Why Strategists Should Embrace Imperfection
Strategic planning in an uncertain world is all about embracing imperfection. Traditional approaches to strategic planning are increasingly challenged by the speed of change in the real world. Rapid technological advancements and external disruptions demand a more flexible and adaptive approach to strategy. In their McKinsey podcast discussion based on their book The Imperfectionists: Strategic Mindsets for Uncertain Times, Charles Conn and Rob McLean provide valuable insights into why embracing imperfection is crucial for strategic planning. This stands in marked contrast to some of the reasons we hear for doing strategy work in the first place—namely, to reinsert order and perfectibility into chaotic systems. Here’s a comprehensive summary of their advice for organizational consultants and their clients.
The Case for Imperfection in Strategy
Conventional strategic planning often seeks perfection and certainty. However, Conn and McLean argue that striving for perfection can lead to either paralysis or hasty decisions based on incomplete information in a world marked by unpredictability. Instead, they propose embracing imperfection by adopting a set of strategic mindsets that enable organizations to navigate uncertainty more effectively.
Six Strategic Mindsets for Uncertain Times
1. Be Ever Curious
Curiosity is the foundation of innovative thinking. Organizations can discover new opportunities and insights by constantly asking audacious questions and challenging the status quo. Edwin Land’s invention of the Polaroid instant camera, inspired by his daughter’s simple question, exemplifies the power of curiosity.
Encourage Audacious Questions: Promote a culture where employees ask bold, challenging questions.
Create Safe Spaces for Curiosity: Ensure that all team members feel safe to express their ideas and questions without fear of reprimand.
We must emphasize that the second admonition is a necessary precondition for the first, e.g., no audacious questions without safety after the fact.
2. Dragonfly Eye
Inspired by the dragonfly's multifaceted vision, this mindset encourages looking at problems through multiple lenses. Incorporating diverse perspectives allows organizations to make more informed decisions. For instance, the development of Invisalign orthodontic aligners was driven by viewing the problem from the customer’s perspective, a surprisingly uncommon approach in health care.
Adopt Multiple Lenses: Look at problems and opportunities from various perspectives by bringing in cross-functional teams and seeking external viewpoints.
Broaden the Aperture: Use diverse data sources and analytical methods to gain a comprehensive understanding of strategic issues.
3. Occurrent Behavior
This mindset emphasizes generating new data through experimentation. Bayes' rule, which involves updating beliefs based on new evidence, is crucial in high uncertainty. Techniques like A/B testing and pilot programs can provide invaluable insights, helping organizations adapt and refine their strategies.
Implement Continuous Experimentation: Continuously experiment with new ideas and approaches.
Use Bayesian Thinking: Apply Bayesian thinking—updating beliefs and strategies based on new evidence—to remain adaptable.
4. Collective Intelligence
Tapping into collective intelligence extends beyond an organization’s internal resources. Utilizing platforms like Kaggle to crowdsource solutions can leverage global expertise to solve complex problems. This collaborative approach accelerates innovation and problem-solving.
Crowdsource Solutions: Leverage collective intelligence by tapping into external networks and platforms.
Foster Collaborative Environments: Create an organizational culture that values collaboration and the sharing of knowledge both internally and externally.
5. Show and Tell
Communicating ideas effectively involves more than just presenting data. Using compelling visuals and narratives can engage stakeholders emotionally, making the strategic vision more impactful. Conn and McLean highlight how visual demonstrations can be far more persuasive than either simple data points or text alone.
Use Compelling Narratives: Develop compelling narratives around strategic initiatives using storytelling and visual aids.
Engage Stakeholders Emotionally: Focus on communicating the values and impact of strategic initiatives in ways that resonate emotionally with stakeholders.
6. Audacious Goals
Setting bold, long-term goals while taking smaller, manageable steps is essential. This dual approach ensures that the organization remains agile but also focused on significant, long-term objectives. Conn and McLean compare this to climbing a staircase—each step represents progress towards a significant goal, with room for adjustments along the way.
Set Bold Long-Term Goals: Help clients set audacious, long-term goals while taking incremental steps to achieve them.
Reevaluate Regularly: Regularly revisit and adjust strategic plans based on new information and changing circumstances.
Integrate Strategy and Operations
Strategy should not be siloed from daily operations. Integrating strategic thinking into all levels of the organization ensures that frontline insights continuously feed into the strategic process, making it more adaptive and responsive.
Break Down Silos: Integrate strategic thinking into daily operations to ensure that frontline insights are continuously fed into the strategic process.
Frequent Strategy Sessions: Hold frequent strategy sessions that involve employees at all levels to ensure that strategic thinking permeates the entire organization.
Transparent Communication with Investors and Stakeholders
Maintaining transparency with investors and other stakeholders about the strategic approach and the rationale behind it builds trust and ensures that stakeholders understand the reasons for adopting a flexible, experimental approach.
Be Honest and Transparent: Maintain transparency with investors and stakeholders about the strategic approach and the rationale behind it.
Set Clear Expectations: Clearly communicate the expected outcomes and potential risks of strategic experiments to manage stakeholder expectations effectively.
Conclusion
By embracing the principles of imperfectionism, organizations can navigate uncertainty more effectively, foster a culture of innovation, and build more resilient and adaptable organizations. These strategies address the challenges of a rapidly changing environment and position you to seize new opportunities as they arise. That is a double win for any institution.
Summary prepared with assistance from ChatGPT version 4.0, July 3, 2024.
