SlideShare ist ein Scribd-Unternehmen logo
1 von 2
Downloaden Sie, um offline zu lesen
Strategy as Love
by Dr Norman Chorn

Thinking about Strategy
Most	
  of	
  us	
  have,	
  at	
  one	
  point	
  or	
  another,	
  sat	
  through	
  a	
  strategic	
  planning	
  session	
  that	
  
addressed	
  our	
  organisa5on’s	
  posi5on	
  in	
  the	
  marketplace,	
  our	
  mission	
  and	
  objec5ves,	
  our	
  
strengths,	
  weaknesses,	
  opportuni5es	
  and	
  threats.	
  Most	
  of	
  this	
  is	
  based	
  on	
  the	
  assump5on	
  
that	
  we	
  are	
  under	
  some	
  form	
  of	
  a=ack	
  from	
  compe5tors	
  and	
  that	
  we	
  have	
  to	
  win	
  in	
  order	
  
for	
  the	
  business	
  to	
  be	
  successful.	
  This	
  “military”	
  model	
  reflects	
  much	
  of	
  the	
  tradi5onal	
  
thinking	
  about	
  strategy	
  –	
  and	
  makes	
  sense	
  when	
  we	
  recognise	
  that	
  the	
  word	
  strategy	
  
comes	
  from	
  the	
  Greek	
  word	
  “strategos”,	
  the	
  art	
  of	
  the	
  general.

But	
  what	
  if	
  there	
  was	
  a	
  different	
  way	
  of	
  thinking	
  about	
  strategy?	
  What	
  if	
  we	
  thought	
  about	
  
strategy	
  as	
  LOVE	
  instead	
  of	
  con5nually	
  thinking	
  about	
  strategy	
  as	
  WAR?	
  What	
  new	
  insights	
  
would	
  that	
  afford	
  us?	
  What	
  are	
  the	
  implica5ons	
  for	
  organisa5ons	
  as	
  they	
  plan	
  for	
  their	
  
futures?

On	
  a	
  recent	
  visit	
  to	
  the	
  USA,	
  I	
  had	
  an	
  interes5ng	
  conversa5on	
  with	
  MIT	
  Sloan	
  School	
  
professor	
  Arnoldo	
  Hax,	
  a	
  well-­‐known	
  strategy	
  expert	
  and	
  one	
  of	
  the	
  authors	
  of	
  the	
  book	
  
The	
  Delta	
  Project.	
  	
  We	
  spoke	
  about	
  his	
  approach	
  to	
  strategy,	
  called	
  “ The	
  Delta	
  
Model”	
  (which	
  is	
  the	
  5tle	
  of	
  an	
  ar5cle	
  he	
  co-­‐authored	
  for	
  MIT	
  Sloan	
  Management	
  Review	
  
in	
  1999).


Customers or Competitors at the Centre?
Most	
  of	
  the	
  major	
  frameworks	
  of	
  strategy	
  start	
  by	
  recognising	
  that	
  the	
  essence	
  of	
  strategy	
  
is	
  to	
  achieve	
  compe55ve	
  advantage.	
  	
  Poten5ally,	
  this	
  mindset	
  can	
  be	
  extremely	
  limi5ng,	
  
because	
  it	
  puts	
  compe5tors	
  at	
  the	
  centre	
  of	
  your	
  thinking.	
  And	
  if	
  you	
  do	
  that,	
  then	
  there	
  is	
  
a	
  tendency	
  to	
  watch	
  your	
  compe5tors	
  and	
  try	
  to	
  imitate	
  them.	
  

That	
  imita5on	
  can	
  create	
  sameness.	
  	
  Sameness	
  will	
  never	
  bring	
  greatness,	
  and,	
  even	
  
worse,	
  its	
  final	
  result	
  is	
  something	
  which	
  could	
  spell	
  disaster	
  for	
  a	
  business	
  -­‐	
  
commodi5sa5on.	
  	
  Commodi5sa5on	
  results	
  in	
  a	
  business	
  in	
  which	
  there	
  is	
  li=le	
  that	
  
differen5ates	
  your	
  offering.	
  All	
  you	
  can	
  do,	
  therefore,	
  is	
  to	
  fight	
  for	
  price.	
  That	
  leads	
  to	
  a	
  
very	
  aggressive	
  rivalry.	
  	
  In	
  order	
  for	
  you	
  to	
  win,	
  you	
  have	
  to	
  beat	
  somebody	
  and	
  sell	
  at	
  the	
  
lowest	
  price.	
  

