Lynda Gratton, Living Strategy (2000)
London Business School professor (pictured right) whose work aims to make
organizations more humane and employee friendly.
See also...
Lynda Gratton in the Management
Gurus section.
Book summary
What is a living strategy?
Putting employees at the heart of an organization's purpose .
Why is it important?
A living strategy maximizes employees’ commitment and creativity.
Employees (and corporate culture, their shared values
and beliefs) are vital to a company’s competitive
advantage, because their performance can’t be easily copied.
What are its three beliefs about human behaviour?
1. We operate in time (past, present and future)
- don’t just concentrate on the present and/or past.
- define your future vision and objectives and how to achieve them.
2. We search for meaning
Striving for shared purpose and values through formal strategy statements and informal understandings (the
“unwritten rules of the game”).
3. We have a soul
Employees have emotions and the need for respect, dignity and pride.
How to create a living strategy
1. Vision and objectives
Define the organization’s short-term objectives and long-term vision.
2. Gap analysis
Compare and fill the gap between an organization’s present capabilities with the capabilities (including people
– see point 3) necessary to achieve the vision.
3. Performance
Implementing people strategies for future success based on customer satisfaction, innovation and change:
- short-term levers - recruitment and selection, performance objectives, feedback and
appraisal, financial and non-financial rewards, and short-term training.
- long-term levers - inspirational leadership, restructuring (e.g. creating customer focused
teams) and long-term development of workforce skills.
These people strategies require a “guiding coalition” between:
- management (senior and middle managers, team leaders and HR professionals) and
- employees (young employees for creative ideas and front line staff with direct customer
contact).
4. The cycle of hope
Commitment and mutual trust can increase (the “cycle of hope”) if employees:
- are treated with respect and fairness.
- participate in change and know the reasons for it.
- have their ideas taken seriously
- believe that they can make a difference.
- are inspired by leaders and managers (who must do what they say).
Cost reduction and company reorganization (e.g. redundancies) can be perceived as unjust, so reducing commitment
(the “cycle of despair”).
Key quote on human resource
management
Perceptions of fairness are profoundly influenced by the way we are treated, the manner in which information is
given and the means by which views are heard.
Key quote on objectives and vision
The creation of a shared vision is at the heart of a people-centred strategy.
Key quote on competitve advantage
It is only people who can sustain the competitive advantage of a company.
Key quote on business success
Successful businesses are created by excitement and inspiration, innovation and ideas.
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