Thursday, October 13, 2011

Coherence and Strength

 A good strategy doesn't just draw on existing strength; it creates strength through the coherence of its design.

The most basic idea of strategy is the application of strength against weakness.  Or, if you prefer, strength applied to the most promising opportunity.  The standard modern treatment of strategy has expanded this idea into a rich discussion of potential strengths, today called "advantages."  There are advantages due to being a first mover: scale, scope, network effects, reputation, patents, brands, and hundreds more.  None of these are logically wrong and each can be important.  Yet this whole mid level framework misses two huge, incredibly important natural sources of strength:
  • Having a coherent strategy -- one that coordinates polices and actions.  A good strategy doesn't just draw on existing strength; it creates strength through the coherence of its design.  Most organizations of any size don't do this.  Rather, they pursue multiple objectives that are unconnected with one another or, wore, that conflict with one another.
  • The creation of new strengths through subtle shifts in viewpoint.  An insightful re framing of a competitive situation can create whole new patters of advantage and weakness.  The most powerful strategies arise from such game-changing insights.
ACTION POINT: Re frame your viewpoint and look for new strengths.

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