This	
  is	
  strategy	
  as	
  war,	
  and	
  as	
  we	
  know	
  very	
  well,	
  it	
  is	
  not	
  a	
  very	
  effec5ve	
  way	
  to	
  manage	
  a	
  
business.	
  	
  Wars	
  just	
  create	
  complete	
  devasta5on;	
  they	
  are	
  the	
  worst	
  thing	
  that	
  could	
  
happen	
  to	
  mankind,	
  yet	
  we	
  use	
  that	
  as	
  a	
  simile	
  for	
  management!	
  	
  Surely	
  it’s	
  not	
  the	
  best	
  
metaphor	
  to	
  use.

Now,	
  if	
  compe5tors	
  are	
  not	
  at	
  the	
  centre	
  of	
  management,	
  who	
  is	
  at	
  the	
  centre?	
  	
  For	
  many,	
  
the	
  answer	
  is	
  obvious.	
  	
  The	
  customer	
  is.	
  	
  The	
  customer	
  is	
  the	
  driving	
  force.	
  	
  You	
  have	
  to	
  
start	
  by	
  deeply	
  understanding	
  the	
  customer’s	
  requirements	
  and	
  how	
  you	
  can	
  add	
  value	
  to	
  
the	
  customer	
  in	
  the	
  most	
  effec5ve	
  way.	
  This	
  changes	
  completely	
  the	
  way	
  you	
  plan	
  on	
  and	
  
make	
  decisions.	
  You	
  are	
  now	
  focused	
  on	
  LOVING	
  the	
  customer	
  instead	
  of	
  making	
  WAR	
  on	
  
the	
  compe55on.

Instead	
  of	
  trying	
  to	
  imitate	
  somebody,	
  you	
  try	
  to	
  separate	
  yourself	
  from	
  the	
  rest	
  of	
  the	
  
pack.	
  	
  You	
  try	
  to	
  produce	
  a	
  value	
  proposi5on	
  which	
  is	
  unique,	
  which	
  is	
  differen5ated,	
  which	
  
adds	
  value	
  to	
  the	
  customer	
  and	
  expresses	
  a	
  great	
  deal	
  of	
  care	
  and	
  concern	
  for	
  the	
  
customer.	
  That	
  value	
  proposi5on	
  should	
  be	
  based	
  on	
  mutual	
  trust,	
  mutual	
  learning,	
  mutual	
  
benefits,	
  and	
  transparency.	
  	
  This	
  is	
  strategy	
  as	
  LOVE.


Love can drive out commoditisation
Strategy	
  as	
  LOVE	
  can	
  also	
  provide	
  some	
  useful	
  insights	
  for	
  people	
  who	
  believe	
  they	
  are	
  in	
  a	
  
commodity	
  business.	
  In	
  reality,	
  the	
  product	
  you	
  sell	
  may	
  be	
  a	
  commodity,	
  but	
  you	
  are	
  
rarely	
  in	
  a	
  commodity	
  business.	
  Take	
  copper	
  for	
  example.	
  The	
  product	
  cannot	
  be	
  
differen5ated,	
  which	
  makes	
  it	
  a	
  commodity	
  product.	
  	
  It’s	
  hard	
  to	
  day	
  that	
  Australian	
  copper	
  
is	
  superior	
  to	
  Chilean	
  copper.	
  But	
  when	
  you	
  think	
  of	
  copper	
  as	
  a	
  business	
  with	
  customers,	
  
you	
  see	
  the	
  differences.	
  Siemens	
  uses	
  copper	
  in	
  their	
  power	
  plants,	
  Ford	
  uses	
  copper	
  in	
  
their	
  cars,	
  Carrier	
  uses	
  copper	
  in	
  their	
  air	
  condi5oning	
  units	
  –	
  the	
  copper	
  is	
  used	
  and	
  adds	
  
value	
  differently	
  in	
  each	
  case.

The	
  customers	
  are	
  all	
  different,	
  and	
  if	
  you	
  do	
  not	
  understand	
  that,	
  if	
  you	
  do	
  not	
  seek	
  to	
  
understand	
  deeply	
  the	
  needs	
  and	
  ways	
  of	
  the	
  customer,	
  you	
  are	
  commodi5sing	
  the	
  
business.	
  Strategy	
  as	
  LOVE	
  is	
  a	
  way	
  of	
  addressing	
  this	
  issue	
  and	
  recognising	
  that	
  the	
  
customer	
  should	
  be	
  at	
  the	
  centre	
  of	
  strategy.



