.
  n
  o
   i
   t
  a
  c
  u
   d
   E
Praise for The Strategy Book 
  n
  o
  s
  r
  a
  e
   P
   ©
 .
  n
  o
   i
   t ‘A most innovative book. It genuinely synthesises a broad
  u
   b
   i range of strategic thought into a coherent and actionable pro-
  r
   t
  s
   i
cess. Mckeown brings together a number of apparently incom-
   d patible views to create a rich and powerful three dimensional
  r
  o understanding.’
  n
  o
   i
Marcus Alexander, Professor,
Professor, London Business School
   t
  a
   l ‘This is one of the rare strategy books to match lofty ideals with
  u
   i
  c
  r
  c
practical action. It gets right down to the business of doing strat-
egy, helping you understand why your strategy works, or not, and
  r
  o
   f what you can do about it. It contains even more nuggets of wis-
   T dom than the
t he first edition. And it is very enjoyable to read!’
   O Manuel Hensmans, Professor of Strategic Management,
   N
 ,
   f Toulouse Business School
  o
  o
  r ‘Loved the book. So simple, yet so effective. If your bookshelf has
  p
   P
   I
a copy of the 1st Edition, dust it off and replace it with the 2nd
Edition. Once again the author has pulled off the trick of making
   W
   d
  e
something that is thought to be complex and difficult easy to un-
   t
  c derstand and, most of all, apply in the real world. The book retains
  e
  r
  o
  c
all the good stuff from the 1st edition, especially its dual nature as
a quick read and as a reference book you can return to again and
  n again, and successfully brings it up to date and expands on expla-
   U
  : nations and examples throughout.’
throughout.’
   L
   A
   I
David Bewick, Nissan Motor Company
   T
   N ‘What makes The Strategy Book stand out is that it is immediately
   E actionable. Before I could even finish it, we had already begun
   D
   I implementing these ideas in our organisation. Keep this book
   F
   N
   O
   C

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  .
  n
  o
   i
   t
  a
  c
  u close to your desk because you will find yourself returning to its
   d
   E pages again and again.’
  n
  o
  s
Skip Prichard, CEO, OCLC, Leadership Blogger, skipprichard.com
  r
  a
  e
   P
‘In this second edition of The Strategy Book , Max McKeown
achieves yet another masterstroke: he makes complex ideas so
   ©
 . readily accessible, practical and engaging that readers will want to
  n
  o
   i
apply them. Packed with useful tools and real world examples, this
   t
  u book will be an invaluable aid to anyone looking to develop agile
   b
   i strategic thinking and action in their own organisation.’
organisation.’
  r
   t
  s
   i Linda Holbeche PhD, Adjunct Professor, Imperial College,
   d
  r London
  o
  n ‘Most books on strategy are filled with theory but have few prac-
  o
   i
   t
  a tical steps to help organisations move forward. The Strategy Book,
   l
  u
  c
on the other hand, is one of my favourite go-to resources to put

   i
  c
  r
  r
strategy into action.’
Tony Morgan, Founder and Chief Strategic Officer, The
  o
   f Unstuck Group
   T
   O ‘A powerfully practical book for modern strategy analysis. Strongly
   N
 ,
   f
recommended for people who are interested in developing a
  o profound understanding of their competitive environment.
environment.’’
  o
  r
  p  Juan
 Ju an Pa
Pabl
blo
o Tor
Torre
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s, Pr
Prof
ofes
es so
sorr of St
Stra
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tegg y, F EN Un
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   P
   I of Chile
   W ‘Honestly, this has been the best business book I have read.
   d
  e
   t
  c
Perhaps best described as a mini MBA! I love how each strategic
  e
  r concept is linked to real case studies which provide great insights
  r
  o
  c
  n
about the journey other strategis
strategists
ts have been through.’
Eric Lowenstein, Entrepeneur-in-Residence, Aon Plc
   U
  :
   L ‘This is my go-to strategy book for teaching and consulting. It’s
   A
   I like my favourite carry-on bag: adaptable, thorough and perfectly
   T arranged.’
   N
   E Dr. Julia Sloan, author of  L  Lea
earr ni
ning
ng to T hi
hink
nk St
Strat
rateg
egii ca
call
lly 
y ,
   D
   I Columbia University
   F
   N
   O
   C

