KPIs are finish lines, but culture evolves forever. Meaning you can’t measure culture through your key performance indicators.
Your culture can inform the KPIs that you set for your organization, but culture is what you do and how you act, not metrics in a strategic plan. It's apples and oranges. BUT culture is just as important to organizational success as hitting your strategic targets.
If your KPIs no longer make sense in the context of a shifting internal or external culture, pause to recognize achievements and then do the work to understand the 'why' behind the evolving landscape. What triggered the change? What's the new impact, and how has the context shifted? Starting from a values-based approach lays the foundation for alignment, ensuring everyone understands the purpose behind the metrics.
Seek Input, Report Often, and Be Bold
Cultivating a successful organizational culture requires ongoing efforts. Seeking input and reporting back consistently foster transparency. Be bold; initiate those tough conversations. Acknowledge the present state, change won't occur if you don't embrace the current reality. Continue to move the goal posts as necessary, adjusting your approach in alignment with the evolving dynamics. Challenge assumptions, ensuring they align with the current organizational ethos.
In the realm of organizational evolution, understanding the synergy between hitting metrics and shaping culture is paramount. Embrace change and be proactive. The culture you cultivate today will determine your organization's success tomorrow.
Embrace Agility
This brings us full circle to the original topic of discussion (one that we addressed in the first blog post in this series) - the importance of an agile corporate strategy. An agile approach empowers organizations to navigate the ever-changing business environment with flexibility and resilience.
A key feature of agile strategy is the ability to adjust your KPIs in real-time, ensuring they remain aligned with an evolving landscape. By embracing agility, companies can swiftly respond to market shifts, technological advancements, unforeseen challenges or a changing corporate culture. This proactive adjustment of KPIs enables a more accurate reflection of performance, fostering informed decision-making and strategic refinement. In essence, an agile corporate strategy not only anticipates change but actively embraces it, allowing businesses to drive sustainable success in an unpredictable world and ensure that your priorities and goals will continue to reflect the core of your business.
Remember, KPIs are benchmarks, but culture is the ongoing journey. Challenge assumptions, adapt strategies, and move forward boldly. As the business landscape continues to transform, your adaptability will be the compass guiding your organization toward sustained success.
Contact our Management Consulting team if you are interested in expert support as you build your strategic plan for the new year. We help organizations like yours create and implement strategies and then monitor and course correct as needed.
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