Bringing a strategic perspective to communication LECTURE 1 Bringing a strategic perspective to communication A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

… beginning with an example of communication strategy Objectives Begin exploring the implications of strategy in communication Trace the origins of strategy Introduce some basic ideas from business strategy and the need for communication strategy … beginning with an example of communication strategy A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Apple’s success Achievements have included: Transformed personal access to computing power for millions of people First company worth more than $700bn 2015 “World’s best performing CEO” achieved total shareholder return of 3,188% over 12 years Succeeded through innovation… and communication strategy! A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

A surprise from Apple 2002: Apple began work on creating a tablet computer (Project Purple) in secrecy “We have no plans to make a tablet” – Steve Jobs, 2003 After a few years, there was speculation about an Apple tablet But David Pogue (New York Times) wrote: “The only thing we know for sure about the Apple tablet is we don’t know for sure” – January 23, 2010 A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

People expected an Apple tablet… But expectations were low Computer manufacturers could not find a mass market for tablet computers Small-scale sales Microsoft, established player, was selling 1m tablets a year High price… $800-1000 That would be undercut by competitors Unknown capabilities And expectations were not stoked by Apple A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

“Big Bang” launch, 2010 A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

iPad caused immediate disruption Price $499 300,000 sold on first day, more than original iPhone 14.8m sold in nine months Surprised competitors took months to build a serious alternative to iPad A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Apple’s strategy Apple created the first mass market tablet Result of a strategy for technological development …But also of a communication strategy of innovating in secret and controlling communications Story of the iPad shows the impact strategic approach to communication can make A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

But is Apple one of a kind? By what standards should Apple’s strategy be evaluated? Consensus favors openness and transparency – Apple challenged this Was Apple’s strategy legitimate? How should the relative effectiveness of Apple’s strategy be evaluated? Is Apple such an extreme case that the rules it broke stand unaffected? Or can lessons be learned from Apple and applied by others? A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

But what is strategy anyway? Where did the idea of strategy come from? So far we have looked at Apple’s strategy, focusing on its strategy for a tablet computer But what is strategy anyway? Where did the idea of strategy come from? And why is it so important? A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Key concept – strategy What is strategy? There is now a strategic paradigm Paradigm: a key term in science and social sciences which means a pattern or set of ideas that is widely recognized and shapes a view of the world “To have a strategy… is to choose one path and eschew others” – Richard Rumelt(1) The concept had military roots, then spread into business and other fields A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

The Trojan Horse The legendary stratagem of Odysseus (Lecture 3 looks at the strategy of surprise) A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

On the battlefield Hannibal invents the battlefield stratagem of encirclement (Lecture 3 looks at the distinction between strategy and tactics) A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Fabius’ strategic response A novel strategy: Avoid battle Harass the enemy from a safe distance Eliminate the enemy’s access to supplies Gradually wear the enemy down “Cunctator” – the delayer A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Business: We need a plan Strategy entered business in the form of planning … at a time of relative stability Political stability – cold war, post-war reconstruction Economic stability – Bretton Woods, energy, steady growth From the late 1960s, the business environment saw faster change and disruption Businesses needed flexible strategy, not rigid planning A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Business poses questions What is the state of our organization? What opportunities and threats does the competitive environment present? What options do we have? A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

The answer is strategy Present situation Desired future situation Flexible plans for going from A to B… ...which make up the strategy A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Options Michael Porter’s insight into competitive strategy(2) Options fundamentally limited to: Leadership by having lowest costs Making the product (or service) different – “differentiation” Identifying a niche where there are few challengers – “specialization” or “focus” … generic strategies A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Generic strategies Which of these generic strategies (models) applies to businesses you know? What could happen to businesses that do not follow one of these generic strategies and get “stuck in the middle”? Why might some strategy experts (e.g. John Kay – see suggested reading) question the value of generic strategies? A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

An attempt to break the mold Blue ocean strategy(3) An attempt to break the mold Red ocean is the existing market Defined battlefield Known customer base Constraints including Porter’s strategic choices Competitive exhaustion Blue ocean is the new market Market space without existing competitors No boundaries or constraints Stimulate new demand Innovation, exhilaration! A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

The necessity of strategy “Everyone needs a strategy” – Lawrence Freedman(4)… in order to decide what to do What could happen to organizations (and people) without a strategy? And, specifically, without a communication strategy… A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Communication can play an important part in strategy For example: The Trojan Horse was a communication Hannibal surprised the Romans at Cannae – surprise is a communication strategy – discussed in lecture 3 Later lectures discuss other communication strategies A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

The necessity of communication strategy In the absence of communication strategy: Parts of an organization “do their own thing” – say what they like Resources can’t be allocated rationally Pressure to communicate leads to leaks and gaffes Communications don’t advance the overall strategy of the organization A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)

Suggested reading Keeping Shtum, introduction Lawrence Freedman, Strategy: A History (Oxford University Press, 2013), chapters 6 and 29 John Kay, Foundations of Corporate Success: How Business Strategies Add Value, (Oxford University Press, 1993), chapters 21 and 22 NOTES Richard P. Rumelt, Good Strategy/Bad Strategy: The Difference and Why It Matters, (London: Profile Books, 2011), 62 Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, (New York: The Free Press, 1998), chapter 2 W. Chan Kim & Renee Mauborgne, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, (Harvard Business School Press, 2005) Freedman, Strategy, ix A course of lectures based on Steven Olivant, Keeping Shtum and Other Communication Strategies, (CreateSpace, 2016)