Strategy as Transformation

Strategy as Transformation
Strategy & growth

Challenge your View of
Strategy as a Driver of Real
Change and Effect

Contents

strategy as transformation

Strategy: a Driver of real Change and effect
Strategy and Its Pitfalls
your Strategy Must engage hearts and Minds
your Strategy Must Dare to Challenge who you are
your Strategy Must Bring Clarity to Complexity
your Strategy Must Be Firm and Flexible
your Strategy Must Change Conversations

2 Implement Consulting Group

Strategy aS traNSForMatIoN

Strategy: A Driver of Real • Today’s organisations are not iso- too little effort on changing the busi-
Change and Effect lated islands. More than ever, they are ness. to succeed, the strategy must
deeply intertwined in networks with change the conversations taking
to drive long-term value creation, it’s suppliers, key customers, and stra- place in the organisation.
necessary to think and act strategically. tegic alliance partners. this calls for
as a result, the companies that perform strategies that challenge the view of In this article, we elaborate on these
best are the ones that manage to keep ‘the organisation’ and strategy pro- challenges and present what we regard
a strong strategic focus as they craft cesses that take the complexity and as the five essential elements of dealing
and implement their strategies. uncertainty of the environment into with them. we hope you will find some
account. anyone who aims at fore- practical ideas and principles to apply
this observation is also borne out by seeing and controlling everything has in your own approach to strategy.
a recent survey we conducted among a good chance of ending up being se-
six hundred companies across europe. verely disappointed. Strategies must
results show that the top companies be both firm and flexible.
are much more sensitive to market • The opportunities and challenges
developments and more strategically that organisations face are many and
flexible than the lower-performing interrelated. Sometimes they drive a
ones. however, various other surveys company in opposite directions, and
show that it is still only around 30 per- often they are fast moving and come
cent of companies that manage to fully from new, unpredictable directions.
realise their strategies. Paradigms change, and so must stra-
tegies. Strategy processes must dare the idea in brief
this leads us to believe that many to challenge who you are and bring
organisations today have a vast un- clarity to complexity. the world has become more
realised strategic potential. But simple dynamic, complex, and globally
• The organisational pyramid has
awareness that this potential exists is connected, and organisations are
turned upside down. Most organisa-
not enough to release it. as the world becoming more and more
tions need to perceive themselves as
changes and becomes more dynamic, knowledge-intensive.
highly knowledge-intensive, with em-
complex, and globally integrated, ployees holding opinions, viewpoints,
realising an organisation’s potential this makes strategic capability
and insights valuable for the strategy
requires a new way of thinking about a key driver of long-term perfor-
as well as playing a key role in its
strategy and strategic transformation. mance and value creation.
implementation. this calls for stra-
tegy processes that involve people
at Implement Consulting group we set however, as only around 30 per-
throughout the organisation and for
out to help unleash and facilitate strate- cent of companies manage to fully
strategies with the power to engage
gic transformation in the organisations achieve their strategies, a new way
each individual in order to ensure a
we work with, rather than just figuring to approach strategy and strategic
successful implementation.
out what their ‘right strategy’ should be. transformation is much needed.
we approach the task with humility and • Strategy is often disconnected from
without claiming to have all the right the organisation. Consequently, or- For a strategy to result in real
answers, but from the feedback we get ganisations are not aligned with the change and effect, it turns out, it
from organisations we’ve worked with, intents of the strategy they claim must embody five essential ele-
we can tell that our approach to stra- to follow. Processes like budgeting, ments:
tegy and our way of working do result planning, reporting, and appraisals
in real change and in lasting impact. often focus too much on opera- • engage hearts and minds
tions. Management focus and ways • Challenge who you are
when it comes to succeeding with stra- of working do not clearly distinguish • Bring clarity to complexity
tegic transformation, these are some between ‘running the business’ and • Be firm and flexible
important things to keep in mind: ‘changing the business’, which in • Change conversations
many organisations means spending

