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The History of Strategy and Its Future Prospects | A.T. Kearney

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For too many years, companies have been hobbled by the vicious cycle of busy thinking, frenetic activity, bureaucratic planning, and other hallmarks of corporate strategies. Research confirms the negative effects these conditions have on strategic output. Recognizing that new thinking was needed to reclaim strategy, A.T. Kearney set out to write the next chapter and set a new course for the future of strategy.

A.T. Kearney’s FutureProof Strategy offers a solution for organizations facing profound strategic challenges. Based on the combination of three fundamental principles—drawing inspiration from the future, being organizationally inclusive, and creating a portfolio of competitive opportunities—a new future for strategy has been written.

Veröffentlicht in: Business
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The History of Strategy and Its Future Prospects | A.T. Kearney

  1. The History of Strategy and Its Future Prospects
  2. The History of Strategy and Its Future Prospects Strategy’s light has dimmed since its heydays of the 1970s and 1980s: A staggering 80% of executives now think “agility” is at par or more important for future success than strategy. What happened to strategy, and what can be done to make it relevant again for today’s organizations?
  3. Strategy’s origins are often attributed to the military. The truth is that military strategy was as much about avoiding wars as winning them. Sun Tzu 465 BC Von Clausewitz 1831
  4. For most of its history, strategy wasn’t exciting—it was all about exclusivity and monopolies. • Land rights • Mineral rights • Rents • Levies • Tolls • Guilds • Taxes • Patents • among others
  5. Blockbuster medication and Big Pharma To this day, exclusivity makes for some of the most simple and powerful strategies.
  6. Revolts against Rockefeller's Standard Oil marked the beginning of a new era in strategy The History of the Standard Oil Company – Ida Tarbell The end of monopolies 1904 Around 1900, Standard Oil and its subsidiaries controlled 90% of North American refining capacity. 90%
  7. However, Standard Oil’s industrial prowess lived on in the next era of Scientific Management or ”Taylorism.” 1911 The Principles of Scientific Management – Frederick Winslow Taylor
  8. In the late 1960s, strategy became a proper discipline with concepts, practitioners, and methodologies. Outside-in, inside-out, resource-based, measurement, and change capabilities were all in place. Experience curves and growth-share matrix – Bruce Henderson 1968 1980 The Core Competence of the Corporation – Prahalad and Hamel 1980/1985 The Core Competence of the Corporation – Prahalad and Hamel Competitive Strategy and The Competitive Advantage – Michael Porter 1992 The Core Competence of the Corporation – Prahalad and Hamel The Balanced Scorecard – Kaplan & Norton 1996 The Core Competence of the Corporation – Prahalad and Hamel Leading Change – John P. Kotter
  9. The strategy heydays were short-lived: In 1993, business process reengineering barged onto the scene… Reengineering the Corporation – Michael M. Hammer and James Champy 1993
  10. …closely followed by a flood of strategic phenomena. Note: This overview is by no means exhaustive. Reengineering the Corporation – Michael M. Hammer and James Champy 1993 1994 Hyper- competition – Richard D'Aveni 1997 The War for Talent – Michaels, Handfield- Jones, & Axelrod 2000 1997 Cannibals with Forks – The Triple Bottom Line of 21st Century Business Blown to Bits – Evans and Wurster 2001 The Internet Bubble – Perkins & Perkins 2005 The Black Book of Outsourcing How to Manage the Changes, Challenges and Opportunities – Brown&Wilson 2005 The New Age of Innovation Driving Co-created Value Through Global Networks – Prahalad & Krishnan 2005 2006 The Triple Bottom Line – Andrew Savitz & Karl Weber 2005 The Wisdom of Crowds – Why the Many are Smarter Than the Few – James Surowieki 2004 Corporate Social Responsibility Doing the Most Good for Your Company The World Is Flat – A Brief History of the Twenty-First Century 2008 Wikinomics – How Mass Collaboration Changes Everything – Tapscott & Williams 2010 The Big Short – Inside the D Machine – Michae Lewis 2010 Winning in Emerging Markets – Khanna & Palepu 2009 Enterprise 2.0 How to Manage Social Technologies to Transform Your Organization – Andrew MacAfee 2011 Ground Winning in Transforme Social Tech – Charlen & Josh 2007 The Black Swan The Impact of the Highly Improbable Fragility 2013 Big Dat A Revolutio Transform H Live, Work, – Mayer-
