Achieve your business objectives through the power of “catalytic mechanisms”

Every business wants to achieve its objectives. But setting ambitious goals is only part of the challenge. The real question is how to create the conditions in which people can turn those goals into results.

One approach is the use of “catalytic mechanisms”, a concept developed by US business guru Jim Collins. Put simply, these are systems or ways of working that encourage the behaviours and outcomes an organisation wants, rather than relying solely on management instructions, targets or motivational speeches.

Turning goals into results

The concept was explored by Collins in his influential 1999 Harvard Business Review article, Turning Goals Into Results: The Power of Catalytic Mechanisms.

The American company Granite Rock provides one of his best-known examples.

The California-based company sells aggregates and asphalt and, in the late 1980s, its management set itself an ambitious objective: to provide a standard of customer service comparable with a leading department store.

At the heart of its approach was the introduction of “short pay”. Customers were given the option of withholding payment for products or services with which they were dissatisfied.

The mechanism gave employees a clear incentive to deliver high standards of service and quality. Rather than simply telling employees that customer service was important, the company created a system that made the objective part of everyday behaviour.

That is the essence of a catalytic mechanism.

Creating the right conditions

Collins argues that businesses can sometimes become overly reliant on vision statements, targets and inspirational messages. These can have a role, but they do not necessarily change behaviour.

A well-designed mechanism can.

It might encourage greater creativity, give employees more authority to make decisions, create an incentive for exceptional customer service, or provide people with greater freedom to experiment.

3M‘s practice of giving employees time to pursue their own ideas is another frequently cited example. Giving people space to explore and experiment has contributed to innovations including Post-it notes.

The lesson for employers is not that every organisation should copy 3M or Granite Rock. Rather, it is that businesses should consider whether changing the way work is organised could help achieve a particular objective.

Importantly, catalytic mechanisms are not about being different for the sake of it. Nor does giving employees greater freedom automatically lead to better performance.

Autonomy works best when it is accompanied by clear expectations, appropriate boundaries and accountability.

Trust, autonomy and accountability

For example, a business wanting to improve customer service might give employees greater authority to resolve complaints without waiting for management approval. An organisation seeking greater innovation might give teams structured opportunities to develop and test ideas. A company looking to improve productivity might give employees more control over how they organise their work, while maintaining clear performance expectations.

In each case, the mechanism is designed around the desired outcome.

One of the most interesting features of the approach is that it can distribute decision-making power more evenly within an organisation. For managers, giving up a degree of control can feel counterintuitive. But giving capable people the authority to make appropriate decisions can reduce unnecessary bureaucracy while demonstrating trust.

This has particular relevance for employers today. Recruiting the right people is only part of the equation. Businesses also need to create an environment in which those people can perform at their best.

A simple principle for employers

The useful question is therefore not simply:

“How do we motivate our people?”

It is:

“What can we change about the way we work that will make the behaviour we need more likely to happen?”

Catalytic mechanisms are not a substitute for good management. They are a way of making good management more effective.

At their heart is a simple principle: don’t just tell people what you want to achieve. Create the conditions in which they have the opportunity, authority and incentive to achieve it.

By Ernest Richardson 

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Published: 29 September 2026
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