Strategy & Growth 3


Strategy and Its Pitfalls these organisations’ needs, but the • who are our customers?
general concepts are still applicable • what do we deliver to them?
Understanding strategy and its pitfalls and useful. • how do we deliver it to them?
sets the stage for the whole implemen- • what is the speed and sequence of
tation effort. It makes it possible to plan Strategy is about answering key
the strategic moves which have to be
how to succeed at formulating a value- questions
made?
creating strategy that drives change For business organisations it often
and creates the effects you want. makes sense to distinguish between taken together, the two levels of stra-
corporate strategy and business strategy provide the answer to how the
Strategy is about creating value tegy. the aim of corporate strategy is vision is to be translated into action.
the purpose of a strategy is to trans- to set the direction for a portfolio of Not all organisations have a structure
late the vision of an organisation into businesses. as a result, it is necessary to where this distinction is relevant, and
actions which will enable people in focus on answering the following ques- in such situations a combination of the
the organisation to create value for its tions: two can be used.
stakeholders. (See Figure 1.) It is only • which businesses are we in and what
through the actions of individuals that is the rationale for this portfolio? Strategy is about people
value is created. how value is defined • which corporate structure should we organisational change and transforma-
will depend on the type of organisation use to manage our businesses? tion are central to strategy develop-
and its stakeholders. ment and implementation. which
• what are the possible synergies
among the businesses and between actions are most relevant and create
this link to value makes the term stra- the most value? (that is, which actions
each business and the corporate cen-
tegy applicable well beyond the military are most likely to ensure the realisation
tre?
or business contexts where it is most of the vision?) the answer always de-
commonly used. In our experience, • what should our capital structure be?
pends on the given circumstances—and
the concept of strategy can also be • how do we allocate resources
when the circumstances change, so
useful in public sector or third sector between businesses?
must the strategy.
institutions that have a vision (purpose,
values, and long-term goals) to fulfil. It Business strategy, on the other hand,
however, since strategies are created
is of course necessary to adapt some aims at providing the answers to four
through interactions among people
of the terminology of strategy to suit basic questions of any organisation:
within the organisation, finding the
best value-creating strategy is not just
a question of clear and logical analysis.
strategy Strategies are rather determined as
What are our business boundaries, corporate much by what creates meaning and
1 structure, and capital structure, and how do
energy for the people in the organisa-
Vision we allocate resources?
tion—as sketched in Figure 2—as by
analysis and facts. Both of these per-
2 Who are our customers?
= spectives are essential to creating a
action
successful strategy.
Core ideology
Core values 3 What do we deliver to them? &
Core purpose change
Beware of pitfalls on the road
to a successful strategy
+ 4 how do we deliver it?
to create value is to do ‘the right thing’
envisioned future
ten- to thirty-year bhags well—even as challenges, opportunities,
Vivid descriptions 5 When do we carry out which activities?
and ambitions change. For an organi-
sation to stay competitive and deliver
sustainable value creation over time,
Figure 1. The strategy must show how to get from vision to action it must therefore constantly transform


even when the need to do so is obvious.
this happens when the overall goal it-
... creating self does not create a call for action for
... changing a common point
of view the organisation, the plan does not con-
... making nect to the personal and professional
decisions ... thinking goals of the people in the organisation,
strategy is or the implementation has been an-
... managing about people… nounced but not followed up, leaving
complexity &
uncertainty ... acting people with a lack of both ownership
and accountability.
... creating & ... seeing things
exploring ideas in a new light
friction
the fourth and last pitfall relates to not
Figure 2. See strategy as a people process being able to carry the strategy all the
way through even when the organisa-
tion has overcome its inertia enough to
itself and its strategy. Unfortunately, this for change. when implementation re-
get started. often this is attributed to
type of strategic management is not an sults and experience are regarded as
the fact that the strategy is not being
easy task, and several potential pitfalls stand-alone data and not fed into the
fully integrated and thus ends up as
lurk along the way, as outlined in strategy review process, the strategy
something separate from the organisa-
Figure 3. can be fatally weakened.
tion’s day-to-day activities. other rea-
sons are a lack of discipline and focus
strategy as decoration twisted Perspective
in implementation and the reluctance
the first pitfall is the idea that a stra- the second pitfall is the ease of incor-
to share results (whether good or bad).
tegy is something you have rather than rectly gauging the type of response
when people don’t know what’s hap-
something you do. this can delay dis- needed to address opportunities and
pening with a strategy, it recedes from
covery of the need to change and thus challenges. Many causes can lie behind
sight and they tend to conclude that it
cause you to move too late. this delay this. Some of the main ones: not
doesn’t matter.
puts the strategy process under pres- managing and chal-
sure, making it a crisis rather than an lenging assumptions;
orderly response. not balancing goals,
capabilities, and
doing the
Delay is especially likely when strategy opportunities; hav- right thing and
doing it well. Pitfall
is seen as a yearly event (or one that ing too many and
strategy as
happens every two or three years) rat- unclear goals; and decoration
her than as a dynamic process. In that forecasting too far
Pitfall
kind of environment, which is quite into the future given friction
common, no one is following up from the uncertainty of
day to day and month to month to the competitive
doing the new discovering
review the realisation of the current environment. In ad- right thing, but the right thing
strategy and its critical external precon- dition, not daring to doing it poorly is now wrong.
at first.
ditions. make the necessary
and tough decisions
In addition, the mental maps of people and prioritisations
in the organisation influence the way can lead to a lack of Pitfall
Pitfall
twisted
they perceive the world and whether focus and clarity. inertia
figuring out perspective
they see a need for change. Seeing what the new
right thing is.
strategy development and implementa- inertia
tion as separate activities will increase the third pitfall re- Figure 3.
the risk of not being aware of the need lates to not acting, To succeed at strategy you must be aware of the pitfalls