About the author
Dr	
  Norman	
  Chorn	
  is	
  a	
  strategy	
  and	
  organisa5on	
  development	
  prac55oner	
  with	
  over	
  20	
  years	
  experience	
  in	
  
Australia,	
  UK,	
  New	
  Zealand	
  and	
  South	
  Africa.	
  His	
  work	
  is	
  focused	
  on	
  strategies	
  for	
  growth	
  and	
  corporate	
  
resilience.	
  

norman.chorn@centstrat.com

Visit	
  my	
  website	
  at:

www.centstrat.com
www.normanchorn.com
www.normanchorn.com.au

Subscribe to my monthly newsletter and blog

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (11)

Cuestionario redes
Cuestionario redesCuestionario redes
Cuestionario redes
 
CPI Gestión Inmobiliaria. Patraix
CPI Gestión Inmobiliaria. PatraixCPI Gestión Inmobiliaria. Patraix
CPI Gestión Inmobiliaria. Patraix
 
Disequazioni
DisequazioniDisequazioni
Disequazioni
 
Clasificación de servicios de internet
Clasificación de servicios de internetClasificación de servicios de internet
Clasificación de servicios de internet
 
Doc1
Doc1Doc1
Doc1
 
Gant chart
Gant chartGant chart
Gant chart
 
Florida casino parties by dan mar productions 29
Florida casino parties by dan mar productions 29Florida casino parties by dan mar productions 29
Florida casino parties by dan mar productions 29
 
Proyecto de investigacion
Proyecto de investigacionProyecto de investigacion
Proyecto de investigacion
 
Paka, die kuh
Paka, die kuhPaka, die kuh
Paka, die kuh
 
Pak Mahfudx
Pak MahfudxPak Mahfudx
Pak Mahfudx
 
Modulo 0 online plano myd 2013
Modulo 0 online plano myd 2013Modulo 0 online plano myd 2013
Modulo 0 online plano myd 2013
 

Mehr von The BrainLink Group

Separating Rhinos from Swans - resilience might be the key
Separating Rhinos from Swans - resilience might be the keySeparating Rhinos from Swans - resilience might be the key
Separating Rhinos from Swans - resilience might be the keyThe BrainLink Group
 
2020 is the year to challenge the NORM
2020 is the year to challenge the NORM2020 is the year to challenge the NORM
2020 is the year to challenge the NORMThe BrainLink Group
 
Busting the myths of decision making
Busting the myths of decision makingBusting the myths of decision making
Busting the myths of decision makingThe BrainLink Group
 
Does culture really eat strategy?
Does culture really eat strategy?Does culture really eat strategy?
Does culture really eat strategy?The BrainLink Group
 
Strategy is alive and well... and living in UNCERTAINTY
Strategy is alive and well... and living in UNCERTAINTYStrategy is alive and well... and living in UNCERTAINTY
Strategy is alive and well... and living in UNCERTAINTYThe BrainLink Group
 
Listen to your leadership metronome
Listen to your leadership metronomeListen to your leadership metronome
Listen to your leadership metronomeThe BrainLink Group
 
This is the year to challenge the norm
This is the year to challenge the normThis is the year to challenge the norm
This is the year to challenge the normThe BrainLink Group
 
We're mindful - why isn't our organisation?
We're mindful - why isn't our organisation?We're mindful - why isn't our organisation?
We're mindful - why isn't our organisation?The BrainLink Group
 
Appendix Neuroscience of mindfulness
Appendix   Neuroscience of mindfulnessAppendix   Neuroscience of mindfulness
Appendix Neuroscience of mindfulnessThe BrainLink Group
 
Why can't my people be more strategic?
Why can't my people be more strategic? Why can't my people be more strategic?
Why can't my people be more strategic? The BrainLink Group
 
Our brain new world - organisations and their development
Our brain new world - organisations and their developmentOur brain new world - organisations and their development
Our brain new world - organisations and their developmentThe BrainLink Group
 
The brain new world - insights for organisations and strategy
The brain new world - insights for organisations and strategyThe brain new world - insights for organisations and strategy
The brain new world - insights for organisations and strategyThe BrainLink Group
 

Mehr von The BrainLink Group (20)

Dr Norman Chorn profile 2021
Dr Norman Chorn profile 2021Dr Norman Chorn profile 2021
Dr Norman Chorn profile 2021
 
Separating Rhinos from Swans - resilience might be the key
Separating Rhinos from Swans - resilience might be the keySeparating Rhinos from Swans - resilience might be the key
Separating Rhinos from Swans - resilience might be the key
 
2020 is the year to challenge the NORM
2020 is the year to challenge the NORM2020 is the year to challenge the NORM
2020 is the year to challenge the NORM
 
Busting the myths of decision making
Busting the myths of decision makingBusting the myths of decision making
Busting the myths of decision making
 
Does culture really eat strategy?
Does culture really eat strategy?Does culture really eat strategy?
Does culture really eat strategy?
 
