Harry and I have been doing the Traction Heroes podcast for over a year, and themes are starting to emerge. The most prominent is the importance of perceiving reality clearly. I’m often reminded of Richard Feynman’s quip, “The first principle is that you must not fool yourself — and you are the easiest person to fool.”
For episode 29, Harry brought the following passage from Stephen Bungay’s The Art of Action:
At its most simple, executing strategy is about planning what to do in order to achieve certain outcomes and making sure that the actions we have planned are actually carried out until the desired outcomes are achieved.
In a stable, predictable environment it is possible to make quite good plans by gathering and analyzing information. We can learn enough about the outside world and our position in it to set some objectives. We know enough about the effects any actions will have to be able to work out what to do to achieve the objectives. We can then use a mixture of supervision, controls, and incentives to coerce, persuade, or cajole people into doing what we want. We can measure the results until the outcomes we want are achieved. We can make plans, take actions, and achieve outcomes in a linear sequence with some reliability. If we are assiduous enough, pay attention to detail, and exercise rigorous control, the sequence will be seamless.
In an unpredictable environment, this approach quickly falters. The longer and more rigorously we persist with it, the more quickly and completely things will break down. The environment we are in creates gaps between plans, actions, and outcomes:
The gap between plans and outcomes concerns knowledge: It is the difference between what we would like to know and what we actually know. It means that we cannot create perfect plans.
The gap between plans and actions concerns alignment: It is the difference between what we would like people to do and what they actually do. It means that even if we encourage them to switch off their brains, we cannot know enough about them to program them perfectly.
The gap between actions and outcomes concerns effects: It is the difference between what we hope our actions will achieve and what they actually achieve. We can never fully predict how the environment will react to what we do. It means that we cannot know in advance exactly what outcomes the actions of our organization are going to create.
Although it is not common to talk about these three gaps, it is common enough to confront them. It is also common enough to react in ways that make intuitive sense. Faced with a lack of knowledge, it seems logical to seek more detailed information. Faced with a problem of alignment, it feels natural to issue more detailed instructions. And faced with disappointment in the effects being achieved, it is quite understandable to impose more detailed controls. Unfortunately, these reactions do not solve the problem. In fact, they make it worse.
There is a model for creating a link between strategy and operations and bridging the three gaps. It involves applying a few general principles in continually changing specific circumstances. They are not difficult to understand, but their implications are profound.
I’ve read the book since recording this episode, and it’s become a new favorite. Here’s the gist as it pertains to this conversation: strategy is essential, but it must translate to action. And conditions on the ground can change very fast, so leadership can’t overspecify directions.
That assumes clear perception at every level. But it’s not easy; cognitive biases get in the way. Whether you’re leading or executing, you must overcome self-delusion. There are several ways of doing this. I suggested using AI to challenge assumptions and Harry offered an insightful question to promote honest introspection.
Check out our conversation for more.