Strategy without execution is fantasy. Execution without Strategy is thrashing. And without a Management Systemboth are improbable
The “New Normal” will not return to the old “business-as-usual”
Companies whose growth depends on the inclination and ability of the American consumer tospend are under pressure. Americans remain deeply pessimistic about the economy's currentstate, … But consumers do not see themselves simply trimming on a temporary basis. One inthree (33 percent) strongly agree that changes to their lifestyles are most likely permanent.
(GQR Research. Fall, 2009).
How long will it take the unemployment rate to go back down to 5 percent? A rough estimate canbe obtained by looking at the rate of decline in the unemployment rate after recent recessions: … ,or almost 7 years.
(Mark Thoma, Economic professor. Dec.,2009)
We have not been on a sustainable economic track and that has to be changed. But thosechanges don't come overnight, they don't come in a quarter, they don't come in a year. You canbegin them but that is a process that takes time.
(Paul Volcker, Der Spiegel. Dec., 2009).
Seven years later, what are the lasting lessons of Enron? There were two or three. This was a veryyoung and inexperienced management team, and I think both management—and possibly theboard—thought the good times could never end. That's one lesson: the good times do end. We'regoing through that right now.
(William Powers, Enron CEO. Newsweek, October, 2009).
Plenty of lessons can be learned from the glut of businesses that have fallen under the swiftsword of a merciless recession. There are a number of mistakes being made, but the number onecause of failure is misguided strategy—not sloppy execution, poor leadership, or bad luck.
Volatility is here to stay. What this does is force managers to harmonize two critical capabilities:on the one hand, strategic clarity and consistency; on the other, agility and resilience inoperations. This may seem counterintuitive, but organizations can handle extreme change onlywhen they can address it within a clear strategic framework.
(C.K. Prahald, Businessweek.September, 2009).
Although it is true that most companies do not explicitly articulate an operations strategy, thedecisions made by operations executives ultimately produce — or erode — competitiveadvantage. Are you certain that your operations managers know the right choices to make — or are they mindlessly pursuing “best practices”?
(Tim Lasseter, BCG. December, 2009)