{"id":539,"date":"2010-10-04T19:01:23","date_gmt":"2010-10-04T17:01:23","guid":{"rendered":"http:\/\/www.invest-aura.com\/?p=539"},"modified":"2025-03-17T11:32:43","modified_gmt":"2025-03-17T09:32:43","slug":"do-you-need-a-new-strategic-tool-to-prepare-your-new-strategy","status":"publish","type":"post","link":"https:\/\/www.investaura.co\/wordpress\/2010\/10\/do-you-need-a-new-strategic-tool-to-prepare-your-new-strategy\/","title":{"rendered":"Do you need a strategic tool to strategize your new strategy? (Part 1 of 2)"},"content":{"rendered":"

There is a semantic problem with the word \u2018strategy\u2019 \u2013\u00a0 it is one of the most overused but unfortunately rather vaguely defined words.\u00a0 It is rare to find any two people who use it in the same way.\u00a0 The consequences are disastrous.<\/p>\n

 <\/p>\n

\n

95% of the typical workforce does not understand the strategy \u2013\u00a0Fortune Magazine<\/p>\n

70% of CEO failures come not as a result of poor strategy, but of poor execution \u2013\u00a0Fortune Magazine<\/p>\n<\/blockquote>\n

Only 1 in 10 companies successfully implement their strategy \u2013\u00a0Paul Niven<\/p><\/blockquote>\n

 <\/p>\n

 <\/p>\n

So what is strategy?\u00a0I remember one company claiming: \u201eOur strategy is to become number 1 in the market\u201c.\u00a0 That\u2019s is not a strategy!\u00a0 This is a goal \u2013 nothing more, nothing less.<\/p>\n

Most companies are not successful because they don\u2019t articulate their strategy clearly<\/strong>.\u00a0 In many cases, the strategy is regarded as confidential<\/strong>, so will not be communicated to employees \u2013 only the top management should know what the strategy is! \u00a0That is not really the best way to get staff aligned, inspired, all working together towards a common goal and achieving success. On top of this, companies these days have a rather short-term view<\/strong>, being way too focused on the next quarter as well as shareholders\u2019 expectations.\u00a0 So it is hardly possible to articulate a strategy that would survive in the long term.<\/p>\n

But where does the problem come from?\u00a0\u00a0 Why is it so difficult to articulate a strategy?<\/p>\n

In popular language, the word \u2018strategy\u2019<\/strong> is often used improperly instead of \u2018tactics\u2019<\/strong>.\u00a0 But unlike tactics, strategy has long-term connotation:\u00a0 the strategy is meant to be durable and not changing very often.\u00a0 So if you are rather thinking short-term, the word \u2018tactics\u2019 would probably be the better word to use.\u00a0 But nobody does.\u00a0 Maybe because tactics has a background in the military as well as a negative connotation.<\/p>\n

This is confirmed from a quick check in the dictionary.\u00a0 According to the Collins English Language Dictionary, tactics are \u201cthe method that you use in order to achieve what you want when dealing with other people\u201d.\u00a0 This sounds manipulative.\u00a0 Collins says that it is similar in meaning with stratagem and ploy.\u00a0 According to Collins, another definition of \u2018tactics\u2019 is \u201cthe ways in which troops and military equipment are positioned and used in order to try to win a battle\u201d.\u00a0 So that\u2019s why people use the word \u201ctactics\u201d so little: it does not sound particularly positive.\u00a0 The Cambridge Dictionary of English also emphasises that \u2018tactical\u2019 has local impact, unlike strategy that is more like a grander plan: the example given is that \u201ctactical weapons are for use over short distances and, especially in the case of nuclear weapons, have a local effect only.\u201d<\/p>\n

So once more, what is strategy?\u00a0 \u00a0If \u2018tactics\u2019 are short-term and local, strategy must be long-term and global.<\/strong> Going back to Collins: \u201ca strategy is a plan you adopt in order to get something done, especially in politics, economics, or business\u201d.\u00a0 This sounds a bit like tactics, but without the idea of manipulating people.\u00a0 Cambridge is a little more precise: \u201ca detailed plan for achieving success in situations such as war, politics, business, industry or sport.\u201d<\/p>\n