Strategy & Growth 5


Your Strategy Must Engage Change also brings uncertainty. process, as shown in Figure 4. this is
Hearts and Minds this uncertainty can take many forms: necessary to create a process that en-
unsureness about the reasons for the gages all the individuals who will ulti-
a strategy doesn’t come about until change, or about what it means ‘for mately be involved.
people change their behaviours and me personally’, or about the ability to
align their actions with the intent laid do new things properly and correctly. as a result, the strategy process should
out by the strategy. be more open and allow for more in-
Meanwhile, people form opinions volvement of the organisation than
Involve every participant as early as early—and the more uncertain they what is usually the case today. and
possible are, the less likely they are to believe involvement of the organisation should
any change will be favourable. So start earlier in the process than would
Most change efforts pay too little having a strategy process that people normally feel comfortable for most of
attention to the process required to have heard about but do not who make a profession of leadership
make the strategy happen, and what participate in will influence how the and change (either because we feel
attention there is happens too late. the strategy is accepted—and not for the we should be the ones providing the
delay is built into the terminology: better. answers or because we feel that peo-
Implementation tends to be referred to ple elsewhere in the organisation lack
as ‘rolling out the strategy’, thus imply- what this means for the approach sufficient competence to contribute to
ing that implementation is something to strategy is that the strategy process strategic thinking).
that happens at the end, after the stra- itself and the involvement of the people
tegy is fully formulated. But making a in the organisation are crucial to deve- of course, these observations do not
strategy live and succeed requires more lopment of a successful strategy. they mean that everybody should be part of
than just a good communication plan are just as important as the ultimate every activity in the strategy process—
and a road show. content of the strategy itself, because today’s work still has to get done today.
it does not matter how well a strategy Nonetheless, every activity should be
Creating change in today’s business would have worked if it never gets a considered from two perspectives: First,
organisations can’t be done by simply chance to prove its worth. how does it help create a better stra-
announcing the final strategy, saying tegic direction? and second, how can
that from tomorrow we will be doing thinking about implementation should it be used to support the implementa-
things differently, and installing follow- begin on the first day of the strategy tion?
up mechanisms. this approach is more
likely to destroy motivation and energy
than to create it.

Telling and selling is not sufficient focus

there are many reasons why telling and
selling alone will not bring success, and
most of them relate to how human indi- strategy
implementation
viduals deal with change.

For one, just processing the informa-
tion about the new strategy and under- strategy
standing what the implications are will formulation
take time. and the way many strategy
processes run today, those whose be-
haviour needs to change the most in time
the organisation are given the
shortest amount of time to prepare for Figure 4.
the change. You must think about making change happen right from the start of the strategy process


your message should be repeated
many times if it is going to stick, and all
time to impact
activities should be related to the stra-
prepare of change
tegy. Not because people are stupid.
executive Not because they are uncommitted or
management indifferent. Not because they by nature
are unwilling to change. But simply
senior because it is a demanding act for in-
management dividuals to change their actions and
behaviours—and this is what strategy
team leaders is about.

