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TBM 365: The Problem With Value Hierarchies (Video)

TIER 4   Mon, 30 Jun 2025 23:59:34 +0000

Watch now (15 mins) | I'm experimenting with Substack's Video feature.  
  
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# TBM 365: The Problem With Value Hierarchies (Video)

| | John Cutler  
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I'm experimenting with Substack's Video feature. I'm not sure how this will look, appear, or even sound, but giving it a go. Below I include an outline of the video:

## Outline

## **1\. The Familiar Cascade**

  * Many organizations use a hierarchical model: Pillars -> Priorities -> Initiatives -> Epics -> Tasks

  * Timeframes are often assigned at each level (e.g., 3-5 years at the top, sprints at the bottom)

  * Roles and ownership are mapped accordingly, from executive leadership down to product teams

  * These models persist because they're intuitive, visual, and create a sense of order




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## **2\. Core Limitations of the Pyramid**

  * **Assumes one-way flow of information**  
The model suggests strategy flows down, but in reality, critical insights flow _up_ from teams engaging with customers and the market

  * **Outcomes are often missing or implied**  
There's no explicit representation of impact or results, even though that's what ultimately matters

  * **Ignores time-to-impact variability**  
Some tasks can generate impact in a week; some initiatives take years. The model fails to show these lags and feedback loops

  * **Pushes teams into execution roles**  
As you move down the pyramid, the framing becomes increasingly prescriptive. Teams are expected to deliver "work" without clear problem framing or strategic ownership

  * **Misrepresents the scope and nature of work**  
High-impact short-term efforts may not "fit" in the hierarchy, creating friction. It also disincentivizes small, iterative wins




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## **3\. Temporal Scope and Organizational Culture**

  * Comparing two fictional organizations reveals differences:

    * Org A's goals are outcome-driven across time horizons (e.g., 1-3 month engagement goals, 3-5 year market positioning)

    * Org B's goals are more output-focused and vague at longer horizons

  * Ownership of goals varies by company--some give product teams ownership up to the one-to-three quarter range, others do not

  * The same pyramid diagram can reflect entirely different behaviors depending on definitions, ownership, and cultural orientation toward outcomes vs. activity




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## **4\. The Need for Multiple Lenses**

  * The pyramid presents a single, strategy-to-task lens, but organizations operate with multiple overlapping views:

    * **Outcome lens** - focused on impact and customer results

    * **Work lens** - focused on deliverables and execution

    * **Finance lens** - focused on costs, forecasting, and ROI

    * **Structure lens** - focused on organizational shifts, team structure, and ownership

  * Each lens has its own rhythm, scope, and patterns of change

  * These lenses intersect in complex ways that a static pyramid cannot represent




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## **5\. Real Work Behaves More Like a Fabric Than a Cascade**

  * Work, strategy, and feedback move in all directions--not just top-down

  * Many artifacts and processes exist at mid-levels of abstraction, not neatly tiered

  * A more accurate model is a fabric or network of interconnected items with varying temporal scopes and ownership

  * Strategic influence can originate anywhere, and changes at any level can ripple across the system




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## **6\. Introducing Artifact Types and Their Cadence**

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To support this networked reality, artifacts should be understood in terms of their nature and rhythm:

  * **Anchor Artifacts**

    * Have a defined time horizon (e.g., a 12-month roadmap)

    * Refreshed on a set cadence (e.g., quarterly planning cycles)

    * Useful for stability and coordination

  * **Intent Artifacts**

    * Represent bets, goals, OKRs, and strategic initiatives

    * Tend to evolve as work progresses and understanding deepens

    * Often nested or linked to other artifacts dynamically

  * **Context Artifacts**

    * Reflect shifting knowledge and environmental signals

    * Can be volatile (e.g., customer feedback) or stable (e.g., competitive analysis)

    * Drive updates to other artifact types when significant changes occur




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#### **7\. The Role of Rituals**

  * Artifacts don't stand alone--they are reinforced and refreshed through team and organizational rituals

  * Effective operating systems clarify:

    * Which artifacts exist

    * Who owns them

    * When and how they are updated

    * How they relate to each other across different lenses and timeframes

  * Rituals also provide the opportunity to resolve contradictions and adapt to change




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#### **8\. Final Synthesis**

  * The strategy pyramid is a helpful storytelling tool, especially for presentations or executive alignment

  * But it is insufficient for designing actual operating models

  * Effective models recognize:

    * Multiple lenses (not just one)

    * Temporal and definitional complexity

    * The need for dynamic linkages, not static nesting

    * The interplay of strategy, execution, finance, structure, and learning

  * Building an effective system means embracing this complexity and supporting it with the right artifacts and rhythms--not oversimplifying it into a cascade




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548 Market Street PMB 72296, San Francisco, CA 94104   
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