Lever 6 of 7 · Strategy Execution by Design

Performance and commitment

Every organisation says its people are committed. Very few can tell the difference between commitment and compliance, and the difference only shows up when the work gets hard.

What this lever is

Performance and commitment is the sixth of seven levers in the Strategy Execution by Design Maturity Model. It is whether people can connect their work to why the organisation exists, whether it is safe to say what they actually think, whether ownership comes with the authority to act, whether the performance system rewards what the strategy needs, and whether commitment is collective rather than individual.

What falls within this lever

What it looks like in practice

When this lever is strong
  • Every team can say how their work connects to the strategy.
  • Risks reach leaders while options still exist.
  • People act within clear guardrails rather than escalating.
  • The reward model matches the delivery model.
  • Peers hold each other to account without a manager present.
When this lever is weak
  • Purpose is on the wall and absent from decisions.
  • The real conversation happens in the corridor afterwards.
  • Accountability is delegated and authority is not.
  • Strategy asks for collective action and the system pays for individual output.
  • Energy peaks at launch, then fades once attention moves on.

Commitment is designed, not generated

No strategy is delivered by one person or one function. It crosses boundaries, it requires trade-offs, and the governance system will never be fast enough to catch everything that falls between them. At some point the strategy depends on people choosing to go beyond what was asked of them.

When that starts to fade, most organisations reach for an engagement programme. But engagement and commitment are not the same thing. Engagement matters, and when people feel pride and belonging they perform better. It is an enabler, not a driver. It creates the conditions in which people can execute. It does not create the collective will to deliver a strategy together.

You can have great engagement and relations, but it is not going to deliver strategy.Senior leader, strategy execution research

That distinction matters because the two are measured very differently. Engagement is something people report. Commitment is something you can see, in whether peers challenge each other without a manager in the room, whether people own outcomes beyond their scope, and whether the effort holds through difficulty rather than only through launch energy.

Which means this lever is not a culture programme or a values workshop. It is a set of conditions that either exist or do not, and five elements determine whether they do.

1

Purpose and strategic meaning: a poster, or a decision rule?

Purpose without structure is a poster on a wall, and posters do not execute strategy.

Most organisations treat purpose as a branding exercise. The why on the website, the values statement in the annual report. In execution it does something else entirely. It is the mechanism through which people decide whether to bring discretionary effort, whether to push through when the work gets hard, and whether to make the call that serves the strategy rather than the task in front of them.

So this is not only a motivation question. It is a decision-making question. When people cannot see the line between their work and why the organisation exists, they default to local priorities. The quality of thousands of daily decisions depends on whether that connection is visible.

There is a second trap, and it catches the organisations that care most. Purpose gets asked to carry weight that performance systems, recognition and leadership design should be sharing. One leader put it plainly: we use purpose as a primary driver for our people, even though it means we need to work even harder. Purpose-driven organisations that rely on purpose alone are not building commitment. They are running on goodwill, and goodwill has a shelf life.

Purpose is also not sustained through communication. It is sustained through leader behaviour. What leaders prioritise, protect and reinforce tells people what actually matters, whatever the values statement says. When those signals are misaligned, people learn fast. They comply. They do not commit.

17%

of leaders said their organisation had the supports in place to enable high performance, while 70 per cent rated performance orientation as having a high to very high impact on strategy execution.

Reti, R. (2022). Maximising Firm Performance Through Strategy Execution. Massey University.

If every team in your organisation cannot articulate how their work connects to strategic outcomes, the purpose gap is not a communications problem. It is a leadership design problem.