employees

Figure 5. Typically not enough time is allowed for change

Remember that participants need to leaders take must be in line with what
IDeaS oN how to eNgage
find the strategy personally relevant they say. you must create trust through
heartS aND MINDS
your communication by showing re-
Most people are engaged in their pro-
spect and by talking with the recipients
fessional life. on one hand, they want to Start strategy development with
of the message rather than just to them.
see the big picture. excellent strategy a general mind-setting activity
you have to show that you believe in
communication and involvement in cre- where you tell the organisation
the message and that the message is
ating the strategy (where relevant) sup- about the strategy process—what
important to you. It must be a message
port this process. on the other hand, will happen and what directions
from the heart—and peculiarly enough,
individuals must see how they fit in you are looking in.
you demonstrate that best by listening
and what the strategy means to them.
to others and being prepared to modify
Much of this happens most smoothly Be honest about the situation, the
it to make it something they can also be
during the strategy deployment pro- reasons, and the direction—the
passionate about.
cess, where the strategy is translated smart people in your organisation
into goals and initiatives for units and already know—and it’s best to
Stay focused—it isn’t fixed yet
individuals. In this process it is very assume they’re all smart.
important to allow room for individuals From a top management perspective,
to interpret and understand the big pic- strategy thinking is mentally at the top Challenge your perception about
ture and to adapt their own story and of the agenda early in the transforma- who can contribute to the process.
perspectives to it. the usual situation, tion process. It is very easy and natural you can use up-and-coming
shown in Figure 5, more or less reverses to reduce focus and intensity as stra- young talent, experienced new
the ideal allocation of time. tegy formulation ends, but for most hires, and directors of subsidiaries
of the organisation the process is just as well as your usual planners.
Communicate with passion beginning. therefore one must establish
and authenticity reinforcement activities to regain the Focus on creating the right
focus. Campaigns initiating the next mood and energy throughout
the communication around the
phase, consistent ongoing communi- the process—the mood can be
strategy—both the formal sessions and
cation, and regular meetings and dia- more important than what is on
all the informal meetings between
logues are necessary. the PowerPoint slides and what is
leaders and employees—must have pas-
being said.
sion and authenticity. the actions that

Strategy & Growth 7


Your Strategy Must Dare to Spend time finding the right questions challenges are well understood.
Challenge Who You Are Strategies are made by people and are
Don’t just pick the first strategic direc-
decided on because of what makes
Strategy is not about finding the easy tion that comes to mind or seems to
sense and what motivates. however,
answers—it’s about finding the right present itself. Force yourself to experi-
like innovation, sense-making, learning,
answers. ment with your thinking to spark off
idea-generation, and decision processes
new ideas and explore the full scope of
rarely move in a straight line. Neither
this means taking a good hard look at possible strategic initiatives.
should the strategy process, as it de-
yourself, challenging your own normal pends heavily on these very elements.
perceptions and assumptions about Part of this involves synthesising your
who you are as an organisation: What is knowledge and ideas into unique per-
the early part of the strategy process
actually our core purpose? What busi- spectives and hypotheses about the
should be focused on challenging your
ness are we really in? Has the world future. these hypotheses can then be
preconceptions and assumptions by
changed and rendered us obsolete? tested through further analysis and
bringing in new views and suitable
local experimentation in the market.
disturbances—that is, challenges to
Doing this as an organisation, as op- your traditional worldview that get
posed to as an individual, requires a In this kind of strategy process you are
you thinking in new and productive
different kind of strategy process. you certainly able to set up a specific
directions focus should be on
need a process that allows for the right activity plan, but cannot necessarily
searching for the right perspectives
questions to be found and asked, and predetermine the timing of insights and
and for the right questions to ask.
one that allows for challenging assump- final results. you will need to keep the
as understanding and insight grow,
tions, learning, and adjusting both hy- strategy process flexible so it can be
this phase will often bring ‘eureka
potheses and goals along the way. adjusted to support new ideas and di-
moments’. the aim is to ensure that the
rections as they develop.
current situation, opportunities, and
one way to do this is to treat your
strategy as an innovation process: a
process of exploration, experiments,
and challenges to key assumptions, as
well as logic and structured creati-
vity. avoid attempting to force strategy
development into a linear process—as
with other forms of innovation, it is
often necessary to loop back and incor-
porate new learning. analysis

this does not mean that the final stra- Visioning
tegy in itself always has to be ground-
breaking and radically different from its
predecessor. Its content should be dic-
tated by the situation and the particular Challenging
circumstances surrounding it. Perhaps assumptions
your existing strategy already is the
best and most innovative approach—
that’s always a comfort to believe, but
navigating social and
you won’t know unless you challenge it
political interaction
properly.

