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Answered: Your Most Burning Questions About Anatomy of Business Strategy - and Why it Fails Often

Answered: Your Most Burning Questions About Anatomy of Business Strategy - and Why it Fails Often

In my earlier days, I was amazed to see the number of management and strategy frameworks. Even today, it's surprising to find that strategy models continue to be one of the least formal.  Very often available in installments of excel and PPT files, to be used at your own risk. In fact, there is NO version control or baseline for the strategy models.

Try asking a Sales  Director to share sales strategies deployed by company 2 years prior to his joining when the revenue was at peak? If you are lucky, you might get a one page note in some magazine interview.  No doubt that emotional quotient is key for an Enterprise, but what is even more critical is "engineering" element. Just like in a medical treatment, emotions are important, but engineering  is of paramount value.

Similarly, enterprise survival and growth has to deconstruct the personality cult driving the business strategy. We need to deconstruct the "Business strategy" and understand the "strategy primitives".

Guess what, once you have strategy primitives, you can create complex strategy composites quickly and with high degree of confidence and guarantee success. 

If you are using Balanced Scorecard or McKinsey 7S (or some variation) or Blue Ocean Strategy etc and wondering if you still need to do Business Architecture?

Ten Reasons why Strategy Fails

1. Experts and practitioners treat "Strategy" as a "primitive" ( like a element in a periodic table) while it is actually an enterprise "composite" ( i.e compound)

2. Strategy definitions are "incomplete", doesn't contain all the six enterprise variables (why, what, how, where, when and who)

3. Practitioners treat relationship among the "Strategies" as "linear" i.e. strategy 1 + strategy 2 = goal1, while relationship is "non linear"

4. Every new strategy variables must be tested against the existing hundreds of instantiated strategy variables for optimization, conflcit resolution, seldom happens

5. No version control, baseline on strategy and strategy variables

6. Lack of knowledge about "laws of reification" i.e. every idea must go through six stages of transformation

7. Due to absence of well defined "transformation" process, execution is often marred by erroneous assumptions i.e decisions are taken by exactly wrong people

8. Roles and skills are not properly defined to handle each stage of transformation, driven by gut filling

9. Lack of application of engineering techniques such as simulation, gap analysis, relationship matrix, impact analysis etc.

10. People are in hurry to fail, you can't help them. They have already applied for new job with better salary ;-)

 

A temporal success of any strategy is just a "chance" in absence of "engineering" and "logic"..it's not understandable, not repeatable. Rather than getting the fundamentals correct, we often blame the poor execution to brand management, people management etc. They are important no doubt. How often you have a situation when you hired a successful manager from your rival company, only to realize that he/she couldn't move a dime?

A person who is ignorant of Newton's Laws of motion ( & gravitation), can't design and implement aircraft, similarly a person ignorant of Enterprise Ontology and laws of reification won't be able to design and execute a strategy.

Join us for one days "Strategy to Execution"  workshop which is about sharing unique lessons learned upon professional experience. We have discovered significant commonalities and practical knowledge, which can be useful across most enterprises. 

 

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  In our research spread across last 18 years, we looked at the evolution of several engineering disciplines, management practices, methodologies, strategy frameworks and related bodies of knowledge. It was evident that the idea of Enterprise Anatomy didn’t figure anywhere. CEOs are investing a great deal in creating winning strategies. Globally, organizations are working on offsetting economic dampening behaviour with new products and services in regular interval. Very often, results are not favourable.
Current CEO, COO Job Positions are asking for Enterprise Architecture Skills Clearly without Using the Label? Every human being has an anatomy with 11 plus organ systems, explicit or implicit. This anatomy  (structure) is the basis of the functioning of a person. Similarly, ever Enterprise has an Anatomy (explicit or implied) consisting of 15 plus key Function area such as Sale, Marketing, Engineering, Product Management, Manufacturing, Service Delivery, Technology Management, IT, HR, Finance, etc. 
 

Last month, while meeting C-Level executives who are pursuing multiple initiatives to reinforce their business competitiveness, it was pretty evident that they are betting big money on new initiatives without knowing anything about the anatomy of company beforehand. Each one had their share of issues and problems at hand.  Here, is a quick look at the key points from three Chief Operating Officers (COOs). One from a leading bank in the Middle East, another one from a global leading remittance and bill payment service provider and third one from a Doctor who is managing operations of chain of 20 hospitals specialized in cancer treatment...
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  • Sunil Dutt Jha
    Sunil Dutt Jha Friday, 07 November 2014

    A person who is ignorant of Newton's Laws of motion / gravitation, can't design and implement aircraft, similarly a person ignorant of John A. Zachman framework and laws of reification can't design and execute a strategy.

  • Sunil Dutt Jha
    Sunil Dutt Jha Friday, 07 November 2014

    A temporal success of any strategy is just a "chance" in absence of "engineering" and "logic"..it's not understandable, not repeatable. Rather than getting the fundamentals correct, we often blame the poor execution to "brand management", people mgmt etc. They are important no doubt. How often you have a situation when you hired a successful manager from your rival company, only to realize that he/she couldn't move a dime ...

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