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By: Daniel W. Rasmus for Serious Insights
“The real challenge in crafting strategy lies in detecting subtle discontinuities that may undermine a business in the future. And for that there is no technique, no program, just a sharp mind in touch with the situation”
―Henry Mitzberg, Crafting Strategy. HBR.
Getting Strategy Wrong can turn action into a black hole that sucks energy out of the organization.
Scenario planning is a key component of strategy. To Mitzberg’s point, it may not point out all the discontinuities, but when used well, it helps people pay attention better. Unfortunately, it isn’t used everywhere or often enough. Most organizations don’t apply scenario planning because they don’t understand strategy. If you participate in developing or implementing strategy, and these five areas seem in opposition to your approach, then you might want to reconsider your approach.
Strategy is a fixed roadmap. People often mistake strategy for a static blueprint rather than a dynamic, evolving process. They believe that once a plan is set, success is guaranteed. In reality, the marketplace changes constantly, and so must the approach. I tell my learners and clients that strategy is the story an organization tells itself about its future. The story evolves, and so does the strategy. Strategies do not have end dates. Every time an organization takes an action, it needs to reflect on its story and reconsider if the narrative remains valid or needs to change based on the consequences of that action.
Operational efficiency is strategy. There’s a widespread belief that operational effectiveness equates to strategy. Efficiency matters, but it’s not a substitute for the hard choices that differentiate an organization. True strategy means deciding what not to do as much as what to do.
Data alone can dictate strategy. Many organizations overvalue raw analytics, thinking numbers alone dictate strategy. While data is crucial, it’s the creative insights and bold decisions built on that data that drive real strategic breakthroughs. Analysis should guide vision, not replace it. And keep in mind there is no data from the future. The only way you can anticipate the future is to imagine it based on assigning various qualitative values to critical uncertainties. Analytics cannot create rich scenarios, only narrow, mundane forecasts that offer alternative end states with little or no context to justify or challenge them.
Any “big” action is strategic. The line between tactics and strategy is often blurred. Quick fixes and reactive moves can feel like strategic action, but without a cohesive guiding principle, they’re just isolated decisions that don’t build long-term advantages.
Strategy is only for top executives. Strategy isn’t the exclusive realm of top management. When you involve diverse voices across an organization, you tap into a wealth of perspectives that refine and challenge assumptions, leading to a more resilient strategic vision. This implies that strategy needs to be transparent. People need to understand it so they can contribute effectively.
Read the full article here: Getting Strategy Wrong: The Top 5 Concepts Organizations Get Wrong about Strategy. For more serious insights on strategy, click here. For more Serious Insights in the News, click here.
About the Author:
Daniel W. Rasmus, the author of Listening to the Future, is a strategist and industry analyst who has helped clients put their future in context. Rasmus uses scenarios to analyze trends in society, technology, economics, the environment, and politics in order to discover implications used to develop and refine products, services, and experiences. He leverages this work and methodology for content development, workshops, and for professional development.
