The importance of different level of business hierarchy of need realize organizational future state

Through business strategy, an organization creates value for its stakeholders, and gains a competitive advantage. Different business strategies are deployed at corporate, business, and functional levels, that ensure that the enterprise remains agile, focused, and well-prepared to achieve its goals successfully. Effective strategic management includes coordination and alignment of various levels of strategy and the organizational hierarchy at which it functions. Business hierarchy of needs is one of the key elements of business strategy development, whose first level requires creating the most important goals (MIG), which should be discussed with all stakeholders, including suppliers and customers. Suppliers need to understand a company’s MIG so they can tailor proposals to organizational needs. On the other hand, a company needs to understand customers’ MIG so that it can work on them.

Business Hierarchy of Needs® is a change management framework developed by Group50 consulting firm that consists of three levels of activities to help a company achieve its strategic objectives and develop a culture of strategic execution. Strategy realized level 1 business hierarchy provides an effective way for creating MIG through the adaptation of Six Sigma tools. Third-party service groups, contract workers, and temporary workers have MIGs as well. It is important to know it for each category of workers because their needs are rapidly changing in response to remote work and changes in work-life balance. If understood and properly addressed at strategy realized level 2 business hierarchy, there is a likelihood that turnover in these categories will be reduced, especially if they are engaged in the development and implementation of the company’s Business Hierarchy of Needs®.

Fully understanding the current organizational state

Every organization does the things in the Business Hierarchy of Needs® to some degree. The difference between organizations that have a culture of strategic execution and others that don’t is the disciplined change management methodology they follow. strategy realized level 1 business hierarchy identifies the information required to fully understand the current organizational state, and to lay the foundation for building clearly defined strategies that achieve a defined future state. Companies have many goals and objectives, but they must all be part of a single most important goal. That goal becomes the quantitative measure of all strategies and tactics for strategy realized level 1 business hierarchy while the company’s value proposition keeps focus on the reason customers prefer them over others.

Setting cascading objectives throughout the organization

Going beyond strategy realized level 1 business hierarchy, Jim Gitney, the CEO of Group50 consulting firm ponders over other levels of Business Hierarchy of Needs®. His book, "The Business Hierarchy of Needs – Turning Strategy Into Results" states that the discussion of the company’s MIG should occur at the start of every review meeting. Level 2 of the Business Hierarchy of Needs should set cascading objectives throughout the organization to deal with operating gaps and strategic gaps. Many companies spend a lot of time in level two creating a change management plan and preparing the organization to be successful. Short-stepping this level will handicap the organization and jeopardize strategic execution. Third level of Business Hierarchy of Needs ® requires answering of questions, such as the establishment of the appropriate steering committee, defining project charters, and having the right communication plans in place.

During my 45 years of corporate and consulting experience with companies ranging from start-ups to Fortune 50, I have learned what to do and what should never be done from some of the best and worst leaders.