A new competitive edge

A new competitive edge
strategy as an iterative process

@danto_ma
Strategy is probably
one of the most
mystical and mystified
words in the corporate
vocabulary.

@danto_ma
Essentially
strategy is (just)
macro-level
problem solving.
And, as with any
‘new product’
aimed at solving a
problem, strategy
can be thought of
as a series of
assumptions
to-be-tested.
?
?!

Other fields such as
product development
or new business
development have
long reaped the fruits
of working iteratively.
The benefits of
shipping small
batches that can be
easily tested are
undebatable.
@danto_ma

@danto_ma
Iterative Systems that help us respond to change
today: iterative system for
enterprise strategy
2000s: iterative system for
business development
(lean startup)
software development
(agile)
manufacturing (lean
manufacturing)

@danto_ma
However, on the
strategy side, things are
still stiff and done in a
linear fashion.
Flying in the face of the
fact that 98% of
executives are sure that,
only 20% of their
strategic objectives will
be achieved in the
agreed time frame.

@danto_ma
Choosing to accept
the parallel
between new
product
development and
strategy can trigger
a change in the way
strategy is
developed and
deployed.

@danto_ma
A new set of strategic
options are put forward
and deployed as
‘probes’ for the new
strategy. The ‘probes’
will be tested with a
specific market segment.
For risk reasons, might
not even be the
company’s core market.
Then, based on the
results and feedback,
improvements or
corrections will be made.

@danto_ma
If the ‘probes’ turn up
successful the company
will then double down on
that particular strategy.
If not, all that was lost
was the investment in
‘the probes’ – while at
the same time keeping
‘the residual benefit’ of
the lessons learned.
strategy

@danto_ma
The process
As trivial as this
process sounds it’s
quite complicated to put
into play.
On top of that the
technology clock speed
can hold a company
back from launching
‘new probes’ as often
as it likes.

@danto_ma
For the process to
succeed the company
also needs a high degree
of discipline. This will
serve in following up with
the probes, monitoring
them and examining
external trends.

@danto_ma
Often times
creating a
corporate
strategy is
viewed as a
tedious and
actionless
process sucking
up hundreds of
men-hours.

@danto_ma
Creating a corporate
strategy needs to be a
bit less exhausting and
way more actionable.
And the problem lays not
with the tools we have at
our disposal, but with
how we approach the
process.

@danto_ma
Approaching
strategy with the
right mindset is
not enough.
One needs to
understand the
actions that need
to be taken too.

@danto_ma
OPDCA for
Strategy
formulation
The continuous
improvement loop
OPDCA (observe -
plan - do - check - act)
used in lean
manufacturing can
serve as the basis for
strategy formulation
and deployment.
ADJUST
Do we need
to change
anything?
OBSERVE
Where are
we today?
PLAN
Where do we
want to go?
DO
What do we
need to get
there?
CHECK
How will we
know if we are
making progress?

@danto_ma
Strategy formulation

@danto_ma
OBSERVE stage
Question to be answered:
where is the company
today?

@danto_ma
PLAN stage
Where does the company want to go?
And why?
What does the company want to achieve?
Where does the company want to be?
Why does the company wanna be there?

@danto_ma
DO stage:
How will the company get to
where it wants to be?
What capabilities,
management system and/or
structures does the company
need to fulfil the vision?

@danto_ma
CHECK stage
How will the company know it’s on
the right track to where it wants to
be?
How will we measure our progress?
What does success look like, short
term, medium term, long term?
How will we measure our progress?
What does success look like, short
term, medium term, long term?

@danto_ma
ADJUST stage
Is there anything to be
changed or adjusted?
Will the company be able
to continuously transform
using the new
capabilities, management
system and/or
structures?

@danto_ma
Strategy deployment

@danto_ma
OBSERVE stage
Actions to be taken:
assessment (audit) of
the company's current
capabilities, position,
portfolio, processes

@danto_ma
PLAN stage
create a strategy plan for
the core-business
create an innovation
strategy for growth (incl.
innovation thesis)
align the innovation
strategy with the
core-business strategy

@danto_ma
DO stage:
prioritize your company’s
idea pipeline to match
your strategy
deploy your strategy
using small market bets
(probes) in form of
product teams
RESUL
T

@danto_ma
CHECK stage
deployment of a
clear strategy
performance
dashboard across
the entire company

@danto_ma
ADJUST stage
● Actions to be
taken: apply
Hoshin Kanri

@danto_ma
With product teams
getting more confident
using the scientific
method for their
decisions, a switch is
needed at corporate
strategy level too.
level 1
level 2
level 3

Email:
me@danto.ma
Website:
www.danto.ma
thecorporatestartupbook.com
LinkedIN:
linkedin.com/in/dantoma/
Twitter:
@danto_ma
Contact

A new competitive edge

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