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Does Your Strategy Need a Strategy Part 2

November 04, 2015 / 08:45

This episode discusses leadership strategies in adaptive environments, the relationship between strategy and implementation, and the introduction of a game designed to teach these concepts.

The conversation begins with the importance of leadership in achieving winning outcomes, emphasizing the need for leaders to adapt their strategies in unpredictable environments. The speaker outlines eight facets of leadership necessary for effective strategy execution.

Key discussions include the distinction between classical and adaptive environments, where traditional hierarchical instructions may fail. The speaker highlights the need for leaders to coach, segment, and disrupt strategies based on situational demands.

The episode also addresses the challenges of communicating complex ideas to CEOs and the development of a game for the iPad that simulates different strategic environments, enhancing understanding through experiential learning.

Finally, the speaker emphasizes the necessity for large corporations to embrace new strategies and adapt to changing conditions, citing Google's restructuring as an example of successful ambidexterity.

TLDR

Leadership strategies must adapt to unpredictable environments, emphasizing the relationship between strategy and implementation.

Episode

8:45
00:00:04
we also deal with leadership in the book what why would we begin with leadership
00:00:08
in a book on strategy it's because we're interested in the in winning outcomes
00:00:13
the the whole point of strategy and that requires the execution and the orchestration of these approaches in the
00:00:19
ambidextrous organization now the problem is that the classical model of leadership cascading instructions based
00:00:27
on experience and judgment down a hierarchical organization and then managing execution against those
00:00:33
instructions what's perfectly fine in a classical environment but it won't work in say an
00:00:39
adaptive environment that is much more unpredictable and it's simply not possible for the leader to be having a
00:00:46
stable instruction set and so that the question becomes how does a leader animate the collage of approaches
00:00:53
multiple approaches across an organization and in the book we deal with eight facets of leadership that
00:00:59
need to be taken into consideration in the new environment let me just touch on a few of them so firstly somebody needs
00:01:06
to diagnose and segment these different approaches to strategy which approach to
00:01:10
strategy in which part of the organization and somebody needs to disrupt in other words somebody needs to
00:01:16
say yes that as approach to strategy is not the approach that we need right now somebody needs to coach and deploy pick
00:01:24
the right people and develop the right people to be deployed against the right approach to strategy because each
00:01:30
requires a different cognitive skill set and we talked about the need for Inquisition for questioning namely where
00:01:44
we can't have a stable instruction set sometimes the best we can do is to ask
00:01:48
really great questions so leaders need to be really good at getting to the bottom of things by by asking the right
00:01:53
questions so if you like we define the skill set of the ambidextrous leader the title of the book is your strategy
00:02:03
needs a strategy mentions the word strategy twice but in fact the book is not about strategy
00:02:08
it's about effective strategy in other words it's about obtaining the winning
00:02:12
outcomes which are the very reason why we use the word strategy in the first place and therefore necessarily we need
00:02:18
to think also about implementation now just as we've said that strategy is not one thing we think that
00:02:24
implementation is not one thing the actions were required to implement strategies vary according to the
00:02:30
situation and not only that but the relationship between implementing and strategizing also varies according to
00:02:38
the environment so let me give you two examples in the classical environment the strategizing may consist largely of
00:02:45
analyzing opportunities and deriving a plan and the implementing may consist of remote execution against that stable
00:02:55
plan and performance monitoring of that execution against the plan let's think
00:03:00
about that software company this implementing adaptive strategy really the equation is turned upside down and
00:03:07
inside out because it starts with experiments from empowered employees at the coal face of the company trying new
00:03:16
things and some of those new things work and are picked up and communicated and amplified and what a strategy strategy
00:03:23
is the continuous stream of improved ideas the results from those actions so in this particular case strategizing
00:03:32
cannot be separated from action and actually the action the experiment comes before the strategy the strategy is a
00:03:38
result of the implementation if you like and if we went through each of the styles of strategy you'd find that this
00:03:45
relationship between strategy and implementation and the nature of implementation varies in each case so
00:03:52
what we really need is not just different approaches to strategizing in different environments but different
00:03:58
approaches to strategizing implement a implementing innovation culture leadership of all aspects of business in
00:04:07
each environment so in the process of writing the book we had a little strategic problem of our
00:04:16
own in fact two problems one of them is that our research showed us that CEOs would probably be interested in what we
00:04:24
had to say but they may not read the whole book we needed a more concise form of communication the second inconvenient
00:04:33
truth was that we found that in our survey 150 multinationals we found that the right beliefs about the environment
00:04:42
and about the choice of approach to strategy did not correlate perfectly with the right behaviors so if you like
00:04:48
understanding was insufficient necessary but insufficient to be doing the right things so the solution to this was
00:04:56
really two things the first one was to write a very compact first chapters of the book that could be read in its own
00:05:02
right and the the second one was to build a game a game for the iPad where we led with experience so the game is
00:05:14
quite a fun game we take the five boroughs of New York New York where I happen to live why New York because it
00:05:20
has five there's the number of approaches to strategy and the idea is to win against a fictional opponent
00:05:27
called Bruce who is named after a founder Bruce Henderson a great strategist in in selling lemonade from a
00:05:34
lemonade stand in each of these environments and the tricky part is that Bruce is a raised fierce component and
00:05:39
each environment requires you to not only think but more importantly to act out a very different approach to
00:05:47
strategy so through experiencing these different environments you develop a muscle memory for what an adaptive
00:05:54
strategy feels like for what a visionary strategy feels like and then you can go
00:05:59
backwards into the content you can ask what happened in that game you can read a little bit about the particular
00:06:05
approach to strategy that was required in that particular environment and you can even click through and and and by
00:06:11
the book if you're interested so that's the idea of the game many of the approaches that we detail in
00:06:19
the book may be challenging but not so challenging if you're doing them afresh
00:06:23
if you're doing them as as a startup if you're a ecommerce company and you're
00:06:28
putting place a digital marketplace it may be hard in its own right but you you don't have to negate the past to do so
00:06:36
large corporations have a challenge on top of that which is they have to move away from over previously successful
00:06:44
recipe and adopt a newer unknown one and they have to pick the right timing and the rate of progression in doing so and
00:06:53
that's that's that's a really hard problem on many dimensions so you might
00:06:57
call it rejuvenating the corporation I think the first success factor is to is to really understand that need so the
00:07:07
the analysis in the book shows quite clearly that the durability and the value of leadership positions is
00:07:13
increasingly tenuous so there really is a need for large corporations to to look
00:07:18
ahead at new ways of doing strategy and the second one is to is to revile the problem down because you can't change
00:07:27
everything everywhere and we've said that it boils down to three essential capabilities one of them is the
00:07:33
capability of adaptiveness or experimentation the second one is the capability of shaping which is not just
00:07:40
participating in environments but actually shaping ecosystems and the third one is ambidexterity which is
00:07:46
comfort with diversity comfort with a mosaic of approaches rather than a single monolithic approach we we
00:07:56
recently saw the announcement that Google was dividing itself into pieces under a new holding called
00:08:02
alphabet and this is a great example actually of structural ambidexterity and all of this has to be managed not only
00:08:12
as a change in the organization but change in people's minds - it requires familiarity with new ways of thinking
00:08:19
that hopefully we we detail in the book you

