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I was talking recently with a g od friend who is a senior m nager for a large public company. M ny times the discussions turn into str tegy discussions and I’ve notice a r curring theme: Complexity! In fact, my fr end consistently says, “My company is ntoxicated with complexity!” We both laughed at how m ny times we’ve sat in strategic pl nning presentations looking over 80+ page str tegy documents with executives rambling on bout the direction of the company nly to leave the meeting more c nfused. The pretty graphs, arrows and fl wery wording are very impressive in f rm but the clarity was just not th re. Why are strategies so complex and wh t can be done to change th t? My complexity theories include: 1. Ex stence Justification – Obviously there are a lot of t lented people in upper management or th y wouldn’t have made it as far as th y have. A stumbling block can be th t management has to come up w th some unique and/or complex strategy to j stify there existence and to show why th y make the “big bucks!” Unfortunately, in s me cases it is an “ego” th ng as well. Executives like to sh w how smart they are or how m ch smarter they are than the r gular worker. Instead, they outsmart themselves by d livering complicated and confusing messages that few p ople can truly understand.
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2. For The Sake Of… - Th s refers to strategies related to gr wth for the sake of growth or d versification for the sake of diversification. S me strategies are “We want to be a $10 b llion in five years!” or “Increase R venue By 15%.” Why? Just because?? In m ny cases, that is the answer, “J st because.” Revenue growth for the s ke of revenue growth alone is not a s und strategy. In fact, it is not a str tegy at all. It is a f nancial metric that helps to evaluate the s ccess of a strategy. Others say t’s time to “diversify.” Many times it is d versification into areas with little or no xpertise. This is risky but the w rd tends to sound really good. S me questions to ask when reviewing or nitiating strategy planning: • Can the str tegy be explained on one page?
• Can it be xplained effectively to the lowest level mployees?
• Can employees at all l vels understand how their performance helps to chieve the strategy?
• Does the str tegy conflict with the company’s mission, v lues or ideals? • Does it include gr wth or diversification for the sake of …?
• D es the strategy include straying away fr m core competencies? Negative answers to th se questions does not necessarily mean th y are bad ideas it simply m ans more work needs to be d ne to ensure the strategy is cl ar, easily explainable, achievable and consistent w th the best interest of the c mpany.
The article Intoxicated with Complexity - What's Wrong With Corporate Strategy was Submitted by Derrick Strand through Articles.GetACoder.com network. Here's the additional information: Consultant, writer and speaker Derrick Str nd is not your typical management c nsultant. Derrick spends most of his t me helping companies get rid of h m. It is his philosophy that c mpanies have most of the answers lready inside of their business and nside the minds of their people. His job is to h lp them unleash that power to dr ve bottom line results. For more nformation, please visit http://www.derrickstrand.com.
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