| y"> | | | | Strategy is something you make up. Your strategy is |
| Rather than view strategy as a selection of options, | | | | a statement of what you will do as a company to |
| here is another approach: creation or invention. | | | | realize your corporate vision: what specifically will you |
| Strategic planning is not strategy | | | | accomplish, what meaning will your company have, |
| Strategic Planning, often synonymous with Annual | | | | and how will you create value and profits. Don't |
| Planning, details how you are going to get where you | | | | ignore your past results. Just don't allow your |
| have decided to go. It is a description of how you will | | | | strategy to be constrained by them. Don't ignore the |
| achieve your goals -- those milestones you | | | | marketplace. Just don't fall into the trap of letting |
| established in structuring your business plan. Strategic | | | | your competitors' actions define what yours will be. |
| Planning is operational in nature, it examines the | | | | And certainly don't ignore your customers -- just |
| particular actions you intend to take over the coming | | | | don't think that your customers' wants and desires |
| period. Strategic Planning can be critical -- and after | | | | are the only measure of what you should seek to |
| you have a Strategy, it is often a good idea to | | | | accomplish. These references -- past results, |
| develop a Strategic Plan. | | | | markets, competitors, customers - must be taken |
| But Strategic Planning is not Strategy. Strategy is the | | | | into account. |
| "what" you and your organization are going to be, | | | | And then, what it boils down to is this: your strategy |
| and the broad approach to how you are going to do | | | | is the direction your company will take, because you |
| that. For instance, your company will become the | | | | said so. An invented strategy inspires you |
| number one vendor of internet-hosted medical | | | | An invented strategy inspires you. Because it fulfills |
| records applications, achieved through freeware | | | | your vision for your company, and because you see |
| distribution to HMOs and clinics, paid for with a | | | | how the realization of your strategy makes an |
| back-end, per-patient royalty. Strategic Planning looks | | | | important difference in the world, it inspires your |
| at the details of how you will get there -- which | | | | team, your customers, your prospects. An invented |
| associations you will joint-venture with, how many | | | | strategy energizes all your constituents, where |
| sales people you will add this year, what type of | | | | incrementalism just seems like more work. An |
| advertising you will use, whether to pay for | | | | invented strategy can propel your enterprise to |
| page-views or click-throughs, etc. The strategic plan | | | | greatness. An invented strategy can call forth |
| will itemize the specific actions you will take in a given | | | | achievements beyond what you currently consider |
| time frame, and the specific results those actions will | | | | possible. Breakthroughs and blockbusters are never |
| produce. | | | | founded on incremental improvement. Like Athena, |
| But imagine filling your new car with gas, turning the | | | | they spring from the heads of their inventors. And |
| ignition key, putting the car in gear, getting on the | | | | invented strategies can change your company's |
| freeway, and putting the pedal-to-the-metal. Full | | | | relationship to the marketplace and to the world. |
| speed ahead. Imagine that for a moment. Wait a | | | | Inventing strategy |
| minute -- where are you going? Many organizations | | | | The route to creating strategy is simple -- asking the |
| jump headlong into the strategic planning process, | | | | right questions. |
| without becoming clear about where they are going. | | | | What direction can the company take *now* to |
| Sure they have a direction - North, perhaps; into the | | | | realize your vision? What value proposition will you |
| Internet Applications space, perhaps. If you execute | | | | offer customers? What meaningful difference will you |
| the plan, your company will surely wind up | | | | make in your marketplace? What meaningful |
| somewhere. But is it where you wanted to go? | | | | difference will you make in your world? How do you |
| Strategy defines the destination, and whether you | | | | want to affect the lives of your people, your |
| will take a scenic way or a fast way, and if you | | | | customers, your clients? Your family? Answer these |
| want rest stops. Strategic planning identifies the | | | | questions and you are on road to inventing your |
| specific highways and the specific streets. | | | | strategy. |
| Have you bothered to think about where you want | | | | Are you building something totally new, or are you |
| to go recently? Most entrepreneurs, most companies, | | | | improving an existing idea? What are the dimensions |
| started with an idea of what they were trying to | | | | of the impact you want to have? Will it be faster? |
| create. But that may have been a long time ago. | | | | Better? Cheaper? Easier? Safer? More luxurious? |
| Perhaps it's time to consider this question again. | | | | More convenient? More portable? More entertaining? |
| Strategy is not a set of options | | | | More universal? |
| Imagine you are in your car again. This time, it's | | | | Next, from a high-level perspective, how will you |
| Sunday, and you and the family are going for a drive. | | | | marshal your resources and time your maneuvers to |
| Where are you headed? "We'll let's see", you say to | | | | offer that value and make that difference? For |
| yourself, "How much gas do we have, and which | | | | instance, Microsoft's desktop applications strategy is |
| roads have the least traffic?" Many companies think | | | | to let other companies originate product categories, |
| strategy is about evaluating a set of options, often in | | | | wait to see which ones catch on, then bring out a |
| terms of available resources, or a competitive | | | | lower cost Microsoft alternative, and market the |
| response. They say things like -- "We have only 12 | | | | heck out of it. This strategy defines a what, not a |
| development resources available to us, which means | | | | how. It doesn't describe which products, how to |
| we can bring two key program feature sets to | | | | develop them, or when they will be rolled-out. |
| market, and XYZ Co. has just announced | | | | There are no rules in strategy |
| compatibility with our databases. What are we going | | | | Strategy is not evolutionary; it is revolutionary. Don't |
| to do?" | | | | assume the old rules apply or let them guide your |
| Strategy is not incrementalism or inertia | | | | thinking. Breaking rules may actually be a way to |
| Or they consider strategy in terms of increments. | | | | conceive of strategy. Ask yourself, "What rules can |
| Last year you increased profits by 20%; does that | | | | we break?" Consider which obsolete beliefs restrain |
| mean this year you should shoot for increasing | | | | growth in your company or in your market. Make up |
| profits by 20%. Or 25%? Or, since you added three | | | | your own assumptions. Test them -- first in your |
| new modules last year, and reduced customer | | | | mind. Einstein conceived of the Theory of Relativity |
| response time by 33%, should you plan to do the | | | | using what he called a gedanken experiment -- a |
| same, or something a bit better, this year? | | | | experiment in the mind. |
| These would be worthy goals, and this approach is | | | | Don't worry about implementation...yet |
| valid. But accomplishing these kinds of targets will not | | | | While you are considering Strategy, don't worry |
| fundamentally alter your company's relationship to the | | | | about whether you have the wherewithal to |
| marketplace. Nothing will really be changed -- not you, | | | | implement what you are thinking about. If you do |
| not your people, not your company -- and not the | | | | worry in this way, you are likely to compromise from |
| world. | | | | the get-go. There will be plenty of room for |
| It's been said that insanity is doing the same thing | | | | compromise later, if you must. Ignore the resource |
| over and over again, and expecting different results. | | | | constraints which dog you throughout the year. You |
| When you do the same things, only better, only | | | | will deal with these when the time comes. Author |
| harder, only more, only smarter, what you'll get is | | | | Gary Hamil suggests that one definition of strategy |
| more of what you've already got. That's fine, as long | | | | include the "...quest to overcome resource constraints |
| as you've determined that more of what you've got | | | | through a creative and unending pursuit of better |
| is appropriate for this stage of your company's life | | | | resource leverage." |
| cycle. | | | | I have my strategy. Now what? |
| Strategy is an invention | | | | |