The switch to new Strategic Thinking
Developing a good game plan for your team or organization is more important than ever in a volatile business environment. The question is if our traditional approaches to strategic planning are still valid or worthwhile in a less predictable world. The starting point of traditional approaches has always been the current reality and based on this the desired future position was defined. Based on strong analysis, companies made small changes to their strategy, improving the status quo. If subsequently the strategy was deployed in an excellent way, the companies were able to reach a sustainable competitive advantage and reap the benefits of good strategic planning. It worked fine in a stable business environment.
So what strategic approach helps us deal with this changed predictability? Do we need to completely shift our way of thinking and planning? Do we need to replace planning by design? Or is combining approaches the sweet spot of strategy development, in a form of integrative thinking?
To innovate and win, companies need design thinking. Roger Martin (Dean Rotman School of Management)
To support this ongoing debate, listing the differences between traditional strategic planning and a new approach of strategy design based on Design Thinking, might help. Both approaches are presented in their extreme form.
So what do you think? Which shifts in strategy are needed? What are your experiences in the field? Please, feel free to share to generate more feedback.
More inspiration on: www.changedesigners.eu
Ready to start a Design Thinking development program in your organization? Contact me for a consultation.
Melvin Jusriel Kamil
Exploring Orchestration Framework for Enterprise and appyling it to provide real value
6ySara, very bright approach with great visualization! You may be curious to look into my book, which is about to be published. It says about orchestration, 5 types of strategies, design thinking approach, agile and some visual stuff for dealing with all that in organic manner. The Enterprise Orchestration book: early notice https://www.linkedin.com/pulse/enterprise-orchestration-book-early-notice-siarhei-tuzik
Founder & Board member at Bankable
6yHi Sara, excellent article, thank you. There is an 11st massive difference between Traditional Strategic Planning and Agile Strategic Design: EXECUTION SPEED / TIME TO MARKET. In the traditional model, you will request a RFI, RFP, weekly committees to select a software vendor (or build in house) then add an army of consultants to integrate. The business owner initiating the new software is keen to go live fast to capture new revenues from new services to clients. The traditional approach will always be a pain for an ambitious business owner / intrapreneur due to lengthy unpredictable delays. From first idea to live, it will take 3 to 5 years for delivery (if project does not fail). When delivery occurs, the market will have changed and the product likely to be born obsolete due to obsolete strategic planning and processes. In the Agile Strategic Design, Experimentation is a starting point. Clients can leverage a sandbox for experimentation where new developments are minimised and configuration is maximised. In the specific Banking as a Service platform case, a pilot for a Bank will show real client transactions after weeks (before the RFI is produced) and go to market could happen within 2 to 3 quarters (before the RFP results are communicated to vendors), saving years of new revenues for the business owner.
Client Lifecycle Management | Banking Transformation | Operational Risk Management
6yHi Sara, excellent article and clear comparison between a very corporate approach and a new more daring and risk friendly organization. The question though is how to shift the senior management of such organizations from one model to the other. Since Drucker, passing thru Sloan up-to the newest Mackenzie plans on how to go from Good to great.. organizations excel in knowing and articulate great visions.. my impression is that the execution fails... the same as everyone knows that junk food is not healthy and still enjoying it and consuming. Best.