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The Hallmarks of Bad Strategy

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By Richard Rumelt

Richard Rumelt outlines the hallmarks of a bad Strategy with 4 key points; failure to face the problem, mistaking goals for strategy, bad strategic objectives and fluff!

1. Failure to face the problem

A strategy is a way through a difficulty, an approach to overcoming an obstacle, a response to a challenge. If the challenge is not defined, it is difficult or impossible to assess the quality of the strategy. And, if you cannot assess that, you cannot reject a bad strategy or improve a good one. If you fail to identify and analyze the obstacles, you don’t have a strategy. Instead, you have a stretch goal or a budget or a list of things you wish would happen.

2. Mistaking goals for strategy

A few years ago, a CEO I’ll call Chad Logan asked me to work with the management team of his graphic-arts company on “strategic thinking.” Logan explained that his overall goal was simple—he called it the “20/20 plan.” Revenues were to grow at 20 percent a year, and the profit margin was to be 20 percent or higher. “This 20/20 plan is a very aggressive financial goal,” I said. “What has to happen for it to be realized?” Logan tapped the plan with a blunt forefinger. “The thing I learned as a football player is that winning requires strength and skill, but more than anything it requires the will to win—the drive to succeed. . . . Sure, 20/20 is a stretch, but the secret of success is setting your sights high. We are going to keep pushing until we get there.”

I tried again: “Chad, when a company makes the kind of jump in performance your plan envisions, there is usually a key strength you are building on or a change in the industry that opens up new opportunities. Can you clarify what the point of leverage might be here, in your company?” Logan frowned and pressed his lips together, expressing frustration that I didn’t understand him. He pulled a sheet of paper out of his briefcase and ran a finger under the highlighted text. “This is what Jack Welch says,” he told me. The text read: “We have found that by reaching for what appears to be the impossible, we often actually do the impossible.” (Logan’s reading of Welch was, of course, highly selective. Yes, Welch believed in stretch goals. But he also said, “If you don’t have a competitive advantage, don’t compete.”)

The reference to “pushing until we get there” triggered in my mind an association with the great pushes of 1915–17 during World War I, which led to the deaths of a generation of European youths. Maybe that’s why motivational speakers are not the staple on the European management-lecture circuit that they are in the United States. For the slaughtered troops did not suffer from a lack of motivation. They suffered from a lack of competent strategic leadership. A leader may justly ask for “one last push,” but the leader’s job is more than that. The job of the leader—the strategist—is also to create the conditions that will make the push effective, to have a strategy worthy of the effort called upon.

3. Bad strategic objectives

Another sign of bad strategy is fuzzy strategic objectives. One form this problem can take is a scrambled mess of things to accomplish—a dog’s dinner of goals. A long list of things to do, often mislabeled as strategies or objectives, is not a strategy. It is just a list of things to do. Such lists usually grow out of planning meetings in which a wide variety of stakeholders suggest things they would like to see accomplished. Rather than focus on a few important items, the group sweeps the whole day’s collection into the strategic plan. Then, in recognition that it is a dog’s dinner, the label “long term” is added, implying that none of these things need be done today.

A second type of weak strategic objective is one that is “blue sky”—typically a simple restatement of the desired state of affairs or of the challenge. It skips over the annoying fact that no one has a clue as to how to get there. A leader may successfully identify the key challenge and propose an overall approach to dealing with the challenge. But if the consequent strategic objectives are just as difficult to meet as the original challenge, the strategy has added little value.

Good strategy, in contrast, works by focusing energy and resources on one, or a very few, pivotal objectives whose accomplishment will lead to a cascade of favourable outcomes. It also builds a bridge between the critical challenge at the heart of the strategy and action—between desire and immediate objectives that lie within grasp. Thus, the objectives that a good strategy sets stand a good chance of being accomplished, given existing resources and competencies.

