Click here to load reader

Meet Strategy. What it is and why you should be doing it

  • View
    2.236

  • Download
    3

Embed Size (px)

Text of Meet Strategy. What it is and why you should be doing it

  • Meet Strategy. What it is, and why you should be doing it.

    2016 Inquentia Group AB and Elisabet Lagerstedt www.inquentia.com

  • The world is changing. Faster and faster. Technical development,

    digitalization and disruptive forces are all over the place, and the world

    is Uberized. Unpredictably.

    www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • Digital Society Aging Population Urbanization Sustainability

    www.inquentia.com

    Several global mega trends are already in motion

    and many scholars suggest that the world is experiencing accelerating change.

    Examples of mega trends:

    2016 Inquentia Group AB and Elisabet Lagerstedt

  • Strategy is about the future. We however know from history that the future is far too complex to predict. So, why bother thinking about the future? Why spending so much time in strategy projects? Why even bother thinking strategically? Is it just a waste of time? Or is there something to it?

    www.inquentia.com

    With all this change, is strategy still relevant?

    2016 Inquentia Group AB and Elisabet Lagerstedt

  • www.inquentia.com

    Strategy can be a powerful thing

    actually

    2016 Inquentia Group AB and Elisabet Lagerstedt

    Strategy has the power to help you reflect on your brand and business, its actions, purpose, existence and future. It has the potential to take

    you from where you are today into your envisioned future. Moreover, it can help you focus your resources, gather your forces, and act like one towards your desired goals and vision.

  • The underlying principles are really not that difficult

    www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • www.inquentia.com

    The ability to think ahead and plan for the future is a human trait that has helped us become a successful species during centuries.

    Planning for the future means making a series of conscious decisions now, and rather than being totally preoccupied with ongoing day-to-day events, instead taking a step back and looking at the larger picture.

    In strategy development we ideally use this ability for the best of our organization.

    Strategy means thinking and planning for the future

    2016 Inquentia Group AB and Elisabet Lagerstedt

  • Strategy means choosing direction

    www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • Source: Mindtools.com, Eisenhowers urgent/important principal; Steven Covey, 7 Habits of Highly Effective People.

    www.inquentia.com

    Strategy also means focusing on what is most important long-term

    URGENT NOT URGENT

    IMPORTANT I. Important and urgent

    II. Important and not urgent

    NOT IMPORTANT

    III. Not important but urgent

    IV. Not important and not urgent

    How do you spend your own time? Quadrant I is for the

    immediate and important deadlines. Quadrant II is for long-term

    strategizing and development. Quadrant III is for time pressured

    distractions. They are not really important, but someone wants it now. Quadrant IV is for those activities

    that yield little value.

    Finding ways to expand what is important, but not urgent is a common outcome from using the grid.

  • Strategy is about position and direction about who - and where - you are today, and

    who - and where - you want to be in the future.

    It sets the course to your

    future destination.

    And tells you how to get there. www.inquentia.com www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • A well defined strategy can be like the North Star, guiding you no matter where the winds are blowing.

    www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • To reach your destination safely, you however need to be somewhat realistic in relation to your outset situation

    www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • and most of all, you need to get your crew on board. No matter if you are a famous admiral, or a ghost pirate captain.

    www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • On your way you will have to manage storms and adopt to difficult conditions.

    The realized strategy may hence at the end become very different from the intended

    www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • because intended strategy often dont unfold as planned

    www.inquentia.com

    The intended strategy blends with other, unplanned ingredients, real life, changes in the environment, and ongoing learning, and finally becomes the realized strategy.

    Source: Mintzberg, The rise and fall of strategic planning,1994.

    This doesnt have to be a sign of weakness. It could instead be interpreted as a sign of ongoing learning and adaption to a future unfolding.

  • Still, its important to remember that we cant become what we want to be by

    remaining who we are today.

    www.inquentia.com

    The Strategist

    2016 Inquentia Group AB and Elisabet Lagerstedt

  • www.inquentia.com

    The same old thinking simply leads to the same old results, or worse

    2016 Inquentia Group AB and Elisabet Lagerstedt

  • Also, there is an internal cost of not having a clear strategy

    www.inquentia.com

    Every organization needs a purpose, a strategy and a tightly aligned system for value creation. Great strategy creates clarity for employees on what is

    expected of them and clarifies what should be in focus, and what needs to be done. Lack of direction, focus, leadership, clear targets and relevant

    resources breaks down morale and commitment. It causes the best people leave. Strangely, most companies are vague about their strategy and

    many leave employees in the dark. Employees instead have to guess what the strategy is, based on what their managers do.

    2016 Inquentia Group AB and Elisabet Lagerstedt

  • Good strategy works by focusing energy and resources on one, or a very few, pivotal

    objectives whose accomplishment will lead to a cascade of

    favourable outcomes.

    www.inquentia.com

    Richard Rumelt

  • The three elements of good strategy as to Richard Rumelt

    1. A diagnosis that defines or explains the nature of the challenge. A good diagnosis simplifies the often overwhelming complexity of reality by identifying certain aspects of the situation as critical.

    2. A guiding policy for dealing with the challenge. This is an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis.

    3. A set of coherent actions that are designed to carry out the guiding policy. These are steps that are coordinated with one another to work together in accomplishing the guiding policy.

    www.inquentia.com Source: Richard P. Rumelt, Good Strategy Bad Strategy

  • www.inquentia.com

    A vision without action is just a dream. Action without a vision is just a waste of time. A vision combined with action can change the world.

    2016 Inquentia Group AB and Elisabet Lagerstedt

  • - So, what is strategy again?

    www.inquentia.com 2016 Inquentia Group AB and Elisabet Lagerstedt

  • Asking a management strategist to define strategy is like

    asking a philosopher to define the truth. Some even claim that

    nobody really knows what strategy is.

    The Economist

    www.inquentia.com

  • www.inquentia.com

    Strategy is a process of conception, achieving the essential fit between internal strengths and weaknesses and external opportunities and threats.

    Strategy is a formal process. Steps supported by checklists and formal techniques.

    Strategy is an analytical process, generic positions selected through formalized analyses of indistry situations.

    Strategy is a visionary process, based on intuition.

    Strategy formation is a reactive process: a respons to the challenges imposed by the external environment.

    Strategy formation is a collective process involving various groups and departments within the company. Strategy is a reflection of the corporate culture of the organization.

    Strategy development is a process of negotiation between power holders within the company and/or between the company and external stakeholders.

    Strategy formation is an emergent process, where the management team of an organization pays close attention to what works and doesnt works and doesnt work over time and incorporate these lessons learned into the overall plan of action.

    Strategy formation is a mental process, and analyzes how people perceive patterns and process information.

    Strategy formation is seen as a process of transforming the organization from one type of decision making structure to another.

    A Strategy Safari presents many answers

    Source: Strategy Safari, by Henry Mintzberg et al

  • Strategy of today can be thought of as a collection of frameworks

    Strategy of today can be thought of as a collection of frameworks, models and tools for analysis, structured thinking and long term business planning.

    Your choice of strategic framework depend on your environment, and its speed of change: In a stable environment, classical strategic frameworks still

    works. In a rapidly changing, unpredictable environment classical

    strategy is challenged and more modern frameworks should be explored.

    www.inquentia.com

    Source: Martin Reeves, Knut Ha

Search related