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Posts Tagged "strategy"

Many Strategies Fail Because They’re Not Actually Strategies

Posted on November 15th, 2017 by The Learning Factor

Many strategy execution processes fail because the firm does not have something worth executing.

 

The strategy consultants come in, do their work, and document the new strategy in a PowerPoint presentation and a weighty report. Town hall meetings are organized, employees are told to change their behavior, balanced scorecards are reformulated, and budgets are set aside to support initiatives that fit the new strategy. And then nothing happens.

 

One major reason for the lack of action is that “new strategies” are often not strategies at all. A real strategy involves a clear set of choices that define what the firm is going to do and what it’s not going to do. Many strategies fail to get implemented, despite the ample efforts of hard-working people, because they do not represent a set of clear choices.

 

Many so-called strategies are in fact goals. “We want to be the number one or number two in all the markets in which we operate” is one of those. It does not tell you what you are going to do; all it does is tell you what you hope the outcome will be. But you’ll still need a strategy to achieve it.

Sourced through Scoop.it from: hbr.org

One major reason for the lack of action is that “new strategies” are often not strategies at all. A real strategy involves a clear set of choices that define what the firm is going to do and what it’s not going to do

The Best Companies Know How to Balance Strategy and Purpose

Posted on November 8th, 2017 by The Learning Factor

Most companies have articulated their purpose — the reason they exist. But very few have made that purpose a reality for their organizations.

 

Consider Nokia. Before the iPhone was introduced, in 2007, Nokia was the dominant mobile phone maker with a clearly stated purpose — “Connecting people” — and an aggressive strategy for sustaining market dominance. Seeking to extend its technological edge (particularly in miniaturization), it acquired more than 100 startup companies while pursuing a vast portfolio of research and product development projects. In 2006 alone, Nokia introduced 39 new mobile-device models. Few imagined that this juggernaut, brandishing vast resources with such steely determination, could be quickly brought down.

 

In retrospect, it seems inevitable. Nokia was so immersed in executing its strategy that it lost sight of its purpose. When Steve Jobs introduced the first iPhone as “a leapfrog product that is way smarter than any mobile device has ever been, and super-easy to use,” Apple started “connecting people” at astounding new levels. Nokia’s purpose had been co-opted, making its myriad strengths irrelevant. The once-dominant Nokia soon lost much of its market cap and was eventually acquired by Microsoft.

Sourced through Scoop.it from: hbr.org

SpaceX, Nestlé, and Apple all do it.

The Best Companies Know How to Balance Strategy and Purpose

Posted on November 7th, 2017 by The Learning Factor

Most companies have articulated their purpose — the reason they exist. But very few have made that purpose a reality for their organizations.

 

Consider Nokia. Before the iPhone was introduced, in 2007, Nokia was the dominant mobile phone maker with a clearly stated purpose — “Connecting people” — and an aggressive strategy for sustaining market dominance. Seeking to extend its technological edge (particularly in miniaturization), it acquired more than 100 startup companies while pursuing a vast portfolio of research and product development projects. In 2006 alone, Nokia introduced 39 new mobile-device models. Few imagined that this juggernaut, brandishing vast resources with such steely determination, could be quickly brought down.

 

In retrospect, it seems inevitable. Nokia was so immersed in executing its strategy that it lost sight of its purpose. When Steve Jobs introduced the first iPhone as “a leapfrog product that is way smarter than any mobile device has ever been, and super-easy to use,” Apple started “connecting people” at astounding new levels. Nokia’s purpose had been co-opted, making its myriad strengths irrelevant. The once-dominant Nokia soon lost much of its market cap and was eventually acquired by Microsoft.

Sourced through Scoop.it from: hbr.org

SpaceX, Nestlé, and Apple all do it.

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