Leading the army

March 6, 2008

Strategy literally means “leading the army” if you consider the Greek word strategos which means “the general”. Sun Tzu’s ancient text “The Art of War” is perhaps the first manual on strategy. All men can see the tactics by which I conquer, but what none can see is the strategy out of which great victory is evolved.

It was in the 20th century that business management became obsessed with strategy, thanks to the legacy no doubt of the two Great Wars. There are definite commonalities between business and military operations. A tactic is a plan for a specific action “I will send monthly newsletters to my customers” whereas strategy is the overall scheme for using the resources at hand to obtain a competitive advantage “I will ensure my business is the best in the market in terms of customer service”.

Strategy is long term and is built on sustainable decisions
Strategy offers competitive advantage
Strategy is concerned with the relationship between the internal and external environments
Major resources are required in order to implement strategies
Processes are developed when strategies are implemented
Operational decisions are affected by strategies
The values and expectations of shareholders are affected by strategy
Vision influences strategy - the road ahead

The five Ps of strategy

They are: plan, pattern, position, perspective and ploy.

Allow me to briefly elaborate on each:

Strategy as a plan gives a course of action

Strategy as a position relates to the determination of your product in a particular market

Strategy as perspective is concerned with the organization’s internal workings - how your company does things and its history, philosophies and values

Strategy as a ploy is the cunning tactics that will be deployed to out outmaneuver competitors.

Strategy as a pattern is the consistent action repeated over time e.g. Woolworths consistently provides quality food.

It is agreed that:

Strategy is concerned with your organization and the environment in which it operates
Value is created for stakeholders by effective strategies and this leads to above average revenue
Strategy focuses efforts, gives direction and enables consistency

Strategy occurs at the corporate, business and functional level, to varying degrees.

So then, what is strategic management? It’s concerned with the overall effectiveness, focus and direction of your organization. Strategic decisions affect the entire organization. Strategic implications are long term, and are designed to give you competitive advantage. All the elements of the organization are synergistically focused to implement strategy.

Importantly:

GOOD STRATEGIC MANAGEMENT = GOOD STRATEGY + GOOD STRATEGY IMPLEMENTATION

Influenced by STRATEGIC MANAGEMENT, Winning in the Southern African Workplace by Louw and Venter, Oxford Press.

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