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Strategy dilemmas



# 1: Outside-in vs. Inside-out. ...

# 1: Outside-in vs. Inside-out.
# 2: Trying things out vs. Planning.
# 3: Creative thinking vs. Analytical thinking.
# 4: Creativity vs. Efficiency.
# 5: Continuous change vs. Revolutionary change.
# 6: Collaboration vs. Competition.
# 7: Inclusive / involving vs. Exclusive / isolating.
# 8: Company perspective vs. Business unit perspective.
# 9: Self management vs. Hierarchical management.
# 10: Shape markets vs. Adapt to markets.
# 11: Globalization vs. Localization.
# 12: Long term focus vs. Short term focus.



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    Strategy dilemmas Strategy dilemmas Presentation Transcript

    • 12 strategy dilemmas
    • # 1: Outside-in vs. Inside-out. # 2: Trying things out vs. Planning. # 3: Creative thinking vs. Analytical thinking. # 4: Creativity vs. Efficiency. # 5: Continuous change vs. Revolutionary change. # 6: Collaboration vs. Competition. # 7: Inclusive / involving vs. Exclusive / isolating. # 8: Company perspective vs. Business unit perspective. # 9: Self management vs. Hierarchical management. # 10: Shape markets vs. Adapt to markets. # 11: Globalization vs. Localization. # 12: Long term focus vs. Short term focus.
    • Strategy dilemma # 1 Outside-in vs. Inside-out
    • Question Every company claims to be customer-focused. Why do you think so few are able to pull it off? Answer Companies get skills-focused instead of customer-needs focused. Jeff Bezos, Amazon.com founder http://www.businessweek.com/magazine/content/08_17/b4081064880218_page_2.htm
    • Inspiration http://www.scribd.com/doc/56785190/Customer-Needs http://www.scribd.com/doc/36349465/Capital
    • Strategy dilemma # 2 Trying things out vs. Planning
    • Build a just try it culture. Emphasize ”test and learn” instead of ”plan and execute”. Hamel, Gary: The Future of Management, p. 120.
    • http://www.innovationmanagement.se/2011/11/15/unlearn-your-mba/, minute 11.
    • The “discovery” model reflects what a company is like in its start-up phase. In this period management is likely to be relatively informal, and even vague about how work should get done and to what end. Google began life using the discovery model, and to some extent still does. http://www.ft.com/cms/s/0/6ce11196-35f3-11df-aa43-00144feabdc0.html
    • Experiments require short-term losses experiments require short-term losses for long-term gains for long-term gains. http://hbr.org/2010/04/column-why-businesses-dont-experiment/ar/1
    • At Ciba-Geigy, everything was planned to the level of the smallest detail. I had to provide a plan that showed virtually minute by minute what would happen during the two days, and the company was clearly willing to commit all the time it might take to design as nearly perfect a meeting as possible. Schein, Edgar H.: Organizational Culture and Leadership, p. 367-368.
    • Clayton Christensen talks about deliberate and emergent strategies. http://www.thinkers50.com/video/93
    • Strategy dilemma # 3 Creative thinking vs. Analytical thinking
    • Creative approach: From few to many possibilities
    • Idea Idea Idea Smelling Thinking Idea Observing Hearing Idea Reading Communicating Idea Idea Idea
    • The abductive logic is oriented towards the future, what you imagine may be possible. To innovate, stop using the 2 words ”prove it”. http://youtu.be/txhBTi1STn8 http://youtu.be/e7pk8DOtsYw
    • Research by Marius Usher shows that when people made choices based only on instinct, they made the right call up to 90% of the time. http://blogs.hbr.org/hbr/nayar/2013/05/listening-to-your-inner-voice.html
    • Analytic approach: From many to few possibilities
    • Analysis Analysis Result Analysis Analysis Analysis
    • Question When it comes to innovation, what is the biggest challenge that you see organizations facing? Roger Martin It is the dominance of analytical thinking which holds that unless something can be proven by way of deductive or inductive logic, it is not worthy of consideration or investment. No new idea in the world has been proven before being tried. So as long as analytical thinking is allowed to dominate, innovation is deeply and profoundly challenged. http://www.innovationexcellence.com/blog/2012/06/15/balancing-intuition-with-analysis/
    • The inductive and deductive logic is based on the past experiences. Focus is on proving things. http://youtu.be/txhBTi1STn8 http://youtu.be/e7pk8DOtsYw
    • Strategy dilemma # 4 Creativity vs. Efficiency
    • Industrial firms thrive on reducing variation (manufacturing errors); Creative firms thrive on increasing variation (innovation). Reed Hastings Netflix founder http://hbr.org/2014/01/how-netflix-reinvented-hr/ar/1
