Living Strategy: Putting people at the Heart of Corporate Purpose

Citation

Russell, A. (2001), "Living Strategy: Putting people at the Heart of Corporate Purpose", Leadership & Organization Development Journal, Vol. 22 No. 8, pp. 402-404. https://doi.org/10.1108/lodj.2001.22.8.402.1

Living Strategy offers readers a route from an examination of the philosophy of embedding people in corporate purpose through to the practical analysis of how to operationalise and implement the rhetoric. Lynda Gratton’s position is that the reality of organisational life is that people do not feel that they are treated as the organisation’s most valuable asset.

From my perspective, the approach, style and content would add value to a wide range of potential readers. I would recommend the book to practising managers, “people professionals” in human resource strategy and management roles and the more academic reader. The book is grounded in a combination of extensive longitudinal studies of a number of leading organisations including Motorola, Hewlett Packard and Glaxo Wellcome and consultancy practice over a number of years. Living Strategy delivers an effective and useful examination of both why and how to implement a people‐centric approach to business. The book is presented through a four‐part structure:

1. 1

   the description and development of the argument for the new agenda to deliver organisational success through putting people at the heart of corporate purpose, through to;

2. 2

   an examination of three constructs, tenets in Lynda Gratton’s words, for considering people and their relationship with an organisation;

3. 3

   the setting out of a six step process to create a living strategy; and

4. 4

   a workbook to guide one through the implementation of the six‐step process.

The three tenets are developed and discussed in an appropriate depth, using both the core and additional case examples. For each tenet a set of three organisational and managerial capabilities are identified. Lynda Gratton asserts that the three tenets are fundamental shifts in the way that organisations think about their people. The tenets are:

1. 1

   We operate in time; the need to recognise that current behaviour is based on a belief system that is rooted in a “memory of the past” and beliefs about the future “memory of the future” as well as the time taken to develop skills and knowledge and to change attitudes and values.

2. 2

   We search for meaning; the need for us all to create a position for ourselves in the world of work and the creation of shared meaning in organisation and its exhibition through signs and symbols of the organisational culture.

3. 3

   We have a soul, as people, our deep sense of self, our ability to be inspired, to dream, to invest trust and to be so much more creative when our work connects with our soul.

The part focused on the six‐step process to create a Living Strategy starts by positioning the people processes within a gap between long‐term vision/business goals and delivering performance. The difference between the short‐term and the long‐term people levers is identified. The short‐term levers are the traditional field of activity of the human resource professional e.g. recruitment, performance objectives, metrics, reward, recognition and short‐term training. The longer‐term levers are the transformation of leaders, workforce and the organisation.

The steps, whilst presented as a linear process, recognise the complexity and iterative nature of the real process. The process builds from the foundation of a “guiding coalition”, through the imagination and articulation of the future, understanding of current capability to identify a gap. The analysis stage is described as mapping and modelling of the system and its dynamics. The planning stage is “bridge into action”. For each of the sections, a consistent structure is presented, made up of:

• •

  guiding principles e.g. keep the process simple, focus on the few themes that will make the difference, measure success through the richness of the dialogue;

• •

  tools and techniques e.g. risk matrix, diagnosis of current capability;

• •

  case examples, using Philips Lighting, BT and others to exemplify the steps;

• •

  assessment tools, to assess capability at each of the steps; and

• •

  identification of the specific roles of the line manager alongside the HR professional at each step.

The workbook is the least successful part of the book; it still adds value but is rather superficial. The workbook offers a structure for considering organisational capability against the tenets and each of the six steps. It offers guidance on how to address particular profiles of capability. For example, organisations that are good on visioning but weak on analysis and implementation, in contrast to an organisation that is good at tactical action led performance.

In conclusion, a great book, for the general management reader and the human resource academic or professional alike.