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 .
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    t
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  u
   d
   E
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  o
  s
  r
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   P
   ©
 .
  n
  o
   i
   t
  u
 The Strategy
Strategy
   b
   i
  r
   t
  s
   i
   d
Book 
  r
  o
  n
  o
   i
   t
  a
   l
  u
  c
  r
   i 2nd edition
  c
  r
   f
  o
   T
   O Max Mckeown
   N
 ,
   f
  o
  o
  r
  p
   P
   I
   W
   d
  e
   t
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 .
  n
  o
   i
   t
  a PEARSON EDUCATION LIMITED
  c Edinburgh Gate
  u
   d Harlow CM20 2JE
    E United Kingdom
  n
  o
  s
Tel: +44 (0)1279 623623

  r
  a
Web: www.pearson.com/uk

  e First edition published 2012 (print and electronic)

   P Second edition published in 201
20166 (print and electronic)

   ©
© Maverick & Strong Limited 2012, 2016 (print and electronic)
 .
  n
  o
   i
The print publication is protected by copyright. Prior to any prohibited
   t reproduction, storage in a retrieval system, distribution or transmission in any form
  u
   b
   i
or by any means, electronic, mechanical, recording or otherwise, permission should
  r
   t be obtained from the publisher or, where applicable, a licence permitting restricted
  s
   i copying in the United Kingdom should be obtained from the Copyright Licensing
   d
  r Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
  o The ePublication is protected by copyright and must not be copied, reproduced,
  n
  o
   i
transferred, distributed, leased, licensed or publicly performed or used in any way
   t
  a except as specifically permitted in writing by the publishers, as allowed under the
   l
  u
  c
terms and conditions under which it was purchased, or as strictly permitted by

  r
   i
applicable copyright law.
law. Any unauthorised distribution or use of this text may be a
  c direct infringement of the author’s and the publisher’s rights and those responsible
  r may be liable in law accordingly.
  o
   f
   T
All trademarks used herein are the property of their respective owners. The use of

   O any trademark

trademark in this text does not vest in the author or publisher any trademark
trademark
   N ownership rights in such trademarks, nor does the useus e of such trademarks imply any
 ,
   f affiliation with or endorsement of this
t his book by such owners.
  o
  o
  r
Pearson Education is not responsible for the content of third-party
t hird-party internet sites.
  p ISBN: 978–1–292–08440–4 (print)
   P
   I 978–1–292–08443–5 (PDF)
   W 978–1–292–08442–8 (eText)
   d
  e
978–1–292–08441–1 (ePub)
   t
  c British Library Cataloguing-in-Publication Data
  e
  r
  r A catalogue record for the print edition is available from the British Library
  o
  c Library of Congress Cataloging-in-Publication Data
  n Mckeown, Max, author.

   U
  :   The strategy
strategy book / Max Mckeown.
Mckeown. — 2nd edition.
   L   pages cm
   A
   I   Includes index.
   T   ISBN 978-1-292-08440-4 (pbk.)
   N   1. Strategic planning. I. Title.
Title.
   E   HD30.28.M3842 20152015
   D
   I   658.4'012—dc23
   F 2015030495
   N
   O 10 9 8 7 6 5 4 3 2 1
   C 19 18 17 16 15

Print edition typeset in 9pt Stone Serif ITC Pro by Lumina Datamatics
Printed by Ashford Colour Press Ltd, Gosport

NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION

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 .
  n
  o
   i
   t
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  u
   d
   E
Contents
  n
  o
   
  r
  a
  e
   P
   ©
 .
  n
  o
   i
   t  About the author / xvi
  u
   b
   i
  r
   t
First words  / xvii
  s
   i Introduction / xviii
   d
  r
  o What is strategy?  / xxi
  n
  o
   i
   t
  a   part 1  Y
   l  Your
our strategic self  / 1
  u
  c
  r
   i Shaping the future  / 4
  c
  r  Thinking before you plan / 1  10
0
  o
   f
   T Becoming a strategic thinker  / 1 15
5
   O Selling your strategy  / 20
   N
 ,
   f
  o   part 2  Thinking like a strategist / 25
  o
  r
  p Reacting is as important as planning  / 27
   P
   I
 Taking
 Taking risks (jump your
your uncertainty gaps) / 32
   W
   d
  e Looking over your shoulder  / 39
   t
  c
  e Knowing where the grass (really) is greener  / 44
  r
  r
  o
  c
  n   part 3 Creating your strategy  / 49
   U
   L
  : Seeing the big picture?  / 5
 51
1
   A
   I Finding position, intention and direction  / 56
   T Looking for advantages  / 62
   N
   E Making strategic decisions and choices  / 70
   D
   I
   F  Adapting to your competitive environment / 7  76
6
   N
   O
   C

