Professional Documents
Culture Documents
PRACTICE DESCRIPTION
■■ To speed the decision-making process and protect sensitive military information, Rolls-Royce limits participation in the
formulation of corporate strategy, which prevents managers from fully understanding their role in strategy.
■■ To engage top managers in major changes to strategy, Rolls-Royce reserves an entire room for a period of a few
months at the corporate headquarters (designated the “CEO Room”) to present the story of how the executive team
developed current strategy.
■■ By using the corporate storyboard to fuel discussion about the company’s current strategic position and the strategy
alternatives that were not chosen, Rolls-Royce fosters firm-wide understanding of and buy-in to the strategy.
COMPANY SNAPSHOT
Rolls-Royce Limited
Industry: Automotive and Rolls-Royce, the second-largest aircraft engine maker in the world,
Aerospace manufactures, sells, and supports gas turbine engines and ancillary
Revenue: £12.2 Billion equipment for aircraft and for industrial and marine applications.
Employees: 40,000
Headquarters: London
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Companies often
fail to engage the
TRADING OFF DECISION SPEED AND ENGAGEMENT
broader organization
with broadcast
communication methods. Trade-Off Between Decision Speed Failure Points of Broadcast Communication
and Engagement Illustrative
Illustrative
■■ To maximize decision speed,
and due to the defense-
related sensitivity of some of
the detail, Rolls-Royce limits Number of Strategy Development Participants Broadcast Message
participation in corporate
strategy development. Many Few
Prepackaged
■■ As a consequence, many Overly “crafted” corporate message causes
communications are message recipients to tune out.
essentially public relations–
based and fail to sufficiently Pros Many people Pros Fast decision speed
engage top managers. engaged One-Way
Cons Failure to engage
Cons Slow decision the managers key for Few opportunities for direct interaction
■■ This has limited impact on speed successful execution with strategy developers leaves real
a day-to-day basis but over questions unanswered.
time leads to uncertainty
about strategic direction.
Generalized
Strategy framed in broad enterprise context
without connection to unit-level initiatives.
“We used to call the Corporate Strategic “A CEO talking corporate strategy to a
Plan the ‘Corporate Secret Plan’ and room of 100 middle managers risks that
produced only a handful of individually people will not march when directed and
numbered copies. If you didn’t have a copy, will not make necessary trade-offs in the
it was difficult to understand corporate moment when obstacles arise.”
strategy, let alone how to execute it.”
Senior Executive
Senior Executive Rolls-Royce plc
© 2013 The Corporate Executive Board Company. Rolls-Royce plc
All Rights Reserved. CSB5806313SYN
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A different-in-kind
method to communicate
PULLING BACK THE CURTAIN
major strategy shifts
engages Rolls-Royce’s CEO Room with Corporate Storyboard
300 middle managers in Rolls-Royce plc
the story of how strategy
was developed. The story is divided into five to Traditional Rolls-Royce
six “walk-away” themes. Strategy Strategy
Communication Communication
■■ Facilitating debate with
Chapter: The Chapter: Creatin— Chapter: Service— Going? Large groups Small groups
groups of 6 to 10, the Chapter: Creating Chapter: Service—Where Have
■■ ■■
Chapter: The Story to Date What Could We Do?
Growth—
strategist discusses the What Could We Do? We Got to, and Where Are We (100+) (6–10)
Going?
evolving background to ■■ Five to six ■■ 50–60
the company’s strategic presentations presentations
position as well as strategy Supply ■■ One-hour ■■ Three-hour
Chain
alternatives considered but Impact on
sessions sessions
not chosen in the form of a Solutions ■■ 15 minutes of ■■ Structured
story. Q&A conversation
■■ Linear ■■ Nonlinear
■■ The storyboard helps to sequence format
improve understanding and
cultivate support among
Revealing Facilitating Showing
managers responsible for
Alternatives Debate Where You Fit
execution.
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The storyboard impacts
top-line performance and
A STORY WITH IMPACT
promotes the strategy
group’s visibility within Storyboard Impact on Corporate Strategy Benefits to the Strategy Group
the organization. Development Rolls-Royce plc
Rolls-Royce plc
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