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Mike Walker

Making Your Strategy More Relevant

I ran across a very interesting article on HBR this morning entitled, “Making Your Strategy More Relevant”. It’s a great read and completely applies to Enterprise Architecture and the strategies we create. There are some good tips and observations included in the article that are worth a read.

Since the idea of a "business strategy" — a long-term plan for growth and profitability — was first developed in the early 1960s, companies around the world have used this tool to pick a competitive position and make their way closer to it.

But many business leaders seem to be losing their confidence in strategy, or at least in their own company's approach to it. This is evident in our ongoing Booz & Company survey, which asks executives from around the world to comment on the results of their strategic initiatives. With more than 2,350 responses so far, the findings suggest a high degree of disillusionment:

  1. Most of the respondents (53%) don't feel their company's strategy will lead to success.

  2. Two thirds (67%) say their company's capabilities do not fully support the company's strategy and the way it creates value in the market.

  3. Only one in five (21%) executives think their company has a "right to win" in all the markets it competes in.

What is going on in these companies? You might say executives are reacting to turbulence: The world is changing so fast that any effort to stick to a strategy will be futile. And in some sense, companies can only profit through speed — adapting immediately to external pressures and moving rapidly to exploit new opportunities.

Technorati Tags: Strategy

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