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The Strategy Paradox
Cover, table of
Media & Entertainment
contents and sample
spread for brochure
addressing the future
Table of Contents By creating and
managing a portfolio
of real options on the
contingent elements Preparing for the
I Introduction ........................................................... 2
of alternative optimal
can resolve the Strategy
II Uncertainties in Media and Entertainment ............. 3
Part I: Foundations of The Strategy Paradox Preparing for the unpredictable The right portfolio of strategic options creates value indirectly
Chapter 1: What Strategy Paradox ........................... 6 Scenario building allows companies to create optimal strategies and identify core and by mitigating strategic risk, and directly, when the options are
Chapter 2: The best-laid plans.................................. 8 contingent elements. While it is not easy to make investments in core elements, investing in
contingent elements is even more challenging.
Chapter 3: Who dares wins…or loses ...................... 9
Chapter 4: The limits of adaptability....................... 11
Exercising options involves integrating the target company with all or part of the parent
Chapter 5: The limits of forecasting ....................... 13 The downside of “robust” strategies in addressing the company’s operations to allow the parent company to pursue new opportunities, transforming
Chapter 6: It’s about time ...................................... 15 an option into a commitment. It is the ability to abandon an option that makes it truly an
Chapter 7: Making choices vs. creating options ...... 18
unpredictable option, and not merely a delayed commitment.
Many companies end up building “robust” strategies — strategies that are “good enough”
under all possible scenarios. Identifying a robust strategy eliminates strategic options on Strategic Flexibility is illustrated as a loop. Once an organization has gone through the process
Part II: Resolving The Strategy Paradox contingent elements, leaving every element of that strategy as a core element. Robust of building scenarios, developing optimal strategies, and acquiring a portfolio of strategic
strategies will result in mediocre results under most circumstances and standout performance options, it is time to do it all over again. As options are exercised and others are abandoned
Chapter 8: Strategic flexibility ................................ 22 and, new scenarios need to be created, setting off another round of option assessment and
in none. Settling on robust strategies mitigates risk but eliminates the ability to generate
Chapter 9: What if…? ........................................... 24 creation. As a result, strategic planning built on Requisite Uncertainty and Strategic Flexibility is
Chapter 10: Preparing for the unpredictable .......... 28 not driven by fiscal or calendar years.
Only by creating options on the contingent can a company reach the efficient frontier of
Part III: Final thoughts about The Strategy Paradox
Chapter 11: Reinventing strategy ........................... 32
How strategic options are created to address the unpredictable Consideration of the future in terms of
Creating options is relatively simple: invest in a manner that confers the right, but not the scenarios and options causes current events
Deloitte’s Credentials in Media and Entertainment obligation, to make additional investments at some point in the future. This makes the to no longer be merely current; they become
Deloitte’s Media & Entertainment credentials ......... 36 investments of Microsoft and J&J, options on strategic elements rather than commitments
to them. Each company holds valuable options on integration between its various operating signposts of the future.
divisions. Although the investments are wholly owned, all three companies have postponed
integrating their investments with the rest of the company, pending the resolution of key
competitive uncertainties. The only way for companies to defeat the
Investments have option value when they give an investor access to potentially valuable strategy paradox is to create and manage a
resources or capabilities. They actually have option value when the investment structure enables portfolio of real options on the contingent
the investor to manage its portfolio, which consists of an ability to preserve, exercise, or
abandon options as appropriate. When an organization creates an option, the control structure elements of alternative optimal strategies can
must be such that the company holding the option can direct the target company’s activities to companies defeat the strategy paradox.
make future integration a possibility but not a necessity.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP.
Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
2 28 29
Getting to the point
Women comprise nearly half of the Mission: To drive marketplace growth and create a culture where the best
50% U.S. labor pool.
Talented. Empowered. Leaders.
choose to be.
We are the women of Deloitte 60%
60% of accounting bachelor’s
degrees are awarded to women.
It’s simple. We see attracting, retaining, and developing women as a
business imperative. It fuels our growth, creates the most effective teams,
and distinguishes us in the marketplace by allowing us to deliver more
value and innovative business solutions to our clients. Women represent a
growing proportion of the shrinking talent pool, and a growing number of
50% of undergraduate business degrees are decision-makers in our client organizations are women. We have found that
50% awarded to women. creating a culture that attracts the best women helps us attract the best
people. And attracting the best people helps us attract the best clients. In
other words, we raise the bar and become the standard of excellence —
the ﬁrst choice of the most coveted talent and the ﬁrst choice of the most
Women now hold more than half of all
50% managerial and professional positions in
The Initiative for the Retention and Advancement of Women As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for
a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
Cover and sample Putting our best foot forward
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workshops and development programs, social and networking events, and
major sponsorships, we are helping not only our own people but also our local
annual report on
communities by extending their networks and driving marketplace growth.
Each year we sponsor a number of organizations that share our interest and
the strides made for
commitment in advancing women in the workplace. These conferences give many
of our women opportunities to network with clients and colleagues and provide
us the chance to attract new talent. The research we help fund enables us to be
on the forefront of trends concerning issues that women face during their careers.
Our major sponsorships have included:
all employees by its • Aspen Institute — Where Will They Lead?: MBA Student Attitudes about
• Catalina magazine’s Catalina Tour
• Catalyst — Unwritten Rules: ”What You Don’t Know Can Hurt Your Career,”
“At Deloitte, we recognize the value of providing a variety of
growth opportunities and creating an environment where all of our
talent can thrive. It’s important for our women to know we are
“Women of Color in Public Accounting Report”
• Center for Work Life Policy – Hidden Brain Drain Task Force invested in their careers and will provide them with the tools they
• Fortune magazine’s Most Powerful Women’s Summit need to succeed.”
• Forté Foundation
Barbara Adachi, National Managing Principal,
• Human Rights Campaign
Initiative for the Retention and Advancement of Women, Deloitte LLP
• Management Leadership for Tomorrow
• National Council of Women in Research — The Satisfaction Factor
• Simmons School of Management Women’s Leadership Conference
• Working Mother magazine’s 100 Best Work Life Congress
• Working Mother magazine’s Multicultural Conference and Leadership Town Halls
• Women of ALPFA and Women of ALPFA Summit
• Women of NABA
• Women of Ascend
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