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but they often go unappreciated. Find
them, recognize and reward them, and
give them opportunities to influence
others.
Foster ambidexterity in practices and
processes as well as in people. For
example, in your annual budgeting
exercises, ask people to explain the
relationship of each line item to the
company’s strategy, and specifically to
the capability it is enabling. Over time,
this approach will channel investments
toward projects with a more strategic
rationale.
4. Clarify Everyone’s
Strategic Role
When the leaders of the General
Authority of Civil Aviation (GACA) of
Saudi Arabia decided to improve the
way they ran the country’s 25 airports,
they started with the hub in Riyadh, one
of the largest airports in the country.
They had already outsourced much
of their activity, redesigning airport
practices and enhancing operations. But
not much had changed. Convening the
directors and some department leaders,
the head of the airport explained that
some seemingly minor operational issues
— long customs lines, slow boarding
processes, and inadequate basic
amenities — were not just problems in
execution. They stood in the way of the
country’s goal of becoming a commercial
and logistics hub for Africa, Asia, and
Europe. Individual airport employees, he
added, could make a difference.
The head of the airport then conducted
in-depth sessions with employees on
breaking down silos and improving
operations. In these sessions, he turned
repeatedly to a common theme: Each
minor operational improvement would
affect the attractiveness of the country
for commercial travel and logistics.
A wake-up call for staff, the sessions
marked a turning point for the airport’s
operational success. Other airports in
the Saudi system are now expected to
follow suit.
The people in your day-to-day operations
— wherever they are, and on whatever
level — are continually called upon
to make decisions on behalf of the
enterprise. If they are not motivated
to deliver the strategy, the strategy
won’t reach the customers. It is well
established that financial rewards and
other tangible incentives will go only so
far in motivating people. Workers cannot
make a greater personal commitment
unless they understand why their
jobs make a difference, and why the
company’s advancement will help their
own advancement.
Successful leaders spend a great deal
of time and attention on the connection
between strategy and personal
commitment. One such leader has
run the trade promotion effectiveness
(TPE) capability at two global consumer
products goods (CPG) companies
over the past several years. CPG
companies use this capability to build
the momentum of key brands. It involves
assembling assortments of products
to promote, merchandising them to
retailers, arranging in-store displays and
online promotions, adjusting prices and
discounts to test demand, and assessing
the results. A great TPE capability
consistently attracts customers and
compels them to seek out the same
products for months after the campaign
ends. TPE and related activities often
represent the second-largest item (after
the cost of goods sold) on the P&L
statement. This in itself indicates the
capability’s strategic importance for CPG
companies.
In both enterprises, this executive
took the time to go up and down the
organization, making a case for why the
specific mechanics of trade promotion
matter to the value proposition of the
company and, ultimately, to its survival.
He made it a point to talk numbers but
didn’t limit the conversation to them.
“We spend billions at this company on
promotions,” he might say. “We have to
get back $100 million in added revenue
next year, and another $100 million
on top of that the year after.” He then
urged employees to develop better