Dear Gary,
Thank you for your reply.
I use the three phases mentioned by me, because I am under the impression
that so many organizations develop inspiring visions of the future, not
realizing that they have an insufficient grasp of the present. To mention
just one of many indications for this is what happened several years ago,
when Sarbanes/Oxley legislation forced companies, first in the US and then
here in Europe, to analyse better their financial, and with it business,
situation and many discovered that they actually had had no clue about that
situation. It was very sobering for some CEO´s.
The Background of my comment on leadership is that putting leaders to much
on pedestals may result in disempowering others in the organization, which
makes the organization worse off.
An example of this can be seen in the case of ABN AMRO. That bank, the
result of a merger of two important banks in The Netherlands in the late
´90´s and soon thereafter merging with Standard Federal in the US and with
Banco Real in Brasil, was not so long ago the 14th bank in the world. It
adopted a strategy in the first years of this century, aimed at becoming one
of the top ten banks in five years time. However, in 2007, a small
shareholder, the UK hedgefund The Childrens Group (an NGO investing in a
hedgefund) complained that the bank was more valuable when its senior
business units were split up and sold independently. This encouraged the
board to look for a merger and they started negotiations with Barclays.
However, once this became known, other candidates for mergers/take-overs
became interested. Soon, three banks working together (Santander, Royal Bank
of Scotland and Fortis) came together with a bid that was higher than what
Barclays could afford and the bank was split up. The consumerbank in The
Netherlands then became part of Fortis, which went down in the bankingcrisis
in late 2008. the governments of The Netherlands and Belgium together bought
Fortis and split it up. The Netherlands section of Fortis was still in the
process of merging with what was left of ABN AMRO, and it was decided that
the total would continue under the name ABN AMRO. This bank is now owned by
the Netherlands government, the former Minister of Finance has been made CEO
and given the task of reorganizing the bank, in preparation for its
privatization.
The CEO's who played an important role in building the bank in the 90's, mr.
Kalff, was a rather old-fashioned banker, risk averse and always keeping an
eye on his customers. Perhaps people would not so much see him as a leader;
more as a reliable and competent banker (he was always worried about the
"bonus-culture", which the bank adopted in an effort "to attract
international talent"). His successor, mr. Groenink, was very different. He
was responsible for the challenging strategy of the last years. This fits
his personality, as he has always been someone to thrive under challenging
circumstances (just one example: a hunting accident once nearly killed him,
but he came back with more energy and drive than ever, despite the chronic
;pains he had to live with). He was someone everyone admired (he was
arguably one of the smartest and decisive bankers in the industry) and he
knew himself that he was better than everyone around him. This lead, already
years before he became a CEO, to situations in which very capable people
reporting to him became indecisive, because they acted from the firm belief
that he would know better and overturn every decision. This lead to a more
widespread problem when he became CEO, in that soon enough most of the
bank's top management was afraid to make any decision by themselves (or made
decisions which they kept from the Board). This is not what he wanted - he
encouraged his reports to work harder and be more decisive -, but it was the
unintended outcome of his behavior. What made matters worse was that he was
far from a "people person"; if one of his reports would not succeed, he
would not have any patience with that person, which discouraged the people
under him even more.
I am sorry about the length of my example (please forgive me also for its
sketchyness). I merely wanted to point out that sometimes a remarkable
individual looks good on paper to be the leader, but ends up discouraging
everyone in the organization.
Best regards,
Joop Remmé
0654761087
remme@knowdialogue.nl
remme@msm.nl
www.knowdialogue.nl
www.synmind.nl
www.msm.nl
-----Oorspronkelijk bericht-----
Van: Management Education and Development Discussion
[mailto:
MG-ED-DV@AOMLISTS.PACE.EDU] Namens Gary Lundquist
Verzonden: vrijdag 27 februari 2009 16:20
Aan:
MG-ED-DV@AOMLISTS.PACE.EDU
Onderwerp: Re: Definition of Strategy
Good morning!
