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“The Art of Action” by Stephen Bungay is a guide to turning strategy into action in the business arena, drawing heavily from historical warfare to make its points.

Bungay’s book drills down on a few key concepts: simplicity, focus, and nailing clear communication. These, according to the book, are the linchpins of getting strategy to seamlessly translate into action, a roadmap for those eager to bridge that strategy-tactics gap.

In this rundown, I’ll cover some takeaways that stood out for me, and illustrate how its principles can be applied to real-world scenarios. These insights encompass:

• set fewer objectives for better focus,
• align systems with strategic goals,
• understand the dynamics of subsystems within organizations,
• the critical importance of operational decision-making.

Fewer objectives leads to focus and success

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Bungay proposes that having too many objectives can hinder an organization’s ability to focus on what truly matters, constraining its freedom of action. On face value, this an obvious statement. However, when we dig into the idea with an example, we can start to see the systemic impact of failing to limit objectives.

Scenario 1: limit objectives

A tale of two objectives

The leadership team worked together to prioritize customer support for six months to stabilize and enhance it. Once stable, they proceeded with expansions and product launches, benefiting from newfound stability and positive sentiment. The CEO’s decision to prioritize and sequence objectives proved to be a pivotal turning point, propelling the company towards sustainable growth and success.

Prioritize decisions based on systems thinking

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Bungay describes a tool for slicing through the decision-making jungle with a machete—the strategy map. This method simplifies the whole strategy approach by laying out the cause-and-effect connections between the money stuff, customer vibe, inner workings, and the knowledge game.

Picture this: a one-pager that helps you visualize the strategy playbook, making it easy for everyone to get the game plan and line up their moves with where the ship’s heading. This strategy map? It’s like the Rosetta Stone for decoding and syncing actions with the big picture.

Scenario 2: strategy map

Charting a healthy future

Imagine a medical clinic working to level up their game—better patient care, more cash flow, and smoother operations. But to make those dreams a reality, they needed a game plan to streamline their focus and steer their choices. Enter the strategy map, the visual wizardry that simplifies and shines a spotlight on their main goals across four key areas: process, professional development, customer, and financial. It’s like having a GPS for their success route—clear, straightforward, and right on target.

The management team quickly visualized how improvements in one area could positively impact the others.

1. After discussion, they decided to start by strengthening their internal processes by optimizing appointment scheduling, implementing electronic health records for efficient information sharing, and streamlining administrative tasks. These changes led to reduced wait times, increased patient satisfaction, and a more productive staff.
2. With a more efficient operation in place, the clinic focused on patient-related initiatives, such as personalized care plans and improved communication. Patient satisfaction scores increased, and existing patients were more likely to refer others to the clinic leading to stronger financial performance.
3. Reduced operational costs, higher patient retention, and the influx of new patients resulted in increased revenue and profitability.
4. The clinic’s financial outlook improved, making it easier to invest in professional development initiatives to stay at the forefront of medical advances.

By focusing on these four interconnected categories, they improved their patient care, financial performance, and operational efficiency, ultimately achieving a more sustainable and patient-centric healthcare business.

Align systems with objectives for impact

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After an organization maps out its route to the top, Bungay hammers home the idea of getting those systems in line with the game plan for impact. It’s all about setting up systems that play nice with the objectives, bringing structure, feedback loops, resources, interactions, adaptability, metrics, and incentives into the mix. Get this combo right, and behaviors fall right in step with the specific objectives, delivering the results you’re aiming for.

This idea is very similar to one proposed by James Clear when he said,

“You do not rise to the level of your goals. You fall to the level of your systems. Your goal is your desired outcome. Your system is the collection of daily habits that will get you there.”

This is true for individuals and for organizations. Let’s look at an example using an oil and gas company striving to improve safety and environmental sustainability as part of its strategic objectives.

Scenario 3: align systems to objectives

Fueling success: oil and gas company strikes gold by aligning systems with goals

Imagine this: an oil and gas company laying out their game plan, highlighting safety and sustainability. Their focus? Cutting down on accidents, lessening their environmental impact, and supercharging operational efficiency. To make it happen, they’re peeking into their systems, fine-tuning behaviors to hit those high-flying goals.

And the results speak volumes! Workplace accidents take a nosedive, environmental incidents plummet. Plus, they’re diving into eco-friendly tech, amping up operational efficiency, and gaining major applause for their commitment to safety and sustainability.

Understand subsystems to identify conflicts

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Bungay also highlights the importance of understanding why people within an organization may not always behave as required. He suggests that individuals typically act rationally from the perspective of the subsystem to which they belong. By examining the goals, resources, and constraints of these subsystems, leaders can gain insights into why certain behaviors occur. This understanding allows for taking steps to change the subsystems themselves to encourage the desired behavior.

For example, an employee within a sales team may prioritize actions that maximize their individual sales commissions, which is rational from the perspective of the sales team. However, these actions might not always align with the overall goals or values of the entire organization.

Between strategy and tactics is an execution layer called operation decision-making

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In the final chapters, Bungay argues that an “execution layer” called operational decision-making bridges the gap between defining the right strategy and standardizing tactics for efficiency.

Scenario 4: execution layer

Consulting clarity: balancing brilliance and growth

A consulting firm’s strategic goals focus on expanding its client base while upholding service excellence. They explore various strategies like broadening services, targeting specific industries, and enhancing marketing efforts.

To uphold quality and efficiency, the firm standardizes key tactics, encompassing client onboarding, project management, and quality control. These standardized tactics are accessible to all consultants, ensuring consistency.

To bridge the strategic and tactical layers, the firm leverages multiple senior consultants, to promote knowledge sharing to maintain uniformity.

Operational decision-making in consulting unites high-level goals (client growth and quality) with daily tactics striking a balance between flexibility and efficiency.

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In a world marked by unpredictability, “The Art of Action” provides readers with a roadmap for achieving their goals by simplifying strategies, aligning systems with objectives, and fostering adaptable decision-making processes. It’s a valuable resource for anyone seeking success in the complex landscape of organizational management and strategy execution. For a deeper understanding of these concepts and practical applications, I encourage readers to explore the full book.