These fundamental guidelines, drawn from experience, can help you reshape your organization to fit your business strategy.
Organic growth is key to companies’ futures. According to survey results, the best firms follow more than one path to achieve it and also are better at developing the right capabilities to support it. There’s no single formula for delivering organic growth. In fact, the results from a new McKinsey Global Survey on the topic suggest that the companies that see the most growth follow diverse paths
The most farsighted enterprises have mastered five unconventional practices for building and using distinctive capabilities.
Thinking strategically is what separates managers and leaders. Learn the fundamentals about how to create winning strategy and lead your team to deliver it. From understanding what strategy can do for you, through to creating a strategy and engaging others with strategy, this book offers practical guidance and expert tips. It is peppered with punchy, memorable examples from real leaders winning (and losing) with real world strategies. It can be read as a whole or you can dip into the easy-to-read, bite-size sections as and when you need to deal with a particular issue. The structure has been specially designed to make sections quick and easy to use â€“ youâ€™ll find yourself referring back to them again and again.
HBS Working Knowledge: "What are the first three words that come to mind when you hear the word 'strategy'?" That's the free-association exercise Cynthia A. Montgomery gives to mid-career business leaders in her Executive Education classes at Harvard Business School. Seasoned executives, they respond with "plan," "vision," "direction," "focus," "advantage."
Business Model Generation is a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow's enterprises. If your organization needs to adapt to harsh new realities, but you donâ€²t yet have a strategy that will get you out in front of your competitors, you need Business Model Generation. Coâ€“created by 470 Business Model Canvas practitioners from 45 countries, the book features a beautiful, highly visual, 4â€“color design that takes powerful strategic ideas and tools, and makes them easy to implement in your organization. It explains the most common Business Model patterns, based on concepts from leading business thinkers, and helps you reinterpret them for your own context. You will learn how to systematically understand, design, and implement a gameâ€“changing business modelâ€“â€“or analyze and renovate an old one.
Gartner Says Hybrid Thinking for Enterprise Architecture Can Help Organisations Embrace Transformation, Innovation and Strategy
Most enterprise architecture (EA) initiatives remain trapped in the IT department, and a new approach â€“ hybrid thinking â€“ is required to break EA out and into the wider organisation, according to Gartner, Inc. Adopting hybrid thinking is an excellent way to meld design thinking, IT thinking and business thinking, and achieve transformative, innovative and strategic changes.
Five years ago Jim Collins asked the question, "Can a good company become a great company, and if so, how?" In Good to Great Collins, the author of Built to Last concludes that it is possible, but finds that there are no silver bullets to greatness. Collins and his team of researchers began their quest by sorting through a list of 1,435 companies, looking for those that made substantial improvements in their performance over time. They finally settled on 11--including Gillette, Walgreens and Wells Fargo--and discovered common traits that challenged many of the conventional notions of corporate success. Making the transition from good to great doesn't require a high-profile CEO, the latest technology, innovative change management or even a fine-tuned business strategy.
The book introduces the idea of Coherency Management, and asserts that this is the primary outcome goal of an enterprise's architecture. With submissions from over 30 authors and co-authors, the book reinforces the idea that EA is being practiced in an ever-increasing variety of circumstances - from the tactical to the strategic, from the technical to the political, and with governance that ranges from sell to tell. The characteristics, usages, value statements, frameworks, rules, tools and countless other attributes of EA seem to be anything but orderly, definable, classifiable, and understandable as might be hoped given heritage of EA and the famous framework and seminal article on the subject by John Zachman over two decades ago. Notably, EA is viewed as an Enterprise Design and Management approach, adopted to build better enterprises, rather than a IT Design and Management approach limited to build better systems.