Jack Ring: Suppose tactics are process while strategy is tenets.
Tenets are principles... part of "who we are and want to become."
Not strategies.
Joop Remmé: Strategy as answering three questions:
1) where are we?
2) where do we want to go?
3) how are we going to get there?
I haven't worked on #1. My paradigm has started with #2. I will rethink my
Science of Strategy, then build new options into my toolkits for #1.
Thank you so much!!!
Dundar Kocaoglu
"We develop strategy to design a future to our liking."
That is a remarkable parallel to John Kao's definition of innovation in
Innovation Nation.
"(Innovation is) the ability of individuals, companies, and entire
nations to continuously create their desired future."
Joop Remmé:
"Some people treat leadership as grooming a savior."
I see a culture of ego in industry in which both leader and boards who
hire are looking for precisely a savior. I'm letting my decades long
subscription to Fortune because so much content puts CEOs on pedestals..
Best to all,
Gary
...........................................
Gary Lundquist
Director@InnoSearchColorado.com
Colorado Resources*for Innovation
303-840-9929*
...........................................
GaryL@Market-Engineering.com
Innovation of Business and
the Business of Innovation
-----Original Message-----
From: Management Education and Development Discussion
[mailto:
MG-ED-DV@AOMLISTS.PACE.EDU] On Behalf Of Joop Remme
Sent: Thursday, February 26, 2009 4:09 AM
To:
MG-ED-DV@AOMLISTS.PACE.EDU
Subject: Re: Definition of Strategy
Dear Dundar,
Thank you for your valuable comment. It connects strategy with leadership. I
am sometimes worried with all the interest on leadership, thinking that some
people treat leadership as grooming a saviour, especially in these troubled
times, while I am much more inclined to think that leadership has to mean
that each individual has to take his or her responsibility, albeit some may
show an example in this. From this perspective, strategy becomes partly a
matter of a fight/ fright choice: decide over your collective future or be
the victim of someone else's decisions.
Best regards,
Joop Remmé
0654761087
remme@knowdialogue.nl
remme@msm.nl
www.knowdialogue.nl
www.synmind.nl
www.msm.nl
-----Oorspronkelijk bericht-----
Van: Management Education and Development Discussion
[mailto:
MG-ED-DV@AOMLISTS.PACE.EDU] Namens Dundar Kocaoglu
Verzonden: donderdag 26 februari 2009 0:28
Aan:
MG-ED-DV@AOMLISTS.PACE.EDU
Onderwerp: Re: Definition of Strategy
Joop:
I define strategy in a very similar way. I also add that we develop strategy
to design a future to our liking because if we do not do it, somebody else
will do it for us, and we will not like it.
Dundar Kocaoglu
===========================================================
Dundar F. Kocaoglu, PhD; Fellow, IEEE
Professor and Chairman, Department of Engineering and Technology Management
and President and CEO, PICMET Portland State University, Portland, Oregon,
97207-0751, USA
+1 503-725-4660 - office
+1 503-725-4667 - fax
http://www.etm.pdx.edu/ and
http://www.picmet.org/
============================================================
-----Original Message-----
From: Management Education and Development Discussion
[mailto:
MG-ED-DV@AOMLISTS.PACE.EDU] On Behalf Of Joop Remme
Sent: Wednesday, February 25, 2009 1:35 PM
To:
MG-ED-DV@AOMLISTS.PACE.EDU
Subject: Re: Definition of Strategy
Dear colleagues,
Allow me to contribute my two cents.
In my teaching, I define strategy as answering three questions:
1) where are we?
2) where do we want to go?
3) how are we going to get there?
You might say that dealing with these questions in the right order (it is my
impressions that often they are mixed to a point of total confusion) is in
fact a way of being, comparable perhaps to kai-zen in quality management.
Of course, I welcome all comments.
