|
|
|
 |
|
|
|
The Strategy Paradox: Why committing to success leads to failure (and what to do about it)
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales rank 22,894
Customers rating (based on 39 reviews)
|
|
|
|
|
A compelling vision. Bold leadership. Decisive action. Unfortunately, these prerequisites of success are almost always the ingredients of failure, too. In fact, most managers seeking to maximize their chances for glory are often unwittingly setting themselves up for ruin. The sad truth is that most companies have left their futures almost entirely to chance, and don’t even realize it. The reason? Managers feel they must make choices with far-reaching consequences today, but must base those choices on assumptions about a future they cannot predict. It is this collision between commitment and uncertainty that creates THE STRATEGY PARADOX.This paradox sets up a ubiquitous but little-understood tradeoff. Because managers feel they must base their strategies on assumptions about an unknown future, the more ambitious of them hope their guesses will be right – or that they can somehow adapt to the turbulence that will arise. In fact, only a small number of lucky daredevils prosper, while many more unfortunate, but no less capable managers find themselves at the helms of sinking ships. Realizing this, even if only intuitively, most managers shy away from the bold commitments that success seems to demand, choosing instead timid, unremarkable strategies, sacrificing any chance at greatness for a better chance at mere survival.Michael E. Raynor, coauthor of the bestselling The Innovator's Solution, explains how leaders can break this tradeoff and achieve results historically reserved for the fortunate few even as they reduce the risks they must accept in the pursuit of success. In the cutthroat world of competitive strategy, this is as close as you can come to getting something for nothing.Drawing on leading-edge scholarship and extensive original research, Raynor’s revolutionary principle of Requisite Uncertainty yields a clutch of critical, counter-intuitive findings. Among them:-- The Board should not evaluate the CEO based on the company’s performance, but instead on the firm’s strategic risk profile-- The CEO should not drive results, but manage uncertainty-- Business unit leaders should not focus on execution, but on making strategic choices-- Line managers should not worry about strategic risk, but devote themselves to delivering on commitmentsWith detailed case studies of success and failure at Sony, Microsoft, Vivendi Universal, Johnson & Johnson, AT&T and other major companies in industries from financial services to energy, Raynor presents a concrete framework for strategic action that allows companies to seize today’s opportunities while simultaneously preparing for tomorrow’s promise.
|
|
|
| Publisher | Broadway Business | | Release date | 02/2007 | | Availability | Usually ships in 24 hours | | Edition | Hardcover |
| | List price | $27.5 | | Our price | $18.15 (you save 34.00%) | | Used price | from $4.81 |
|
|
|
|
|
|
|
|
|
|
 A Contrary View of Strategy
In The Strategy Paradox, Deloitte Consultant Michael Raynor makes the argument that the greater the strategic bet an organization makes, the greater the risk. Raynor promotes a mindset for managing strategic uncertainty based on calculated risk. He suggests that companies should develop several viable strategies, moving to the one that is most practical in a given market. Further, he asserts that the future is now, and companies must adapt their strategies to take advantage of specific market opportunities.
This work is provocative in that it challenges the conventional wisdom about strategy. While the book has an academic bent at times and drags on a bit, it is based on a valid premise and solid research.
Forecasting the future and developing strategies
Have you spent hours creating forecasts you knew didn't mean much? Have you wasted time in painful meetings where second-guessers judged your efforts harshly because your original decision was not perfect in light of the way reality later unfolded? Michael E. Raynor explains why developing a strategy that would work moderately well under a variety of circumstances is likely to lead to mediocre results. Instead, he teaches you to match the appropriate level of management to the "requisite uncertainties" your organization faces. Raynor discusses how to use "strategic options" to put your company in a position to capitalize on a range of contingent scenarios without having to make firm commitments. getAbstract recommends this intelligent approach to business strategy to executives in any industry. It is clearly written and well-illustrated with new takes on familiar business sagas.
 Luck
Anyone who plays a role in strategy will find much of interest in Michael Raynor's book, The Strategy Paradox. The paradox he explores in this book is described by the subtitle: the same strategy that can lead to tremendous success can also lead to colossal failure. Luck plays a huge role in how perfectly reasonable strategic choices turn out. You have to commit to a certain future to get something done. A big bet on achieving a planned outcome can be a high risk dice roll that leads to failure. Raynor proposes a balanced approach to strategy. The management of uncertainty requires an attention and a vigilance that can seem at odds with a specific commitment of resources to achieve a desired outcome. The risk reward tradeoffs can change rapidly, and falling in love with one approach can lead to disaster. An executive reader will come away from The Strategy Paradox with useful ideas and challenges especially on who within an organization should be doing what when it comes to strategy and the management of uncertainty.
Rating: Three-star (Recommended)
Requisite Uncertainty and Strategic Flexibility
Raynor explains through several case studies that poor luck is usually the cause of company failure, not poor planning or execution. Any future strategy, according to the author's explanation of the Strategy Paradox, may fail because the future cannot be predicted: "strategies with the greatest possibility of success also have the greatest possibility of failure". Planning and executing well a strategy does not necessarily increase the chances of success. Instead, companies should hedge their bets by developing practical strategies based on multiple options that respond to the different requirements of several possible futures rather than commitments on singular strategies. Raynor discusses his Strategic Flexibility framework that identifies uncertainties and develops the options needed to mitigate risk or exploit opportunity in light of Requisite Uncertainty: "since uncertainty increases with the time horizon under consideration, the basis for the allocation of decision making is the time horizon for which different levels of the hierarchy are responsible - the corporate office, responsible for the longest time horizon, must focus on managing uncertainty, while operating managers must focus on delivering on commitments". While several case studies are presented, including those for Sony, Microsoft, Vivendi Universal, Johnson & Johnson, and AT&T, Raynor returns to the case studies of Betamax and MiniDisc repeatedly throughout this book, so even though the material presented is rather convincing, it seems odd that if Requisite Uncertainty is indeed such a universal phenomena there are not more than a handful of associated case studies. Interestingly enough, in the opinion of this reviewer, the best portions of this book are the beginning and ending of each chapter, the three appendixes (although these are lightweight and candidates for separate books in themselves), and the end notes to each chapter. For example, the third chapter explains the dilemma firms face in the light of extreme positioning, often leading to accepting lower returns for a better chance of survival, and the five pages of end notes provide interesting thought points, but the bulk of the body of that chapter could easily be trimmed down. The substantive portions of this work are best suited for a white paper, so any more than a couple hours of casual reading is more than enough reader investment (even though this reviewer continues to read all texts in their entirety prior to posting reviews).
 Finally, a new-millenium strategic realist!
Practical strategic execution in the new millennium has outpaced the theories presented by such classic contributors as Porter, BCG and Ohmae. More recently, it has even outpaced such newer contributors as Kim & Mauborgne, Collins and Kaplan & Norton. I knew I was reading a well-rounded strategy book when Mr. Raynor explains that he paid as much attention to failed strategies as he did to successful strategies (as Rosenzweig did in "The Halo Effect"). But, I believe he nailed it when he clarified that companies shouldn't become overly dependent on performance or risk as much as they should develop a balanced view between pro-action and reaction (i.e. strategic focus and flexibility are not mutually exclusive). Mr. Raynor's approach is clear, easy-to-read and well researched - a refreshing departure from typical trade books. His solid writing style acts as a great foundation to get out the new word on executing strategy.
|
|
| | |
|