Digitization of business interactions and processes is advancing full bore. But in many organizations, returns from IT investments are flatlining, even as technology spending has skyrocketed. These challenges call for new levels of IT savvy: the ability of all managers-IT or non-IT-to transform their company's technology assets into operational efficiencies that boost margins. Companies with IT-savvy managers are 20 percent more profitable than their competitors. In IT Savvy, Peter Weill and Jeanne Ross-two of the world's foremost authorities on using IT in business-explain how non-IT executives can acquire this savvy. Concise and practical, the book describes the practices, competencies, and leadership skills non-IT managers need to succeed in the digital economy. You'll discover how to: -Define your firm's operating model-how IT can help you do business -Revamp your IT funding model to support your operating model -Build a digitized platform of business processes, IT systems, and data to execute on the model -Determine IT decision rights -Extract more business value from your IT assets Packed with examples and based on research into eighteen hundred organizations in more than sixty countries, IT Savvy is required reading for non-IT managers seeking to push their company's performance to new heights.
In this definitive and revealing history, Henry Mintzberg unmasks the process that has mesmerized so many organisations since 1965: strategic planning. One of the original management thinkers, Mintzberg concludes that strategy cannot be planned because planning is about analysis and strategy is about synthesis. That is why, he asserts, the process has failed so often and dramatically. Mintzberg traces the origin and history of strategic planning through its prominence and subsequent fall. He argues that we must reconcieve the process by which strategies are created by emphasizing informal learning and personal vision. Mintzberg proposes new definitions of planning and strategy, and examines in unusual ways the various models of strategic planning and the evidence of why they failed. Reviewing the so-called 'pitfalls' of planning, he shows how the process itself can destroy commitment, narrow a company's vision, discourage change and breed an atmosphere of politics. In a harsh critique of many sacred cows, he describes three basic fallacies of the process - in that discontinuities can be predicted, that strategists can be detached from the operations of the organisation, and that the process of strategy-making itself can be formalized. Mintzberg devotes a substantial section to the new role of planning, plans and planners, not inside the strategy-making process, but around it, in support of it, providing some of its inputs and sometimes programming its outputs, as well as encouraging strategic thinking in general. This book is essential reading for anyone in an organization who is influenced by the planning or strategy-making process. It is also suitable for undergraduate and postgraduate students undertaking corporate strategy, strategic management and business policy courses.
SWOTed by strategy models? Crunched by analysis? Strategy doesnâ€™t have to be this way. Strategy is really all about being different. Thinking about it shouldn't make you reach for the snooze button, but in the world of strategy everybody has become so serious. If that gets us better strategies, fine. But it doesnâ€™t; we get worse onesâ€”predictable, generic, uninspiring, dull. Strategy doesnâ€™t only have to position; it also has to inspire. So an uninspiring strategy is really no strategy at all. The most interesting and most successful companies are not boring. They have novel, creative, inspiring, sometimes even playful strategies. By taking the whole strategy business less seriously, they end up with more serious resultsâ€”and have some fun in the bargain. Strategy Bites Back invites you to encounter a diverse and unlikely set of voices with something sharp to say about strategy --- from Michael Porter and Peter Drucker to Coco Channelâ€™s "little black dress". Taken together these perspectives will provide you with new and dramatically different angles from which to attack the world of strategy.
Strategy is the most prestigious but also the most confusing part of business. Managers are constantly bombarded with new jargon and the latest fads promising the magic bullet for every strategic problem. The world of strategy can seem to be an impenetrable jungle. Strategy Safari presents a powerful antidote to the dilemma of needing to know about strategy and yet not being able to find any comprehensible guidelines. This revised edition is a comprehensive, colourful and illuminating tour through the wilds of strategic management. In this provocative, jargon-free and extremely readable guide, top strategy authors Mintzberg, Ahlstrand & Lampel clearly set out and critique each of the ten major schools of strategic management thinking to help you grasp what you really need to know.
KPIs, while used commonly around the world, have never been clearly defined until now. Management has often referred to certain measures as KPIs that have never been KPIs. The lack of understanding of performance measures has led to most monitoring and reporting of measures failing to deliver. The casualty has often been the balanced scorecard, a brilliant tool that can only work if the appropriate measures are in it. By exploring measures that have transformed businesses, David Parmenter has developed a methodology that is breathtaking in its simplicity and yet profound in its impact. It has been said that Key Performance Indicators is the missing link between the balanced scorecard work of Robert Kaplan and David Norton and the reality of implementing performance measurement in an organization.