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 xiv  Contents

 .
  n
  o
   i
   t
  a   part 4 Winning with strategy  / 83
  c
  u
   d Winning strategy games  / 85
   E
  n Creating new markets / 9
 91
1
  o
  s
  r
  a
Getting ahead of your strategic group / 98
  e Growing your business (again and again) / 1
 106
06
   P
    © Going global without going broke / 1
 11
14

  n
 .
  o
   i
Knowing what you can do best / 1
 120
20
   t
  u
   b
   i
  r   part 5
   t
Making your strategy work  / 1
 125
25
  s
   i
   d Managing your strategy process / 1
 127
27
  r
  o Meetings for strategic minds  / 1
 134
34
  n
  o
   i Managing change, making strategy work  / 1
 142
42
   t
  a
   l Understanding what can go wrong  / 1
 148
48
  u
  c
  r
   i
Saving your company from failure  / 1
 154
54
  c
  r
  o   part 6
   f The Strategy Book  toolkit
 toolkit  / 1
 163
63
   T
   O  The basic (powerful)
(powerful) strategy questions / 1
 165
65
   N
 ,
   f SWOT analysis / 1
 167
67
  o
  o
  r
Porter’s 5 forces of competition / 1
 169
69
  p Porter’s generic strategies  / 1
 17
71
   P
   I Burgelman’s strategy dynamics model  / 1
 173
73
   W
   d
  e
Porter’s value chain and value system  / 1
 175
75
   t
  c Core competencies and resource-based view / 1
 177
77
  e
  r
  r Nonaka and Takeuchi’s knowledge spiral / 1
 179
79
  o
  c
  n Peters, Athos and Waterman’s 7-S framework  / 1
 18
81
   U Scenario planning / 1
 183
83
  :
   L
   A  Ansoff’s
 Ansoff ’s growth
growth grid / 1
 185
85
   I
   T BCG growth share matrix  / 1
 187
87
   N
   E Kim and Mauborgne’s four actions  / 1
 189
89
   D
   I Greiner’s growth (and crisis) model  / 1
 19
91
   F
   N De Wit and Meyer’s strategy tensions / 1
 193
93
   O
   C Cummings and Wilson: orientation and animation / 1
 195
95

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Contents  xv

 .
  n
  o
   i
   t
  a Lewin’s force field analysis / 1
 197
97
  c
  u Kotter’s eight phases of change  / 1
 199
99
   d
   E Kaplan and Norton’s balanced scorecard  / 20
 201
1
  n
  o
  s Hrebiniak’s model of strategy execution / 203
  r
  a
  e Hammer and Champy’s business process redesign  / 205
   P Michaud and Thoenig’s strategic orientation  / 207
   ©
 . Burgelman and Grove’s strategy bet model  / 209
    i
  n
  o
   t  Argyris s double
double and single loop
loop learning / 2
 21
11
  u
   b
   i Mintzberg’s deliberate and emergent strategy  / 2
 21
13
  r
   t
  s
   i  Johnson’s white
white space model / 2
 21
15
   d
  r Prahalad and Hart’s bottom of the pyramid  / 2
 21
17
  o Stacey’s strategy from complexity  / 2
 21
19
  n
  o
   i
   t
  a
Hart’s sustainability
sust ainability value framework / 22
 221
1
   l
  u
  c
House of strategy / 223
  r
   i Innovation + strategy = adaptability / 225
  c
  r
  o
   f
   T Final words / 226
   O
   N Further reading / 227
 ,
   f  Acknowledgements
 Acknowledgements / 232
  o
  o
  r Publisher’s acknowledgem
acknowledgements
ents / 233
  p
   P
   I Index / 235
   W
   d
  e
   t
  c
  e
  r
  r
  o
  c
  n
   U
  :
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   N
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   D
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   O
   C