Figure 6. To succeed you must be able to combine four distinct competences


Use the innovation approach to avoid Use creative tension between facts and
decision traps and manage uncertainty assumptions to develop new ideas IDeaS oN how to ChalleNge
who yoU are
In a traditional problem-solving and treating your strategy as an innovation
linear approach to strategy, we often process requires combining and balan-
Use hypotheses to plan and
see organisations get caught in some cing four distinct competences: analy-
drive activities. this will allow for
of the following traps: sis, visioning, challenging assumptions,
planning to take place without
and navigating social and political inter-
being locked into one direction
• attaching too much importance to actions. (See Figure 6.)
too early. Be ready to change your
initial thoughts and data.
hypotheses as understanding
• giving too much weight to the cur- analysis can provide objective data,
grows.
rent situation because it feels more which forms a foundation for challen-
comfortable than the unknown future. ging assumptions by painting a clear
try out new settings for the
• Posing questions the wrong way and and factual picture of the situation.
strategy process.
thus looking in the wrong direction Creative tension between the data
for the answers. from analysis and the assumptions can
Create a suitable disturbance by
stimulate fresh and innovative thinking.
• Seeing what you want to see and bringing customers, partners,
these new ideas and possible future
making evidence fit with your precon- employees, and other stakeholders
directions can in turn be subjected to
ceived notions. into the process.
analysis for a reality check. this process
is often iterative, going back and forth
treating strategy as an innovation Create a suitable disturbance by
between formulating and testing ideas
process enhances uncertainties and appointing a person who always
and solutions.
complexities that affect strategy deve- asks what-if questions to ensure
lopment in most organisations today. It that all aspects of the strategy are
From beginning to end, you must
is uncomfortable but useful to recog- being looked at.
be able to understand and navigate
nize the uncertainties relating to the
through the social and political interac-
competitive environment and to what is
tions in the organisation. this will allow
perceived to be the opportunities and
you to facilitate the strategy process in
challenges, and also those related to
the cultural context of the organisation,
the understanding, assumptions, and
so it keeps moving forward and ensures
goals of the organisation.
that constructive decisions are being
made.

Strategy & Growth 9


Your Strategy Must Bring the organisation. It focuses attention on you need to understand what capabili-
Clarity to Complexity core issues and not just symptoms, and ties would give you a competitive edge
it allows you to move decisively and in pursuing opportunities in your mar-
a strategy serves as a guide. to suc- with commitment. ket, and to know which ones you cur-
ceed, it must show how to translate rently have as well as which ones you
vision into real action, creating insight Determining what the core issues are can develop in the future. this requires
and deep understanding of the market requires knowledge of your organisa- a clear insight into your business model,
and of your own organisation. It also tion, your business, and your market. including the critical drivers of custom-
must tell a clear and compelling story and it requires a willingness to face the er value and business economics.
about how to get where you want to facts of your current situation. acting
go, and it must bring clarity to the dy- decisively requires an understanding of Determine what possibilities the
namic and complex setting in which what needs to be done and a willing- market presents and whether a good
your organisation—if it is like most ness to do it, both individually and as return can be made by pursuing
organisations today—must live and an organisation. them—and what challen-ges may block
compete. your attempt to capitalise on those
Create a balance between goals, capa- possibilities. Identifying opportunities
to create this clarity requires a strategy bilities, opportunities, and challenges takes good knowledge of market
that is strong, balanced, and simple—all structure and development as well
having a balanced strategy is about
at the same time. as of competitor strategies; truly
creating a fit among goals, capabilities,
understanding the challenges requires
opportunities, and challenges.
Focus on the core issues and act the same level of knowledge.
decisively Clear and shared goals are necessary
Strategy development can start at any
what makes a strategy strong? you can to evaluate which opportunities are
of the three points of the triangle in
recognise a strong strategy because relevant and which capabilities to build.
Figure 7. to achieve a realistic and co-
it provides for a powerful response to that means that you must determine
herent strategy, however, all of them
the opportunities and challenges facing what it is you really want to achieve, as
must be covered by the end.
sketched in Figure 7.

goals

balance

Capabilities opportunities/
Challenges

Figure 7. A good strategy requires balance


n
n

tio
io
s
ea

at

ta
es

ic
ls

ar

en
oa

un
su

s

em
cu
G

m
Is

m
Fo

pl
Co

Im
focus on the reduce the select a few Keep messages reduce the number
core issues number of goals must-win-battles clear and simple of parallel initiatives

