When you're developing your competitive strategy, it's important to make sure you have all the ingredients in the mix. Omitting one of them would be like putting your cake in the oven and then finding the requisite cup of sugar still on the counter (which is something that has actually happened to me).
Here's what you need to bake Strategy Pie:
Ingredients
Definition of your industry and market
Strategic assets, e.g core competencies
SWOT analysis (Strengths, Weaknesses, Opportunities and Threats)
Environmental scan - global, national, local
Competitor analysis
Customer base, segmented
Method
Slice and dice the customer base to produce additional segments.
Layer the competitor analysis over the SWOT, so you can see how your strengths and weaknesses compare with those of your competitor.
Add all the other ingredients.
Leave to bubble in cauldron.
Shake and stir with questions.
Leaven with laughter.
Allow to rise.
Chill for a while.
Find the sweet spot where you can work in your strengths and create maximum value for your target market.
Bake.
Feel free to vary your method, but make sure you don't leave out any of the ingredients.
Monday, August 22, 2011
Monday, August 1, 2011
How to Bake Strategy Pie
I’m a fan of the “Masterchef” cooking show. I like to relax on the couch with a glass of wine and a take-away meal and watch other people slaving in the kitchen.
Developing a strategy for your business is a bit like a Masterchef team challenge. The contestants come onto the set in the morning and they have no idea what they will have created by the end of the day. The teams are given a challenge such as “You'll be making lunch for a law firm” or “You’re doing dinner for the Dalai Lama”. For a moment they stand around in shock, and it is evident that they have no idea how they are going to achieve this. There’s no picture of the finished product for them to follow. Subject to a few parameters, they have free choice as to what they will cook. They find themselves with a basket of ingredients, some of which are unfamiliar to them. They know one thing: by the appointed hour, they must have produced something to “plate up”. As a team they combine their ideas and expertise. Usually they rise to the occasion, and by the end of the day (apart from the occasional culinary disaster), they have produced a delectable meal that they can all be proud of.
Similarly, when you are baking a strategy, you are dealing with inherent uncertainty. At the start of the process, no one knows what the end result will look like. And it’s actually best if no one thinks they know the answer. Everyone has a different perspective to offer. It’s an opportunity to consider many possible futures and directions, and to set the organization on a unique path where it can compete on its own terms. No one knows what the future will hold, but you can make some educated assumptions on which strategic decisions can be based.
The Strategy Pie challenge is to combine the available ingredients so as to make the most of the organization’s resources and “put value on the plate” for your customers.
Developing a strategy for your business is a bit like a Masterchef team challenge. The contestants come onto the set in the morning and they have no idea what they will have created by the end of the day. The teams are given a challenge such as “You'll be making lunch for a law firm” or “You’re doing dinner for the Dalai Lama”. For a moment they stand around in shock, and it is evident that they have no idea how they are going to achieve this. There’s no picture of the finished product for them to follow. Subject to a few parameters, they have free choice as to what they will cook. They find themselves with a basket of ingredients, some of which are unfamiliar to them. They know one thing: by the appointed hour, they must have produced something to “plate up”. As a team they combine their ideas and expertise. Usually they rise to the occasion, and by the end of the day (apart from the occasional culinary disaster), they have produced a delectable meal that they can all be proud of.
Similarly, when you are baking a strategy, you are dealing with inherent uncertainty. At the start of the process, no one knows what the end result will look like. And it’s actually best if no one thinks they know the answer. Everyone has a different perspective to offer. It’s an opportunity to consider many possible futures and directions, and to set the organization on a unique path where it can compete on its own terms. No one knows what the future will hold, but you can make some educated assumptions on which strategic decisions can be based.
The Strategy Pie challenge is to combine the available ingredients so as to make the most of the organization’s resources and “put value on the plate” for your customers.
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