Called 'part entertaining novel and part enlightening textbook' by reviewers, FruITion is about Ian the CIO. How will Ian as the CIO react when the management team explores a very different relationship with IT? The strategy that emerges has major implications for the CIO and everyone in the IT department. The book is followed up with two other books, RecrEAtion and DefrICtion. Chris Potts has developed a unique approach to enterprise architecture and portfolio management, called Enterprise Investment.
Q&A with Robert S. Kaplan. Companies often manage strategy in fits and starts. Though executives may formulate an excellent strategy, it easily fades from memory as the organization tackles day-to-day operations issues, doing what HBS professor Robert S. Kaplan calls 'fighting fires.' A new book by Kaplan and David P. Norton aims to make strategy a continual process. The Execution Premium: Linking Strategy to Operations for Competitive Advantage shows managers how to weave organizational principles into a more effective management system that respects the differences between strategy and operations yet integrates them in a powerful way. Kaplan and Norton introduced the Balanced Scorecard, a performance measurement system, in 1992.
A Strategy is a long term plan of action designed to achieve a particular goal, most often "winning." Strategy is differentiated from tactics or immediate actions with resources at hand by its nature of being extensively premeditated, and often practically rehearsed. Strategies are used to make the problem easier to understand and solve.
Business leaders need bold strategies to stay relevant and win. In Big Think Strategy, Schmitt shows how to bring bold thinking into your business by sourcing big ideas and executing them creatively. With the tools in this book, any leader can overcome institutionalized small think the inertia, the narrow-mindedness, and the aversion to risk that block true innovation. Your reward? Big, bold, and decidedly doable strategies that excite your employees and leave your rivals scrambling. Drawing on years of advising corporate leaders on creativity and strategy development, Schmitt explains how to infuse fresh thinking into the planning process. Through his commentary on the Trojan War, the film Fitzcarraldo, and the composer Gustav Mahler, Schmitt uncovers the essence of bold leadership and the levers of revolutionary change. Abundant examples from Apple, Whole Foods, MySpace, IBM, General Electric, the Metropolitan Opera, and the Bill and Melinda Gates Foundation to name a few, show big think strategy in action. Tested by daring executives in a diverse range of industries, the practical ideas and tools in this book will help you leverage bold ideas in your strategic planning and position your firm uniquely for lasting market relevance and success.
Why do businesses consistently fail to execute their competitive strategies? Because leaders don't identify and invest in the full range of projects and programs required to align the organization with its strategy. Moreover, even when strategy makers do break their plans down into doable chunks, they seldom work with project leaders to prioritize strategic investments and assure that needed resources are applied in priority order. And they often neglect to revise the strategic portfolio to fit the demands of a dynamic environment, or to stay connected to strategic projects through completion, as new products, services, skills and capabilities are transferred into operations. In Executing Your Strategy, Mark Morgan, Raymond Levitt, and William Malek present six imperatives that enable you to do the right strategic projects--and do those projects right. And it is no accident that the six imperatives combine to create the acronym INVEST: Ideation: Clarify and communicate Purpose, Identity and Long Range Intention; Nature: Develop alignment between Strategy, Structure and Culture based on Ideation; Vision: Create clear Goals and Metrics aligned to Strategy and guided by Ideation; Engagement: Do the right projects based on the Strategy through Portfolio management; Synthesis: Do Projects and Programs right, in alignment with Portfolio; Transition: Move the Project and Program outputs into Operations where benefit is realized. Full of intriguing company examples and practical advice, this crucial new resource shows you how to make strategy happen in your organization
In a world of stiffening competition, business strategy is more crucial than ever. Yet most organizations struggle in this area--not with formulating strategy but with executing it, or putting their strategy into action. Owing to execution failures, companies realize just a fraction of the financial performance promised in their strategic plans. It doesn't have to be that way, maintain Robert Kaplan and David Norton in The Execution Premium. Building on their breakthrough works on strategy-focused organizations, the authors describe a multistage system that enables you to gain measurable benefits from your carefully formulated business strategy. This book shows you how to: Develop an effective strategy--with tools such as SWOT analysis, vision formulation, and strategic change agendas; Plan execution of the strategy--through portfolios of strategic initiatives linked to strategy maps and Balanced Scorecards; Put your strategy into action--by integrating operational tools such as process dashboards, rolling forecasts, and activity-based costing; Test and update your strategy--using carefully designed management meetings to review operational and strategic data. Drawing on extensive research and detailed case studies from a broad array of industries, The Execution Premium presents a systematic and proven framework for achieving the financial results promised by your strategy.
