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Agile Strategy Cone Advisor

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Sustainable strategy is achieved by doing things in a new way. Continuous renewal becomes the only sustainable strategy.
This is new to strategic thinking, which until now has mainly pursued the benefits of sustainable strategy without being able to identify its main factor – agile strategy.

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Agile Strategy Cone Advisor

  1. 2. Agile Strategy Some Foundations By Jukka Ala-Mutka, DSc. http://fi.linkedin.com/in/jukkaam www.coneadvisor.com www.conemade.com © CONE ADVISOR
  2. 3. Introduction to presentation <ul><li>Sustainable strategy is achieved by doing things in a new way. Continuous renewal becomes the only sustainable strategy. </li></ul><ul><li>This is new to strategic thinking, which until now has mainly pursued the benefits of sustainable strategy without being able to identify its main factor – agile strategy . </li></ul>© CONE ADVISOR
  3. 4. <ul><li>” This is so hectic business that it is impossible to manage with strategy...” </li></ul><ul><li>dot.com-entrepreneur-CEO </li></ul><ul><li>in 2000 </li></ul>© CONE ADVISOR
  4. 5. What is Strategy? Emergent Strategy Planned Strategy Intented Strategy Realized Strategy Unrealized Strategy Adopted: Mintzberg & Waters 1985, Mintzberg 1987, 1994, Mintzberg et al. 1998 Internal Formation External Megatreds Opportunistic decisions © CONE ADVISOR
  5. 6. Traditional definition of strategy is not applicable <ul><li>(1) We need a lot of RIGHT information </li></ul><ul><li>(2) Issues must be known BEFOREHAND </li></ul><ul><li>(3) Then we make DECISIONS and in the end becomes IMPLEMENTATION AND CONTROL... </li></ul><ul><li>= Our problem is STRATEGY </li></ul>© CONE ADVISOR Source: Ala-Mutka. 2008. Strategiamalli.
  6. 7. Agile Strategy - Culture <ul><li>Strategic growth goals: </li></ul><ul><li>“ Too realistic” = No need to change the way of doing </li></ul><ul><li>Ambitious = Open to emergent strategies </li></ul>VS. ” I focus on corporate culture...” Mårten Mickos MySQL in 2007 Source: Ala-Mutka. 2008. Strategiamalli. © CONE ADVISOR
  7. 8. Can you just lead strategies? Yes, with business models <ul><li>Ramirent Plc decided to enter on East European markets in 1999, but afterwards they acquired Bautas (Norway) and Altima (Sweden) from west. </li></ul><ul><li>This just because of </li></ul><ul><ul><li>opportunity and </li></ul></ul><ul><ul><li>acquisitions fits in to the business model - not based on the plan. </li></ul></ul><ul><li>Yes you can with business models , not with plans </li></ul>© CONE ADVISOR Source: Ala-Mutka. 2008. Strategiamalli.
  8. 9. Make business model easier to communicate with Business Rules (~ Simple Rules) <ul><li>1. Decision Rules </li></ul><ul><ul><li>Southwest: Midsize cities and secondary airports </li></ul></ul><ul><li>2. Boundary Rules </li></ul><ul><ul><li>Southwest: no seating, no meals </li></ul></ul><ul><li>3. Activity Rules </li></ul><ul><ul><li>3M: each employee can use 15% of working time to a new innovative projects </li></ul></ul><ul><ul><li>Southwest: point-to-point flights </li></ul></ul><ul><li>4. Performance Rules </li></ul><ul><ul><li>3M: new products 25% of sales (new = under 5 year old product) </li></ul></ul><ul><ul><li>Southwest: very low ticket prices (competition against cars) and 15 min turnaround </li></ul></ul>Source: Ala-Mutka 2008 p. 185-188, see also Eisenhardt & Sull 2001 Simple Rules © CONE ADVISOR
  9. 10. Process: Year Clock vs. Agile Dialogue Analysis Planning Implementation Control Feedback Tasks Planning Participation Strategy Modelling, Implementation and Feedback Tasks Planning Participation Tasks Planning Participation Time Source: Ala-Mutka. 2008. Strategiamalli. © CONE ADVISOR
  10. 11. Traditional vs. Agile Strategy <ul><li>Traditional Strategy... </li></ul><ul><li>Plan </li></ul><ul><li>Document </li></ul><ul><li>Based on Analysis and formal step-by-step process </li></ul><ul><li>“ Lots of paper before action...” </li></ul><ul><li>Implementation </li></ul><ul><li>70% of strategy (plan) implementation fails.... </li></ul><ul><li>Agile Strategy... </li></ul><ul><li>Mindset and rules </li></ul><ul><li>Dialogue and planning </li></ul><ul><li>Based on testing in practice (interaction & interactions) </li></ul><ul><li>“ Action and talking at same time...” </li></ul><ul><li>Easy to Lead </li></ul><ul><li>Because people does... </li></ul>Source: Ala-Mutka. 2008. Strategiamalli. © CONE ADVISOR

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