Executing strategy: it’s okay to disagree

Strategic execution involves encountering new, uncertain and complex situations. A strategy that does not encounter new uncertain and complex situations is not a strategy; it is an imitation of what has gone before. So what do we know about such situations, i.e. business challenges and opportunities that call for a fresh strategic approach?

First, no one person has a definitive solution when facing a new situation. Second, the most obvious solution, the one that springs to mind most easily, is unlikely to be the best – it is probably a rehash of an old idea. What you need is new ideas, options, choices and propositions. Third, there isn’t just one right answer for developing a strategy that creates value, there are many good ones and even more bad ones. What we need is one that is both good and that people are willing and able to execute.

What typically happens when we confront new, uncertain and complex situations? A group of people are assigned to tackle the issue. As individuals, people will have different ideas, reactions and responses to the challenge, opportunity or problem. Unfortunately, in our experience, the ideas that actually get voiced or heard tend to come from a minority: either the most confident, senior or vocal person. From this restricted set of ideas, it is often the safest option that is chosen because of our aversion to risk and fear of failure. The result is suboptimal, at best, and, at times, a disastrous approach is pursued.

Why cognitive diversity and psychological safety are key to strategy execution

Our research into cognitive diversity – people who think differently about new situations and approach them in different ways, and psychological safety – the extent to which people feel safe to share ideas, however controversial – provides interesting insights.

Primarily, a diverse group of people who are engaged and feel confident enough to express their views without fear of reprisals make better decisions.

When psychological safety is absent many people won’t voice their opinions because they’re worried about how they will be received and the possible negative implications for their reputation. It is not so much a fear of formal disciplinary action, which is rare, but much more about standing and respect within the group. They fear being sidelined and excluded. It’s the behavioural sanctions people impose when they work with someone they find disagreeable that over time undermines psychological safely.

Our research into the behaviours that create an environment of psychological safety highlight how the common dominant behaviours in large organisations need to change. The traditional management behaviours of directing, controlling and hierarchical decision-making erode psychological safety. The behaviours that enhance psychological safety are very different: inquiring, encouraging and experimenting.