What do these businesses have in common?
Pan Am, Swiss Air, Atari, Wang, Commodore, Barings Bank, Planet Hollywood, Napster, Bethlehem Steel, Pyramid Building Society, Arthur Anderson, Enron, Merrill Lynch, One Tel, HIH, ABC Childcare and Dick Smith.
All these shipped wrecked businesses (now extinct) had egoic leadership teams with an illusionary sense of invulnerability. Which simply put, allowed them to execute bad strategy.
At HCG, our strategic focus is client profitability. Our experience reveals other measures of so called success are more ego-like, such as setting growth targets or competing relentlessly to be number one or two in terms of market share.
We know that staying profitable comes from the following in order of importance:
- Executing the Right Strategy at the right time.
- Having a Functional Team.
- Having a quality Business Idea.
- Access to Venture Capital.
We find that even without access to Venture Capital, having the right strategic approach will more than compensate for a big bucket of initial funding. A bad strategy will ultimately destroy bucket loads of Venture Capital. If the Business Idea is not state of the art in terms of quality, the right strategic positioning and timing of even an average idea will deliver a more profitable results than a great idea that is not positioned well and misses the mark in terms of timing. Finally, having a Functional Team is important, yet galvanizing even a crack team to deliver faultlessly on a bad strategy is problematic.
At HCG our Strategic Analysis Framework offers an analytical framework for building an objective view and identify the strategies required to build strong and exciting businesses in the attractive industries of the future.
Our Strategic Analysis Framework has three fundamental stages:
Right Understanding – We engage in conversations that deliver a clear and dispassionate view of the emerging Industry Value Chain with respect to Customer Needs and Preferences, Competition and Profitability and The Evolving Industry Value Chain. The result is the right understanding needed to engage in the second stage of strategic positioning.
Right Relationship – Strategic Positioning is the very heart of the strategy process. We help clients decide how the business is going to compete within the future industry value chain. We make fundamental choices about which industries and markets to participate in, which products and services are to be offered in future, and to which customers. Delicate choices will be made about building Strategic Advantage, The Future Shape of the Business and Strategic Positioning within a chosen product-market and the likely relationships with other players unique and profitable value proposition that creates sustainable advantages. In the end, winning may involve staking out new white spaces, revitalizing old trails, exiting businesses, consolidation or slow continuous improvement. Once all stakeholders and likely relationships with other players are identified, we can move to the third stage and address the organizational capabilities need to take action.
Right Action – We will identify the Capability Platform required and activities needed to succeed. Success relies heavily on the competency, experience and commitment of people. By mapping the Organizational Context of Strategy, we will set in motion a performance expectation that aligns with the five organizational elements: competencies | experience, culture, structure | systems, management, and people.
Our role is to make sure you execute the Right Strategy at the Right Time and avoid the lost profitability and potential shipwrecks of not doing so sooner.