Lex Sisney | Organizational Physics
lex@organizationalphysics.com
@lexsisney
Organizational Physics 101:
Strategy
Systems Thinking for Breakthrough Business Performance

How to choose the right strategy
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The goal of any strategy:
get new energy (E) from environment
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The Strategy Pyramid
Execution Lifecycle
E
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Innovators
Early
Adopters
Early
Majority
Late
Majority / Laggards
1. Pilot it
2. Nail it
3. Scale it
4. Milk it
Development
Stability
The Strategy Map
psIu
Psiu
PSiu
PSIu
PSiU
-S - -
- - -
-
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5. Kill it

psIu
Psiu
PSiu
PSIu
Execution Lifecycle
Birth
Early Growth
Growth
Aging
Death
OrganizationalDevelopment
Organizational Stability
Decline
Maturity
Then launch new orgs
Get to here
-S - -
- - -
-
PSiU
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How to Tell If You’re Doing it Right
Pricing
Pressure
Low
High
Net Cash Flow
Positive (+)Negative (−)
Market
Growth
Rate
High
Low
CompetitionFew Many
1. Pilot it for
2. Nail it for 3. Scale it for
4. Milk it for
Early Adopters Early Majority
Innovators Late Majority/Laggards

Strategic Success – Path to Prosperity
1. Pilot it for
2. Nail it for 3. Scale it for
4. Milk it for
Early Adopters Early Majority
Innovators Late Majority/Laggards
Path to Prosperity $$$
Maximum building of market
awareness
Make smart, timely
investments
Maintain pricing and margins
by product focus and thought
leadership
Avoid commodity trap as
long as possiblewww.OrganizationalPhysics.com

Strategic Folly – The Face Plant
1. Pilot it for
2. Nail it for 3. Scale it for
4. Milk it for
Early Adopters Early Majority
Innovators Late Majority/Laggards
The Face Plant
Innovate on a problem that
has already been solved
Never establish real pain
point/need
Never establish margin
Never establish leadership
Get crushed by vendors
with a more complete
service offering
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Strategic Folly – The Flame Out
1. Pilot it for
2. Nail it for 3. Scale it for
4. Milk it for
Early Adopters Early Majority
Innovators Late Majority/Laggards
The Flame Out
Never establish customer
spending priorities
If first to market, failed to
determine if demand is real
or imagined (timing is
everything)
If late to market, forced to
target stronger competitors
head-on
Rapidly lose product margin
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Strategic Folly – The Lost Opportunity
1. Pilot it for
2. Nail it for 3. Scale it for
4. Milk it for
Early Adopters Early Majority
Innovators Late Majority/Laggards
The Lost Opportunity
Forced to compete on price
too early
Never establish margin
Never establish leadership
No leverage to compete in
a commodity market
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Typical Sources of Financing
Pricing
Pressure
Low
High
Net Cash Flow
Positive (+)Negative (−)
Market
Growth
Rate
High
Low
CompetitionFew Many
1. Pilot it for
2. Nail it for 3. Scale it for
4. Milk it for
Early Adopters Early Majority
Innovators Late Majority/Laggards
Self/Friends/Family
Angels
VentureCapital
Corporate
Private Equity

Customer Driven/Agile Development
Pricing
Pressure
Low
High
Net Cash Flow
Positive (+)Negative (−)
Market
Growth
Rate
High
Low
CompetitionFew Many
1. Pilot it for
2. Nail it for 3. Scale it for
4. Milk it for
Early Adopters Early Majority
Innovators Late Majority/Laggards
CustomerDriven/AgileDevelopment

Strategy Requirements
Alignment
Strategy aligns with company vision and
values
Resources
Company has, or can get, the required
resources (staff, customers, technology,
capital)
Competence
Company has the core competence and
experience to execute the strategy
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Innovators
Early
Adopters
Early
Majority
Late
Majority / Laggards
1. Pilot it
2. Nail it
3. Scale it
4. Milk it
Development
Stability
Where are you now?
psIu
Psiu
PSiu
PSIu
PSiU
-S - -
- - -
-
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What should your next move be?
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Learn more:
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