Visionary Architecture - catalyst4.co.nz · CATALYST4 Visionary Architecture Having a vision does not necessarily make you a visionary organisation. A closer examination of the research

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Creating a Visionary

Architecture

Developing a shared vision that, as a team, you are

committed to creating is challenging, but

worthwhile work. We recognise there is a lot of

confusion regarding visioning - different language

is used to describe the same thing, and equally, the

same words can be used to describe different

things. While we do not believe there is one

definitive answer to visioning - we do believe that

starting from a common understanding helps when

working together to create the future.

Visionary Architecture

Analysis of 30 independent studies on vision is clear:

“executives who develop and communicate a vision

skilfully can make a profound organisational impact.”


Why All the Fuss about Visions?

Is vision just a management fad? Mark Lipton, Chair of Organisational Change Management at

Milano Graduate School, New School University (New York City) was convinced it was. So much so,

that when some organisations approached him to help them develop visions, he declined. He

became so cynical about visions, that he decided to create a research project to support his working

hypothesis that vision makes no difference.

When Lipton analysed more than thirty independent international studies on organisational vision,

his conclusion was clear: executives and managers who develop and communicate a vision skillfully

can make a profound organisational impact.

Concrete performance measures such as profit, return on shareholder equity, employee turnover,

and rate of new product development improve when visions are used as strategic tools to manage

organisational cultures. Sound data supports the intuitive appeal of visions.

Lipton identified five ways an organisation can benefit from leading with vision:

Vision enhances a wide range of performance measures.

Vision promotes change.

Vision provides the basis for a strategic plan.

Vision motivates individuals and facilitates the recruitment of talent.

Vision helps keep decision making in context.

Shared Vision Enhances a Wide Range of Performance Measures.

A recent, thorough study identified and tracked eighteen "visionary" companies and matched them

with comparison companies in the same industries with similar characteristics. The comparison

firms, however, did not manage with a vision.

The study found that a dollar invested in a general stock market fund in 1926, with all dividends

reinvested, would have yielded $415 by 1990. The dollar invested in the comparison firms on the

same date, with adjustments made for when the firms became available on their respective stock

exchanges, would have grown to $995, more than twice the general market.


But this same dollar invested in the group of visionary companies would have returned $6,356, more

than six times the comparison group and fifteen times the general market.

Collins, J.C., and Porras, J.I. (1994). Built to Last: Successful Habits of Visionary Companies. Century: London p 5.

A Vision Promotes Change.

Rather than reacting to the environment, when a team creates a shared vision it begins to take

control of its future. As such, shared visions are “trend-benders” - moving organisations from their

likely future to their desired future.


A vision serves as a road map for companies as they move through change. Three independent

studies in the United Kingdom found that clear visions support change, equally a lack of vision is why

organisational change efforts frequently fail.

Dr Peter Blyde was involved with creating visions for a pharmaceutical company in which the

Managing Director credits their vision as one of the key reasons the organisation has not only

survived “shocks” (like losing 40% of its revenue overnight when Pharmac decided not to fund a key

pharmaceutical) but has become one of the top growing pharmaceutical organisations in New

Zealand.

A Vision Provides the Basis for a Strategic Plan.

A vision is crucial if strategic planning is to work at all. Conversely, strategic planning cannot provide

the vision on its own. Focusing on a "plan" rather than a vision constrains thinking about what is

possible for the future, and can lead to paralysis.

A Vision Motivates Individuals and Facilitates the Recruitment of Talent.

A shared vision can energise people by connecting them to the purpose of the organisation or

department. People need to feel that they are making a useful contribution to a worthwhile venture;

the vision enables them to see how their effort contributes to the larger picture.

Increasingly, younger employees are pressuring management to develop visions. Ann Weiser, vice

president of human resources development at Kraft Foods, commented, "Generation Xers demand a

vision that conveys the big picture of what the organisation stands for and how, or whether, they

will fit in. To recruit the best talent and to hang on to them, we need that vision."