"Like many great inventions, management practices have a shelf life....Gary Hamel explains how to jettison the weak ones and embrace the ones that work. (Fortune) "There's much here that will resonate with forward-thinking managers." (BusinessWeek) Publisher's Summary: What really fuels long-term business success? Not operational excellence or new business models, but management innovation: new ways of mobilizing talent, allocating resources, and building strategies. Over the past century, breakthroughs in the "technology of management" have enabled a few companies, including General Electric, Procter & Gamble, Toyota, and Visa, to cross new performance thresholds and build long-term advantages. Yet most companies lack a disciplined process for radical management innovation. World renowned business sage Gary Hamel argues that organizations need bold management innovation now more than ever. The current management model, centered on control and efficiency, no longer suffices in a world where adaptability and creativity drive business success. In his most provocative book to date, Hamel takes aim at the legacy beliefs preventing 21st-century companies from surmounting new challenges. With incisive analysis and vivid illustrations, he explains how to turn your company into a serial management innovator, and reveals: The make-or-break challenges that will determine competitive success in an age of head-snapping change; The toxic effects of our legacy-management beliefs; The unconventional management practices generating breakthrough results in a handful of pioneering organizations; The new principles every company must weave into its management DNA; The Web's potential to obliterate smokestack management practices; The actions your company can take now to build its own management advantage. Get ready to throw off the shackles of yesterday's management dogma. Tomorrow's winners will be those companies that start inventing the future of management today.
Winning by not competing: a fresh approach to strategy Since the dawn of the industrial age, companies have engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet these hallmarks of competitive strategy are not the way to create profitable growth in the future. In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and RenÃ©e Mauborgne argue that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, the authors argue that lasting success comes not from battling competitors, but from creating â€œblue oceansâ€: untapped new market spaces ripe for growth. Such strategic movesâ€”which the authors call â€œvalue innovationâ€â€”create powerful leaps in value that often render rivals obsolete for more than a decade. Blue Ocean Strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture blue oceans. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future.
A bold and controversial manifesto on where information technology is headed, how its role in business strategy will dramatically change, and what this all means for business managers and IT suppliers. Does IT Matter provides the first cogent explanation of ITâ€™s dramatically changing business role, its levelling influence on competition, and the practical implications for business managers and IT suppliers. A convincing manifesto on one of the most important business phenomena of our time, â€œDoes IT Matter?â€ will play a central role in our ongoing debate about the future of IT.
From Business Strategy to IT Action gives companies of all sizes the tools to effectively link IT to business strategy and produce effective, actionable strategies for bottom-line results. The authors present CEOs, CFOs, CIOs, and IT managers with a powerful and accessible resource packed with such useful material as the Strategy-to-Bottom-Line Value Chain, which integrates the management practices relating to planning, prioritization, alignment, and assessing a company's entire IT budget; methods for using IT Impact Management to establish IT culture and performance models for the business/IT connection; the IT Improvement Zone, which quickly identifies where a company can focus its energies for maximum results, etc.
As information technology becomes increasingly essential within organizations, the reputation and role of the CIO has been diminishing. To regain credibility and avoid obscurity, CIOs must take on a larger, more strategic role. Here is a blueprint for doing exactly that. This book shows how CIOs can bridge the gap between IT and the rest of the organization and finally make IT a strategic advantage rather than a cost sink.
Enterprise architecture defines a firmâ€™s needs for standardized tasks, job roles, systems, infrastructure, and data in core business processes. Thus, it helps a company to articulate how it will compete in a digital economy and it guides managersâ€™ daily decisions to realize their vision of success. This book clearly explains enterprise architectureâ€™s vital role in enabling - or constraining - the execution of business strategy. The book provides clear frameworks, thoughtful case examples, and a proven-effective structured process for designing and implementing effective enterprise architectures.