What leaders should consider
  • Ask five teams how their work connects to the strategy, and compare the answers.
  • Check whether purpose shows up in decisions, or only in documents.
  • Look at what leaders protect when there is a trade-off. That is the real purpose.
  • Notice if purpose is doing the work that recognition and reward should be doing.
Field notesWhere the purpose connection breaks, and what it tells you
  1. Level 1. Purpose underpinning the strategy. Is the purpose clear, compelling, and the foundation the strategy was built to deliver?
  2. Level 2. Strategy as the bridge. Does the strategy connect purpose to what needs to happen? Can leaders explain not just what the strategy is, but why it exists? If it breaks here, people hear the purpose but cannot see it in the plan.
  3. Level 3. Translation to teams. Has purpose been translated into what it means for each function: what they contribute, why it matters, what success looks like? If it breaks here, teams hear the direction but cannot act on it.
  4. Level 4. Individual line of sight. Can individuals describe how their daily decisions connect to the purpose, and is it shaping how they prioritise? If it breaks here, purpose is understood but not felt.
  5. Level 5. Reinforcement. Do leader behaviours, performance systems and recognition reinforce purpose, or signal that something else matters more? If it breaks here, this is where compliance replaces commitment.
2

Psychological safety and voice: what nobody said in the room

The biggest risk to your strategy execution is not what people say. It is what they do not.

Think about your last leadership meeting. A decision was made and everyone nodded. Then three people had a different conversation in the corridor afterwards, about what they actually thought, about the risk they could see, about what they would have said if it felt safe to. That corridor conversation is where the real information lives, and it never made it into the room where the decision was made.

Most people hear psychological safety and think it means being nice to each other. It is not that. In execution it is about one thing: the quality of information flowing through the organisation. When it is low, leaders are making decisions on half the picture.

I have watched this play out more times than I can count. A risk is spotted on the frontline. It gets softened by the time it reaches a team lead, reframed as a minor concern by the time it reaches senior leadership, and by the time it reaches the executive table it has disappeared. Nobody lied. Nobody hid anything deliberately. The system taught people, through a thousand small signals, what was safe to raise and what was not.

One respondent in my research described it bluntly: psychological safety did not exist in the business, there was not the full liberty to disagree and carry on, it had a political impact. That word matters. Political. People were not staying quiet because they were weak. They were staying quiet because they were smart. They had learned what happened when someone spoke up, and adjusted accordingly.

73%

of organisations with more than 1,000 staff reported that a lack of assertiveness was having a high to extremely high impact on their ability to execute strategy. Not because people lacked opinions, but because the culture favoured avoidance.

Reti, R. (2022). Maximising Firm Performance Through Strategy Execution. Massey University.

Are your leaders making decisions based on what people actually think, or based on what people think is safe to say? The gap between those two is where execution risk hides.

What leaders should consider
  • Ask where the real conversation about your last big decision happened.
  • Check whether the reward system quietly pays for keeping your head down.
  • Treat a permanently green status report as a signal about safety, not progress.
  • Look at what happened to the last person who raised something uncomfortable.
Field notesFive structural shifts that change what gets said
  1. Design the permission to challenge. Do not rely on individual courage. Build a shared language. One organisation used the phrase "I want to challenge you constructively", which gave people a safe route past avoidance without crossing into confrontation.
  2. Fix the reward contradiction. If the system incentivises silence, safety training will not change behaviour. You cannot ask people to speak up while the performance system rewards individual output and keeping quiet.
  3. Replace reassurance with confidence. RAG status rewards good news. Ask instead for a confidence rating, the reasoning behind it, and what evidence would change it. Now the room is acting on reality.
  4. Build challenge into the structure. When challenge is scheduled it stops being an act of bravery. Pre-mortems, "what are we not seeing?" as a standing governance question, red team reviews on critical initiatives.
  5. Close the loop visibly. Silence after someone speaks up teaches the system that voice does not matter. When someone raises a risk, show them what happened with it. When someone challenges a decision, acknowledge what changed.
3

Shared ownership and empowerment: owner, or exposed?

A senior leader in my research said something I keep coming back to: empowerment equals accountability, but accountability does not mean abandonment.

That line captures what I see in organisation after organisation. Leaders delegate the outcome, then walk away. The person left holding it has no authority to act, no context behind the strategy, and no cover when it goes wrong. They are not empowered. They are exposed.

And they learn fast. They stop taking initiative. They execute the task rather than the outcome. Leadership then reads that as a capability problem rather than a design problem.

Delegation says this is yours. Empowerment means someone has the authority, the context and the support to make it work. Most organisations confuse the two, then wonder why people deliver exactly what was asked and nothing more.