4. Fluff

A final hallmark of mediocrity and bad strategy is superficial abstraction—a flurry of fluff—designed to mask the absence of thought. Fluff is a restatement of the obvious, combined with a generous sprinkling of buzzwords that masquerade as expertise. Here is a quote from a major retail bank’s internal strategy memoranda: “Our fundamental strategy is one of customer-centric intermediation.” Intermediation means that the company accepts deposits and then lends out the money. In other words, it is a bank. The buzz phrase “customer centric” could mean that the bank competes by offering better terms and service, but an examination of its policies does not reveal any distinction in this regard. The phrase “customer-centric intermediation” is pure fluff. Remove the fluff and you learn that the bank’s fundamental strategy is being a bank.

 

About the Author: Richard is the author of the bestselling book “Good Strategy/Bad Strategy: The Difference and Why it Matters”. He has also authored various award winning research papers which have been appeared in publications such as McKinsey Quarterly and Strategic Management Journal. His insights and experience have led to Richard being described as “a giant in the field of strategy” and “strategy’s strategist”.

Photo: Sebastien Gabriel

Implement a clear cut strategy today. For more information, click HERE or contact us on info@brg.co.za to schedule a needs assessment.

 

3 Steps to Clear Communication

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By Roger HB Davies

How many times have you been asked a question that causes ‘brain fog’ even if you know the answer? Maybe your audience is intimidating. Perhaps the topic is sensitive or emotional. Suddenly, you find yourself stammering or rambling. And after the damage is done you remember what you should have said. Many of us believe that a select few are born with the ability to skillfully handle impromptu situations. The reality is that there are three practical tips anyone can apply to respond effectively when caught off guard…

 

Step 1: Listen to understand your audience before you react

In today’s fast-paced world, we feel the need to think and speak quickly. When we hear a question, we often begin to reply before the other person stops talking. 

There are times when you can quickly make your point and move on and everybody is happy. And there are also times when listening carefully and asking for clarity is essential to finding the right answer. For example, you are talking to your team about implementing a new process and you hear “Why is this company always making things more complicated”. A good listener will acknowledge that change can be challenging. If spoken with sincerity it will help move the conversation in the right direction. Then, ask them for an example of what they mean. Chances are this will help defuse the situation and lead you to their real concern.

 

Step 2: Identify triggers to know how to respond

Let’s say the reaction to your query above is “I am already busy enough, I don’t have time to deal with this”. You could launch into a defensive and emotional brain dump. Or, you could identify the triggers in their language and react effectively.

The trigger in this situation is “I”; they are only focused on how the change is impacting them. Their perspective is narrow, so to get them on board you start broadening their perspective. Shift the focus from their individual problem to the broader solutions being offered to support the initiative, and the big picture impact the new process will provide for everyone. If your argument is credible you will find your audience slowly but surely moving to a new and more productive perspective.

 

Step 3: Remember the rule of threes to stay on track

One of the biggest challenges most of us face is knowing when to stop talking, especially when put on the spot.

When we are subject matter experts we get wrapped up in too much detail. If we are passionate our emotions override our logic and we ramble. If you need to say more than a couple of words to make your point, try focusing on the rule of threes to keep you on track. Give the quick answer and support it with no more than three points. For example, an executive stops you in the hall and asks what’s new and exciting in your department. You could say “we’re keeping busy” and hope they don’t ask more questions. Or you could launch into a detailed description about all your great ideas and risk boring your audience. Your best option is to say that you are working on some exciting ideas and then briefly share the top three. Move from one key point to the next and you will sound organised and confident. It’s not the only way to communicate but experts know it is one of the most memorable ways to deliver a message. Remember Goldilocks and those Three Bears?

Practicing these tips will make brain fog disappear, whether dealing with off the cuff questions on your feet or on your seat.

 

Originally published on ThinkOnYourFeet.com.

About the Author: Roger HB Davies CEO, Think on Your Feet International, Inc. Roger established his reputation in the early ’70s as one of Canada’s top business magazine editors. His awards include the prestigious Jesse H. Neal, the Pulitzer of the American Business Press, which he won a record three times. As CEO, he is responsible for long-term planning, product innovation, and marketing. Davies has served as President of the Ontario Society of Training & Development, Canada’s largest professional training association.

