Strategy is about focusing on the right things.
Stop looking for the perfect strategy. It won´t save you anyway. You might have heard the saying that “Culture eats strategy for breakfast”. We both know it is so true. That´s why primary focus in strategy should be in your people´s capabilities, secondly on your customer value solutions and thirdly on profitability. The better equipped your people are, the better relationship with your customers, resulting in increased profitability and higher company value.
Leaders have to show by example how to quickly change their own everyday actions when strategy is no longer useful. Pride and status leads to standstill and are two of the greatest enemies to agility and flexibility. When the change calls for actions, don´t hesitate. Start focusing on what is most important right now.
We gravitate towards yesterdays´ actions, because that´s how our brains work. The hardest thing in getting to the moon is not building the rocket, it is to get rid of the gravitation of mother earth.
Strategy redesign is about creating new value pockets.
The only reason for any redesign should be a change in customer expectations and customer value. The final meter should rule your choices because that´s where you make the difference to your customers. Redesign without a call to change from the market is only synthetic. You should know not only your customer but also your competitors.
It is popular to go “lean” and create projects aiming for waste reduction. We suggest that you instead focus on finding new value pockets, looking in places where you haven´t recently been looking. By cost cutting or waste reduction you can maintain the business, yet the growth is to be found in the new potential.
Innovation used to belong to R&D departments and only managers were the strategic problem solvers. Today you need to inspire innovators and decision makers everywhere in the organization. You need to share the ownership and accountability all around, to be bold and redesign in order to cope with the competition.