All in all, these definitions remain rather general and vague.<\/p>\n

So we had to look for another source.\u00a0 We were lucky to find better explanations in a book from Robert Kaplan and David Norton<\/strong>, the fathers of the balanced scorecard.\u00a0 The book is entitled \u201cStrategy Maps: converting intangible assets into tangible outcomes\u201d<\/strong>, published in 2004 by Harvard Business School Press.\u00a0 Strategy maps is really the stage that is taking place before balance scorecard:\u00a0 it is about describing strategies before these can be measured, and as a result, managed.<\/p>\n

Kaplan and Norton\u2019s definition is simple: \u201can organisation\u2019s strategy describes how it intends to create value for its shareholders, customers, and citizens\u201d.\u00a0 However they observe that \u201cno two organizations think about strategy in the same way\u201d<\/strong>.\u00a0 They go on to say \u201cwe found little help on a holistic framework from the prevailing wisdom of management thought leaders.\u00a0 Strategic doctrines existed around shareholder value, customer management, process management, quality, core capabilities, innovation, human resources, information technology, organizational design, and learning.\u00a0 While each provides deep insights, none provides a comprehensive and integrated view for describing a strategy.\u00a0 Even Michael Porter\u2019s approach, based in positioning for competitive advantage, does not provide a general representation of strategy\u2026. A generally accepted way to describe strategy did not exist\u201d.<\/p>\n

They go on as follows: \u201cConsider the consequences.\u00a0 Without a comprehensive description of strategy, executives cannot easily communicate the strategy among themselves or to their employees.\u00a0 Without a shared understanding of the strategy, executives cannot create alignment around it.\u00a0 And, without alignment, executives cannot implement their new strategy for the changed environment\u2026\u201d<\/p>\n

Kaplan and Norton go on to explain how strategy maps work.\u00a0 Essentially, strategy maps describe how the organisation creates value.\u00a0\u00a0 The value creation takes place as follows:<\/p>\n

STRATEGY<\/span><\/p>\n

\u2191<\/span><\/p>\n

Financial Perspective <\/span><\/p>\n

\u2191<\/span><\/p>\n

Customer perspective<\/span><\/p>\n

\u2191<\/span><\/p>\n

Internal perspective<\/span><\/p>\n

\u2191<\/span><\/p>\n

Learning and growth perspective<\/span><\/p>\n

Financial perspective: \u00a0If we success, how will we look to our shareholders?<\/span>
\nCustomer perspective: To achieve our vision, how much we look to our customers?<\/span>
\nInternal perspective: To satisfy our customers, which processes must we excel at?<\/span>
\nLearning and Growth perspective:\u00a0 To achieve our vision, how must our organisation learn and improve?<\/span><\/p>\n

\u201cStrategy Maps\u201d<\/strong> is a really good book: buy a copy and read it, then you will know everything you need to know to articulate and describe your company\u2019s strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"

There is a semantic problem with the word \u2018strategy\u2019 \u2013\u00a0 it is one of the most overused but unfortunately rather vaguely defined words.\u00a0 It is rare to find any two people who use it in the same way.\u00a0 The consequences… <\/p>\n