An investment bank experienced problems when members of its talented, self-described Generation

X work force became de-motivated. Their contribution diminished when they could not draw a clear

connection between their often narrow job roles and the broader organisational vision, because the

vision never existed. "Making gobs of money," the company's informal but publicly stated purpose,

was not an effective long-term vision for the talent that the firm had decided to attract. They

wanted to maximise their income as much as any investment bank employees, but they also needed


a broader challenging purpose. Some of the most productive, talented people left because of the

lack of a vision.

A Vision Helps Keep Decision Making in Context.

Visions provide focus and direction. In organisations without a vision, people are exposed to short-

term opportunities that they may feel endlessly compelled to seize. Without focus, the organisation

may never develop a strong distinctive competence. "It's easy to say what you're going to do," says

Michael Dell of Dell Computer. "The hard thing is figuring out what you're not going to do." When

visions help individuals focus their attention on what is most important to the organisation, people

uncover and eliminate a myriad of unproductive activities.

A shared vision can also provide effective yet unobtrusive control and create a context for decision

making. As organisations become leaner and flatter, this takes on greater meaning because decision

making becomes inherently more decentralised. A clearly understood vision, in effect, gives people a

compass. If it is properly developed and implemented, the vision can affect the perspective or

premises that people use to make decisions in the absence of rules, direct supervision, or threats.

Unlocking the Potential of Visions

From best-selling books on leadership development to editorial columns and public forums, we learn

that vision is the answer to many organisational issues. Yet most executive’s experience of visions

and creating visions for their organisations often fall very short of delivering the types of outcomes

we have just described.

In nearly 15 years of experience and working with many different organisations and teams to create

shared visions – we have come to the following conclusion:

“There is Way Too Much Pressure on One Vision”


“There is too much

pressure on one

vision - the myriad

of expectations we

have cannot be met

by one vision.”

The key to unlocking the potential of visions is to recognise that vision does not equate with a vision

statement. When we ask a group of senior executives to identify what a good vision should do,

typically we get variations on the following answers. The vision needs to be:

Long-term, not short-term.

Stretching.

Memorable (keep it simple).

Inspirational.

Clear in what it actually means (not just a nice bunch of words).

Achievable - not just nirvana.

Relevant to, and have the buy-in of, the whole organisation (and in

some cases external stakeholders e.g. community).

Personally engaging – means something to you.

Kept alive (not just gather dust).

Broken down into steps.

Yet when we ask how many executives have ever created, or been part of an organisation that has

had a vision that meets all these criteria – few can answer positively. While most executives would

agree that visions serve a critical role, most are intimidated and frustrated by the challenge of

developing one.

Our experience is clear - the myriad of expectations we have cannot be met by one vision (let alone

the few words that typically comprise vision statements). They can, however, be met by an

integrated visionary architecture.


CATALYST4 Visionary Architecture

Having a vision does not necessarily make you a visionary organisation. A closer examination of the

research confirms what CATALYST4’s experience has shown – that the word vision is best

understood, not as a vision statement, but rather as an integrated visionary architecture.

The visionary organisation differs from an organisation with a vision in that it successfully uses and

integrates the vision into all aspects of its operation. In a visionary organisation, actions tell the tale

as people work to get the vision "off the wall" and into their daily life. Visions are used to test

existing boundaries with the questions: "Given our vision — how should things be different?" and

"What actions will make it different?" Visions also form the hub for strategic decisions, systems, and

policies. They also drive resourcing – if it doesn’t fit the vision, it isn’t resourced.

Based on our experience, and backed by research, we have created the following visionary

architecture.


Let’s look at each element of the visionary architecture.

Primary Aspirational Vision Statement

In many organisations, the vision statement is the only piece of the visionary architecture. The

clarity and commitment required to the future simply cannot be carried by so few words.

What role should a vision statement play? At CATALYST4 we believe the purpose of the primary

aspirational vision statement is not to capture everything that is important to the future of an

organisation, but rather to encapsulate the primary aspiration the organisation has.

