Wednesday, February 15, 2012

Resources and Actions

These principles mean that resources and tight coordination are partial substitutes for each other. 

A design-type strategy is an adroit configuration of resources and actions that yields an advantage in a challenging situation.  Given a set bundle of resources, the greater the competitive challenge, the greater the need for the clever, tight integration of resources and actions.  Given a set level of challenge, higher-quality resources lessen the need for the tight integration of resources and actions.

These principles mean that resources and tight coordination are partial substitutes for each other.  If the organization has few resources are available, then less tight integration may be needed.  


ACTION POINT:  The greater the challenge, the greater the need for a good, coherent, design-type strategy. 

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