    • To be creative Think outside the box. To be efficient Stick to your knitting. Explore what you don’t know. Exploit what you know. Anticipate future customer needs. Meet current customer needs. Allow freedom and flexibility. Demand accountability. Avoid process and encourage unstructured interaction. Impose process and structure. Govindarajan, Vijay & Trimble, Chris: 10 Rules for Strategic Innovators, p. 5.
    • http://www.vijaygovindarajan.com/2006/03/strategy_as_transformation.htm
    • Strategy dilemma # 5 Continuous change (Kaizen) vs. Revolutionary change
    • ”Kai” = Change. ”Zen” = Good.
    • Toyota implements a million new ideas a year, and most of them come from ordinary workers. (Japanese companies get a hundred times as many suggestions from their workers as U.S. companies do.) Most of these ideas are small - making parts on a shelf easier to reach, say - and not all of them work. But cumulatively, every day, Toyota knows a little more, and does things a little better, than it did the day before. http://www.newyorker.com/talk/financial/2008/05/12/080512ta_talk_surowiecki
    • Continuous change Revolutionary change Proactive Change Constant renewal Continuous communication Creative destruction Reactive Change Adapt / adjust Turn around
    • Strategy dilemma # 6 Collaboration vs. Competition
    • To meet the pressure for cooperation, firms must actually become part of a broader ”team”, spinning a web of close collaborative relationships. The question dividing strategizing managers is whether firms should be more embedded or more independent. De Wit, Bob & Meyer, Ron: Strategy Synthesis, p. 168.
    • Inspiration on high vs. low degree of individualism http://www.scribd.com/doc/35468260/Individualism
    • Strategy dilemma # 7 Inclusive / involving vs. Exclusive / isolating
    • Executives at organizations that are experimenting with more participatory modes of strategy development cite two major benefits: Benefit # 1 Improving the quality of strategy by pulling in diverse and detailed frontline perspectives that are typically overlooked but can make the resulting plans more insightful and actionable. Benefit # 2 The second is building enthusiasm and alignment behind a company’s strategic direction. https://www.mckinseyquarterly.com/Strategy/Strategy_in_Practice/The_social_side_of_strategy_2965
    • What is good leadership? http://www.slideshare.net/frankcalberg/good-leadership
    • Strategy dilemma # 8 Company perspective vs. Business unit perspective
    • The CEO realized that the way he dealt with the competitiveness among department heads was completely contradictory. On the one hand, he kept urging them to “think of the organization as a whole.” On the other, he kept calling for actions - department budget cuts, for example - that placed them directly in competition with each other. http://hbr.org/1991/05/teaching-smart-people-how-to-learn/ar/12
    • In the long run, internal competition causes every participant to lose. When leaders look for ways to encourage cooperation and generate common goals, they become more successful. http://blogs.hbr.org/cs/2013/02/how_poor_leaders_become_good_l.html
    • Strategy dilemma # 9 Self management vs. Hierarchical management
    • Few participants Many participants Closed decision process Open decision process Use of crowdsourcing / social media
    • Further inspiration http://www.slideshare.net/frankcalberg/3-ways-of-organizing http://www.slideshare.net/frankcalberg/organization-rethinking https://delicious.com/frankcalberg/crowdsourcing
    • Strategy dilemma # 10 Shape markets vs. Adapt to markets
    • To put things simply, when it faces very high levels of uncertainty about variables it can influence, shaping makes most sense. Adapting is preferable when key sources of value creation are relatively stable or outside the company’s control. https://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/Making_the_most_of_uncertainty_1128
    • A shaping strategy is best in unpredictable environments that you have the power to change. In new or young high-growth industries where barriers to entry are low, innovation rates are high, demand is very hard to predict, and the relative positions of competitors are in flux, a company can often radically shift the course of industry development through some innovative move. http://blogs.hbr.org/cs/2012/09/know_which_strategy_style_is.html
    • A shaping strategy embraces short or continual planning cycles. Flexibility is paramount, little reliance is placed on elaborate prediction mechanisms, and the strategy is most commonly implemented as a portfolio of experiments. http://blogs.hbr.org/cs/2012/09/know_which_strategy_style_is.html
    • Strategy dilemma # 11 Globalization vs. Localization
    • Inspiration http://www.slideshare.net/frankcalberg/globalization-and-localization
    • Strategy dilemma # 12 Long term focus vs. Short term focus
    • Short term Dynamic Static Long term Fire extinguishing Proactive Inactive
    • Thank you for your interest. For further inspiration, please feel welcome to visit http://frankcalberg.com Have a great day.