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The Big Lie of Strategic

Competing in the Connected


Planning Economy
Featuring Abbie Lundberg, Lance Teel, and Leanne Kemp
Featuring Roger Martin

JANUARY 18, 2018

Sponsored by
The Big Lie of Strategic Planning

TODAY’S SPEAKER

Roger Martin

JANUARY 18, 2018 @HBRexchange | #HBRwebinar Sponsored by


The Big Lie of
Strategic Planning
HBR Webinar
January 18, 2018
MY LOVE-HATE RELATIONSHIP WITH THINGS ‘STRATEGIC’

I hate: I love:
- Strategic - Strategy
Planning But
- Strategic
Plans

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Copyright © 2018 Roger L. Martin
THE TYPICAL STRATEGIC PLAN

Section 1: Vision/Mission Statement

Section 2: List of Initiatives

Section 3: Financials (Budget with Prose)

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Copyright © 2018 Roger L. Martin
THE TYPICAL INCOME STATEMENT

Revenues
Sales

Expenses
Cost of Goods Sold
Direct Labor
Purchased Materials
Direct Overhead
SG&A
Marketing & Selling
General & Administrative
Research & Development
Depreciation & Amortization

Profit Before Tax


Taxes

Net Profit
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Copyright © 2018 Roger L. Martin
THE TYPICAL INCOME STATEMENT

Revenues
Sales

Expenses
Cost of Goods Sold
Direct Labor
Purchased Materials
Direct Overhead Completely
SG&A Within
Marketing & Selling
General & Administrative
Company’s
Research & Development Control
Depreciation & Amortization

Profit Before Tax


Taxes

Net Profit
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Copyright © 2018 Roger L. Martin
THE TYPICAL INCOME STATEMENT

Revenues Entirely At The


Sales Discretion of
Expenses
Customers
Cost of Goods Sold
Direct Labor
Purchased Materials
Direct Overhead Completely
SG&A Within
Marketing & Selling
General & Administrative
Company’s
Research & Development Control
Depreciation & Amortization

Profit Before Tax


Taxes

Net Profit
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Copyright © 2018 Roger L. Martin
SELF-REFERENTIAL STRATEGIC FRAMEWORKS

1. Emergent Strategy
• Misapplication of Henry Mintzberg’s
original concept

2. The Resource-Based View of the


Firm
• Capabilities-based rather than customer-
driven investment

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Copyright © 2018 Roger L. Martin
RULE #1: STRATEGY IS ABOUT A FEW KEY CHOICES

What is our
winning aspiration?

Where will we play?

How will we win?

What capabilities must


we have?

What management systems


are required?
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Copyright © 2018 Roger L. Martin
RULE #2: STRATEGY IS NOT ABOUT PERFECTION

Rigor Creativity

Where: For the part of the Where: For the part of the
world where things cannot world where things can be
be other than they are other than they are.

How: Analyze to determine How: Imagine possibilities


the causes of the observed and choose the one for
effect and optimize for that which the most compelling
inevitable outcome argument can be made.

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Copyright © 2018 Roger L. Martin
RULE #3: MAKE YOUR STRATEGIC LOGIC EXPLICIT

Possibility 1

Possibility 2
Reframe the
Problem Problem as a Possibility 3
Strategic Choice
Possibility 4
What
Possibility 5 Would
Have
to Be
True?

Decide Tests Barriers

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Copyright © 2018 Roger L. Martin
THE MOST IMPORTANT QUESTION IN STRATEGY

What
What is would
true? have
to be
true?
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Copyright © 2018 Roger L. Martin
THANK
YOU
Twitter: @rogerlmartin
Site: www.rogerlmartin.com
Thank you for joining us!
This webinar was made possible by the support of Anaplan. To learn more about
Anaplan, please visit www.anaplan.com

JANUARY 18, 2018 @HBRexchange | #HBRwebinar Sponsored by