Strategic planning is no longer a head office function in most companies. Strategy is the responsibility of everyone. Sustainable competitive advantage arises from:
- Differences between firms, not similarities which arise from a 'benchmarking' approach.
- Dynamic approaches to strategy, rather than static use of models, which tell you 'what happened', rather like trying to drive a car by looking at the rear view mirror.
- Leveraging a firm's tacit knowledge and processes, which may not be easily copied or appropriated.
Human Dynamics can help in the following areas:
- Forecasting and analysing an uncertain future
- Formulating a potent vision of the future
- Developing your organisation’s capability to think and act strategically
- Analysing your current strategic capabilities
- Formulating innovative strategic options to build or maintain a competitive edge
- Implementing the strategic plan
- Becoming a true learning organization so that strategy becomes part of 'business as usual'
Case Study:
'This market ain't big enough for the both of us'
Situation
Our client is a multinational company that was concerned about possible competition changes due to merger and acquisition that threaten to erode their market share in a key product area.
The client requirement
To 'head the competition off before they reach the pass'.
What we did
We undertook a scenario planning exercise to help the executive team unravel the complexity. This delivered the following benefits:
- Rehearsal of a number of probable futures before they have happened
- Identification of early warning signs so that the company can sense changes before they damage their market position
- Involvement of people who were in a position to spot the early warning signs of these changes so the company could respond rapidly to change
The result
Field sales staff were alerted to the signals as part of the consultancy exercise, which subsequently appeared. As a result the company were able to take preventative marketing actions up to 12 months before the competitor activity would have been picked up conventionally, with an impact on bottom-line results that could be measured in millions. They have also been able to initiate a pro-active research and development strategy that will allow them to sustain their position in the market.
A subsequent exercise has been undertaken four years later, to pre-empt disruptive changes in the market as new sources of competition present themselves.
