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The power of promises as a method of execution

Donald Sull discusses execution and promise based management

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Over a series of three podcasts available over the next three weeks, Donald Sull, Associate Professor of Management Practice in Strategic and International Management, will discuss the strengths of promise based management as a method of execution and how organisations can adopt this approach successfully.

In the first of the podcast series Sull talks about execution and how it presents many challenges for organisations.

Sull discusses how the forms of execution can be divided into three broad categories - executing by power, process or promise - and elaborates on the advantages and disadvantages of each. In particular, Sull points out that both power and process have their advantages but also their limitations which are particularly obvious for non-routine activities.

Executing by power, as Sull explains, is when the firm is viewed as a hierarchy of power where "information bubbles up and orders bubble down". There are certain advantages, when used in simple organisation with good leadership, but also flaws including that it can be slow, can lead to silos and it's very dependent on the top leadership of a company. Sull concludes that the power form of execution should be used sparingly as it can dampen people's initiative and their willingness to be creative.

Next, execution by process is explored as a procedure that cuts across the units of an organisation and ends with the customer. Sull describes this form of execution as terrific for executing on activities where there is high volume and frequently repeated activities. However, the problem is the very standardisation that confers the benefits of efficiency and continuous improvement. The more process you have, unfortunately the less innovation you get.

The third approach, promise based management, is suggested as a way that managers can overcome the inadequacies of power and process. Sull defines a promise as a pledge or commitment that a provider makes to a customer either inside or outside an organisation, up and down the hierarchy or across units. Exploring the advantages of promise based management; Sull recommends that this form of execution is ideal for non-routine activities.

Listen to this three part series to hear about the power of promises. Part two will be available on the website from next Wednesday 27 June.

Donald Sull's associated paper, Promise-based management: The Essence of Execution," Harvard Business Review April 2007, is available at Harvard Business Online.

Created: Wednesday 20 June 2007 12:37

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