Figure 8. Simplify your goals, your communication and your plan

Simplify your goals, your communica- the strategy by creating a clear yet
IDeaS oN how to BrINg
tion, and your plan strong message around the central
ClarIty to CoMPlexIty
story line of the strategy, explaining
Simplicity in a strategy is important be-
what needs to be done to achieve the
cause too much complexity interferes Keep asking questions to make
strategic goals.
with implementation. the road to stra- sure you get to the core of an
tegic simplicity is illustrated in Figure • third, simplify the implementation issue.
8. Keeping a strategy simple requires plan and make sure that projects and
focus on three different areas: initiatives not directly supporting the Use simulations, games, and
strategy are not allowed to obscure role-playing to explore different
• First, make the strategy itself as the view of what needs to be done. scenarios and test your strategy.
simple as possible by reducing the Make roles and responsibilities for test consequences, market
number of goals and initiatives and leading key transformation initiatives reactions, feasibility, and goals to
focusing on a few key must-win clear and well-known. see if your strategy is balanced.
battles. Make sure that the strategy
has a clear story line with an inner the key to successfully simplifying your Use visualisation (pictures,
logic from actions to goals. strategy is to have consistency between diagrams, sculptures, movies,
what you want to do, what you say you and the like) rather than just text
• Second, simplify communication of
will do, and what you actually do. to describe and express your
strategy.

Make a list of the kinds of things
your organization has done in
the past but will not do in the
future. this will help keep focus on
execution of the new strategy.

Strategy & Growth 11


Your Strategy Must Be Firm ignition of a change or adaptation can complish this, the strategic plan should
and Flexible be a major event (new competitor en- consider various scenarios, be carried
tering the market, a new technology, a out frequently, focus on creating stra-
Modern organisations operate in a new acquisition proposal, or the like), or tegic agility and resource fluidity, and
complex and dynamic world where it it can involve several smaller internal or include strategic options that can be
is rarely possible to predict what the external actions building up to a tipping brought into place depending on how
future will bring. Nonetheless, it is still point that forces (or allows) the com- the situation develops. the ability to
necessary to think and act strategically pany to act. identify new signals from the environ-
to keep from floundering in the cross- ment (customers, competitors, part-
currents. A flexible strategy requires both ners, regulators, and so on), learn from
an adaptable plan and an agile them, and act fast (that is, allocate time
Strategy is both planned and emergent organisation and resources promptly and appropri-
ately), is what makes an organisation
when most organisations look back Because you need both adaptability
agile and good at managing emergent
over the last three to five years, they and agility, being excellent in strategic
strategy.
will discover that two main sources are management is not only about being
contributing to the state of their cur- able to foresee, plan, and execute; it is
Match your strategy approach to the
rent strategy: executing the actions of also about sensing, discovering, and
uncertainty you face
the original strategic plan and reacting responding. Furthermore, strategy must
to unforeseen situations that emerged be seen not as something generated Determining the right balance between
during the execution phase. Figure 9 once every two or three years but as how much to plan and in how much
sketches the whole dynamic system. a dynamic and continuous process. detail, and how much room to leave for
emergence and adaptation, requires a
the planned strategy is typically de- Successfully creating an adaptable good understanding of your competi-
veloped through a formal strategy strategy requires making the strategic tive environment as well as a thought-
process, where the aim is to arrive at in- plan flexible enough to avoid being ful balance of the need for flexibility
tended strategic goals, a direction, and locked into a set of actions which can- against the extra costs (in the form of
a plan. often this formal strategy pro- not easily be changed. It also requires added communication and coordina-
cess is cyclical and carried out at fixed gearing the organisation as a whole to tion) that increased flexibility carries
intervals; in the best cases it is deeply be better at responding to emerging with it. It is especially important to
integrated with other cyclical processes opportunities and challenges. to ac- understand the degree of complexity,
like board and management meetings,
budgeting, and performance apprai-
sals. the planned strategy is what most
strategy
organisations know best, and is what through action
management literature and models
typically describe when defining the
emergent
concept of strategy. emergent strategy
opportunities
and threats
In contrast, the emergent part of the
realised strategy is cumulative and strategic
intent – the strategic
grows from the individual actions and desirable outcomes
decisions made by people in the or- future Unfulfilled
strategies
ganisation when they react to new and
previously unknown opportunities and
challenges. the emergent strategy is
often less formal and is in large part
determined by the way the organisation strategic learning
learns, that is, the culture, structures,
Figure 9. Strategy is a dynamic process
and decision-making processes. the


Challenging Characteristics of the How to approach How to express
assumptions competitive environment strategy the strategy

A relatively clear future it is relatively easy to predict the SENSE > CATEGORISE > RESPOND Long-term plan which lays out how
future development for the industry to implement the strategy.
fact based management.
value drivers.
Use of best practices.
Cause-and-effect relationships are Clear communication.
repeatable, perceivable, and pre- ensure that proper processes are
dictable. in place.

