Accenture Lessons: Strategy Development without a Competitive ...
Strategy development has evolved through 5 key phases since the early 1900s. Strategy development started with a focus on financial planning in the 1950s, moving to long-term corporate planning in the 1960s, to strategic planning in the 1970s and eventually to a focus on strategic management in the present day. Today, the strategic development theme is on integrating strategic planning and implementation with a stress on the key concepts of core competencies, strategy planning and execution, and balance scorecard analysis. Much of business strategy is also hinged on ideas in the 1970s, where the focus of what business leaders devote their efforts to was around thinking strategically to beat competition and the business frameworks of alternative strategies, portfolio analysis, and the BCG Growth Share Matrix were actively used for the first time. Shifts in strategic mindset represent a changing landscape, emerging thought leaders, and emergence of disruptive technologies and changes.
There are several key elements to strategy execution design. Within strategy execution, a critical element is shaping the annual strategy planning and budgeting process. We should construct the organization context under which the business should operate. organizational context includes initiatives, including governance, org structure, performance metrics, rewards, in addition to management teams capabilities and cognitive frames. Within the category of strategic initiatives, we should evaluate the organizations portfolio of business projects, ownership and management, and political tactics. Strategy planning/budgeting initiatives can include growth scenario planning workshops, growth strategy design, and innovation management. Strategic projects should be diligently managed.
There are 3 types of strategy development challenges that can be derived from our discussion thus far. Setting a strategic intent involves setting objectives, defining relevant battlefields, and defining the relevant core competencies. In strategy development, framing the type of strategic challenge is considered one of the most critical tasks. You should align execution content, so that strategy can be truly realized. A key challenge to strategy development is ambiguity, in regards to the challenge and approach. One significant strategic challenge is designing a tops down approach to intervention driven by revised strategic intent.
Strategic thinking of contemporary businesses has been shaped by military strategists since 400BC when Sun Tzu wrote the Art of War. Sun Tzus thoughts about the factor of terrain, if we were to take that into the context of companies competing today, translates to markets, industry structures, value propositions, and Porters Five Forces. Sun Tzu wrote the Art of War, which has been adopted into a business strategy book. In Sun Tzus Art of War, he wrote about five core factors in military strategy and each of these factors can be directly translated to terms of business strategy. Sun Tzu spoke about indirect business strategies when Sun Tzu proclaimed that winning without fighting is the pinnacle of skill on the battlefield.
Bower focuses on the strategic planning and budgeting processes are at the heart of the strategy development process. This framework is called the Resource Allocation Process RAP business framework. Organizational context is comprised of organizational governance and the org structure, basis of performance metrics and incentives, and managements beliefs and cognitive frames. RAP based strategy planning and budgeting is a bottoms up approach to locating and picking of important business opportunities. Capital market context is also analyzed, which includes demands and influences of providers, including banks. In the RAP business framework, when market context is discussed, we are evaluating the demands of those customers that make up the major sources of revenue,and technology development. Bower defines strategic intent as the perceived and communicated official strategy.
Right now, there are Mintzberg and Bower present contrasting and complementary ideas around strategic management. In organizational configuration, the organization takes on behaviors based on adaptation to contexts. Mintzberg also advocates a transformation of business practices, where management recognizes the need and has the ability to conduct top-down business operational operational transformation. Mintzberg opts for an organization, bottom-ups process to drive strategy development that adheres to organizational configuration.
To create a rigorous business strategy, companies must perform business strategy development beginning with a agreed upon set of beliefs around its business positioning and existing strategic barriers to growth. In order to understand your strategic challenges, you must begin with a complete, end-to-end understanding of your situation. The next steps include forming what the future vision of the company is and then going into the details of strategically planning how to achieve that state. Proper strategy development involves more than a focus on maximizing profitability. Business strategy is about value innovation, strategy is about competitive selection, and strategy is about speed .
Strategy Development Presentation
Related Sites : strategy development presentation
doris day ice age edward scissorhands billie joe armstrong wilco wilco daredevil