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Figure: Strategic Conversation has a direct link influence of organisational performance – even larger than the Strategic Behaviour
So we found support for the earlier premise that better talk is linked with better decisions, better behaviours (actions), and better performance. At an organisational level, strategic conversation (talk) leads to strategic decisions that influence strategic behaviour and improved organisational performance.
It makes sense, doesn’t it – at a practitioner level it’s already known that many Strategic Plans accumulate grandly on shelves from one year to the next rather than being lived and breathed and talked about by the organisation members. By contrast, if there is intentional, regular, informed and thoughtful conversation within and between all levels of the organisation about the various elements of the strategic planning loop, then intuitively we would expect it to influence behaviour – strategically.
Because strategic conversation has been shown to be more effective in improving performance than is strategic planning, and improves the effectiveness of planning and behaviour, and directly improves performance, then organisational executives may sense an advantage for the organisation’s stakeholders to seriously consider its potential. The challenge is not ‘if’ but ‘how’ to initiate and maintain this kind of purposeful conversation within the organisation.
Can Strategic Conversation be learned?
To help answer this question a longitudinal study was undertaken. Seventy organisations commenced a 6-month program whereby the most senior member (CEO, owner, or equivalent senior decision-maker) available from each organisation met weekly for an hour with 5 to 10 other project members to learn about Strategic Conversation and how to apply it.
The three aims of the longitudinal study were to:
- Determine if Strategic Conversation skills could be developed by exposure to knowledge about Strategic Conversation and experience in discussing it and applying it.
- Test the cause-effect nature of relationship between Strategic Conversation, Strategic Behaviour, and organisational performance (does better performance cause better conversation, or better conversation cause better performance).
- Assess and describe any unexpected gains or disappointments
The groups of members met weekly to learn strategic conversation and then introduce it within the processes of their organisations. Adult learning principles were explored and applied in an 'action research' form of program, and tests were conducted to assess the changing skill levels - the changes that were expected, and also for changes that were unexpected (good or bad).
The study program provided the opportunity for participants to explore a wide range of alternate views and frameworks on a variety of topics from micro (e.g. giving instructions – conversation reaction planning) to macro (organisational purpose - strategic programming). Almost 50 topics were available for participants to select from. (The complete list can be found on www.strategic-conversation.com.au/ The content of each topic and session reflected the most recent summaries with research findings and important relationships. No popular management tools or fads were explored.
Measurements were taken at the beginning, middle and end of the 6 month skills-acquisition program, and significant improvements were recorded. In line with participants’ own definitions of organisational performance their collective average improved 23% over that period.
Over a six month period, 23% average performance improvement is a substantial number.
Breaking down the components of improvement in terms the participants chose is perhaps even more interesting. Improvement in efficiency and effectiveness of meetings was recorded as 48% and 50% respectively and Improvement in managerial professionalism was recorded at a whopping 70%.
How interesting is that! 50% improvement in meeting effectiveness would transform any organisation, and 70% improvement in managerial professionalism is transformational.
Significant change in employee development in strategic awareness was also recorded at 63% improvement. This particular figure indicates how strategic conversation spread to influence behaviour throughout an organisation.
The results of the longitudinal skills acquisition program in this research study establishes, beyond doubt, that strategic conversation can be learned, applied, and will make a difference.
Summary of Strategic Conversation
Findings from empirical research show that Strategic Conversation CAN directly impact organisational outcomes and that it is strongly related to performance. Organisations that attend to Strategic Conversation score higher in strategic behaviour and higher in organisational performance. Strategic conversation provides a unique skill advantage – no two organisations can have the same conversation with the exact same dynamics and outcomes.
Organisations CAN learn Strategic Conversation by following a skills development program that focuses on improving communication effectiveness – and promoting and supporting conversations that are strategic and goal-aligned. It isn’t rocket science, but it isn’t easy either.
Conversation occurs everywhere – meetings, in the hallway, over coffee – but to be strategic it MUST have a purpose that is aligned with organisational goals – to set, adjust, pursue, or terminate a goal. It must also be on a topic that belongs within the strategic loop of the organisation, meaning it must be about one or more of the following: scanning for information, planning, implementing, measuring, assessing, or analysing. Finally, and this is the ‘human’ part, the conversation must be of a form that will lead to action – preferably ‘intentional response’ rather than ‘emotive reaction’.
Because of these important findings, we have subsequently developed programs of facilitation and skills development to assist organisations whose executives are interested in pursuing Strategic Conversation. For more information, visit the website www.strategic-conversation.com.au
It pays to cultivate Strategic Conversation in your organisation
Note
1. The strong connection between conversation and performance can be understood by the impact of such conversation on organisational climate. The positive connection between climate and performance has often been supported, and can include the experience of outsiders ‘what it’s like to be a customer here’ as well as insiders ‘what it’s like to work here’. A positive climate is one that both helps the organisation pursue its purpose and helps the organisation members thrive within the organisation. It is intuitively obvious that open and effective communication practices will be essential to such a climate.
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