Authority article

Your Operating Model Is Sending Mixed Signals

Business strategy and operating priorities arranged on a desk

By Carlton Moore ยท Peloton Consulting

People rarely need another reminder when the organization's incentives, measures, and decision rules contradict the behavior leaders are asking for.

Listen to what the system rewards

Leadership asks teams to collaborate across functions. Each function is evaluated on its own productivity target. Shared problems are everyone's concern in meetings and no one's priority when resources are allocated.

Employees receive an announcement emphasizing customer experience. Their managers still reward the fastest case closure, even when closing a case creates repeat contact.

In these circumstances, repeating the message more often is unlikely to change the behavior.

People learn what matters from the decisions, measures, priorities, and consequences they experience.

Misalignment can be entirely unintentional

Organizations inherit management practices from earlier conditions. A target introduced to control costs may remain long after customer expectations change. An approval requirement added after an incident may outlive the risk it addressed. Functions can develop different definitions of success without ever deciding to disagree.

None of that requires bad leadership or uncommitted employees.

It does require leaders to recognize that a strategy is implemented through an operating system, not a communication campaign.

Follow the contradictions

Choose one behavior leadership wants to see more often. Then trace the conditions surrounding it.

  • Measures: Is the desired behavior reflected in how performance is judged?
  • Authority: Can people make the decisions the behavior requires?
  • Capacity: Have competing tasks been deprioritized, or is the new expectation simply added?
  • Incentives: Are teams penalized for helping another function succeed?
  • Reinforcement: Do leaders protect the stated direction when the tradeoffs become uncomfortable?

Answers should come from actual work and recent decisions, not only policy documents.

Correct the system, then reinforce the message

Communications and training remain necessary. They explain purpose, develop capability, and help people understand what is changing.

But they cannot overcome every contradiction in the operating environment. When the system penalizes the desired behavior, a compelling explanation is not enough.

Start by resolving the most consequential contradiction. Change the relevant decision rights, priorities, measures, or process. Then reinforce the new expectation consistently.

Employees notice whether the organization has made the new behavior possible.

Turn strategy into consistent action

Peloton Consulting can help leadership identify the conflicting signals embedded in operating practices and align the decisions, measures, and responsibilities that shape what people actually do.

Start a Conversation โ†’