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The Big Lie of Strategic Planning

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Information about The Big Lie of Strategic Planning
Business & Mgmt

Published on January 28, 2014

Author: hamdy98

Source: slideshare.net

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The Big Lie of Strategic Planning Roger L. Martin

Comfort trap 1: Strategic Planning • Strategic plan usually have three major part; 1. vision or mission statement that sets out a relatively loftily and aspirational goals 2. list of initiative 3. conversion the initiative into financial • typically isn’t explicit about what organisation choses not to do and why • mistaking planning for strategy is common trap • let strategy become planning (Strategy is not planning — it is the making of an integrated set of choices that collectively position the firm in its industry so as to create sustainable advantage relative to competition and deliver superior financial returns.)

Comfort trap 2: Cost Based Thinking • the trouble is that planning-oriented managers tend to apply familiar, comfortable cost-side approaches to the revenue side as well, treating revenue planning as virtually identical to cost planning and as equal component of overall plan and budget. all to often, the result is painstaking work to buildup revenue plans salesperson by sales person, product by product, channel by channel, region by region. • for cost, the company makes the decision. But for revenue, customer in charge • predictability of costs is fundamentally different from the predictability of revenue. planning can’t and won’t make revenue magically appear, and the effort you spend creating revenue plan is a distraction prom the strategiest’s much harder job: finding way to acquire and keep customers

Comfort trap 3: Self-Referential Strategy Framework • in identifying and articulating a strategy, most executives adopt one of a number of standard frameworks. unfortunately, two of the popular ones can lead the unwary user to design a strategy entirely around what the company can control. • deliberate strategy (intention) vs emerging strategy (adaptive) • customer and context are both unknowable and controllable, many executives prefer focus on capabilities that can be built • building capability them self often do not compel a costumer to buy

Escape those trap • Rule 1: Keep the strategy statement simple • Rule 2: Recognize that strategy is not about perfection • Rule 3: Make logic explicit • • What do you need to believe about customer, about evolution of your industry, about competition, about capabilities?

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