Strategy Dynamics Briefing 86: Multiple capabilities and organizational learning

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We have shown throughout this briefing series how performance arises from the complementary development of resources, leading to outcomes that reflect the power of the entire system, rather than the sum of individual elements (first outlined in Briefings 16-22). Adding capabilities to this understanding offers a still more powerful structure.

Any organization will possess capabilities linked to each of its main resources. It is therefore to be expected that learning on several of these would add still further to performance. ...

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Briefing, Strategy

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Strategy Dynamics Briefing 67: Steering strategy and performance

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Although it is common to distinguish strategy development from strategy implementation, it is not generally advisable to develop strategy first, then switch to implementing it. Not only is it impossible to know everything in advance but conditions continue to change as events unfold. Our strategy will also cause competitors and customers to respond, giving rise to new challenges and opportunities, so the chosen strategy will inevitably need constant review.

This steering and adjustment of strategy should be handled with care, though. ...

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Briefing, Strategy

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Strategy Dynamics Briefing 22: Generic architectures

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Recent briefings have shown how mapping out, rigorously, the interdependence amongst resources results in a model of the machine that makes the organization function and deliver performance, which we have called its strategic architecture.

After a short break over the summer, read on to find out more about Generic Architectures.

Whilst we have focused for example on performance of one specific airline, Ryanair, the architecture developed is essentially the same for any passenger airline. For less focused airlines than Ryanair or Southwest, ...

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Briefing, Strategy

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Strategy Dynamics Breifing 17: The problems with correlation

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A devastating implication arises from this interdependency between resources from the previous briefing. Here is a simple story…

A company’s profits come from its revenues minus its costs, and its revenues reflect the number of customers. Amongst its costs, marketing spend mostly acts to win customers, rather than increase their purchase rate

  • The company raises marketing spend in order to grow sales and profits
  • But first, its profits fall because of the higher marketing cost
  • However, the marketing spend does win a few more ...
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Briefing, Strategy

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Leadership and strategy

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Seeing our bankers grilled by politicians for gross failure highlights a confusion we see much of – an implied assumption that great leadership is the same as great strategic management.  Most telling for me was that of the 6 banking heads challenged by MPs in the UK, half had no significant industry experience! There is a big difference between knowing what’s best to do and inspiring others to do it – and being good at the second but useless at ...

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