 

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5 Secrets To Double Your Team’s Intelligence

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Multiplier leaders behave similarly in 5 ways: they act as talent magnets, liberators, challengers, debate makers and investors. 

  1. Talent Magnets don’t have a shortage of talent, quite the opposite – people line up to work for them.  They have an innate ability to identify what Wiseman calls the “native genius” in each member of their team, naming the talent and then putting it to work for them.  They are not constrained by traditional job descriptions, but rather seek to apply the talent of their team to the job at hand.  
  2. Liberators free people up to do their best thinking.  Instead of providing all the answers, liberators have learned the art of asking the question, facilitating conversations that encourage people to find their own answers.  Multiplying leaders encourage people to think for themselves instead; those employees quite literally report that they become smarter.
  3. Challengers are up for precisely that – a challenge.  The have the ability to stretch people beyond their current capability, thrusting people out of their comfort zones in such a way that the “stretch is met”. As people step into their new zone, they discover a level of capability that they never knew existed.
  4. Debate Makers create the ultimate democracy, convinced that the best answers will come from the group. Instead of setting teams up to fail and fight, Multipliers who facilitate debate give their teams time to research their position, clearly define the parameters and goals, and then “pit their wits against each other” to unleash the potential of what lies in the realm of possibility.
  5. Investors answer the biggest question of all: how do we get people in the business to be accountable for the outcome?  Investors know that real ownership and accountability only comes when the individual or team have made the decision themselves, what Wiseman terms “giving them 51% of the vote”.  A courageous act?  Maybe, but one that will forever change the landscape of your business.

Do you want to access double your team’s intelligence? Click HERE for more information or contact us at multipliers@brg.co.za to book a needs assessment.

 

13 of South Africa’s boldest science innovations

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By Dominic Skelton

South Africa has been no slouch when it comes to contributing to science and technology.

1. World’s first digital laser

The Council for Scientific and Industrial Research (CSIR) announced the development of the world’s first digital laser. The innovation is expected to spur numerous applications to improve the communication and health sectors, said Professor Andrew Forbes of the CSIR National Laser Centre. The experimental work in the laser project was done by doctoral candidate and CSIR researcher Sandile Nqcobo. “This groundbreaking development is further evidence of the great potential we have in scientific innovation. That the world’s first digital laser should come from our country is testimony to the calibre of scientists that South Africa has,” said former minister of science and technology, Derek Hanekom.

2. The Full-body X-ray scanner

The South African company Lodox Systems produced the only system in the world that provides an excellent quality X-ray image up to 1.83m in length in just 13 seconds. Lodox is also safer, emitting up to 10 times less harmful dose than regular X-ray systems. The Lodox Critical Imaging Technology was initially developed for use on diamond mines to prevent the smuggling and theft of diamonds by mineworkers.

3. Cheaper solar power

An innovation in solar power which uses a micro-thin metallic film was created by Professor Vivian Alberts at the University of Johannesburg. The discovery has made solar electricity five times less expensive than solar photovoltaic cells. Alberts’ solar panels consist of a layer of a unique metal alloy, five microns thick. The photo-responsive alloy can operate on most flexible surfaces. In February 2014 a semi-commercial plant for the production of thin-film solar module technology was opened in Stellenbosch.

4. The bollard

The bollard, an implantable expanding rivet, was developed by a group of CSIR scientists in 1982, comprising Peter Mundell, Dr Michael Hunt and Dr Angus Strover. Thirty years later it is still on the market and over 60 000 of the medical devices have been used. The rivet is used in conjunction with a prosthetic ligament for repair of knee ligament injuries. The device is made from carbon fibre and reinforced polysulfone. In 1984 it received the Chairman’s award for Excellence from the SABS Design Institute. It was the first carbon fibre reinforced composite implant to be approved by the US Food and Drug Administration for human surgery. The company that now manufactures the product is Fibretek Developments.

