Agile Strategy

spent an evening with a friend who believes that business strategy as an exercise and as a direction setting device is dead -- cold and gone in this ever changing world.

i can understand this opinion since i have come to be very uncomfortable with the words "strategy" and "strategic" -- they are much overused and often combined with shallow thinking to produce a binder for the book shelf.

yet, as much as i dislike the words themselves, strategic thinking about the direction of the business is still critical to business survival; the necessary thinking just occurs in a different way.

today i practice what i call "agile strategy", still composed of critical thinking about the business, its products/services, and environment; but not conducted as a rote yearly business group grope.

the agile strategy process is living, year round.  it is not a monolithic study addressing the whole business at once and it only tries to see a short distance into the future.

each business unit maintains and updates their component of the strategy (within the corporate framework);  maintains it as a living document with updates in whatever frequency is needed

the business unit components fit into a company-wide strategy framework (not a rigid strategy); based upon core competencies, core processes and capabilities, and the overall environment in which the company operates

both at the company and business unit levels inflection points (potential changes in the market, customer preferences, and competition) are identified indicating the need for changes in the framework or business unit modules. these inflection points are under constant monitoring by the company and business unit.  when one is encountered (activated by the market or competition), previously discussed changes in the corporate framework and business unit strategy modules are exercised.

business strategy today is not a process, but a living, breathing force field of insight and agreement within the company; much like the much discussed Higgs field of particle physics.  again like the Higgs field, the corporate strategic framework should pervasively and positively impact the market presence of every business unit within the company.

Capitalism

i did not write this article nor am i a McKinsey alumnus, since my career was with Booz Allen Hamilton Inc., but it is simple the best thinking on capitalism that i have seen in a long time.

suggest that you might want to read it.

http://www.mckinsey.com/insights/corporate_social_responsibility/redefining_capitalism?cid=other-eml-nsl-mip-mck-oth-1411

you will probably have to copy it and paste it into your browser.

Bumps In the Road

so, the economy is gaining strength, your business is growing, and you are thinking about building a business strategy to cope with future growth.  good idea, but in itself it is incomplete.

we live in a business world of lumps and bumps, ups and downs, booms and busts.  as the chart below indicates, the next recession and associated business/consumer panic is just around the corner.

it is only a matter of time, and not much time at that, until the next downturn impacts your business.

that is exactly why business strategy today must be built upon "what ifs", with a core direction and at least two to three potential tweaks or modifications to that direction (inflection points) based upon economic and competitive trip wires.

the inflexible business with a plan and a tunnel vision looking forward is dead meat in today's marketplace.  it's like flying an airplane; you must always be looking up, down, left and right and you need to know what your next move is when you see opponents in any of those views.

business strategy today is a living process, tied to inflection points in the environment around us.