Numerous studies have been conducted to understand the reasons for the disparity between the corporate strategy drafted and its actual execution. Deviations are considered to be detrimental to the corporate performance. However, even complete adherence to strategic plans does not always amount to success. This gap is known as the strategic dissonance or Strategic Stress. The “Yerkes-Dodson Law” which is used for talent management purposes, shows how stress and individual performance are intertwined together. This strategic stress meanwhile may be divided into three zones within a bell-curve. The first such is Strategic Burnout where the stress levels are immense. Here, autonomy may be too much leading to anarchy, the strategic plans may be infeasible or the external forces have pushed the market elements against the company as happened with Lego in 2004. The other extreme end is the Strategic Boredom where stress levels are at all-time lows. When everything goes according to plan, complacency creeps in and innovations suffer. The most desirable position to be in is the Strategic Sweet Spot. For this, balance needs to be found between the different types of managers. While alignment takes place, excessive conformity is avoided. To hit this sweet spot, companies must adopt a mindset that is conducive for stress. It must be set up accordingly by curating innovative events such as hackathons. A diverse mix of people will help to no end in achieving this.

Source:https://hbr.org/2017/11/great-corporate-strategies-thrive-on-the-right-amount-of-tension?utm_campaign=hbr&utm_source=twitter&utm_medium=social

Uploaded Date:13 December 2017