It should:

Represent the stretch you are committed to. The primary aspirational vision statement is the place

you should unashamedly set your sights high. Not in a “wouldn’t it be nice if …” way, but in a “we’re

committed to becoming” way. When you look at it, you should be thinking – “we’re not there yet,

what else do we need to be doing to make this a reality”.

Be relevant to all primary stakeholders across the whole organisation. A key test of the primary

aspirational vision statement is: “is it engaging for all the primary stakeholders in the organisation?”

Be short – typically 3-6 words. This ensures you maintain focus on the primary aspiration (not

getting lost in trying to cover too many bases) and helps with making it memorable.

International examples include Disney’s “create happiness”, and Coca-Cola’s “within arms reach”.


But we have also discovered that having a primary

aspirational vision statement in words is not enough. It ends

up sounding like “motherhood and apple pie”. People need

visions to be more tangible. It is necessary to paint pictures

of the type of organisation you want to become.

Critical Success Factors

In thinking about an organisation and its future, we have

found that few people think of the organisation as a whole. Consequently, we have found that it is

helpful to create the vision as a series of integrated pieces. The outcome is much like a stained glass

window. From a distance, a stained glass window depicts a beautiful picture – up close it is

comprised of individual pieces of coloured glass.

In any organisation, there are always a large number of things that demand our attention. When

visioning, you want to ensure that you focus on the few key factors that will differentiate you. These

are the areas where “things must go right”. We call these critical success factors.

We have identified critical success factors that are:

An end result/outcome.

In your control.

Address “hard” and “soft” factors. For an organisation to be successful, it needs to have visions

for hard results like client satisfaction and financial performance and soft areas like culture and

individual well-being.

Critical success factors:

Ensure the visioning focuses on areas that make the most difference (avoiding “majoring in

minors”).

Enable executives to focus and “ground” their visioning energies.

Help connect the visioning and planning processes.

Having identified the critical success factors. The next key step is to create shared visions for each

critical success factor.

For an organisation to be

successful, it needs to have

visions for hard results like

client satisfaction and

financial performance, and

soft areas like culture and

individual well-being.


What Are Shared Visions?

To us, shared visions for each of the critical success factors are the visionary powerhouses. These

shared visions are the powerful pictures of an ideal future the team is committed to creating. These

shared visions answer the question, "What are we committed to creating together?

High quality shared visions for each critical success factor should:

Create a powerful image/picture of what we want to create.

Provide direction.

Be a useful lever for change.

Stir emotion and energise commitment.

Captivate the hearts and minds of the team.

Be dynamically incomplete – there must be space for others to contribute.

Deep shared visions come from the heart – they create an exciting, emerging dream that everyone

can buy into. To generate this level of impact, the process used to create the visions is as important

as the outcome. Unfortunately, capturing shared visions as vision statements can work against a

true sense of shared vision. Typically, such vision statement processes go through the following

dynamics. Teams of people sit in rooms in off-site locations and ponder their future. They gain

valuable insights and begin to experience a sense of the organisation's spirit. So far, so good … but

then they are charged with putting that sense of spirit into the confines of one sentence or

statement!

This task would be hard enough for the world's greatest poets, let alone those who are relatively

inexperienced in translating complex ideas into words. As a result, the vision statements usually do

not tell us about the spirit that underlies the vision, nor do they stimulate fresh dialogue, challenge

thinking or mobilise the necessary commitment. Instead, they are often awkward expressions of

vagueness.

Real shared vision is better expressed in ways other than vision statements and therefore requires a

process that is significantly different from the usual vision process organisations undergo. We have

found that there are many ways to capture this shared vision and we will work with you to identify

the approach that best suits your organisation.


Shared Current Reality

Once you have created a shared sense of where you want to

head, it is tempting to jump to “how do we get there”.

However, just as it is important to get a shared sense of

where you are heading, it is useful to get a shared

perspective on where you think you currently are in relation

to your desired future.