Ownership comes from four things, and most organisations design all four poorly: context, authority, support and visibility. Miss any one of them and you get accountability without influence, which is the fastest way to teach a capable person to wait to be told.

If your strategy depends on people owning outcomes, the question is whether your system actually allows them to. Ask five people whether they experience ownership or accountability without influence. If they answer differently from each other, that gap is the conversation worth having.

What leaders should consider
  • Name explicitly what people can decide without asking. Most escalate because nobody said it was safe to act.
  • Bring people into the conversation before the decision, not after.
  • Back the decision when it does not land perfectly. Blame teaches compliance.
  • Recognise ownership in the moment, not in a quarterly review.
Field notesThe four conditions that turn task completers into owners
  1. Context: do people understand why, not just what? Without context people optimise for the task. With it they optimise for the outcome. Build it by bringing people into the reasoning before the decision is made.
  2. Authority: can they actually decide? If every decision escalates you have not delegated, you have created a queue. Build it by telling people out loud what they can decide without asking, and what the guardrails are.
  3. Support: what happens when it goes wrong? Leaders backing a decision that did not land perfectly is what makes risk-taking survivable. The conversation is what did we learn, not whose fault was this.
  4. Visibility: can people see that what they did mattered? Name the decision, name the person, name the impact, in the moment. What gets recognised in real time gets repeated. What gets ignored gets abandoned.
4

Performance architecture: the execution contradiction

When I was researching strategy execution in large organisations, I asked a senior leader why their teams were not collaborating across functions. Her answer was simple: you cannot give away all your resources if you are being rewarded with individual objectives, people are competing.

The strategy needed collective action. The performance system rewarded self-preservation. People were not being difficult. They were being rational.

That is the execution contradiction. Your strategy says one thing and your performance system rewards another, and people will always optimise for what gets measured. Strategy demands collective ownership of outcomes, long-term value creation, cross-functional collaboration, shared resources and trade-offs, and adaptability. Most systems reward individual KPIs, short-term milestones, functional competition, protecting your own budget, and sticking to the original plan.

The gap here is not motivation. It is infrastructure. Most organisations have no performance infrastructure designed for how strategy is actually delivered, so purpose and intrinsic motivation end up carrying weight the performance system should be sharing.

The fix is not better individual KPIs. It is redesigning what gets rewarded, funding that redesign in the same room as the strategy, and updating it at the same pace the strategy changes.

Take the list of what your strategy demands and the list of what your system rewards, and put them side by side. For each row, ask whether your system rewards what your strategy actually needs.

What leaders should consider
  • Match the reward model to the delivery model. Stop measuring functions when the work crosses them.
  • Put performance investment decisions at the same table as strategic investment decisions.
  • Let people shape how they are measured within clear boundaries. The what is fixed, the how has room.
  • Add one question to every strategy review: does the performance system still reward how this strategy is being delivered?
Field notesFive shifts that close the contradiction
  1. Reward how the work is actually delivered, not how the org chart is drawn. Some roles need individual measures, some need collective ones. Design a hybrid based on how work really flows.
  2. Fund performance alongside the strategy. Most organisations design strategy in one room and the people and performance budget in another, then wonder why one does not support the other.
  3. Let people shape what performance looks like in their role. The outcomes are non-negotiable. How progress is measured, what recognition means, and what support is needed has room for the individual. When people shape it they own it. When it is imposed they comply.
  4. Stop relying on purpose to do the work of infrastructure. People do not burn out for lack of purpose. They burn out because purpose alone cannot sustain commitment. Purpose sets the direction, infrastructure sustains the effort.
  5. Evolve the system at the pace of the strategy. Most organisations update strategy annually and the performance system never. The contradiction compounds every quarter it goes unaddressed.
5

Collective commitment: delivering together, or delivering your part?

There is a moment in every high-performing team where something shifts. People stop delivering their part and start delivering together. They challenge each other, not because someone told them to, but because they care about the outcome. They close gaps nobody assigned them.

That is collective commitment, and in execution it is everything, because the governance system will never catch everything that falls between functions.

