the 4 faces of a bad strategy: why people, startups, and established organizations fail to get...

Every UNDERPERFORMING OR FAILING ORGANIZATION (business) is

accidentally and/or deliberately using a BAD STRATEGY

4 Faces of a “BAD STRATEGY”

Source: Based on Rumelt, R.P. (2011) Good Strategy. Bad Strategy. Crown Business: New York.

#4ROD. Dr. Rod King. [email protected] & hSp://businessmodels.ning.com & hSp://twiSer.com/RodKuhnKing

Problem Pain: (Un)Known

RED OCE

AN BLU

E OCEAN

SoluXon Gain: (Un)Known

Business Model

Business Model

CHALLENGE DIAGNOSIS POLICY

ACTION PLAN (TO DO)

Before

AEer

Strategic

Prob

lem Solving

ExecuX

on

FLUFF q  Mission? q  Vision? q  Values? q  “Sunday Words”

1

Targets (Metrics)

Job To Get Done/Experience (Journey: Strategy/ExecuCon)





RED OCE

AN BLU

E OCEAN


Business Model

Business Model


ACTION PLAN (TO DO)

Before

AEer

Strategic

Prob

lem Solving

ExecuX

on

2PROBLEM (CHALLENGE) Blindness: Failure to face problem or challenge


1

Targets (Metrics)






RED OCE

AN BLU

E OCEAN


Business Model

Business Model


ACTION PLAN (TO DO)

Before

AEer

Strategic

Prob

lem Solving

ExecuX

on

GOALS AS STRATEGY: PresentaCon of goals or statements of desire as strategy



1

Targets (Metrics)






RED OCE

AN BLU

E OCEAN


Business Model

Business Model


ACTION PLAN (TO DO)

Before

AEer

Strategic

Prob

lem Solving

ExecuX

on


1

3

4BAD STRATEGIC OBJECTIVES: Failure to coherently address criCcal issues or causes as in a set of “Dog’s Dinner ObjecCves”


GOALS AS STRATEGY: PresentaCon of goals or statements of desire as strategy

Targets (Metrics)


“Bad Strategy is Long on Goals

And Short on Policy or AcXon”

Richard P. Rumelt

How to Develop and Manage A Good Strategy

DRAMATIC STORY CANVAS for FormulaXng and ExecuXng “Good Strategy”

HolisGcally Document, Present, and Manage OrganizaGonal Success (Failure) in Business and Life



RED OCE

AN BLU

E OCEAN


Business Model

Business Model

CHALLENGE: Short/Medium/Long-‐term (Problems: Constraints/Obstacles)

DIAGNOSIS: HolisXc Business Model (Causes/Insights: Ext./Int. Resources)

POLICY (SoluCons: Goals/ObjecCves/Strategy)

q C: Collect info (on business model)

q D: Define customer challenge, pain, unacceptable trade-‐off, conflict, or Minimum Viable Problem (MVP)

q M: Measure challenge, pain,

trade-‐off, conflict, or problem

q A: Analyze, qualitaCvely and quanCtaCvely, core (80/20) causes or simulate business model drivers especially at level of system, environment, and supersystem; use analogies, if necessary

q G: Generate disrupCve ideas and select best alternaCve

(MAXIMIZE VALUE OR HAPPINESS: Minimize Cost, Pain, and/or Waste; Minimize Weaknesses and Threats Maximize Revenue, Delight, Benefit and/or DifferenGaGon; Maximize Strengths & Opportuni.)

ACTION PLAN (TO DO) -‐ Core TacCcs/Coherent AcCons: Do-‐Measure-‐Learn (DML) Cycle q  E: Eliminate – Waste (Defects) q  R: Reduce – Cost (Pain), e.g., size/cost; complexity; inaccessibility (inconvenience); Gme (delay) q  I: Increase – Revenue (Delight), e.g., funcGonality/performance; quality; status (brand); customizaGon/interacGon q  C: Create – DifferenCaCon (Awesome Customer Experience)

Before

AEer

“Good Strategy” Canvas: 9 Steps of Problem-‐Based Strategy (CDMAG-‐ERIC)

Strategic

Prob

lem Solving

ExecuX

on

Targets (Metrics)


DRAMATIC STORY CANVAS for FormulaXng and ExecuXng “Good Strategy”




RED OCE

AN BLU

E OCEAN


Business Model

Business Model


ACTION PLAN (TO DO)

Before

AEer

“Good Strategy” Canvas

Strategic

Prob

lem Solving

Targets (Metrics) Ex

ecuX

on