Knowing what currently exists may sound deceptively simple. But most of us have been encouraged

to view reality with particular biases. Some people make reality seem better than it is, some make it

seem worse than it is, and some minimise how good or bad it can be. Good, bad or indifferent, you

want to know accurately what is going on if you are to create the future you desire.

Equally, we all have different experiences – and even different perceptions of shared experiences.

By taking the time to share each of your perceptions and perspectives, you can build a richer picture

of your current reality and consequently you are in a stronger position to identify which strategies

will make the biggest difference.

Getting a shared perspective on current reality is not a one-time event. Regularly tracking current

reality provides a strong basis for evaluating success of the breakthrough strategy.

Breakthrough Strategy

For each critical success factor, you will create a breakthrough strategy. The breakthrough strategy

answers the question – “what one thing (over the next 12-18 months) will enable us to make the

greatest progress towards our vision?”

A task without a vision is

drudgery. A vision

without a task is but a

dream. But a vision

with a task is the hope of

the world."

Inscription on a church in

Sussex England 173 ]


Breakthrough strategies connect the long-term with the now, and ensure that as you plan back from

the future, that you are clear on the outcomes and actions required of you over the medium term.

The breakthrough strategy includes a clearly defined goal, key action steps, and identifies the

necessary resources (financial, time and executive attention) required. The strategy also includes

timelines to which people are held accountable.

Quick Wins

One of the key criticisms of visionary processes is that they are “simply talk”. When it comes to

silencing the cynics and critics, actions speak louder than words.

Even for those who are committed to the vision, progress can sometimes feel slow - with the results

towards a vision not being proportional to the effort invested. Often one-third of your way on your

journey towards achieving your vision, you are unlikely to see one-third of the possible results; you

may see only 1/10th of the possible results. Quick wins ensure people see and feel that things can

change.

Thus, a key part of achieving the breakthrough strategy is creating quick wins. Notice we said

creating, not hoping for, quick wins. Creating and celebrating early victories can powerfully signal

that progress is happening and can help provide important motivation and momentum towards the

larger vision and strategy.

Integrating the Visionary Architecture

In a visionary organisation, each of the elements of the visionary architecture is aligned. The

connections between the key elements create a cumulative effect that produces the positive results

identified earlier in this special report.


As we have seen, no single piece of the architecture can answer all the important questions about

the future, but collectively the visionary architecture should.

We have seen many visionary processes derailed by executives (and sometimes by those they lead)

because expectations of certain elements of the visionary architecture are unrealistic. For example,

shared visions don’t indicate what specific actions you will take in the next 12-18 months (nor should

they). Similarly, breakthrough strategies are rarely inspirational and engage the heart. Seeking the

appropriate information from the right element of the visionary architecture ensures you use the

appropriate criteria for success for each element.

Executives often find that different parts of the visionary architecture engage and motivate people

differently. Some are be inspired by the primary aspirational vision statement (others feel that it

isn’t practical enough). Some are engaged by the breakthrough strategies (others find the strategies

too defined and restrictive). Taken together, the elements of the visionary architecture engage the

majority of people.

The table over summarises the key elements of the visionary architecture, outlining the primary

questions each element answers, and the key criteria by which success should be judged.


Strategic Framework

Key Question it Should Answer

Key Criteria

Primary Aspirational Vision Statement

In essence, what is the primary aspiration we have for the future (7-10 years)?

The place you unashamedly set your sights high.

Relevant to all key stakeholders.

Short – 3-5 words.

Memorable.

Scale and Scope of Operations

What services will we provide to which customers in a way that differentiates us?

Based on analysis and aspiration.

Provides clear scale of growth and business.

Provides clear sense of breadth of offering.

Creates a positioning that is distinctive in the minds of customers.

Critical Success Factors

What are the few areas that will make the biggest difference to our future success (5-7 years)?

An end result/outcome.

In your control.

Impact a wide number of people.

Address hard and soft drivers of future performance.

Capture internal and external factors.

Shared Visions

What are we committed to creating together – what does the future look and feel like (5-7 years)?

Provides direction and a clear picture of future success.

Stirs emotion and energises commitment from whole team.

