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Business Strategy
Business Strategy
Overview
Strategy has not had an easy time since the
millennium. Squeezed by a combination of economic downturn and endemic
scepticism about the visionary ideas of the e-business boom, most strategic
planning departments - if they still exist - have retrenched. They have focused
on the operational issues like how to yield bottom-line improvements in more
acceptable timescales, and on the organizational changes often ignored by the
high-flying strategy of convention. Now, with the global economy starting to
pick up, managers are rightly asking: What role does strategy play in our
organization? How can we ensure that the ideas we have on paper can be realized
in practice?
The two cases in this chapter represent the full spectrum of
responses to this question. At one end, we have Capgemini, assessing the
strengths and weaknesses of the Duke of Edinburgh's International Award
programme and developing suggestions for future direction. Hugely successful
(more than 100 countries run Duke of Edinburgh award schemes), it was still
important to ensure that the programme reflected the changing needs of young
people. This was traditional strategy work at its best: a period of intensive
data gathering by the consultants followed by client workshops aimed at
brainstorming a new vision for the organization. At the other end of the scale,
there is RightCoutts' work with the Harrogate Healthcare NHS Trust. Like public
healthcare systems across the world, the Harrogate Trust found that it needed a
more corporate style of management, something that was likely to have a profound
impact on the culture of the organization as a whole. The appointment of a new
chairman and chief executive, and the advent of a new executive team, provided
the catalyst to improve the effectiveness with which administrators and
clinicians worked together on strategic issues. This is strategy as cultural
change in which data gathering cedes to appraisals of individual managers, and
facilitation to mentoring.
It is significant that neither of these case studies comes from
mainstream corporations. While commercial organizations batten down the
strategic hatches, it is in the public and not-for-profit sectors that strategy
is looking to prove itself again. Moreover, unlike most exercises to develop new
strategies in the private sector, these initiatives were not taking place
against a backdrop of declining performance: change, and the timing of change,
was a matter of choice.
Taken together, the very different projects described here share
three important lessons:
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Strategy cannot be developed by one part
of an organization, or by one group of stakeholders, in isolation. At the
Harrogate Trust, service delivery would not have been improved by a small team
of administrators telling clinical staff what to do. Command-and-control
management would also have failed the Duke of Edinburgh's International Award
Association, membership of which is entirely voluntary. Effort had to be put
into ensuring that all those likely to be affected by the strategies being
developed would have the opportunity to contribute to them. The International
Award Association canvassed the views of its national authorities and
independent operators. Individual coaching sessions were held with all the
directors of the Harrogate Trust, not just those who thought of themselves as
‘managers'. Similarly, the consulting teams had to work with their clients,
learning from them, developing ideas in collaboration with them - a far cry from
the hit-and-run strategy consulting clients have complained of in the past.
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A balance needs to be struck between
inclusion and speed. Strategy (and strategy consulting) has moved a long way
since the time when a strategic review took several months. Indeed, during the
height of the e-business boom in 1998-99, afraid that competitors might overtake
them, organizations went to the other extreme, formulating strategies in weeks,
if not days. But compressed timescales had other flaws and often resulted in
ill-considered plans that rarely returned a profit. The initiatives described
here fall into the middle ground: small in scale and focused in intent, they
were both completed in a short time, yet neither sacrificed the need to involve
others.
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The means are as important as the end.
The link between strategy and implementation has always been weak: mission
statements that look good on posters fail to change behaviour; new business
models prove unworkable in practice. It may be that, too often, we think about
‘a strategy' as an end in its own right. Perhaps clients and consultants have
focused too much on the physical output - once the report has been written
everyone sits back with relief, forgetting that is only the start of the
process. In both the projects described here, the way that the strategy is
developed is almost as important as the strategy itself. The process of
formulating a strategy was used as an excuse to forge stronger links, between
managers and clinicians at the Harrogate Trust, and between the International
Award Association and its members.
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