BY ART VAN BODEGRAVEN AND
KENNETH B. ACKERMAN
basictraining
Coming down out of the cloud(s)
WARNING! THIS HAS NOTHING TO DO WITH CLOUD COMputing, which is a subject for another day and another writer, we
hope. It is about dealing with reality in a sometimes surreal world.
Time was, and maybe still is in some quarters, that strategies were
the purview of strategists, an elevated order of beings, held in awe
by senior executives in corner offices and in contempt by the poor
devils in the basement who had to make the dreams of those disconnected from reality come true.
Remember the fad, just a few years ago, that produced statements
of Mission, Vision, and Values for organizations great and small?
Terrific concepts, to be sure, and no doubt valuable to those pioneers who were authentic about them. But they quickly degenerated into what might be called “word piles,” all sounding about the
same and generally devoid of plain-spoken meaning that might be
accepted and adopted by real people.
Happily, the day is largely past when people
who said “Harrumph” frequently produced elegant (and bound) strategy statements that occupied prominent spots in CEOs’ bookcases. Of
course, they were little read, and even less
revised, and began to lose value about a week
after publication.
IS ANYBODY DRIVING THIS BUS?
With all that complaining out of the way, we must
recognize, though, that there’s little point to
process execution without strategic context in
any business, and certainly in the realm of logistics and supply chain management. No organization, particularly in
a globally competitive environment, can simply careen from point
to point, from event to event, reacting and progressing, halfway
between lost and adrift, tacking and jibing toward an unanticipated
destination.
So, strategy has got to provide direction, targets, and vision. How
do we get there from here? Easy to say; hard to do.
Start by forgetting the elegant strategy document and focus on
simple, clear vision and mission statements that actually mean
something. Then exercise strategic management. (See what we mean
by “hard to do”?)
CLARITY IN STRATEGIC EXPRESSION
Consider the difference in intent and impact in these two statements:
▪ “We aim to exceed customer expectations – consistently.”
▪ “We only do one thing, and we do it better than
anyone else!”
The first came from a multi-billion dollar diversified communication and technology company;
the second, from a small medical billing company.
In that context, which one sounds and feels genuine—and focused?
In general, we favor open promotion of a strategy statement to management, associates, customers, and suppliers. But there are times when an
underlying strategy must remain confidential.
SOME STRATEGY EXAMPLES
Strategic objectives and directions profoundly
influence—or should—how an enterprise is operated. Think about options in
strategies for growth, marketing, and resilience.
▪ Growth. If Company X
takes the tack of pursuing
growth by being the lowest-cost
provider in its market (never
mind the issue of top line versus
bottom line growth) and
Company Y intends to grow by
providing exemplary quality
and service, their processes,
metrics, and day-to-day man-
agement focus will be radically different. We call
this linkage “connectivity.”
Either of these strategic approaches might also
include floors or ceilings for growth, with one
aiming to be the largest company in its space
(whether in volume, number of employees, retail
locations, distribution network, etc.), and another
determined to stay small, “sticking to its knitting,”
and continuing to build a quality reputation (and
margins).
Once again, processes and management actions
will be different. The differences get magnified if the
growth strategy includes or excludes a global presence. And if the growth objective is to lead in innovative changes, processes will be different yet from
