Sunday, April 21, 2013

When is a strategy not a strategy?

The strategy is not an effective strategy if it is limited to rigid prescriptive strategy formulation.

The strategy defines the desired objective and communicates what will be done, by whom, how, for whom, and why the output is valuable. And a good strategy includes execution as part of strategy, strategy formulation and implementation can not be divorced from one another. Therefore, strategy making, or strategizing, is an ongoing process of discovering purpose, creating and using resources, and guiding supporting activities.  However, for many organizations, the strategy is either as Pot-Pourri or serendipity: When is a strategy not a strategy (a good one)?

  1. A strategy is not a strategy when there is a failure to execute the strategy:  People are selected and elevated in direct relationship to strategic and operational plans. Operations are strongly tied to strategic goals and human capacities. "Execution is the job of the Business leader" Bossidy & Charan claimed, the business leader has to be engaged, deeply and personally, in the business; the top dog is not exempt from this. 
  1. Strategy (doing the right thing) is not a strategy when it is dealing only with operational excellence (doing things better than competitors). Fixing the issues (quality, productivity, etc.) that you have is not a strategy. And of course, you need the strategic thinking to understand the context in which it operates, growing your business such as changing your business model, creating new markets, new products is the essence of strategy. Simply put: Grow it (Strategy), Fix it (operational excellence) 
  1. The strategy is not a strategy if it does not take people, management, and leadership into account and put it in perspective. In the networked society, strategy and execution are more and more intertwined. Therefore, for real agility, business should turn back to the core, not just the core competencies, but the core of the company. People will gravitate towards companies that met their value. Its time horizon may vary, but the strategy should always stay true to the core.  
  1. The strategy is not an effective strategy if it is limited to rigid prescriptive strategy formulation. Nor can a strategy be effective if organization and management structures and practices are not flexed to allow strategic thinking to emerge across the organization by multiple organization actors. Development of strategic thinking skills and competencies are directly related to strategic agility. 
  1. The strategy is not a strategy when isolated from business eco-system. Any strategy has to consider the external environment (social, political, economic, technological, industry, market, stakeholders, etc.) and the internal environment (resources, capabilities, systems, structure, culture, stakeholders, etc.). If these things are not taken into consideration,  it is not a strategy. 

  1. The strategy is not a strategy when it does not help you to realize your business vision & achieve your objectives with metrics. There are more things that cause a strategy NOT to be a strategy such as  Lack of benchmarks, goals, research, etc... It will not only cripple your efforts, they turn what one wants to be a strategy into random, unorganized hopes and ideas. 
  1. The strategy is not a strategy if it’s not dynamic process and action oriented. The strategy is defined by business strategists who take an initiative that sets the firm on a new course. Strategy making is, therefore, action-oriented, dynamic process that creates improvement in performance, It is the direction and scope of the firm over the long term, which achieves an advantage in the changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations. However, this process is rarely a product of a linear analytical process but involves sense making and learning. 
  1. The strategy is not a strategy if it lacks creativity. A key challenge for managers is to develop strategic thinking capabilities in order to build agility. However, this is trickier than just developing rational, analytical skills. Traditional strategy emphasis has been on logic over creativity, but what is required is to recognize that creativity over logic also has a role in strategy formation, thus combining both analytical and intuitive cognitive styles. Design disciplines may have an important contribution to make strategy, Further; firms have to rethink how they approach strategy formation through the creation of a culture of openness, creativity, and experimentation that goes beyond creative and lateral thinking skills development.  
  • The strategy is not a strategy when it can not assure a competitive advantage in terms of capabilities. Some argue: A strategy is always a strategy. The more specific question should be: "When is a strategy not a successful strategy?" De facto, every organization has a web of strategies: competitive, marketing, product, technology, etc. However, the strategy web only works if it is:
    -Coherent and mutually supporting
    -Is executable by the organization
    -Provides competitive advantage  
  1. When is a strategy not a successful strategy?  It is a product of components and if one fails,  the result is unsuccessful, here are seven factors in good strategy.
A: When Strategy is a wish/ if it is not based on internal and external knowledge of the company.
B: When it has not considered/ realistic knowledge of human capacities
C: When it is not based on account of all your operational realities
D: When it does not use data and analysis for support the goals
E: when it is not well-defined timing and ending periods
F: when it is not considered politic, economic, technological and social impact
G: when it is not considered well communication policies and leadership to develop the strategy
Degree of successful or totally unsuccessful Result = A*B*C*D*E*F*G

Crafting a strategy is like to grow a tree, to know the main path, to develop branches when necessary according to the futures events. ...A good strategy embraces three “C”s: Context, Cascade, and Creativity.


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