Wednesday, February 22, 2012

The Arc of the Enterprise III

... a strong resource position can obviate the need for sophisticated design type strategy.

Resources are to coordinated activity as capital is to labor.  It takes a great deal of labor to build a dam, but the dam's services may then be available for a time without further labor.  In the same way,  Xerox's powerful resource position--its' knowledge and patents regarding plain-paper copying-was the accumulated result of years of clever, focused, coordinated, inventive activity.

And like a dam, once that well protected resource position was achieved, it persisted for many years.  Thus, a strong resource position can obviate the need for sophisticated design type strategy.  If, instead, there is only a moderate resource position--perhaps a new product idea or a customer relationship--the challenge is to build a sensible and coherent strategy around that resource.  Finally, the cleverest strategies, the ones we study down through the years, begin with very few strategic resources, obtaining their results through the adroit coordination of actions in time and across functions.

ACTION POINT: What is the strength of your resource position?

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