Five lessons business could learn from the Olympics – I by IMD

#4. The search for operational excellence must not compromise strategic endeavor

The IOC states that the goal of the Olympic movement is “to contribute to building a peaceful and better world by educating youth through a sport practiced without discrimination of any kind and in the Olympic spirit, which requires mutual understanding with a spirit of friendship, solidarity, and fair play.”

This is the kind of strategic ambition that organizers can only attain through consistent application over an extended period. The problem that France, like other host nations, has had to wrestle with is that the Games constitute a project management exercise. Successful execution within a very short public window requires careful planning, not least to coordinate some 45,000 pro bono volunteers.

How, then, to balance these conflicting demands? Some cities offer more successful examples than others. The Barcelona Games of 1992, for example, are widely seen as having an impressive legacy, with many venues repurposed for ongoing and constant use, and the event itself acting as a catalyst for social, economic, and political change. In contrast, the Rio Olympics of 2016 appear to have underperformed in this regard: its venues fell into disrepair within months of the Games ending.

As for Paris, time will tell, although organizers claim legacy has been front of mind since the beginning of the project. New sustainable buildings were included in the project design, for example, providing Paris with residential accommodation and sporting facilities with a much smaller carbon footprint than traditional construction.

Companies and their leaders will recognize this debate. They must weigh the strategic priorities against the pressure to deliver in the short term. It’s difficult to focus on the future when the present is in your face.

Still, the successes of cities such as Barcelona offer useful insight. They appear to have benefited from collaborative and cooperative governing authorities, genuine engagement with the local population, and a clear long-term vision.