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 .
  n
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   d
   E
 About the author
  n
  o
  s
  r
  a
  e
   P
   ©
 .
  n
   i
   t
  o
  u
Dr Max Mckeown works
Mckeown  works as a strategy and innovation coach for
   b
   i many of the most admired and ambitious
ambit ious companies in the world.
   r
   t
  s
   i The Strategy Book  was the winner of the Commuter Read at the
   d
  r Chartered Management Institute Book of the Year 2013 and
  o
  n Amazon’s Best Business Books of 2012. Max is also author of the
  o
   i
   t
  a
award-winning The Innovation Book as well as Adaptability: The Art
   l of Winning in an Age of Uncertainty , and four other books. He is also
  u
  c
  r
   i
a popular keynote speaker at conferences and events worldwide.
worldwide.
  c
  r Max has an MBA and PhD from Warwick Business School. He
  o
   f can be reached at www.maxmckeown.com and on twitter@
   T maxmckeown
   O
   N
 ,
   f
  o
  o
  r
  p
   P
   I
   W
   d
  e
   t
  c
  e
  r
  r
  o
  c
  n
   U
  :
   L
   A
   I
   T
   N
   E
   D
   I
   F
   N
   O
   C

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 .
  n
  o
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  a
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  u
   d
   E
First words
  n
  o
  s
  r
  a
  e
   P
   ©
 .
  n
  o
   i
‘However beautiful the
t he strategy,
strategy, you should occasionally look at the
t he results.’ 
results.’ 
   t
  u
   b
   i
  r Winston Churchill
   t
  s
   i
   d Strategy is about moving from where you are to where you want to
   r
  o be. Smart strategy is the
t he shortest route to desirable ends with avail-
  n able means. Strategy is as much about deciding what to do, where
  o
   i
   t
  a
to go, why, when and how as about choosing what not to do. Yes.
   l
  u
  c
No. What if. Why not. Planning backwards from a better future.
  r
   i
  c This book is about strategy in action. It’s about making strategic
  r
  o
   f
principles and cutting-edge research useful. The second edition
   T includes even more real world examples of strategy in action.
   O You will also find more on new ideas in strategy. Sustainability.
   N
 ,
   f
Tensions. Psychology. Behavioural strategy. And how to combine
  o creativity and entrepreneurship.
  o
  r
  p Our human world is the result of individual strategies. Our desires
   P
   I and actions, dreams and ideas. Strategists are able to see the
t he past,
   W present and future as connected. You can link your actions with
   d
  e
   t
  c
the actions of those around you. And you will be able to shape
  e
  r events by reacting intelligently and spontaneously to them.
  r
  o
  c ‘All men can see these tactics whereby I conquer, but what none can see is
  n
   U the strategy out of which victory is evolved.’ 
  :
   L Sun Tzu
   A
   I
   T Max Mckeown
   N
   E
   D
   I
   F
   N
   O
   C

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 .
  n
  o
   i
   t
  a
  c
  u
   d
   E
Introduction
  n
  o
  s
  r
  a
  e
   P
   ©
 .
  n
  o
   i
   t What can The Strategy Book do for you? This book can help you
   b
  u
   i
  r
understand strategy.
strategy. You
You can use the
t he secrets in this book to become
   t
  s an effective strategic thinker and leader. If you are ambitious, you
   i
   d t his book to shape your future.
can use the powerful strategy tools in this
  r
  o
  n The Strategy Book has its own strategic advantage. It is easy to read
  o without dumbing down its strategic ideas. It is simple to use but
    i
   t
  a
   l is still based on a core set of intelligent strategic foundations. It
  u
  c
  r
   i
offers clear explanations of tools that will help make sense of
  c complex leadership situations.
  r
  o
   f The Strategy Book is based on hard-won experience and knowl-
   T
   O edge. I’ve worked with some of the most admired companies in
   N
   f
 ,
  o
the
of world.
the most I’ve also worked
ambitious with smaller
companies in the companies
world. Some who
were arefeeling
some
  o
  r complacent. Others were facing problems and crisis points. All of
  p
   P
   I
them wanted more success.

