Finance-led Strategy: strangled business AND higher risk!

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It seems Finance has taken over Strategy’s role in recent years (our fault, not theirs), and we know this can strangle a business. The CFO tells the CEO to keep operating margins up, so pushes down on R&D, marketing, training, and just about anything needed to develop. So we keep slogging along with little growth, just about keeping investors calm with decent ‘returns’.

At least this might keep business risk under control – right? Maybe not. If the business is squeezed ...

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Make your strategy resilient

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How to Prepare for a Black Swan in strategy+business offers good advice to assess exposure to disruptive events, but misses key elements a strategy can and should cover.

In summary, the advice is [1] map the firm’s operations, supply-chain and sales channels [2] list potential disruptions [3] ask ‘what if’ these happen [4] set up contingency plans. Work on risk in utilities shows several additional strategy responses are both possible and desirable.

  1. Reduce the risk that an event will actually cause ...
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