Read More<\/a><\/div>\n","protected":false},"author":1,"featured_media":7910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":[]},"categories":[90],"tags":[43],"jetpack_publicize_connections":[],"yoast_head":"\nDo you need a strategic tool to strategize your new strategy? (Part 1 of 2) | Investaura<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investaura.co\/wordpress\/2010\/10\/do-you-need-a-new-strategic-tool-to-prepare-your-new-strategy\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do you need a strategic tool to strategize your new strategy? (Part 1 of 2) | Investaura\" \/>\n<meta property=\"og:description\" content=\"There is a semantic problem with the word \u2018strategy\u2019 \u2013\u00a0 it is one of the most overused but unfortunately rather vaguely defined words.\u00a0 It is rare to find any two people who use it in the same way.\u00a0 The consequences... 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Gerstner Jr. was CEO of IBM from 1993 to 2002. \u00a0 He managed the turn-around of the company from a product business to a service and solution business. \u00a0He is regarded by many as \"the man who saved IBM\". \"It is extremely difficult to develop a unique strategy\u2026","rel":"","context":"In "Insights"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.investaura.co\/wordpress\/wp-content\/uploads\/2024\/07\/Business_Planning2.jpg?fit=1024%2C631&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3444,"url":"https:\/\/www.investaura.co\/wordpress\/2015\/04\/landmark-project-for-a-telco-in-mea-fixed-asset-valuation-as-per-ifrs-13\/","url_meta":{"origin":539,"position":1},"title":"Landmark project for a telco in MEA: Fixed Asset Valuation (IFRS 13)","date":"April 24, 2015","format":false,"excerpt":"Investaura has recently completed a fixed asset revaluation project for a major telecom service provider operating in multiple countries in the MEA region. The project was undertaken over a 3-month period and looked into $1bn of fixed assets in the following asset classes:\u00a0Land,\u00a0Building,\u00a0Towers, Telecoms equipment, Software, Spectrum and licences. The\u2026","rel":"","context":"In "Investaura Solutions"","img":{"alt_text":"FixesAssetsValuation","src":"https:\/\/i0.wp.com\/www.invest-aura.com\/wordpress\/wp-content\/uploads\/FixesAssetsValuation.png?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1292,"url":"https:\/\/www.investaura.co\/wordpress\/2012\/04\/the-future-of-nsn-a-happy-end-at-last\/","url_meta":{"origin":539,"position":2},"title":"The future of NSN: a happy-end at last?","date":"April 24, 2012","format":false,"excerpt":"There are reasons to be concerned about the future of Nokia Siemens Networks (NSN).\u00a0 Since the merger of the Nokia and Siemens telecoms infrastructure businesses in 2007, the Joint Venture never had a single profitable year:\u00a0 operational losses were -\u20ac1.3bn, -\u20ac0.3bn, -\u20ac1.6bn, -\u20ac0.7bn, -\u20ac0.3bn in the years 2007, 2008, 2009,\u2026","rel":"","context":"In "Market news"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.investaura.co\/wordpress\/wp-content\/uploads\/2024\/07\/Business_Planning2.jpg?fit=1024%2C631&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":572,"url":"https:\/\/www.investaura.co\/wordpress\/2010\/10\/itil-only-for-it\/","url_meta":{"origin":539,"position":3},"title":"ITIL: only for IT? (Part 1 of 2)","date":"October 16, 2010","format":false,"excerpt":"Translated from an original article written by Thomas Bez, TEDESCA Consulting, www.tedesca.com Introduction A service management project - whether it be the restructuring of a service unit, the development of SLA and the set-up of a Service Level Management, or a service outsourcing - rarely follows a textbook format.\u00a0 However,\u2026","rel":"","context":"In "Insights"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.investaura.co\/wordpress\/wp-content\/uploads\/2024\/07\/Business_Planning2.jpg?fit=1024%2C631&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1147,"url":"https:\/\/www.investaura.co\/wordpress\/2011\/12\/are-you-a-product-a-solution-or-a-service-company\/","url_meta":{"origin":539,"position":4},"title":"Are you a product, a solution or a service company?","date":"December 2, 2011","format":false,"excerpt":"Recently, we have noticed something interesting.\u00a0\u00a0 Go to the web sites of the top telecom suppliers and check in which order the words \u201cproducts\u201d, \u201csolutions\u201d and \u201cservices\u201d appear there. We have done the check: Nokia Siemens Networks (NSN): products, solutions, services Huawei: solutions, products, services Alcatel-Lucent (ALU): solutions, products, services\u2026","rel":"","context":"In "Insights"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.investaura.co\/wordpress\/wp-content\/uploads\/2024\/07\/Business_Planning2.jpg?fit=1024%2C631&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1458,"url":"https:\/\/www.investaura.co\/wordpress\/2012\/09\/the-future-of-nokia-siemens-can-nsn-survive-without-its-managed-services-business\/","url_meta":{"origin":539,"position":5},"title":"The future of NSN: can NSN survive without its Managed Services business?","date":"September 6, 2012","format":false,"excerpt":"Our recent article on NSN (The future of NSN: a happy-end at last?) has been a blockbuster of sort. It has attracted more than 3,500 readers since publication at the end of April 2012, from Germany, Finland, Portugal, India as well as many other countries. We have been very surprised\u2026","rel":"","context":"In "Insights"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.investaura.co\/wordpress\/wp-content\/uploads\/2024\/07\/Business_Planning2.jpg?fit=1024%2C631&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/posts\/539"}],"collection":[{"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/comments?post=539"}],"version-history":[{"count":17,"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/posts\/539\/revisions"}],"predecessor-version":[{"id":5207,"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/posts\/539\/revisions\/5207"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/media\/7910"}],"wp:attachment":[{"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/media?parent=539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/categories?post=539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investaura.co\/wordpress\/wp-json\/wp\/v2\/tags?post=539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}