   W The Strategy Book helps with all of those situations. And it also helps
   d
  e people who are studying strategy as part of a course or degree.
   t
  c
  e
  r
A lot of the books you have to study are either too shallow or far
  r
  o
  c
too long. This book is about giving you the best ideas in strategy
  n but wrapped up in a usable, enjo
enjoyable
yable package.
   U
  :
   LHow to use this book
   A
   I
   T
   N The Strategy Book is organised into six parts. The first five parts
   E tackle the really important challenges that a leader of any team
   D
   I of any size will face in creating strategy and making that strategy
   F work. Each part is sub-divided into specific action topics. You can
   N
   O dip in and out of each section
sect ion as you feel relevant. They have been
   C

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Introduction  xix

 .
  n
  o
   i
   t
  a written clearly so that you can benefit from my experience as a
  c
  u strategist whether you are a novice or an expert.
   d
   E Each of the action topics has the following structure:
  n
  o
  s
  r
  a
■ ■  Headline description
description – so you know what the topic is about, why
  e it’s important and have a brief summary of how the contents
   P
will help.
   ©
 .
  n ■ ■ Strategic examples – so you can read about a successful company
  o
   i
   t or person that faced the same kind of challenge and used
  u
   b
   i
  r
   t
the same kind of principles to solve their problems. This is a
powerful and memorable way to learn.
  s
   i
   d ■ Strategy ratings – so you have an idea how important the
  r
■

  o principle is in your work as a strategic thinker. The Strategy6

  n
  o
   i are six particularly
part icularly valuable principles, and can be found on
   t
  a pages 4, 27, 56, 120 and 127. This section also lets you know
   l
  u
  c how often a strategic challenge will be used and who should
   r
   i
  c be involved.
  r
  o
   f ■ ■ Objective – why you should take the subject seriously as a
   T leader and what you should be trying to achieve.
   O ■ Context  –
   N ■  – how the subject fits into the broader pattern of
 ,
   f
  o
  o
leadership and the kind of situation you are dealing with to
achieve success.
  r
  p ■ Challenge – why the subject is difficult and valuable. And
   P
   I
■

also ways of succeeding with the challenge effectively as a

   W strategist.
   d
  e
   t
  c ■ ■ Success – what has to happen to succeed with the challenge.
  e
  r
  r ■ ■ Strategists’ measure of success – ways you can assess your
  o
  c progress.
  n
   U ■ Strategists’ checklist  –
 – a summary of the actions you have to take
  : ■

   L to put the strategy principle into action.

   A
   I ■  Relate
 Related
d ideas – some suggestions of other writers’ ideas that
   T ■

   N
   E
support or complement the strategic topic.
   D
   I The sixth part is the strategist’s toolkit. The most important mod-
   F
   N els and tools of strategy are explained in very precise, practical and
   O efficient terms. You
You can move from the toolkit to the action topics.
   C

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 xx  Introduction

 .
  n
  o
   i
   t
  a Or you can move from specific action topics back to models that
  c
  u help you to organise your thoughts.
   d
   E There is also a list of further
furt her reading if you want to dig deeper. And
  n
  o
  s naturally there is an index to make it easier to find your way to spe-
  r
  a cific topics.
  e
   P
The Strategy Book is clearly structured and easy to use, something
   ©
 . that you will find yourself referring back to again and again.
  n
  o
   i
   t
  u
   b
   t
   i
  r
  s
   i
   d
  r
  o
  n
  o
   i
   t
  a
   l
  u
  c
  r
   i
  c
  r
  o
    f
   T
   O
   N
 ,
   f
  o
  r
  p
   P
   I
   W
   d
  e
   t
  c
  e
  r
  r
  o
  c
  n
   U
  :
   L
   A
   I
   T
   N
   E
   D
   I
   F
   N
   O
   C

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  n
 .
  o
   i
   t
  a
  c
  u
   d
   E
What is strategy?
  n
  o
  s
  r
  a Strategy is about shaping the future – it is about how people attain
  e
   P desirable ends with available means. That’s the reason we’re
   © interested. And that’s the best definition I can offer you. But as
 . a strategist it can also help to understand some of the
t he different
  n
  o
   i arguments about what strategy is and isn’t. You don’t have to know
   t
  u the whole history. You don’t have to get a doctorate or an MBA.
   b
   i
  r But it’s helpful to be informed.
   i
   t
  s
   d Frequency: Read first, review occasionally.
  r
  o Key participants: First, you. Then, everyone.
  n Strategy
Strategy rating: Strategy6
  o
   i
   t
  a
   l
  u
  c
  r Google made the decision to give their engineers permission
   i
  c to experiment in free time. They used this free time to produce
  r
  o
   f an online video service. This experiment taught executives the
   T importance of online video so they bought YouTube
YouTube as a priority
   O
    N when it became popular. As a result, they still have two of the
 ,
   f most popular search services in the world. Not really a plan, yet
  o
  o
  r
  p all about opportunity. Was this creative strategy at work?
   P
   I
   W Objective
   d
  e
   t
  c There are some benefits to understanding the history of strategy as
  e
  r
  r it’s usually told in business schools and text books. It helps you to
  o
  c discuss strategy knowledgeably
knowledgeably and to see its limitations – as well
  n
   U as its purpose.
  :
   L  Ancie
 Anc ient
nt stra
strateg
tegy.
y. The word strategy has its origins in the Greek
   A
   I word strategos, which means general or someone who has an army
   T
   N (stratos ) to lead. It was first used in Athens (508 󰁢󰁣 ) to describe
   E
   D
   I
the art of leadership used by the ten generals on the war council.
   F They developed principles of effective leadership and achiev-
   N ing objectives. This included approaches to war and motivating
   O
   C soldiers.