Is dynamically incomplete – is broad and ambiguous thereby creating space for others and new ideas for the future.

Shared Current Reality

Where are we now relative to where we want to be?

Perceptions & perspectives on\ current reality are shared to get the full picture.

As reality changes regularly, there is regular sharing of perspectives and checking of progress towards the vision.

Breakthrough Goal and Strategy

If we could only do one thing over the next 12-18 months that would take us the greatest distance towards our vision, what would it be?

Identifies clear goals – what specifically will be achieved, to what standard, and by when?

Has clear action steps and timelines.

Identifies and commits resources (dollars, time and executive attention).

Quick Wins

What can we do right now that starts us on our journey towards our desired future?

Planned for and created, not hoped for. High impact on desired future and low resource

requirement.

Preferably symbolic in nature.


The Process of Creating the Visionary Architecture

The process of implementing the visionary architecture typically follows three key phases:

Creating the Visionary Architecture

Communicating and Cascading the Visionary Architecture

Committed Living of the Vision

Creating the Visionary Architecture

Your commitment to creating the visionary architecture is the start of an important journey – it is

not the end. The worst possible outcome for your team is to see the time you have set aside for

creating the architecture as the only commitment necessary. To achieve the full benefits, you need

to be personally committed to creating, communicating/cascading, and living your vision.

Developing a visionary architecture can be an imprecise and frustrating process. The interactions

are not at all like the way people in most organisations communicate and make daily decisions.

Further, some leadership books imply that when the final vision is agreed on, everyone will sing

"Koombaya" and celebrate the emerging future. In our experience, the exercise is rarely spiritual

and pleasant.

Rather the process is creative and often chaotic, requiring many iterations. It requires a capacity for

synthesis and imagination. Done honestly, it will be a sobering but invigorating experience.


Communicating and Cascading the Visionary Architecture

The impact of the initial communication of the visionary architecture can be significantly enhanced

by following some well-tested principles (such as – the vision should be communicated as a team).

Further, communicating the vision is not something that is done once. Teams need to keep telling

themselves and others the vision stories to keep the spirit of the vision alive. In this way, visions act

as “memories for the future” and the communicating of the visions act as a way of keeping the

memories alive.

To create real commitment requires moving beyond sharing the vision, to cascading the vision. In

many organisations, executives believe that “because we have shared our vision with you, we have a

shared vision”. This is simply not true. The most significant results we have seen have occurred

when executives not only communicate the visionary architecture, but they actually cascade the

architecture. That is, they ensure that each department/ unit/section has its own visionary

architecture.

In this way, the visionary architecture has a “Russian doll” quality with the visionary architecture of

an individual department being nestled inside the overall organisational visionary architecture. This

approach recognises that the critical success factors, for example, the sales department, are very

different from those of the finance department. Equally, the visions for those critical success factors

within each department, to be truly engaging, need to be different.

Cascading the visionary architecture recognises that genuine commitment comes from sharing both

the creation and living of the visionary architecture. Executives in these visionary organisations

ensure that not only do they as a team have a visionary architecture for the overall organisation, but

that each department has a visionary architecture that is aligned with the overall organisational

architecture.


Committed Living of the Vision

Unfortunately, many visions stop with carefully worded statements etched onto plaques and

mounted on walls, printed in annual reports and employee newsletters, and paraded through

marketing-style campaigns. Organisations are changed only when a team's behavior matches the

message.

A shared visionary architecture should form the basis for shared accountability. The visionary

architecture works only when people (within and beyond the team) believe that each member is

bound to it over time – that is an enduring commitment.

Committed living of the vision requires individual and collective leadership. The visionary

architecture without leadership will end up being only a dream. Equally, leadership without the

visionary architecture often ends up as a power trip. However visionary architecture with strong

leadership offers a vibrant and worthwhile future.

Documents

Visionary Architecture - catalyst4.co.nz · CATALYST4 Visionary Architecture Having a vision does not necessarily make you a visionary organisation. A closer examination of the research