Making Strategic Choices is risky.
Often when I give strategy examples to clients or
executives I am teaching I will hear the comment “That sounds risky.” This response does not consider the risk of
continuing to do things the same way.
In his books and teaching, Dr. Russ Ackoff would often make the distinction between errors of “commission” – doing something that
should not have been done, and errors of “omission” – not doing something that
should have been done. Unfortunately,
the only errors that show up in an audit or accounting system are errors of “commission.” However, errors of “omission” can be quite
costly and often go undetected – the US auto industry should have switched to
more fuel efficient cars earlier, Kodak failed to leverage its invention of
digital photography, and Circuit City’s failure to innovate led to its demise
despite being featured in the book Good to Great just a few years
earlier.
Ackoff elaborates:
“Therefore in organizations that, like in schools,
treat mistakes as bad and punishable, the best way to maximize job security is
to do nothing. This is the major
contributor to the reluctance of employees at all levels to initiate change. Unfortunately, in an environment that is
increasing unpredictable and turbulent, doing little or nothing is a sure path
to death.”*
Or, I will suggest, it may lead to something even
worse – a sure path to irrelevance. It
would be better off for an ineffective nonprofit to simply close its doors and stop
draining resources from others.
Yes – Strategic Choices will always involve some
risk. But thoughtful, calculated risks
are usually far better than the risk of becoming irrelevant.
*Ackoff, R. L., Magidson, J, Addison, H. J., Idealized
Design, 2006, p. 204.
For more
ideas on how you can lead breakthroughs in your organization, follow this blog
and check out my web site at www.SheehanNonprofitConsulting.com You will find free resources you can
download, including a Breakthrough Strategy Workbook that you can download at
no cost. You can also check out my book,
Mission Impact: Breakthrough Strategies
for Nonprofits, and buy it if you are interested. And you can follow Sheehan Nonprofit
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