Best regards,
Joop Remmé
remme@knowdialogue.nl
remme@msm.nl
www.knowdialogue.nl
www.synmind.nl
www.msm.nl
-----Oorspronkelijk bericht-----
Van: Management Education and Development Discussion
[mailto:
MG-ED-DV@AOMLISTS.PACE.EDU] Namens
nickols@att.net
Verzonden: woensdag 25 februari 2009 22:17
Aan:
MG-ED-DV@AOMLISTS.PACE.EDU
Onderwerp: Re: Definition of Strategy
Jack Ring points to a "fine line" I draw between strategy and tactics. There
is another fine line in Jack's post and it's well worth some attention.
Jack writes in part:
> Suppose strategy, rather than declaring a course of action, declares a
> way
> of being. Suppose tactics are process while strategy is tenets.
>
> Years ago a clear distinction between the Green Bay Packers and Dallas
> Cowboys was their respective strategies. Vince Lomabardi's strategy was
'hit
> them where they are strongest' whereas Tom Landry's was 'confuse them
(with
> variety).'
The two strategies cited above qualify in my way of thinking as "courses of
action." They are quite broad and no doubt took various forms at more
specific levels of description and in various forms of execution, but I view
them as courses of action nonetheless. They are what some call "grand
strategies" (as in Winston Churchill's preferred strategy in WWII of
"attacking the underbelly of Europe (i.e., Sicily and Italy).
Another example is a one-time strategy of mine: "Work my way East then
leapfrog back to the West Coast." That strategy tied to 1974 and my
retirement from the Navy. My exiting pay as a Chief Petty Officer was $720
per month and I was desirous of ramping up my income as quickly as possible.
Back then, or so I believed at the time, the cost of living (and salaries)
were much higher on the East Coast than on the West Coast. So, I envisioned
a strategy of obtaining a series of jobs/engagements moving from West to
East that would enable me to make my way to the East Coast and once there
moving all the way back to California (at the same salary), thus ratcheting
up the purchasing power of my East Coast salary. The strategy worked as
envisioned - to a point. I went from San Diego to Evanston, Illinois to
Bethesda, MD. Once there, however, things changed. I fell in love with the
East Coast. Business was good, I was making more money than I ever
imagined, and I no longer wanted to go back to California.
My point is that a "course of action" doesn't have to be spelled out in
excruciating detail to quality as such. Nor does a plan have to fill
several three-ring binders to qualify as such. When I head out to Office
Depot or Staples to pick up a ream of paper for my printer, I am following a
plan. I have a goal, an object in mind: to obtain a ream of paper. I have
some actions in mind: getting in the car, driving to Staples, purchasing the
paper (and perhaps some other items as well), and returning home with the
paper. Mission accomplished.
Jack mentioned that he enjoyed my piece on strategy, its definitions and
meanings. So did a CEO who sent me an email and inquired if I might do the
same for plans and planning. By golly, I think I will. For starters: A
plan, at its simplest, consist of one or more goals and some actions
intended to achieve the goal(s). It doesn't even have to be written down.
Schedules, resource allocations, due dates, deliverables, assignments and
evaluations are all optional. It all depends on the scope and scale of the
effort.
Finally, one minor correction to Jack's post: The paper on strategy, its
definitions and meanings, has been on my web site for a few years now, not a
few months. It gets some minor editing from time to time and I update the
copyright notice whenever I do that. But, the basic paper has been out
there a while.
--
Regards,
Fred Nickols
Managing Partner
Distance Consulting, LLC
nickols@att.net
www.nickols.us
"Assistance at A Distance"
-------------- Original message ----------------------
From: Jack Ring <
jring@AMUG.ORG>
>
> Fred's declaration of strategy as 'a planned course of action' puts a
rather
> fine line between strategy and tactics, perhaps a line that students
> are
not
> prepared to notice, let alone appreciate.
