Ch 7: Strategy from planning to vision ( ( (One prized talent among gurus:…
Ch 7: Strategy from planning to vision
One prized talent among gurus: Ability to predict and control the future
Strategy recast --> as vision
¿is this an improvement?
Building the planning machine
'50s and '60s insisting all companies needed an overall corporate strategy
Already blazed by:
Early '60s planning:
Designing a blueprint setting company's future
Agreeing on the plan
Implementing the plan
Academics deconstructed planning:
Companies needed more layers of planners
Consultancies (BCG) helped do that
Porter the planner
Brought intellectual vigor to strategy
Book: Competitive strategy (1980)
Studied individual companies set in context
Outlined "generic strategies"
Emphasized that different firms must choose different paths to success
Book: Competitive Advantage (1985)
Before deciding a strategy a company must:
Analyze the "five competitive forces"
Determine the attractiveness and type of an industry
See a company as a value chain
Strategy: making a choice btw 2 ways of competing:
Planning Machine Stalled
Japanese producing with quality and low cost
They did it without strategic plans
Managers think strategic planning as an obstacle to good management.
What is wrong with SP?
SP became a numbers game (budget)
SP became pointless, bc future is unpredictable.
Most important knowledge in an org. is not what is written but what is exchanged in informal conversations.
SP separates thinking from doing
Growth is back
Asking succession questions of "what if" helped
Companies remain interested in thinking about the future
Importance of science fiction
SP not planning but a Vision
Vision provides a company with a sense of mission without the costs of planning
"Be one or two in an industry, or else, get out"
"Companies need overarching themes to create change"
Visions: Define a few outstanding goals around which the companies can organize their resources
Arthur Andersen: "Vision has to be an ongoing process"
The New Synthesis
Strategist set overall goals, but individuals improvise
John Kay: Strategy should be built based in:
+Ability to innovate
Analysis: Generic strategies lead no success -> had no readers.
Gary Hamel and Prahalad Book: Competing for the future (1994)
Combines elements of both approaches
Most important competition is the battle to create and dominate emerging opportunities
The role of senior managers needs to be rethought in the light of this inside
Companies = Collection of skills
Reinvent the industry by following a vision
Imagine what the market would be in 10 years and try to get there
Money and knowledge can't save a company that don't think about the future.
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Competing for the past
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