Recognizing fake strategy
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The document discusses how to recognize and avoid "fake strategy". It identifies three key hallmarks of fake strategy: failing to define the strategic challenge, mistaking goals for an actual strategy, and having bad strategic objectives. Fake strategy results in a lack of direction, confusion, and panic. It focuses on desires rather than overcoming obstacles and addresses superficial goals rather than critical issues. Overall, the document emphasizes that simply following a formula or template cannot produce genuine strategy and that truly understanding the strategic challenge is essential.
Recognizing fake strategy
- 1. Strategy: Recognizing Fake Strategy By Dr. Michael McDermott mcdermottm1@nku.edu © Michael McDermott, 2014; mcdermottm1@nku.edu 1
- 2. Fake or Bad Strategy is Widespread © Michael McDermott, 2014; mcdermottm1@nku.edu 2
- 3. Fake Strategy: The Process and Outcome Goal Setting Lack of Direction Confusion © Michael McDermott, 2014; mcdermottm1@nku.edu Panic 3
- 4. The Three Pillars of Fake Strategy Fake Strategy Bad Failure to Mistaking Define the Goals for Strategic Challenge Strategy Objectives © Michael McDermott, 2014; mcdermottm1@nku.edu 4
- 5. The Three Key Hallmarks of Fake Strategy Failure to Face the Challenge Mistaking Goals for Strategy Bad Strategic Objectives • You must define the challenge • If you cannot define the challenge, you cannot evaluate the strategy or improve it • Do not confuse desire with a plan to overcome obstacles • Fail to address critical issues • Objectives are impracticable © Michael McDermott, 2014; mcdermottm1@nku.edu 5
- 6. Bad Strategy in 3D The Focus is on 3D • Desire; • Drive; and • Determination © Michael McDermott, 2014; mcdermottm1@nku.edu 6
- 7. The 3D Essence of Bad Strategy Desire Drive © Michael McDermott, 2014; mcdermottm1@nku.edu Determination 7
- 8. Incoherence: The Essence of Bad Strategy • At best pursuing multiple unconnected objectives • At its worst, it involves pursuing conflicting objectives © Michael McDermott, 2014; mcdermottm1@nku.edu 8
- 9. The Cost of Bad Strategy It is a source of weakness because it is incoherent © Michael McDermott, 2014; mcdermottm1@nku.edu 9
- 10. Recognizing Fake Strategy Organization is in Denial It’s Pretentious (refuses to define the challenge) Fake Strategy It has a “Bad” Objective Its focus is Goals © Michael McDermott, 2014; mcdermottm1@nku.edu (Irrelevant or impracticable) 10
- 11. Good Strategy defines a critical challenge © Michael McDermott, 2014; mcdermottm1@nku.edu 11
- 12. What’s Goin’ On? Diagnosis is the essence of strategy © Michael McDermott, 2014; mcdermottm1@nku.edu 12
- 13. Strategy and Two Popular Misconceptions 1. Strategy is formulaic or mechanistic 2. Strategy is goal-setting © Michael McDermott, 2014; mcdermottm1@nku.edu 13
- 14. Strategy and Two Popular Misconceptions: Implications for Learners Strategy is formulaic or mechanistic You should abandon any notions that there is a “magic template” that delivers strategy; You need to begin to feel comfortable with ambiguity and learn to cope with “lack of direction” Strategy is goal-setting Anyone can quickly create goals that everyone loves, but again this is not strategy © Michael McDermott, 2014; mcdermottm1@nku.edu 14
- 15. Addressing Popular Misconception 1: Strategy is Formulaic Genuine strategy cannot be created by adopting a “painting by numbers” approach © Michael McDermott, 2014; mcdermottm1@nku.edu 15
- 16. Strategy by Numbers is Pointless • It results in radically different companies in very diverse situations producing strategies that are at worst identical and at best very similar. © Michael McDermott, 2014; mcdermottm1@nku.edu 16
- 17. Addressing Popular Misconception 1: Strategy is Formulaic 1. 2. 3. 4. 5. 6. Market Penetration Product Development Acquisitions Enter Emerging Markets Divest ‘dogs’ Increase R&D expenditure © Michael McDermott, 2014; mcdermottm1@nku.edu 17
- 18. Is this Strategy? • “We aim to consolidate our presence in our developed markets, continuing to create innovative products, and are well–positioned to penetrate emerging markets”. © Michael McDermott, 2014; mcdermottm1@nku.edu 18
- 19. Step 1 in Bad or Counterfeit Strategy: Fill in the blanks Vision • INSERT BANAL HERE Mission • INSERT BANAL HERE Core Values • INSERT BANAL HERE Goals • INSERT BANAL HERE © Michael McDermott, 2014; mcdermottm1@nku.edu 19
- 20. Faking Strategy • Simply working through a template of ‘tools’ cannot deliver genuine strategy © Michael McDermott, 2014; mcdermottm1@nku.edu 20
- 21. Simply working through a template of ‘tools’ cannot deliver genuine strategy © Michael McDermott, 2014; mcdermottm1@nku.edu 21
- 22. Yes. And this is THE most difficult aspect of this class. Accepting this fact Are you serious? Simply working through a template of ‘tools’ cannot deliver genuine strategy © Michael McDermott, 2014; mcdermottm1@nku.edu 22
- 23. The Learning Evolution in this Class Apply Knowledge Acquire Knowledge Advanced Skills (i.e. Basic skills) © Michael McDermott, 2014; mcdermottm1@nku.edu 23