corporate strategy

“Value-chain analysis and statistical approaches to understanding & enhancing profitability are essentially static tools.”












“It does not make sense to manage an organization’s strategy
vis-à-vis a dynamic target environment with static management tools.”

strategy dynamics











Strategic Planning vs Strategy Dynamics


The heart of an enterprise's strategic planning environment must be game-changing innovation.
Not just the innovation of products and services, but the ability to systematically convert 
ideas and insights from all quarters into new offerings that alter the very context of the enterprise itself.


Strategic Planning traditionally concentrates on two areas of investigation and planning. 

Micro-economic analysis of competitive markets which has sought to explain profitability differences amongst firms. Most quantitative research seeks to support hypothetical explanations for profitability by the use of correlation methods. 
Scrutiny of firms' cost-structures and margins, generally termed "Value-chain analysis," which is looking for drivers of cost and value in order:

- to discover opportunities where costs can be reduced or

  value added, so as to boost profitability 
- to seek opportunities where adding cost in one area can

  either reduce cost elsewhere or enable higher pricing 
- to seek opportunities where cost and value improvements

  can arise by collaboration with suppliers and customers


Both value-chain analysis and statistical approaches to understanding & enhancing profitability are essentially static tools. Now, it is already very difficult to manage an organization vis-à-vis a dynamic target environment with static management tools, so when it comes to Strategic Planning the resulting ‘Lottery Environment’ becomes much less persuasive. 

 

Even for us at the TWC Consulting Group it is impossible to predict the future, therefore we don't even try to and we work with our clients to follow suit.

 

Instead of

> staring at crystal balls, 
> marveling at static environments such as painstakingly created scenarios and hope the future will hit one of the ones planned, 
> trying to copy processes of currently best-performing organizations and praying that this will make our organization excellent,

we advise on creating approaches that lead to increased understanding of performance stakeholder value maps and their dynamics, translating this understanding into changes of the competency architecture, and the subsequent concept creation & placement, and all of that at market clock speeds.


Through this dynamic planning process, our clients become successful because they were able to make their organizations so flexible and responsive that sustained high performance was and continues to be delivered no matter what the future holds in stock.


We change our clients' thinking to concentrate on:

√ Planning tomorrow's performance successfully by creating a dynamic
measurement and planning environment
√ Enhancing the ability to increase understanding of
performance stakeholder value-maps and their dynamics
√ Enabling the organization to build and manage the necessary 
competency architecture
√ Improving the ability of the organization’s competency 
and resource architectures to create and introduce successful 
concepts at ever increasing speeds


To schedule a meeting with us definitely would be perceived as a sound strategic move.

(What have you got to lose? Only your shackles)

 

 




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