It is also not what engagement surveys measure. Look at what the major instruments actually ask. Culture Amp measures pride, motivation, recommendation, present and future commitment. Gallup's Q12 asks about expectations, materials, recognition and development. Every question is framed around the individual. None of them measure whether peers hold each other to account, whether people own outcomes beyond their scope, or whether commitment sustains through difficulty. Collective commitment to execution is unmeasured, and that is the gap.

The good news is that it is observable. You do not need an instrument. You need to know what to look for, and to be honest about the difference between commitment and compliance dressed up as commitment.

What builds it is not team building days, engagement surveys, values workshops or recognition programmes, useful as some of those are. It is leaders modelling collective behaviour, work structured so people genuinely need each other, belonging that comes from what the organisation stands for rather than what it offers, and peer accountability that emerges from shared investment rather than being enforced.

One respondent said it simply: engagement is an outcome, you cannot buy it off the shelf.

What leaders should consider
  • Watch what happens when a commitment is missed. Who raises it, and how quickly.
  • Check whether people act on problems that are not technically theirs.
  • Test whether the energy survived the launch, or only existed during it.
  • Ask whether your leadership team models the collective behaviour it expects.
Field notesFour signals of commitment, and their compliance twins
  1. Peers challenge each other directly when commitments are not met, and nobody waits for a manager to notice. The compliance version: non-delivery gets escalated or worked around while peers avoid the conversation and wait for the system to catch it.
  2. People own outcomes beyond their scope and act on problems that are not technically theirs. The compliance version: people deliver their part and stop, because the boundary of the role is the boundary of the concern.
  3. Commitment holds through difficulty and ambiguity, not just during launch energy. The compliance version: energy peaks at launch then fades, and people persist while watched but disengage when attention moves on.
  4. People take initiative within their judgment, acting and then informing rather than asking permission to move. The compliance version: people manage upward, choose safe targets, celebrate activity over impact, and wait to be told.

Bringing it together

These five elements are a single argument told in five parts, and each one fails into the next.

Without purpose people optimise locally, because they have nothing to optimise for. Without safety the information leaders need never reaches them, so even good intentions are acting on half a picture. Without real ownership people wait to be told, because initiative has been made expensive. Without a performance system that matches the strategy, the organisation pays people to do the opposite of what it has asked for. And without collective commitment, all of it stops at the boundary of each person's role, which is exactly where strategy needs it to keep going.

The pattern I see most often is organisations trying to solve this at the last element. Commitment is dropping, so we run an engagement programme. But commitment is an output. It is what happens when the first four conditions are in place, and it cannot be installed on top of a system that contradicts it.

Compliance is what a capable, well-intentioned workforce produces when the system quietly asks for it. That is worth sitting with, because it means the fix is almost never the people.

Where to start

Five questions, one leadership team, one honest hour.

Five questions
  1. Ask five teams how their work connects to the strategy. If the answers do not line up, purpose and strategic meaning is the constraint.
  2. Where did the real conversation about your last big decision happen? If it was the corridor, psychological safety and voice is the constraint.
  3. Can your people name a decision they are allowed to make without asking? If not, shared ownership and empowerment is the constraint.
  4. Does your reward system pay for the collective outcomes your strategy needs? If it pays for individual output, performance architecture is the constraint.
  5. When a commitment is missed, do peers raise it, or does it wait for the system to catch it? If it waits, collective commitment is the constraint.

If those answers come easily, this lever is working. If they do not, your people are not disengaged. They are responding rationally to a system that has told them what it actually rewards.

Not sure which of the seven conditions is holding your execution back?

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Written by Rebecca Reti, strategy and execution consultant working with boards and executive teams across Australia and New Zealand. Her research on strategy execution in large firms was completed through Massey University in 2022.

References drawn upon for Lever 6
  1. Reti, R. (2022). Maximising firm performance through strategy execution. Massey University.
  2. Edmondson, A. C. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 350–383.
  3. Edmondson, A. C. (2018). The fearless organization. Wiley.
  4. House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (Eds.). (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. Sage.
  5. Sull, D., Homkes, R., & Sull, C. (2015). Why strategy execution unravels, and what to do about it. Harvard Business Review, 93(3), 57–66.