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The Big Lie of Strategic Planning

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by

Tuvshee Ulambayar

on 20 May 2014

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Transcript of The Big Lie of Strategic Planning

Question: What's the difference between a strategic plan and a strategy?
Comfort Trap 1: Strategic Planning
Conclusion
Comfort Trap 3: Self-Referential Strategy Frameworks
Comfort Trap
1: Strategic Planning

Comfort Trap
2: Cost-Based Thinking

Comfort Trap
3: Self-Referential Strategy Frameworks
Rule
1: Keep the strategy statement simple

2: Recognize that strategy is not about perfection

3: Make the logic explicit
Response to new opportunities and challenges:
Emergent Strategy

“Strategy shouldn't be established merely around what the company will be able to control”

Strategic Planning is the outcome of a process
(part deliberate, part emerging)
Roger L. Martin
January–February 2014 Harvard Business Review
Don’t fall into the trap!
There's a big lie about strategic planning!  
Rule 3: Make the logic explicit
Lies and traps, and how to
avoid them:

The comfort trap:
1: Strategic planning
2: Cost-based thinking
3: Self-referential strategy framework

Three Rules to Avoid Them:
1: Keep it simple
2: Don’t look for perfection
3: Make the logic explicit

Sure way to improve strategic choice hit rate:
test your logic

Write down what you believe about:
customers
the evolution of your industry
competition
your capabilities
Compare recorded logic with real events; otherwise, human mind will rewrite history…
This method allows checking your betting results.
The Big Lie of Strategic Planning
Strategy is often paired with strategic planning. The
shift from “strategy” to “planning” occurs because
planning is “doable and (is) comfortable”
Some underlying drivers of control and comfort:
Wall Street interests
Safe and comfortable for board members
Comfort Trap 2: Cost-Based Thinking
Planning should not be considered as strategy!

“Planning can't (and won't) make revenue magically appear”

Cost based approach is complacent,
because can be planned,
but revenue is unpredictable relative to cost.
Rule 1: Keep the strategy statement simple
Focus on revenue decision makers, i.e. customers

Where-to-play (customers to target)
How-to-win (creating compelling value proposition)

* Strategy choices can be summarized in one page
* Keeps discussion grounded, so
* Managers can engage strategic challenges instead of
* Retreating to planning comfort zone
Rule 2: Recognize that strategy is not about perfection
* Strategy isn’t about finding answers
* It’s about placing bets and shortening odds
* Boards and regulators need to reinforce rather than
* Undermine the notion that strategy involves a bet
Q&A
Presenters:
Colin Macrae M0150621
Asier Ordoñez M0121224
Ikrom Abdullaev M0158958
Danie Struwig M0121238

Guide of presentation:
Shamil Tlukashaev M0150593

Editor of presentation:
Destiny M0258950
Full transcript