Strategy Warnings

Although strategy has been written about for centuries (consider The Art of War by Sun Tzu about 500 BC), the way we “do strategy” continues to change and evolve.  I picked up several insights this week from Strategy 101: An Introduction and Guide by Jim Ollhoff.  Ollhoff defines strategy as simply “a plan for gaining an advantage.”     The author provides a concise review of the various definitions of strategy, its history, various schools of thought on strategy and some ideas on how to become a better strategic thinker. 

Strategy is NOT…

First, strategy is not the objective.  Strategy is the process (the ‘how’) by which you plan to reach your objective.  Strategy is also a dynamic process.  Why?--because as we attempt to develop a sustainable competitive advantage in the marketplace, things keep changing.  Our environment changes (e.g. technology), our customers become more sophisticated, our supply chain collapses through consolidation, our industry “tightens up,” our competitors grow wiser—the list goes on and on.  Thus, in some broad sense, the development of our strategy is a continuous process, open to creative tweaks and wise adjustments. 

Avoid Strategic “meddling”

Although we must see the development of our strategy in “dynamic” not “static” terms, we must also realize that the implementation of our strategy typically involves a significant commitment of resources and therefore is not easily reversible.  Executives that are constantly tinkering or meddling with the organization’s strategy often end up with nothing but a muddled strategy.  Strategic thinkers are likened to expert chess players who don’t see just the next move, but the next 10 moves as they move toward their objective.  For example, a Christian college president foresees what objectives must be met over the next 10 years if her college is to not just survive but thrive.  She then decides that changes on the board of trustees are necessary for her to accomplish her objectives and develops a strategy to slowly replace board members over the next 5 years.  That is, she sees the “end game” 10 years hence and decides today on the several strategic moves that must take place over the next 5 years. 

Strategic Thinking versus Operational Thinking

Ollhoff notes that both types of thinking are necessary in the workplace.  It’s not that strategic thinking is “better” than operational thinking or vice versa.  Both are required if your organization is to survive.  The challenge is that few people can do both kinds of thinking well.   

The Downside of Strategy

Yes, strategy should be seen as a very valuable process within your organization.  But there is a danger—locking into a single view of reality—whether or not the reality is true, whether or not the reality has changed.  “History is replete with examples of catastrophe resulting when people develop strategy and then become so single-mindedly overfocused on it that they do not notice that the world has changed.”  The author provides the following example of this danger. 

The Maginot Line

After World War I, the French wanted a way to protect themselves from another German invasion.  They believed Germany was still an aggressive, empire-building nation, and they needed a plan—a strategy—to defend their country.  Some suggested that they needed a line of protection along the border, a line of fortresses to prevent the German army from approaching—The Maginot line.   

If the Germans were to attack, surely they would march across the border side-by-side, Napoleon style.  They believed that a string of fortresses, equipped with machine guns, could make quick work of these Napoleanic formations.   

Thus, the Maginot line construction began in 1929 and was finished in 1940.  There were 108 fortresses, shielded by concrete and linked with tunnels.  The giant guns in these fortresses pointed towards Germany; in fact, they could only point that way.   

But in 1940, the German army simply marched around the line of fortresses attacking through Belgium while aircraft flew over the fortresses.  France fell quickly and the massive fortresses of the Maginot line barely got off a shot. 

What happened?  Things changed and those that developed the strategy chose to ignore the changes.   

Your Maginot Line

So what is your Maginot line?  Are you reaching and retaining customers today in the same way that you did 10 years ago?  Are you hiring and retaining your best employees today in the same way that you were hired?  What has changed that you are either unaware of (you don’t know what you don’t know) or that you have ignored?  Do you truly understand your current reality and how will that reality differ 5 years or 5 months from now?   

Raising Awareness

Please know that Daystar Consulting provides training that can help you raise the awareness of strategic thinking and strategic planning in your organization. 

Keith 

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