The speed of competition means we need to do more than look in our review mirror to assess competitive threats. Proactive assessment of changes in power amongst our suppliers & buyers, potential substitute products and new entrants, the competitive rivalry and changes in complementary products and regulation is a basis for improved enterprise agility.
Increasingly aired doubts over the effectiveness of annual performance appraisals and the evolution of business simulations software leads me to a perspective that enterprises have new avenues to align individual discretionary behaviour and enterprise needs.
Strattomics: Climbing to your next business Peak without attending Business School – Raising Agility, promotes broader thinking about the future of an enterprise S curves are used to identify the “As Is” in terms of its position on the growth journey & the distinctiveness of its capabilities. External factors such as Buyers, sellers, new entrants, the threat of substitute products, the impact of complementary products, regulation and overall competitive rivalry are consider before the 7S is used to help broaden thinking about the overall enterprise (with a particular focus on values.) As a means of reducing the risk of “unintended consequences” the use of the “future wheel” technique is recommended. The agility discussion closes with consideration of adaptive planning and rolling forecasts as means of preventing the planning process becoming a barrier to change.
Consideration of Porter’s 5 Forces plus the significance of complementary products, government / regulatory changes and economic profit can help form an effective strategic direction strategic direction. Establishing the impact of the chosen direction on Purpose, Mission, Core Values and Vision can help identify strategic themes to drive goals, objectives and initiatives.
A purpose statement is a valuable complement to traditional vision, mission and values statements – particularly were there is a transparent link to individual goals, objectives, initiatives and targets AND where it is used to help educate people on the business. Individuals with a strong sense of purpose, that is aligned with the enterprise, are well positioned to contribute innovations to both continuous improvement and new offerings.
Enterprises need to develop a broader understanding of the spectrum of stakeholders in their enterprise and the expectations these stakeholders have for the enterprise. This includes broader society and necessitates Business looking at how it contributes (positively and negatively) to society at large. I encourage all Leaders to develop a simple annual plan of activities to secure and then optimise dialogues with the full spectrum of their stakeholders. The objective being that Stakeholder Engagement improves year on year resulting in greater understanding of the enterprise amongst stakeholders improved commitment to the company’s strategic agenda.
“The competitive heat has been turned up by new technology. But cool heads are still needed when dealing with disrupters.” The Economist 11 January 2014 Flourishing enterprises excel at their current activities, spot changes in their operating environment early, develop the agility needed to embrace new threats and opportunities […]
The World Economic Forum 2014 outlook highlights “A lack of values in leadership” as one of the top 10 opportunities / challenges for the next 18 months. This Blog argues for a holistic “values-driven” approach that cascades from Mission and Values through vision, goals, objectives, to initiatives, measures and targets sets a foundation for effectiveness – by transparently linking the efforts you need from your employees and stakeholders to the strategic imperatives of the enterprise.
A virtuous circle linking growth opportunities to the growing capabilities of your people ….. to feed more growth
Earlier this week John Kay reminded us of the Technological uncertainty in our complex world in his Financial Times Column. To varying degrees I could paint similar pictures for a range of the external factors that influence enterprises and use this as a foundation for an argument for corporate […]
The UK Chartered Institute of Personnel and Development (CIPD) and the Management Innoxation Exchange (MIX) are currently running a “Hackerthon” entitled, Hacking HR to Build an Adaptability Advantage. Setting the scene Gary Hamel pointed out that organisations are not designed to be adaptable and that corporate histories generally show long periods […]