Strategy is about Tradeoffs
Strategic thinking is about deciding on which opportunities to focus your resources (time, people, and money) on and in the process which opportunities to let starve. Michael Porter says, “The essence of strategy is choosing what not to do or which initiatives to put on back burner so that you can concentrate your resources in a single key area. Sounds simple but actually it is not - due to 3 myths :
Myth 1:
Let Productivity take front seat.
Let Productivity take front seat.
Strategic thinking means deliberately leaving some things undone. It means having to tell your people that the idea /project they were working on has been demoted in favor of something else which is more valuable.
In such circumstances it is tempting to continue striving for productivity. After all, what’s wrong with being productive? The problem is that productivity is efficiency : doing things better irrespective of what strategy you follow. One must remember that without a strategy, productivity is meaningless. As Peter Drucker famously said: “There is nothing quite so useless as doing efficiently that which should not be done at all.”
Myth 2:
Identify what’s “important" and drop the rest.
In such circumstances it is tempting to continue striving for productivity. After all, what’s wrong with being productive? The problem is that productivity is efficiency : doing things better irrespective of what strategy you follow. One must remember that without a strategy, productivity is meaningless. As Peter Drucker famously said: “There is nothing quite so useless as doing efficiently that which should not be done at all.”
Myth 2:
Identify what’s “important" and drop the rest.
If you try and make a list of every project and cross out those that are not important - you will find that no project is less important because every project is “important” to someone somewhere somehow. That’s why don't debate what’s important. Strategic thinkers must decide where to focus, not merely what’s “important. He should decide which projects will contribute most to the declared strategy of the organization, and put the rest of the “important” projects on hold.
Myth 3:
Strategy is only about thinking.
Ultimately, strategic thoughts must yield strategic action. The strategy leader must take a call about what the team will - and will NOT - focus on. Napoleon once said, “Nothing is more difficult, and therefore more precious, than to be able to decide.” Perhaps that’s also why this precious ability to decide is the defining feature of those deemed worthy to hold the highest leadership positions.
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