The Strategy #9 Repositioning Organizations: From Strategy on Slides to Real Action, Part 2: Why Identity Must Come Before Strategy

In the previous episode, we discussed why many strategies "disappear midway," and we concluded that it's not because the plan is bad, but because the organization is unable to get its people to make decisions in the same direction.

But wait. Before we say, "Organizations can't really get their employees to make decisions in the same direction," have we asked ourselves clearly, "Who is this organization in the eyes of those inside?" Why is this question so important? Let's take a look.

gThe strategy failed not because it was a bad idea.

But believe it or not, it's because "we don't know who we are."

Working with several large organizations, I've observed a worrying pattern: senior management talks about the same strategy, but department managers interpret it differently, and operational staff are unsure which decisions are the "right" ones.

McKinsey once explained this issue by stating that many organizations try to drive strategy without ever creating a "shared understanding" of who the organization is and what values ​​it places on the decisions of its employees. This isn't just about top-down strategic communication, but rather a lack of shared understanding among employees about the company's identity.

The result is that the strategy is translated into different behaviors, even though the same set of slides is used.

Identity is not branding.

Identity It's not branding, but a "reference system" for decision-making. Many organizations misunderstand the term... Identity I was wrong. I thought... Identity It's about the logo, the slogan, or the external image, but in reality... Identity What does an organization's product/service represent? You can easily find out by answering the following questions.

• When faced with a difficult choice, "which option should we choose?"
• Do we value "speed" or "prudence" more?
• When KPIs conflict with customer performance, what should we prioritize?
• Which decisions are you willing to make on your own, and which require approval?

If an organization cannot clearly answer these questions, its strategy will never be translated into consistent behavior.

point of view Board and investors

The scary thing isn't a bad strategy, but an organization that "changes without knowing what it's changing into."

Lately, institutional investors and company directors have started looking deeper and aren't just asking questions like... What does the new strategy look like?
But the question is...

• Did the middle managers "agree on the decision"?
• How do organizations cope with unexpected situations?
• Culture can either accelerate or slow down change.

Because in a world where 3-5 year plans quickly become outdated. Organizational Identity The question is, when there are no slides and no manual, can everyone in the team "choose the same path"?

Repositioning, starting from Strategy.

Repositioning that starts with strategy often ends up with the same old questions. From my experience talking to many organizations, repositioning that begins with strategy often circles back to the same problems, such as:

• Communication was done, but no real change occurred.
• Everyone agrees, but nobody owns it.
• The structure has changed, but the behavior remains the same.

It's not because the organization did it unintentionally, but because it has never clearly answered the most fundamental question: "What kind of company are we in the eyes of the people within the organization?"

Identity comes before strategy… because it determines the “way of thinking,” not just the “goals.”

Strategy says that... Where are you going? But Identity says that... How should we decide along the way?

If the organization is still unclear about...

• Brave or not brave?
• Quick or cautious?
• What do you truly value, and what are you just saying you value?

No matter how clever the strategy, ultimately, you'll always be drawn back to your old habits.

If identity is that important, the next question is… Who is the one who "carries"? Do we truly apply the organization's "identity" to our daily lives?
In the next episode, we'll continue discussing this.