No strategic planning method has proven to develop strategic thinking in managers.
No strategic tools (BCG, Five Forces) by themselves develops a strategic mind.
Strategic Planning Methods I. Idealized Future Dream of desired future Determine Your actual situation How do we get there? JPdeL and Associates, 2000 III. Structural analysis Determine Your actual situation Strategic groups Industry analysis Competitive position Determine Course of action What others have done Prescribed Recipes IV. Core Capabilities Determine Your Core Competencies Internal core Skills and technologies Industry Activity chain Possible Product/market directions What needs to be done?
It is the set of (mostly) unwritten rules and values that guide our
How we see the world around us
Our beliefs (personal, social, political)
Example of a Paradigm Finding Procedure Unwritten Rules Unwritten Values Sales Pricing decisions Customer selection Territory selection Products Selections Development Improvements Extensions Service Level of Importance Real or Illusion What is service Employees Investments Other?
Appropriate use of Strategic Tools Disciplined Mental Process Now it is Time to Put them Together
The Meditation stage The Reality Finding stage Paradigm Discovery stage Eye Opening stage SWOT Industry Analysis Product Market Analysis Strategic Choices
The Meditation stage The Reality Finding stage Paradigm Discovery stage Eye Opening stage Industry Analysis SWOT
Paradigm Discovery stage Eye Opening stage Industry Analysis SWOT
Ask someone outside
your company to analyze
your own notes about
- paradigms in your
- what is important for
short and long term
Your own conclusions
The SWOT and the Industry analysis
Your Personal Conclusions Compare Against Outsider’s view of your business
Is their interpretation of the same information different than Yours?
What are the most significant differences in Priorities and Problems?
What do they see as short term and long term? Do you see the same?
What organizational problems they see that you did not see before?
Your Personal Conclusions Compare Against SWOT and Industry Analysis
What realities are not reflected in the SWOT analysis?
What are the most significant short term as well as long term differences in Priorities and Problems?
What other problems or opportunities were not they uncovered by the strategy analysis?
Your Personal Conclusions Outsider’s view of your business SWOT Industry Analysis Required Comparisons
Have these comparisons challenged the actual formulas for success (paradigms)? NO Return to Paradigm Discovery Again YES Is top management ready to change the actual Paradigm mentality?
Does Your Strategy Require: 1. Do as before (same) But more and harder Little chance of growing or getting Better.
Does Your Strategy Require: 2. To do something different maybe new and untried?
Some good books to train your mind about strategy: All the right Moves by C. Markides, Good to Great by Jim Collins 20/20 Foresight by Hugh Courtney Scenario Planning by Gill Ringland The Art of the Long View by Peter Schwartz.