Let’s say you finally have the right strategy moving forward... Can you still fail? Absolutely! Not communicating the right strategy to the organization (and your customers) and not gaining the consensus needed to deliver on it is the first elephant in the room. The second elephant is lack of goal setting to support the strategy along with forgetting to link performance measures and employee rewards to it. The third elephant is inadequate resourcing - the right strategy needs to be funded and resourced in the right way, to realise it’s potential promptly. The final elephant is lack of feedback. Set and forget doesn’t work. Ensuring you have the right strategy, both now and in the future is an iterative process. If you can't say what your strategy is, please contact us at HCG. If you can say what it is, check out the four elephants.
A review of history reveals that massive wealth came from a handful of strategies: 1. Own stock that generates streams of cash. e.g. Warren Buffet. 2. Control a network. e.g. Telstra. 3. Have a legislated monopoly by being the only ones. e.g. Lawyers. 4. Have a natural monopoly by being huge. e.g. Amazon. 5. Find the worst place in the world to do business. e.g. Putin and other oligarchs in post-communist Russia. 6. Governments giving organisations money belonging to future generations, because they were institutions deemed ‘too big to fail’. e.g. Bank of America. Strategic conversations should reveal the right choices; like claiming new white spaces, revitalising old trails, existing businesses, consolidating or slow continuing improvement. Advantages come from increasing returns to scale, market share, IP or branding. Intelligent C-Suite Executives continuously refine their strategic thinking abilities and skills at leading strategic conversations. In July, Sathiya Ramakrishnan, and I are running a two-day Leadership Intelligence Program at the Brisbane Hilton, to help C-Suite Executives enhance foresight and lead new strategic conversations. Enquiries to firstname.lastname@example.org #leadership #ceos #strategy #leadershipintelligenceacademy
The two targets problem can be summarized as, "If you greedily chase two rabbits, both will escape." Chuang Tzu observed that when an archer shoots they have all their skill. If the archer is greedy, they will shoot for gold or a brass buckle and they will start to see two targets. The prize will divide them. They think more of the prize than of shooting. When we think about strategy, it is not uncommon for greedy individuals and firms to have two or more targets. If the targets are too far apart from one another, there will invariably be a problem. For example... Titanic – arrogance and too few lifeboats. Barings Bank – gambling and no audits. Swiss Air – greed and reduced passenger demand post 9/11. Enron – greed and acting like a hedge fund. Arthur Anderson – greed and fraudulent auditing. One Tel, HIH, ABC Childcare – greed and bad accounting. Aussie Cricket Captain Steve Smith - winning and cheating. Lao Tzu’s thoughts on two targets: "Sitting sit. Standing stand. Don’t wobble." If we have the right strategy and we execute it well, we have little need for other targets.