By Antonio Nieto-Rodriguez
Every organization needs what I call a “hierarchy of purpose.” Without one, it is almost impossible to prioritize effectively.
The European budget airline Ryanair, for example, makes clear that it is a no-frills operation where efficiency is the top priority—taking precedence over customer service. Ryanair’s employees, therefore, know how to allocate their time effectively.
Prioritizing aligns and focuses senior management on strategic goals, helps teams make better decisions and, most important, builds an execution mindset and culture.
I’ve developed a simple hierarchy-of-purpose tool that executive teams can use to help them prioritize strategic initiatives and projects:
- Purpose. What’s the purpose of the organization and how is that purpose best pursued? What’s the strategic vision supporting this purpose?
- Priorities. Given the stated purpose and vision, what are the organization’s priorities now and over the next two to five years?
- Projects. Based on the answers to the above questions, which projects are the most strategic and therefore should be fully resourced? Which projects align with the purpose, vision and priorities, and which should be scrapped?
- People. Now that there is clarity around the organization’s strategic priorities and the projects that matter most, who are the best people to execute those projects?
- Performance. Traditionally, project performance indicators are tied to inputs (scope, cost, time), which are much easier to track than outputs (benefits, impacts, goals). However, despite this difficulty, outputs really matter. What are the outcome-related targets that measure real performance and value creation?
Antonio Nieto-Rodriguez directs the program management office at GlaxoSmithKline Vaccines.