Recognizing fake strategy

Strategy: Recognizing Fake Strategy

By Dr. Michael McDermott

mcdermottm1@nku.edu

© Michael McDermott, 2014; mcdermottm1@nku.edu 1

Fake or Bad Strategy is Widespread

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Fake Strategy: The Process and Outcome

Goal Setting

Lack of Direction Confusion Panic

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The Three Pillars of Fake Strategy

Fake Strategy

Failure to Define the Challenge

Mistaking Goals for Strategy

Bad Strategic

Objectives

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The Three Key Hallmarks of Fake Strategy

• You must define the challenge • If you cannot define the challenge, you

cannot evaluate the strategy or improve it

Failure to Face the Challenge

• Do not confuse desire with a plan to overcome obstacles

Mistaking Goals for Strategy

• Fail to address critical issues • Objectives are impracticable

Bad Strategic Objectives

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Bad Strategy in 3D

The Focus is on 3D • Desire; • Drive; and • Determination

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The 3D Essence of Bad Strategy

Desire Drive Determination

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Incoherence: The Essence of Bad Strategy

• At best pursuing multiple unconnected

objectives

• At its worst, it involves pursuing conflicting objectives

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The Cost of Bad Strategy

It is a source of weakness

because it is incoherent

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Recognizing Fake Strategy

It’s Pretentious Organization is in Denial

(refuses to define the challenge)

Its focus is Goals It has a “Bad” Objective

(Irrelevant or impracticable)

Fake Strategy

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Good Strategy defines a critical challenge

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What’s Goin’ On?

Diagnosis is the

essence of strategy

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Strategy and Two Popular Misconceptions

1. Strategy is formulaic or mechanistic

2. Strategy is goal-setting © Michael McDermott, 2014;

mcdermottm1@nku.edu 13

Strategy and Two Popular Misconceptions:

Implications for Learners

Strategy is formulaic or mechanistic You should abandon any notions that there is a “magic

template” that delivers strategy; You need to begin to feel comfortable with ambiguity and

learn to cope with “lack of direction”

Strategy is goal-setting Anyone can quickly create goals that everyone loves, but

again this is not strategy

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Addressing Popular Misconception 1: Strategy is Formulaic

Genuine strategy

cannot be created by adopting a

“painting by numbers” approach

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Strategy by Numbers is Pointless

• It results in radically different companies in very diverse situations producing strategies that are at worst identical and at best very similar.

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Addressing Popular Misconception 1: Strategy is Formulaic

1. Market Penetration

2. Product Development

3. Acquisitions 4. Enter Emerging

Markets 5. Divest ‘dogs’ 6. Increase R&D

expenditure

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Is this Strategy?

• “We aim to consolidate our presence in our developed markets, continuing to create innovative products, and are well–positioned to penetrate emerging markets”.

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Step 1 in Bad or Counterfeit Strategy:

Fill in the blanks

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• INSERT BANAL HERE Vision

• INSERT BANAL HERE Mission

• INSERT BANAL HERE Core Values

• INSERT BANAL HERE Goals

Faking Strategy

• Simply working through a template of ‘tools’ cannot deliver genuine strategy

© Michael McDermott, 2014; mcdermottm1@nku.edu 20

Simply working through a template of ‘tools’ cannot deliver genuine strategy

© Michael McDermott, 2014; mcdermottm1@nku.edu 21

Simply working through a template of ‘tools’ cannot deliver genuine strategy

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Are you serious?

Yes. And this is THE most difficult

aspect of this class. Accepting this fact

The Learning Evolution in this Class

Acquire Knowledge

Apply Knowledge (i.e. Basic skills)

Advanced Skills

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