The document discusses twelve strategic dilemmas organizations face, including balancing innovation with efficiency and collaboration with competition. It emphasizes the importance of adaptability and customer focus, highlighting that many companies struggle with these dilemmas due to rigid thinking and internal dynamics. Each dilemma presents a unique challenge that requires careful consideration of organizational goals and external market conditions.

1. Strategy
dilemmas

2. # 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: Long term focus vs. Short term focus.
# 12: Globalization vs. Localization.

3. Strategy dilemma # 1
Outside-in
vs.
Inside-out

4. 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
http://www.businessweek.com/magazine/content/08_17/b4081064880218_page_2.htm

5. Do all of innovations come from inside of the
firm, where we develop the new ideas
internally and execute them ourselves?
Or do we systems set up so that the ideas we
execute can come from anywhere, and some
of our own ideas end up being brought to
market by someone else?
http://timkastelle.org/blog/2011/12/ten-tensions-in-innovation-revised/

6. Further inspiration
http://www.slideshare.net/frankcalberg/customer-needs
http://www.slideshare.net/frankcalberg/pestel
http://www.scribd.com/doc/36349465/Capital

7. Strategy dilemma # 2
Trying things out
vs.
Planning

8. experiments Experimerenquitre sshorrt-teermq lousseisr foer lo nsgh-terom gratins- term
losses for long-term gains.
http://hbr.org/2010/04/column-why-businesses-dont-experiment/ar/1

9. http://www.innovationmanagement.se/2011/11/15/unlearn-your-mba/, minute 11.

10. 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

11. When pharmaceutical companies conduct clinical trials to test the
safety and efficacy of their drugs as part of the process for
obtaining regulatory approval, some patients receive the drug and
others some standard existing treatment or a sugar pill (placebo).
A comparison of the two sets of results tells us whether the drug
improves patients’ symptoms and has side effects.
Many potential changes in your organizations can be subjected to
a similar experiment: implement the change in some places,
but not in others, and compare performance in the two groups
to learn whether the change is effective.
http://blogs.hbr.org/2014/10/experiment-with-organizational-change-before-going-all-in/

12. Strategy dilemma # 3
Creative thinking
vs.
Analytical thinking

13. Creative approach:
From few to many possibilities

14. Idea
Thinking Hearing
Communicating
Observing
Reading
Smelling
Idea
Idea
Idea
Idea
Idea
Idea
Idea

15. 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

16. 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

17. Analytic approach:
From many to few possibilities

18. Analysis
Result
Analysis
Analysis Analysis
Analysis

19. 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/

20. The inductive and deductive logic
is based on the past experiences.
Focus is on proving things.
http://youtu.be/txhBTi1STn8
http://youtu.be/e7pk8DOtsYw

21. Further inspiration
http://www.slideshare.net/frankcalberg/creativity-exercises
http://www.slideshare.net/frankcalberg/creativity-and-innovation-6546087

22. Strategy dilemma # 4
Creativity
vs.
Efficiency

23. Industrial firms thrive on reducing variation
(manufacturing errors);
Creative firms thrive on increasing variation
(innovation).
http://hbr.org/2014/01/how-netflix-reinvented-hr/ar/1
Reed Hastings

24. To be creative To be efficient
Think outside the box. 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.

25. http://www.vijaygovindarajan.com/2006/03/strategy_as_transformation.htm

26. Strategy dilemma # 5
Continuous change
vs.
Revolutinary change

27. 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

28. ”Kai” = Change.
”Zen” = Good.

29. Continuous change Revolutionary change
Continous improvement Creative destruction
Proactive
Change
Reactive Adapt / adjust Turn around
Change

30. Strategy dilemma # 6
Collaboration
vs.
competition

31. Santander went into partnership with Funding
Circle. The bank recognized that a segment of its
customer base wanted access to peer-to-peer
lending and acknowledged that it would be costly
to build a world-class offering from scratch.
http://www.mckinsey.com/insights/strategy/strategic_principles_for_competing_in_the_digital_age

32. Sharing information and expertise is a great
way to build trust with your competitors.
http://blogs.hbr.org/2014/02/use-co-opetition-to-build-new-lines-of-revenue/

33. Strategy dilemma # 7
Inclusive / involving
vs.
Exclusive / isolating

34. How should companies react
to creative external people?

35. Active Resist
Actively restrain what creative
customers do with product /
service.
Enable
Actively facilitate what creative
people do with product /
service.
Passive Discourage
Ignore what creative customers do
with product / service.
Encourage
But don’t actively
facilitate.
Degree of positive attitude towards customer innovation
http://www.slideshare.net/IanMcCarthy/when-customers-get-clever-managerial-approaches-to-dealing-with-creative-consumers

36. 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

37. Further inspiration
https://delicious.com/frankcalberg/crowdsourcing
http://www.slideshare.net/frankcalberg/rethinking-recruitment-8077077

38. Strategy dilemma # 8
Company perspective
vs.
Business unit perspective

39. Wal-Mart stores established its digital
business away from corporate headquarters
to allow a new culture and new skills to grow.
http://www.mckinsey.com/insights/strategy/strategic_principles_for_competing_in_the_digital_age

40. 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

41. Strategy dilemma # 9
Self management
vs.
Hierarchical management

42. Use of crowdsourcing /
social media
Closed
decision
process
Open
decision
process
Few participants Many participants

43. Further inspiration
http://www.slideshare.net/frankcalberg/3-ways-of-organizing
http://www.slideshare.net/frankcalberg/good-leadership

44. Strategy dilemma # 10
Shape markets
vs.
Adapt to markets

45. 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

46. To put things simply, when it faces very high
levels of uncertainty about variables it
can influence, shaping makes most sense.
https://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/Making_the_most_of_uncertainty_1128

47. 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

48. 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

49. Strategy dilemma # 11
Long term focus
vs.
Short term focus

50. Short term Long term
Dynamic Fire extinguishing Proactive
Inactive Static

51. Further inspiration
http://www.slideshare.net/frankcalberg/time-15259416

52. Strategy dilemma # 12
Globalization
vs.
Localization

53. Further inspiration
http://www.slideshare.net/frankcalberg/globalization-and-localization

54. Thank you for your interest. For further inspiration
and personalized services, please feel welcome to visit
http://frankcalberg.com
Have a great day.