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 xxii What is strategy?

 .
   i
  n
  o
   t
  a
  c
Similar concepts about strategy emerged in Asia, most famously in
  u Sun Tzu’s Art of War 
War  (written
 (written 200 󰁢󰁣), which is still bought by peo-
   d
   E ple today. In his book, Sun Tzu lists different principles that lead-
  n ers may follow to win and achieve their goals. It set a pattern for
  o
  s
  r
  a
books about strategy that is still followed. Experienced executives
  e and consultants share their experience of planning for success.
   P
   © Corporate strategy started
strategy started getting a lot of attention from the
 .
  n 1950s. It was only after the Second World War that strategy books
  o
   i
   t appeared for business leaders.
  u
   b
   i
  r
   t Alfred Chandler was a historian who, in the 1960s, examined the
   i
   d
  s relationship between strategy and organisational structure. He
  r concluded that the strategy chosen by the company will lead to
  o
  n changes in the structure of the
t he company.
company. His work also shows that
  o
   i
   t
  a
strategy was not a new concept in business since it was based on
   l
  u
  c
what companies were already doing.
  r
   i
  c Igor Ansoff was a manager and mathematician often described as
  r
  o
   f
the father of strategic management. His book, Corporate Strategy ,
was published in 1965 and was a comprehensive attempt to ex-
   T
   O plain how managers could plan for a more successful future.
   N
 ,
   f Ansoff was the most prominent writer of an approach to strategy
  o
   o that became obsessed with detailed planning. It was a perfect fit to
  r
  p a management style that was all about control. It led to a view that
   P
   I CEOs could work with strategic planning teams to analyse the past
   W to predict the future. Early computers were used to help crunch
   d
  e
   t
  c
the numbers and print the plans used to issue orders to real people
  e
  r in middle management and the front
f ront lines.
  r
  o
  c Henry Mintzberg is a Canadian professor and contrarian who
  n
   U mocked planning obsession. He argued that only some strate-
  :
   L gic plans ever happened the way they were intended. The big
   A
   I picture – or strategy – was decided by a stream of individual
   T actions. He believed that most strategy emerges from adaptation.
   N
   E Arguments between planning and learning approaches continue
   D
   I
   F
today (see page 213).
   N Michael Porter (also a professor) continued the mathematical
   O
   C approach to strategy. For him, strategy was about detailed
det ailed analysis

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What is strategy?  xxiii

 .
  n
   i
   t
  o
  a with clear models. These models were designed to determine what
  c
  u position the company should take in relation to other competitors
   d
   E in the market (see pages 169–73).
  n
  o
  s
  r
  a
  e Context 
   P
   © In some ways, the intellectual history of strategy is more complex
 .
  n than my short introduction. Yet in other ways, it’s simpler. Some
  o
   i
   t argue for the more creative, human side, while others argue for the
  u
   b
   i more analytical side of strategy. Both are important, so a strategist
  r
   t
  s
   i
asks what balance of these approaches is most helpful in any par-

   d
  r
ticular situation.
  o ■■ What are you doing at the moment?
  n
  o
   i
   t
  a
■■ How does that compare to your competitors?

   l
  u
  c
■■ What do you want to achieve?
  r
   i ■■ How can you create something people want?
  c
  r
  o
   f The first two questions are analytical, they are about positioning
   T and benchmarking. The second set of questions are creative, and
   O
   N are about desire and contribution. They are interrelate
interrelatedd but the
 ,
   f balance between them varies. The balance depends on your per-
  o
  o
  r sonal preferences and circumstances.

  p
   P
    I
   W Challenge
   d
  e
   t
  c If your market is stable and you’re happy with your situation then
  e
  r you may choose to keep planning and adapting in a predictable
  r
  o
  c way. But if your market is dynamic and you want your situation
  n to change, then you may choose to inject more creativity into im-
   U
  : proving what you offer and achieve.
   L
   A
   I This book includes tools for both analytical and creative strategy.
   T It also includes my opinion that creative, dynamic strategy is
   N
   E the more helpful approach to take. The analytical tools can be
   D
   I
   F used creatively to contribute something worthwhile and – if you
   N wish – difficult to copy.
   O
   C

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 xxiv   What is strategy?