Thinking under pressure
Thinking under pressureThinking under pressure
Thinking under pressure
 
Strategic accretion
Strategic accretionStrategic accretion
Strategic accretion
 
Boost your strategic thinking
Boost your strategic thinkingBoost your strategic thinking
Boost your strategic thinking
 
Strategy is alive and well... and living in UNCERTAINTY
Strategy is alive and well... and living in UNCERTAINTYStrategy is alive and well... and living in UNCERTAINTY
Strategy is alive and well... and living in UNCERTAINTY
 
Listen to your leadership metronome
Listen to your leadership metronomeListen to your leadership metronome
Listen to your leadership metronome
 
Norman Chorn profile
Norman Chorn profileNorman Chorn profile
Norman Chorn profile
 
This is the year to challenge the norm
This is the year to challenge the normThis is the year to challenge the norm
This is the year to challenge the norm
 
We're mindful - why isn't our organisation?
We're mindful - why isn't our organisation?We're mindful - why isn't our organisation?
We're mindful - why isn't our organisation?
 
Appendix Neuroscience of mindfulness
Appendix   Neuroscience of mindfulnessAppendix   Neuroscience of mindfulness
Appendix Neuroscience of mindfulness
 
Action is the enemy of thought
Action is the enemy of thoughtAction is the enemy of thought
Action is the enemy of thought
 
Why can't my people be more strategic?
Why can't my people be more strategic? Why can't my people be more strategic?
Why can't my people be more strategic?
 
Brain new world invitation
Brain new world invitationBrain new world invitation
Brain new world invitation
 
Our brain new world - organisations and their development
Our brain new world - organisations and their developmentOur brain new world - organisations and their development
Our brain new world - organisations and their development
 
The brain new world - insights for organisations and strategy
The brain new world - insights for organisations and strategyThe brain new world - insights for organisations and strategy
The brain new world - insights for organisations and strategy
 
Napoleon was a neuroscientist
Napoleon was a neuroscientistNapoleon was a neuroscientist
Napoleon was a neuroscientist
 

Kürzlich hochgeladen

Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Anamaria Contreras
 
MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?Olivia Kresic
 
Call Girls Contact Number Andheri 9920874524
Call Girls Contact Number Andheri 9920874524Call Girls Contact Number Andheri 9920874524
Call Girls Contact Number Andheri 9920874524najka9823
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCRashishs7044
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMintel Group
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessSeta Wicaksana
 
Entrepreneurship lessons in Philippines
Entrepreneurship lessons in  PhilippinesEntrepreneurship lessons in  Philippines
Entrepreneurship lessons in PhilippinesDavidSamuel525586
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCRashishs7044
 
Appkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxAppkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxappkodes
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxmbikashkanyari
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03DallasHaselhorst
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Servicecallgirls2057
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Kirill Klimov
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdfShaun Heinrichs
 
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Riya Pathan
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationAnamaria Contreras
 

Kürzlich hochgeladen (20)

Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.
 
MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?
 
Call Girls Contact Number Andheri 9920874524
Call Girls Contact Number Andheri 9920874524Call Girls Contact Number Andheri 9920874524
Call Girls Contact Number Andheri 9920874524
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 Edition
 
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCREnjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
 
Entrepreneurship lessons in Philippines
Entrepreneurship lessons in  PhilippinesEntrepreneurship lessons in  Philippines
Entrepreneurship lessons in Philippines
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
 
Appkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxAppkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptx
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
 
