The Explainer: Balancing Delivery and Adaptation

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1:11Everything would go perfectly if everyone would just stick to the plan, right? Well, not unless your plans exist in a vacuum, unaffected by outside factors. These factors insist that we constantly improve, innovate and adapt. Authors Lindsay McGregor and Neil Doshi frame this discussion in terms of two types of performance. There's tactical performance or how well you stick to your strategy and adaptive performance or how effectively you diverge from your strategy and create an environment where new better ideas can grow. There's a time and place for the tactical side. Rigidly adhering to procedures is important for achieving goals of consistency or scale.

1:52But we aren't robots and when we make our employees act like them, it can backfire, making them less likely to be creative and raise problems. To succeed, McGregor and Doshi suggest that companies build balanced cultures, and this often means reducing the pressure on tactical performance while finding ways to increase adaptive performance. For example, when you are setting performance metrics, avoid linking them to high-stakes bonuses, promotions and firing decisions. Employees and executives are often less innovative if they're afraid of missing the mark. Instead, use metrics and data to set learning goals for better performance.

2:32Try turning precise scripts and manuals into helpful guides. This gives employees more ownership and freedom to experiment and create new solutions. Consider hosting regular problem-solving sessions to encourage brainstorming and troubleshooting as a team. If you can balance out these two competing priorities, your customers, employees and your bottom line will notice the difference.

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