Episode Highlights

  • The Role of Leadership in Strategy
    Leadership is crucial for winning outcomes in strategy implementation.
    “The whole point of strategy requires execution and orchestration.”
    @ 00m 13s
    November 04, 2015
  • Adaptive vs Classical Environments
    Classical leadership models fail in unpredictable environments; adaptability is key.
    “It won’t work in an adaptive environment that is much more unpredictable.”
    @ 00m 39s
    November 04, 2015
  • The Challenge of Implementation
    Implementation varies by environment; it’s not a one-size-fits-all approach.
    “Implementation is not one thing; actions vary according to the situation.”
    @ 02m 24s
    November 04, 2015
  • Innovative Learning through Gaming
    A game simulates strategic environments to develop adaptive strategy skills.
    “Through experiencing these different environments, you develop a muscle memory.”
    @ 05m 51s
    November 04, 2015
  • The Need for New Strategies
    Large corporations must rejuvenate their strategies to remain competitive.
    “The durability and the value of leadership positions is increasingly tenuous.”
    @ 07m 11s
    November 04, 2015

Episode Quotes

  • Sometimes the best we can do is to ask really great questions.
    Does Your Strategy Need a Strategy Part 2
  • The durability and the value of leadership positions is increasingly tenuous.
    Does Your Strategy Need a Strategy Part 2

Key Moments

  • Leadership in Strategy00:04
  • Adaptive Environments00:39
  • Implementation Challenges02:24
  • Innovative Learning05:51
  • Rejuvenating Corporations07:11

Tension Over Time

Words per Minute Over Time

Vibes Breakdown