  11. Book image copyright of Havard Business Press “It's tough to identify any big new strategy ideas since 1995.” —Walter Kiechel There were strategies for everything, but no one strategy for everything together.
  12. There are plenty of smart recipes for dealing with this overload, but none is a substitute for strategy. 2009 Start With Why – How Great Leaders Inspire Everyone to Take Action – Simon Sinek 2012 The Strategist – Be the Leader Your Business Needs – Cynthia Montgomery 2011 HBR’s 10 Must Reads – On Leadership – Drucker et al 2009 The Upside of Turbulence – Seizing Opportunity in an Uncertain World – Donald Sull Authentic leadership 2001 Profit from the Core – Growth Strategy in an Era of Turbulence – Zook and Allen 2013 Playing to Win – A Practical Approach to Winning Strategy – Lafley and Martin 2005 Blue Ocean Strategy – Kim and Mauborgne “Slice-the-pie” approaches 2008 Fast Strategy – Doz and Kosonen Agility 2001 Good to Great – Why Some Companies Make the Leap... and Others Don't – Jim Collins 2003 The Loyalty Effect and One Number You Need to Grow – Frederick Reichheld 2002 Lean Six Sigma – Combining Six Sigma Quality with Lean Production Speed – Michael George 2004 The Toyota Way – Jeffrey Liker Independent, self-sufficient approaches
  13. Three promising recent lines of strategic thinking—when combined—hold the key to reclaiming strategy. Organizational inclusion Portfolio of competitive opportunities Future inspiration
  14. 1. Taking future inspiration directly into strategy formulation From outside-in and inside-out analyses to… Future-in strategic inspiration Observation: Individual drivers of change are relatively simple; it is their combination that creates the dynamics. The Living Company – Arie de Geus 1997 2008/2009 Design Thinking and Change by Design – Tim Brown
  15. Making sure strategy is truly inspired by the drivers of change most affecting the company. Fundamental drivers of change Competitive impact Speed of change Strategy formulation
  16. 2. Drawing on the organization for better insights and more achievable results. From cascading strategies down to… Organizational inclusion Insight: Organizational inclusive- ness eliminates the handover hurdle between strategy form- ulation and strategy excecution. 2012 Accelerate! – John P. Kotter
  17. Tapping the collective knowledge and firsthand experience of the organization using the latest technologies Strategy formulation
  18. Organizational Inclusion hits all the motivational boxes—autonomy, personal growth, sense of purpose. “The puzzle of motivation” —Daniel Pink “What makes us feel good about work?” —Dan Ariely
  19. Implication: If competitive advantage is transient, then new competitive opportunities must be identified at different stages of the company’s life cycle. 2013 The End of Competitive Advantage – Rita Gunther McGrath 3. Adopting a portfolio approach to competitive advantage. From single, linear strategy to managing… Portfolio of competitive opportunities
  20. A portfolio approach means that strategy output is no longer a single plan but a portfolio of strengths managed continually. Growing Mature Sunset AdvancedLagging Competitive life cycle matrix Life cycle stage Companyposition Strategy formulation
  21. FutureProof marks the start of a new strategic era where strategy turns from a plan on paper into a guiding organzational energy. 1900 1968 1995 Today Exclusivity and monopolies Scientific management Strategy heydays Strategic proliferation Future Proof Organizational inclusion Portfolio of competitive opportunities Future inspiration
  22. For more information about A.T. Kearney’s FutureProof Strategy, please visit: www.thefutureofstrategy.com

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