Lecture three: The strategic agility loop (8 February 2006)

Many managers think of strategy as a linear process - you develop a strategy, implement it, and then defend your competitive advantage. When proceeding into a foggy future, however, managers should think in terms of loops rather than lines. They can win by iterating through the strategic agility loop faster and more effectively than rivals. The strategic agility loop consists of four steps: making sense of conflicting and incomplete information; making priorities for which opportunities they will and won’t pursue; making it happen through relentless execution and making revisions to their strategy in light of new information.

Key take away: You can win by outcycling your competitors through the strategic agility loop.

Readings:

Made in China, chapter four, “Outcycle the competition.” (Order a copy from amazon.com).

Kathleen M. Eisenhardt, 1990, “Speed and strategic choice: How managers accelerate decision making,” Sloan Management Review, 32,3 (Spring): 39-54. (Order a copy from Harvard Business School Publishing online).

Donald N. Sull, 2004, “Disciplined entrepreneurship.” Sloan Management Review, 46,(l): 71-77. (Order a copy from Harvard Business School Publishing online).

Worksheet:

Identify obstacles to strategic agility. Many companies face roadblocks at different steps in the agility loop. Use this simple framework to locate key chokepoints in your own organization. (Download the worksheet as a JPG file).

Book of the day:

Jim Highsmith, 2004, Agile Project Management, (Boston: Addison-Wesley). Software engineers have made significant progress in introducing agility into new product development projects. Several of their practical insights shed light on how to build strategic agility in organizations. (Order online at Amazon)