COMPETING FOR THE FUTURE
Strategy as Stretch
Strategy must be built upon the juncture of where the firm is and where it wants to be.
It is not cash that fuels the journey to the future, but the emotional & intellectual energy of every employee.
Imagine you were an investor who, a decade or two ago, was asked to choose between the following pairs of firms as long-term investment opportunities:
Where would you have put your money?
Most investors would probably have been tempted to invest in the firms in the left column. Why?
These firms had strong reputations, technological riches & deep pockets. They could hire the most talented people in their industry, had sizable market ...view middle of the document...
Strategic intent is the source providing emotional & intellectual energy to break through the limitations, so it implies:
* A sense of direction – a particular point of view about the long-term market that a firm hopes to build over the coming decade.
* A sense of discovery – strategic intent is differentiated; it implies a competitively unique point of view about the future.
* A sense of destiny – Strategic intent has an emotional edge to it, it is a goal that employees perceive as inherently worthwhile.
A strategic architecture identifies what we must be doing right now to intercept the future. It is the essential link between today and tomorrow, between short term and long term. It shows the organization what competencies it must begin building right now, what new customer groups it must begin to understand, right now, what new channels it should be exploring, what new development priorities it should be pursuing right now to intercept the future.
Strategic architecture is a broad opportunity approach plan. The question addressed by a strategic architecture is not what we must do to maximize our revenues or share in an existing product market, but what must we do today in terms of competence acquisition, to prepare ourselves to capture a significant share of the future revenues in an emerging opportunity arena.
Strategy as a stretch is a strategy by design in the sense that top management does have a relatively clear view of the goal line and broad agenda of capability building and challenges that lie ahead between today and tomorrow.
Strategy as Leverage
Stretch & Leverage are blood relations.
Example: - Imagine 2 firms competing in the same industry: Alpha has a wealth of resources of every kind – human talent, technical skills, distribution access, brands, manufacturing facilities & cash flow. Alpha has no particular aspiration other than to remain at the top at present. So, Alpha’s resources can thus be described as substantial and its aspirations as modest.
Beta is much smaller than Alpha and has far fewer tangible resources. It has no choice but to make do with fewer people, a smaller capital budget,...