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf
 
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
 

Strategy as Love

  • 1. Strategy as Love by Dr Norman Chorn Thinking about Strategy Most  of  us  have,  at  one  point  or  another,  sat  through  a  strategic  planning  session  that   addressed  our  organisa5on’s  posi5on  in  the  marketplace,  our  mission  and  objec5ves,  our   strengths,  weaknesses,  opportuni5es  and  threats.  Most  of  this  is  based  on  the  assump5on   that  we  are  under  some  form  of  a=ack  from  compe5tors  and  that  we  have  to  win  in  order   for  the  business  to  be  successful.  This  “military”  model  reflects  much  of  the  tradi5onal   thinking  about  strategy  –  and  makes  sense  when  we  recognise  that  the  word  strategy   comes  from  the  Greek  word  “strategos”,  the  art  of  the  general. But  what  if  there  was  a  different  way  of  thinking  about  strategy?  What  if  we  thought  about   strategy  as  LOVE  instead  of  con5nually  thinking  about  strategy  as  WAR?  What  new  insights   would  that  afford  us?  What  are  the  implica5ons  for  organisa5ons  as  they  plan  for  their   futures? On  a  recent  visit  to  the  USA,  I  had  an  interes5ng  conversa5on  with  MIT  Sloan  School   professor  Arnoldo  Hax,  a  well-­‐known  strategy  expert  and  one  of  the  authors  of  the  book   The  Delta  Project.    We  spoke  about  his  approach  to  strategy,  called  “ The  Delta   Model”  (which  is  the  5tle  of  an  ar5cle  he  co-­‐authored  for  MIT  Sloan  Management  Review   in  1999). Customers or Competitors at the Centre? Most  of  the  major  frameworks  of  strategy  start  by  recognising  that  the  essence  of  strategy   is  to  achieve  compe55ve  advantage.    Poten5ally,  this  mindset  can  be  extremely  limi5ng,   because  it  puts  compe5tors  at  the  centre  of  your  thinking.  And  if  you  do  that,  then  there  is   a  tendency  to  watch  your  compe5tors  and  try  to  imitate  them.   That  imita5on  can  create  sameness.    Sameness  will  never  bring  greatness,  and,  even   worse,  its  final  result  is  something  which  could  spell  disaster  for  a  business  -­‐   commodi5sa5on.    Commodi5sa5on  results  in  a  business  in  which  there  is  li=le  that   differen5ates  your  offering.  All  you  can  do,  therefore,  is  to  fight  for  price.  That  leads  to  a   very  aggressive  rivalry.    In  order  for  you  to  win,  you  have  to  beat  somebody  and  sell  at  the   lowest  price.   This  is  strategy  as  war,  and  as  we  know  very  well,  it  is  not  a  very  effec5ve  way  to  manage  a   business.    Wars  just  create  complete  devasta5on;  they  are  the  worst  thing  that  could   happen  to  mankind,  yet  we  use  that  as  a  simile  for  management!    Surely  it’s  not  the  best   metaphor  to  use. Now,  if  compe5tors  are  not  at  the  centre  of  management,  who  is  at  the  centre?    For  many,   the  answer  is  obvious.    The  customer  is.    The  customer  is  the  driving  force.    You  have  to   start  by  deeply  understanding  the  customer’s  requirements  and  how  you  can  add  value  to   the  customer  in  the  most  effec5ve  way.  This  changes  completely  the  way  you  plan  on  and  
  • 2. make  decisions.  You  are  now  focused  on  LOVING  the  customer  instead  of  making  WAR  on   the  compe55on. Instead  of  trying  to  imitate  somebody,  you  try  to  separate  yourself  from  the  rest  of  the   pack.    You  try  to  produce  a  value  proposi5on  which  is  unique,  which  is  differen5ated,  which   adds  value  to  the  customer  and  expresses  a  great  deal  of  care  and  concern  for  the   customer.  That  value  proposi5on  should  be  based  on  mutual  trust,  mutual  learning,  mutual   benefits,  and  transparency.    This  is  strategy  as  LOVE. Love can drive out commoditisation Strategy  as  LOVE  can  also  provide  some  useful  insights  for  people  who  believe  they  are  in  a   commodity  business.  In  reality,  the  product  you  sell  may  be  a  commodity,  but  you  are   rarely  in  a  commodity  business.  Take  copper  for  example.  The  product  cannot  be   differen5ated,  which  makes  it  a  commodity  product.    It’s  hard  to  day  that  Australian  copper   is  superior  to  Chilean  copper.  But  when  you  think  of  copper  as  a  business  with  customers,   you  see  the  differences.  Siemens  uses  copper  in  their  power  plants,  Ford  uses  copper  in   their  cars,  Carrier  uses  copper  in  their  air  condi5oning  units  –  the  copper  is  used  and  adds   value  differently  in  each  case. The  customers  are  all  different,  and  if  you  do  not  understand  that,  if  you  do  not  seek  to   understand  deeply  the  needs  and  ways  of  the  customer,  you  are  commodi5sing  the   business.  Strategy  as  LOVE  is  a  way  of  addressing  this  issue  and  recognising  that  the   customer  should  be  at  the  centre  of  strategy. About the author Dr  Norman  Chorn  is  a  strategy  and  organisa5on  development  prac55oner  with  over  20  years  experience  in   Australia,  UK,  New  Zealand  and  South  Africa.  His  work  is  focused  on  strategies  for  growth  and  corporate   resilience.   norman.chorn@centstrat.com Visit  my  website  at: www.centstrat.com www.normanchorn.com www.normanchorn.com.au Subscribe to my monthly newsletter and blog