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Strategy and the role of limitations and levers

www.seetheforestview.com

Strategy and the role of limitations and levers

Being honest about your weaknesses can provide clarity for future decisions

Rob Galbraith
Jan 27
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Share this post

Strategy and the role of limitations and levers

www.seetheforestview.com

Quick summary:

  • Many senior leaders make it clear they do not want to hear bad news or excuses

  • This mindset can quiet criticism internally but avoids addressing weaknesses

  • Fully acknowledging limitations leads to discussions about how to overcome them

  • Part of a sound strategy is identifying the right levers you can pull to affect change

  • Being honest about your ability to execute sets up organizations for future success

Why wavering and waffling should be welcomed

On most days, I take my youngest daughter Sienna to school in the morning. The first bell rings at 8:15 am, and classes begin at 8:25 am. The drive to school from our house is usually 10-15 minutes, but it depends on several factors, including whether we hit the traffic lights just right, traffic, construction, accidents, etc. We generally strive to be out the door by 8:00 am. More often, Sienna scrambles into the car a few minutes late.

Our morning routine is strikingly predictable:

  • Sienna apologizes for running late

  • She makes excuses for being tardy (e.g., brushing her teeth or using the restroom)

  • Sienna asks me if we will make it to school on time

  • I respond by saying, “I think so, but I can’t be sure”

  • Sienna gets upset and tells me that Mom always promises to be at school on time

  • I point out that those promises are unrealistic and outside of my control

  • My assurance that “I’ll try my best” are met with skepticism and worry

While a trivial example, Sienna’s refusal to listen to my caveats and careful analysis of the factors influencing whether we will make it to school on time aren’t too dissimilar from many senior leaders. Despite leaders like Kim Scott, who champion the concept of radical candor, the reality is that dissent is not well tolerated in most organizations. Some excuses can be self-serving to lower expectations and look good in front of peers, but others are legitimate limitations that should be more thoughtfully addressed. I’ve written previously that rowing in the wrong direction is OK based on my prior experiences at USAA. Still, waffling and wavering - much less outright disagreement - too often remains taboo in most workplaces.

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Confronting limitations provides needed clarity

Despite my wife assuring Sienna that she’ll make it to school on time, there are few levers she can pull to ensure such an outcome. Consider what few factors are in her control:

  • The speed of the vehicle

  • The route that is selected to school (GPS can provide some guidance here)

  • How strictly to obey traffic laws (e.g., run a red light, speed in school zones)

By comparison, there are many factors mostly or entirely outside of her control:

  • The congestion on the roadways

  • The timing of the traffic lights

  • The presence of road construction

  • The possibility of an accident along the way

  • The weather

  • The vehicle that is driven and the chance of a mechanical breakdown

In many situations, such as driving to school in the morning, there are limitations that influence whether an objective is achieved, most of which are outside our control. Ignoring or pretending limitations are not present means they will often appear again at the end - in the form of excuses - if we fail to achieve our goal. Yes, it is reassuring to promise blindly that an objective will be met up front, but this is incomplete without acknowledging and planning for the obstacles and risks that may be in our way. By considering these factors up front, we can arrange for actions to overcome such limitations while we still can do something about them. The possible levers that can be used can be categorized by type, cost, and timeframe. For example, in the long run, my wife or I could purchase a new car with faster acceleration to shave off seconds from our drive to school. In the short run, a much cheaper and more effective alternative would be to leave our house earlier.

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Explore options alongside your ability to execute

When considering what levers or options are at your disposal, it is helpful to classify them into broad categories. Levers can be separated by which capabilities are internal (within your control) or external (outside your control). Here are a few examples of internal levers:

Internal levers

  • Labor (employees, contractors)

  • Money (operational expenses and capital investments)

  • Resources (data, technology, raw materials, infrastructure, real estate, etc.)

  • Knowhow (contained within people, systems, and processes)

  • Corporate culture (determines how effectively individual parts work together)

External levers

  • Laws and regulations

  • Infrastructure (transportation, currency, networks, etc.)

  • Societal culture

  • Geography

  • Macroeconomic trends

When cataloging limitations, it is valuable to identify which ones are internal constraints and which ones are imposed externally. Internal limitations are more within your span of control, but it is unrealistic to assume that all of these can be overcome in the short run. Additionally, many internal limitations may remain unaddressed even in the long run: too many resources are needed to overcome every obstacle, so choices must be made and prioritized.

For external limitations, it is helpful to categorize further which ones can be internalized, which can be influenced, and which are “gravity issues.”

  • Hiring, partnerships, and acquisitions represent ways to shift external limitations by internalizing them

  • Examples of influencing include lobbying, marketing, and public relations

  • Gravity issues are external limitations that nothing can be done (as in “you can complain gravity is responsible for holding you down, but you can’t change it)

By considering and classifying limitations that may prevent you from achieving your objectives, you can shape your strategy to plan the most impactful actions. Being realistic about your ability to execute will ensure that the odds of your strategy being successful are much greater than simply “wishcasting.”

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Strategy and the role of limitations and levers

www.seetheforestview.com
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