5. Biomedical stem cell technology

The CSIR’s Gene Expression and Biophysics group generated the first induced pluripotent stem cells (iPSCs) in Africa. The ability to grow these stem cells has revolutionised the way researchers can investigate and understand disease. The medical possibilities of iPSCs are huge. They could be used for restoring sight by replacing defective tissue, transplanting new cells to treat heart disease or give people with anaemia new healthy blood cells. CSIR collaborated with the University of Cape Town Medical School to develop the models.

6. Dolosse

These large concrete blocks, known as dolosse, were invented by South African Eric Mowbray Merrifield in 1963. They are used around the world to protect harbour walls from the erosive force of ocean waves. Anybody who has visited harbours around the world would have seen large concrete blocks with a complex geometric shape.

7. Speed gun for sports

South African engineer Henri Johnson is credited with the invention of the speed gun and other technologies used to measure the speed and direction of sports balls. The South African-made speed gun was formally released at The Oval during the 1999 cricket World Cup.

8. CoSev

CoSev allows you to report service delivery problems from potholes in Sandton to water shortages in the Eastern Cape using a smartphone app or USSM. It then logs the report on a central server where it’s publicly viewable by all until it gets fixed. Similar ideas overseas have transformed local government services, because they force accountability and transparency onto erstwhile dark and bureaucratic corners of councils. Its creator Tshepo Thlaku won second prize for the app at the SA Innovation Summit in 2013.

9. The CAT Scan

The Computed Axial Tomography Scan, or CAT, was developed by Cape Town physicist Allan Cormack and his associate Godfrey Hounsfield.

Cormack provided the mathematical technique for the CAT scan, in which an X-ray source and electronic detectors are rotated around the subject and the resulting data is analysed by a computer to produce sharp maps of tissues within a cross-section of the body. Cormack won the 1979 Nobel Prize in Physiology or Medicine (with Hounsfield) for his work on X-ray computed topography.

He was born in Johannesburg and attended Rondebosch Boys’ High School in Cape Town.

10. 3D Underwater imaging system

The world’s first low element-count 3D underwater imaging system was developed at the CSIR. The researchers also built a technology demonstrator that was successfully tested at the underwater test facility of the Institute of Maritime Technology.

The CSIR’s Kiri Nicolaides said: “Our team developed a range of technology building blocks… which can achieve an image using only 96 sensors. This should make the system much cheaper than 3D underwater imaging systems currently available, due to its acoustic properties, of a much higher resolution.”

11. Fingerprint identification classifier

In 2011 the CSIR developed a world-first fingerprint identification technique. The structural fingerprint classifier is able to correctly classify a fingerprint with only partial information.

CSIR Head of Information Security, Professor Fulufhelo Nelwamondo explained the need for the model. “In fingerprint recognition, fingerprint templates normally sit in a databases, so when going through an identification process, the system has to sift through thousands, if not millions of templates making the system slow in yielding results.”

“The extensible fingerprint classifier… will allow the system to be extremely fast and accurate when a database search is conducted. It will increase the overall efficiency of the entire fingerprint recognition system.”

12. Digital Drum

The digital drum is a co-creation of the CSIR and the United Nations Children’s Fund (UNICEF) was cited in Time magazine as one of the top 50 inventions in 2011.

The drum is a computer system that gives people access to information on issues such as health and education. The design is based on the CSIR’s digital doorway, a stand alone computer system to promote self-learning of computer literacy and information skills.

The CSIR’s Grant Cambridge said: “The Digital Drum design proved to be an innovative way for UNICEF and the CSIR to address a need through a solution developed in the absence of technology.”

13. First ever aero-optic made from flame

Professor Andrew Forbes from the CSIR led the development of the world’s first flame lens. The optic lens uses air to focus and can handle almost unlimited power.

He said: “the beauty of this project is that expertise in two distinctly different fields (aerodynamics and optics), were relied on to develop something that has never been done before.”

“Through this work, we have made a lens that uses just air- no materials- to focus. The flame lens produces a sharp focus with very little stray light. It achieves a fourfold increase in focal power per unit length over previous glass lenses.”

A flame is channeled through a pipe where it spirals along the pipe length, when a laser beam is shot through behind the flame the beam focuses on the respective point.

This article was originally posted on Times Live, 8 July 2014