>
> Since enjoying Fred's "Strategy: Definitions and Meanings" when it was
first
> posted several months ago, I have been interested in how to
> communicate
the
> essence to those not yet imbued with sufficient experience to 'get it'
> viscerally (aka' deep learning).
>
>
> On the futbol pitch, we often see the strategy change from 'score
> goal' to
> 'retain possession' especially when time is running out and one team
> is
> ahead in goals scored.
>
> In NASCAR, Dale Earnhardt's engines sacrificed maximum horsepower at
> peak
> RPM in favor of more HP in at approximately 80% of peak RPM. This because
he
> could accelerate from yellow flag lap speed to top speed in less time
> than
> could the other configurations. Given 7 or so yellow flag incidences
> per
> race that gave him a built-in one to two lap advantage for the whole race
> even though his top speed was a little lower than others. This allocation
> of 'resource' to demand (impediment) was not a course of action but a
> way
of
> being during the course of action.
>
> The essence of Dee Hock's Birth of the Chaordic Age is the Principles
> by
> which members agree to abide. These are not coursed of action but ways of
> being. In fact many organizations have failed when attempting the chaordic
> way because they are too focused on Being to put enough energy into
> Doing.
>
> What must we BE and DO in order to create a sufficient leaning
> environment
> for students (of all ages) to 'get' strategy?
>
> cheers,
> Jack Ring
>
> ----- Original Message -----
> From: <
nickols@att.net>
> To: <
MG-ED-DV@AOMLISTS.PACE.EDU>
> Sent: Wednesday, February 25, 2009 8:41 AM
> Subject: Definition of Strategy
>
>
> >I never did get around to responding to Jack Ring's request for a
succinct
> >definition of strategy so I'll take a shot at it now:
> >
> > "Strategy is a planned course of action intended to
> > realize an
> > objective."
> >
> > Now for some elaboration: Together, strategy and tactics bridge the
> > gap
> > between ends and means. Both are concerned with courses of action,
> > with
> > getting from here to there. Strategy forms the context for tactics
> > and
> > tactics informs strategy as to reality. As von Moltke observed, "No
> > battle plan survives contact with the enemy." And, of course, strategy
> > and tactics are both concerned with resources - but here their concerns
> > differ. Strategy is concerned with the "deployment" of resources and
> > tactics is concerned with their "employment."
> >
> > As strategy unfolds, which is to say as the plan is put into action,
some
> > the "impediments" Jack mentioned turn out to be real and are dealt
> > with;
> > some never appear; and some that were never anticipated crop up and
> > require an adjustment in tactics and, perhaps, in strategy as well.
> > Strategy, then, is an emergent, evolving course of action, not one that
is
> > chiseled in stone. The same is true of tactics.
> >
> > One might well ask about the difference between strategy and
> > tactics.
> > Consider the following definition of tactics:
> >
> > "Tactics are those plans and actions intended to realize a
> > strategy."
> >
> >
> > For more in this vein, there is a paper on my articles web site
> > titled
> > "Strategy: Definitions and Meanings." If you care to read it, go to
> >
www.skullworks.com and click on the link to Strategy.
> >
> > --
> > Regards,
> >
> > Fred Nickols
> > Managing Partner
> > Distance Consulting, LLC
> >
nickols@att.net
> >
www.nickols.us
> >
> > "Assistance at A Distance"
> >
> > -------------- Original message ----------------------
> > From: Jack Ring <
jring@AMUG.ORG>
> >>
> >> Yea, verily, start with the end in mind.
> >> However, I suggest that 'result' is equivalent to objective. Kim
didn''t
> >> ask
> >> about pedagogy regarding choosing objectives. He asked about
> >> learning
to
> >> craft
> >> strategy which I claim is equivalent to the act of supposing how to
> >> get
> >> there
> >> (what impediments thus what resources, when).
> >> Or maybe not. Anyway, thanks for the response.
> >> cheers,
> >> Jack Ring
> >