Complicated – with dis- it is possible to determine a limited SENSE > ANALYSE > RESPOND short-term plan split into
tinct possible futures set of clear and mutually exclusive campaigns with frequent/periodic
expert diagnosis.
future scenarios for the industry. reviews and adjustments.
Listen to conflicting advice.
a Cause-and-effect separate over scenario planning and systems
b
C space and time, but can be deter- thinking.
mined.

Complex – with a range it is not possible to define distinct PROBE > SENSE > RESPOND short-term plan split into cam-
of possible futures and mutually exclusive scenarios. paigns with frequent or periodic
Create experiments that allow
Cause-and-effect are only coherent reviews and adjustments.
patterns to emerge.
in retrospect. increase levels of interaction and increase focus on rules and guiding
use methods that can generate principles rather than plans and
ideas. fixed processes.

True ambiguity and the future is unknown, and it is not ACT > SENSE > RESPOND Create an organisation which is
chaos possible to identify clear scenarios. able to react in the right manner in
Look for what works instead of
no clear cause-and-effect relation- any given situation.
seeking right answers.
ships, and the drivers of future take immediate action to re- establish simple rules and guiding
? market development might not be establish order. principles for how to make deci-
known. Clear and direct communication. sions.

Figure 10. Complexity and uncertainty play a significant role for your strategy

uncertainty, and speed of change that Ultimately things may become so IDeaS oN how to MaKe yoUr
you face, as these factors heavily influ- complex and ambiguous that it is not Strategy FIrM aND FlexIBle
ence the decision on how to approach possible to form a clear picture of any
the development and execution of a possible future—neither by analysis Use scenario planning to create
strategy. nor by probing. at that point, strategy enhanced understanding of the
is a matter of developing the ability possible futures of your industry
when the future is relatively clear and to quickly understand and respond and to prepare for them.
easy to predict, strategy becomes a to events in the environment. Fast
matter of determining the most prob- learning and agility are keys to building establish strategic initiatives
able future and reacting as though it a sustainable competitive advantage in focusing on creating an increased
was a certainty, as shown in the first such situations. freedom to act by removing
row of Figure 10. constraints (which may involve
generally we believe that organisa- financing, legislation, structural
the greater the uncertainty and com- tions must prepare for an increasing or contractual relationships, or
plexity of the competitive environment, degree of uncertainty and adjust their capabilities).
the greater the number of possible fu- strategic processes accordingly. an im-
tures. as future possibilities proliferate, portant and often very challenging part Increase the number of forward-
strategy development needs to focus of this is to achieve the right mind-set, looking indicators in management
more and more on efforts to under- stepping away from the planning and reports.
stand these possible futures and spot control that have long been praised as
which one is actually playing out. virtues of business and management. Don’t ever think, ‘we have finally
got it right!’



Your Strategy Must Change you’ll just have one more binder for the Create momentum around your new
Conversations might-have-been-a-good-idea collec- strategy
tion.
a key element in getting your strategy
Strategy is not just planning, it is also going is providing symbolic actions and
implementation. without implementa- a strategy ought to be integrated into
quick wins early in the transformation
tion value cannot be created, and that the organisation, and eventually every-
process. early results not only demon-
means you must make your strategy thing should be aligned with the stra-
strate the benefit of the strategy, they
real and urgent to everyone in the or- tegy in some way. however, this does
demonstrate your new strategic focus
ganisation. not always happen as planned, for a
and commitment to the new way of
number of reasons. For one, it can be
working.
Make your strategy live every day difficult to keep up the momentum in
the transition from the first stages of
to make your strategy come alive and the symbolic actions can be anything
strategy development through the final
keep living every day, you must change from buying another company to say-
stages of strategy implementation—it’s
the conversations at all levels in your or- ing no to a specific customer because
easy to grow weary before the new
ganisation. Pursuing a different strategy your strategic focus is being shifted to
ways become routine.
means having different conversations other products.
tomorrow—not instant replays of the also, the strategy often represents
ones you are having today. In addition, making your early actions
something new—which requires change
irreversible and public will help to show
that can be difficult to get going. and
It is not just the conversations within in the intent and commitment backing the
new endeavours represent a degree of
your organisation that must change; the new strategy. one way to do this is to
risk that add to the difficulties of ma-
ones with your customers and partners make external commitments in a series
king change happen. Finally, the organi-
need to change too. and the change of campaigns that require you to suc-
sation may have structures—processes,
of conversation should concern not ceed with the new strategy, as shown in
procedures, and It systems—that keep
only the topics but also the setting, the Figure 11.
making people act according to the
words that you use, and the mood. old strategy. overcoming these hurdles
to keep the momentum going, it is im-
requires a dedicated effort and strong
If what you talk about and how you portant to share results broadly in the
leadership.
talk about it stay the same, your new organisation so that everybody can see
strategy will never really be adopted. that things are moving along and learn

