Recognizing fake strategy

Strategy: Recognizing Fake Strategy

By Dr. Michael McDermott

[email protected]

© Michael McDermott, 2014; [email protected] 1

Fake or Bad Strategy is Widespread


Fake Strategy: The Process and Outcome

Goal Setting

Lack of Direction Confusion Panic


The Three Pillars of Fake Strategy

Fake Strategy

Failure to Define the Challenge

Mistaking Goals for Strategy

Bad Strategic

Objectives


The Three Key Hallmarks of Fake Strategy

• You must define the challenge • If you cannot define the challenge, you

cannot evaluate the strategy or improve it

Failure to Face the Challenge

• Do not confuse desire with a plan to overcome obstacles

Mistaking Goals for Strategy

• Fail to address critical issues • Objectives are impracticable

Bad Strategic Objectives


Bad Strategy in 3D

The Focus is on 3D • Desire; • Drive; and • Determination


The 3D Essence of Bad Strategy

Desire Drive Determination


Incoherence: The Essence of Bad Strategy

• At best pursuing multiple unconnected

objectives

• At its worst, it involves pursuing conflicting objectives


The Cost of Bad Strategy

It is a source of weakness

because it is incoherent


Recognizing Fake Strategy

It’s Pretentious Organization is in Denial

(refuses to define the challenge)

Its focus is Goals It has a “Bad” Objective

(Irrelevant or impracticable)

Fake Strategy

10 © Michael McDermott, 2014; [email protected]

Good Strategy defines a critical challenge


What’s Goin’ On?

Diagnosis is the

essence of strategy


Strategy and Two Popular Misconceptions

1. Strategy is formulaic or mechanistic

2. Strategy is goal-setting © Michael McDermott, 2014;

[email protected] 13

Strategy and Two Popular Misconceptions:

Implications for Learners

Strategy is formulaic or mechanistic You should abandon any notions that there is a “magic

template” that delivers strategy; You need to begin to feel comfortable with ambiguity and

learn to cope with “lack of direction”

Strategy is goal-setting Anyone can quickly create goals that everyone loves, but

again this is not strategy


Addressing Popular Misconception 1: Strategy is Formulaic

Genuine strategy

cannot be created by adopting a

“painting by numbers” approach


Strategy by Numbers is Pointless

• It results in radically different companies in very diverse situations producing strategies that are at worst identical and at best very similar.


Addressing Popular Misconception 1: Strategy is Formulaic

1. Market Penetration

2. Product Development

3. Acquisitions 4. Enter Emerging

Markets 5. Divest ‘dogs’ 6. Increase R&D

expenditure


Is this Strategy?

• “We aim to consolidate our presence in our developed markets, continuing to create innovative products, and are well–positioned to penetrate emerging markets”.


Step 1 in Bad or Counterfeit Strategy:

Fill in the blanks


• INSERT BANAL HERE Vision

• INSERT BANAL HERE Mission

• INSERT BANAL HERE Core Values

• INSERT BANAL HERE Goals

Faking Strategy

• Simply working through a template of ‘tools’ cannot deliver genuine strategy


Simply working through a template of ‘tools’ cannot deliver genuine strategy


Simply working through a template of ‘tools’ cannot deliver genuine strategy


Are you serious?

Yes. And this is THE most difficult

aspect of this class. Accepting this fact

The Learning Evolution in this Class

Acquire Knowledge

Apply Knowledge (i.e. Basic skills)

Advanced Skills


Recognizing fake strategy

Education

goals michael mcdermott

learners strategy

challengefake strategy

counterfeit strategy

formulaicgenuine strategy

good strategy

faking strategy

widespread michael mcdermott