Don’t be clueless about strategy
Today’s guest post is from John Roulet, author of “The Supervision Solution.” Learn more about his work at TheSupervisionSolution.com.
What is strategy and how is it done? Wouldn’t it be great to answer those questions accurately and without hesitation?
Our uncertainty about strategy isn’t surprising. Rarely do those responsible for strategy even bother to define the concept for their organizations, largely because they can’t. Strategy doesn’t have to be so unknowable and confusing. We are born strategists — evolution requires it. So let’s get back to basics and rediscover the knowledge buried inside each of us.
Strategy is the competitive thinking and action required to achieve a desired position or status. Strategy requires that we translate our desired position or status into a goal and then solve the mystery as how that goal will be achieved. Of course, to solve a mystery we need to work the CLUES:
- Competitors. Those who try to prevent us from reaching our goal.
- Landscape. The environment where competition occurs (regulations, demographics, etc.)
- Us. In business, this is our organization (its strengths, weaknesses, values, etc.)
- Enthusiasts. Those who can help us achieve our goal (friends, suppliers, etc.)
- Shoppers. Those who buy what we have to offer.
Wal-Mart is masterful at working the CLUES. They capitalize on their strengths and enlist enthusiasts (e.g., suppliers) to provide what their shoppers value (“save money — live better”). They have transformed the retail landscape to their advantage and dominated virtually all competitors.
Unlike Wal-Mart, weak competitors make little effort to systematically collect, analyze and act upon the CLUES. When it comes to strategy they are literally clueless. Their actions lack competitive insight and spirit. The first step to resolving this organizational deficit is to identify the relevant CLUES. This is followed by collecting, analyzing and acting upon the CLUES. Competition requires doing this regularly, not just at the semi-annual strategic planning meeting.
Image credit, ThomasTroy, via iStock
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Tags: John Roulet, strategic management, Wal-Mart
Categories: Advice
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Posted by Wally Bock on August 7th, 2009 at 7:51 am
I think this is a good post and the CLUES acronym can surely simplify things when you’re planning. But strategy is a small bit of planning and a lot of rigorous, diligent execution.
Posted by mk on August 7th, 2009 at 11:29 am
more simply put, Wal-mart’s strategy is on the side of their trucks! And our biggest competitor is usually ourselves…
Posted by Mark Allen Roberts on August 7th, 2009 at 4:02 pm
And most fail in doing the upfront market work necessary to insure their strategy actually adds value to the bottom line. They rely on their “gut and intuition” and as I discuss in my post: Your “gut” and “intuition” are not enough…today http://nosmokeandmirrors.wordpress.com/2009/02/13/youre-gut-and-intuition-are-not-enoughtoday/ and this is a disaster waiting to happen.
Mark Allen Roberts
Posted by Human Being on August 8th, 2009 at 8:30 am
I agree with the author to certain extent that all five factors need to be strategised to reach the goal. And that it has to be progressively thought over. Being a business student, my experience tells me that analysing company’s values and match to goals in the macro environment must be thought as well.Meaning that goals should also progressively evolve with environmental factors. Just as we now think of electric cars and not pure automobile industry. This is the refinement and evolution in the thought process i am referring to!
Posted by George on August 10th, 2009 at 11:39 am
I strongly feel the defining the strategy is key. Meaning, most people throw the word around too loosely (i.e. “Think strategically”, “We are being strategic”, etc.). However there is never an adjective that describes what kind of strategy is being referenced. I challenge people all the time here, because with the descriptor/definition to help narrow the “strategic focus” is problematic. For instance are we talking Channel, Communication, Creative, Competitive, Pricing, Business, Product, Media or some other combination of strategies? And from what reliable/valid info are we deriving strategies? To me those are the first questions. Good conversation spark. Thanks for sharing.
Posted by News You Can Use | Case In Point Weekly on August 10th, 2009 at 12:58 pm
[...] Taking the mystery out of strategy [...]
Posted by Bob C on August 10th, 2009 at 7:47 pm
Strategies an “Clues” happen at all levels in the business and also personal setting. Professionals dealing with CEO’s or homemakers dealing with children or sales people dealing with buyers always have to be “closing the deal”. Either in making the sale, persuading the kids, you are always selling an idea or a product. Parents with children had better have a strategy and not be clueless. I agree with Mr. Roulet.
Posted by Richard Gabel on August 20th, 2009 at 5:38 pm
I always tell people that most approaches to strategy are quite similar. People add a twist here and there in order to justify writing a book. The value added in any approach to strategy is usually to add a level of detail or simplicity. CLUES provides a simplicity that can get more people thinking strategically and thinking strategically about more issues. I like it.
Posted by John Roulet on August 21st, 2009 at 8:51 pm
Thank you for the many kind and validating comments. It seems there are quite are a good number of us who recognize the need to make strategic thinking the non-complext and powerful process it is supposed to be. The future is the mystery of what you can make it to be. To solve that mystery requires working the CLUES. It’s not just a matter of interpreting the CLUES, sometimes you need to take actions to change the CLUES to your favor. Work the CLUES to be successful in business, your personal life and in guiding your kids to have healthy, happy and productive lives.
John Roulet