strategy execution through campaigns

major
strategy
review
strategy review review and
develop- mobilise act and manage and mobilise act and manage and mobilise act and manage update
ment adapt adapt (~ new
strategy
develop-
ment)

Campaign a Campaign b Campaign C
4–12 months 4–12 months 4–12 months

Figure 11. Use time-boxed campaigns to ensure quick results and frequent reviews


the business’ and aligning these structures with your
the other around strategy therefore is the key to making
‘developing the sure you can realise your strategy.
business’—to cre-
organisational
structure ate the necessary of course, changing the basic struc-
attention on stra- tures of an organisation takes time and
tegic issues. cannot be completed on day one, but
management it must be done as quickly as possible.
Workspace and the appraisal and as with performance appraisal, if this
design governance
People,
performance ma- doesn’t happen, the surviving struc-
structure
values, and nagement systems tures will keep pushing actions and
culture are other areas behaviours toward the old strategy,
where conversa- making it difficult for people to follow
tions should be the intentions of the new strategy. and
shifted to include after a while they will give up trying.
Competences
operational the strategy. goals
processes related to the new
strategy must
quickly be inclu-
ded in corporate
Figure 12. performance
Aligning structures with strategy is important for long-term success management
systems to be
visible and part
IDeaS oN how to ChaNge
from the examples. this also means of the manage-
CoNverSatIoNS
that both good and bad results should ment conversations. as noted earlier,
be shared—if something isn’t working, these systems can put a serious drag
Change your budgeting cycle and
you won’t be able to keep the secret, on implementation—as long as you pay
structure to support the flow and
and attempting to do so will both make people to carry out the old strategy,
timing of your strategy.
you look foolish when the word gets that’s what you’ll get. Instead, individual
out and deprive you of the contribu- goal-setting sessions on all levels in the
Make tools and templates to guide
tions people could make towards fixing organisation should be anchored in the
the goal-setting sessions where
the problem and getting the strategy new strategy so that everybody can see
the new strategy is translated
back on track. how they contribute to making it hap-
into team and individual goals.
pen.
hold introduction sessions for
Keep focus on the strategy managers and consider the use
Clear roles and responsibilities for dri-
of role-playing to illustrate how
to stay alive, the strategy must be a ving the main strategic initiatives will
to bring the new strategy into the
natural part of the conversations in provide the organisation with a number
conversations.
your organisation. In the beginning this of ‘champions’ whose actions will serve
requires a conscious effort, as the stra- as examples of what to do in order to
Include at least two new goals
tegy is new and unfamiliar. realise the strategy.
related to the strategy in business
unit performance reports—even if
the conversations must be ritualised Align organisational structures with
measuring them has to be done
until it becomes more natural. one your strategy
manually at first.
way to do this is to ensure that enough
management time is spent on reali- one of the main drivers of action
and focus in any organisation are the Set up new decision-making
sing the strategy. For example, you can
structures (processes, procedures, It forums centred around the key
divide management meetings into two
systems, and so on) that support them. focus areas of your strategy.
separate themes—one around ‘running


Contact
For further information please contact:

Michael Braagaard
tel. +45 2338 0010
email mib@implement.eu

lars Kirkegård
tel. +45 2338 0011
email lk@implement.eu

implement Consulting group a/s
slotsmarken 16 tel. +45 4586 7900 info@implement.eu
dK-2970 hørsholm fax +45 4586 7950 www.implement.eu

Strategy as Transformation

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