What

 .
  n
  o
   i
   t
  a
  c Success
  u
   d
   E You’ll know that you understand the principle when you see the
  n difference between creative and analytical approaches to strategy.
  o
  s
  r
  a
You will also be able to combine the tools (see page 163) and the
  e principles throughout this book to think like a strategist about the
   P
bigger picture and what you want to contribute.
   ©
 .
  n You can study everything from ideas about how to run a strategy
  o
   i
   t meeting to why reacting is more important than planning, to
  u
   b
   i specific strategies that you can choose to use or adapt. The overall
  r
   t
  s
   i aim is to improve your ability to do something worthwhile.
wort hwhile. Some-
   d
  r
  o
thing better than merely sustaining competitive
competitive edge.
  n
  o
   i Strategists’ measures of success
   t
  a
   l ■■ The basic origins of modern corporate strategy are
  u
  c
  r
   i understood.
  c
  r ■■ The difference between creative and analytical strategy is
  o
   f recognised.
   T
   O ■■ Creative and analytical tools and principles are used together.

   N
 ,
   f ■■ Stable and dynamic markets are treated differently.

  o
  o
  r
■■ You know there is more to strategy than beating or copying

  p your competitors.

   P
   I
   W
   d Pitfalls
   e
   t
  c
  e
  r
  r
Over reliance on any particular approach to strategy is dangerous.
  o
  c
You are missing the big picture if you believe that you can ignore
  n analysis, creativity or the action that makes creativity and analysis
   U
  : come to life. Your
Your organisation may have a traditional approach to
   L strategy. You will have to look carefully at how well the approach
   A
   I
   T is working and what improvements can be made.
   N
   E
   D
   I
   F
   N
   O
   C

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What is strategy?  xxv

 .
  n
  o
   i
   t
  a
  c
  u Strategists’ checklist 
   d ■  Consider the differences between analytical and creative
   E
  n strategy.
  o
  s
  r
  a ■  Think about whether your company takes a more analytical or
  e
   P more creative approach.
   ©
 .
  n ■  Explore whether the traditional approach is well suited to the
  o
   i
   t environment you are facing.
  u
   b
   i
  r
   t ■  Keep referring back to the basic distinction as you proceed
  s
   i
   d through the book so you don’t forget that all tools can be used

  r
  o in both ways.
  n
  o
   i ■  Introduce both analytical and creative approaches to your team.
   t
  a
   l Discuss how they have been used in the past and how you
  u
  c
  r
   i could alter the balance in the future.
  c
  r
  o Related ideas
   f
   T
   O Richard Whittington argues that
t hat ‘strategy is hard’
hard’.. If strategy was
   N
 ,
   f
easy, every company would succeed, but they don’t. The impor-
  o tant part is to learn how to think better and think differently.
  o
  r
  p He introduces four schools of strategy: ‘ Classical’, which seeks to

   P
   I
   W
maximise profit with deliberate processes; ‘ Evolut
 Evolutiona
ionary 
ry ’,
’, which
seeks to maximise profit with emergent processes; ‘ Systematic ’,
   d
  e which seeks plural objectives with deliberate processes; and
   t
  c ‘ Processual
 Processual’, which has plural objectives with emergent processes.
  e
  r
  r
   o
  c
Regardless of which approach you take, John McGee, profes-
  n sor at Warwick Business School, argues that strategic decisions
   U
  : often have certain characteristics. Such decisions will involve risk
   L because you are betting on a future that is uncertain and complex
   A
   I
   T with preparations that are also uncertain and complex. Some
   N strategic preparations require considerable time, effort, and even
   E
   D
   I
pain, before any long-term benefit comes your way. Yet smart strat-
   F
   N
   O
egists, as the
may prove
prov next
e you chapter
wrong, will explain,
reacting may be asknow that because
important events
events
as planning.
   C

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