1. BUSINESS STRATEGY AND ‘COMMON SENSE’
CRF October 2010
BUSINESS STRATEGY AND ‘COMMON SENSE’
Marcus Alexander
Adjunct Professor of Strategic and International Management, London Business School
Director, Ashridge Strategic Management Centre
Associate Fellow, Oxford Saïd Business School

2. Lets start with ‘the crisis’…
Things have never been like this before!
No one can doubt that we are living in unique times!
The rate of change is greater than ever!
....REALLY?

3. What about ‘STRATEGY’?

4. How does ‘strategy’ affect performance?
Some Potential Benefits
quick decisions
coherent decisions
superior decisions
co-ordinated actions
confidence
self-awareness
focus
hypothesis-based learning
deep roots in ‘reality’
explanation for others
Some Potential Risks
missed opportunities
constrained choices
disastrous decisions
inflexibility
sense of failure
delusions of grandeur
isolation
block to learning
lost touch with ‘reality’
waste of time

5. Some ‘dimensions’ of strategy
Context
Strategic Perspective A
Strategy
Process D
Strategic
Decisions B
Strategy
Content C

6. A. Strategy as a ‘perspective’
Strathgos
Strathgos - The ‘Art of the General’
“Doing the right things vs Doing things right”
Relative to goals: the ‘how’ and the ‘why’
Deeply questioning Cause & Effect
Dynamics, inter-relationships and systems
Recognises: “We are not alone”

7. A. Strategic Perspective: Challenges
Questions to discuss briefly on the tables:
When/why/how often do YOU take a ‘strategic perspective’?
- Is there anything you would like to change about this?
How do you help others take a strategic perspective when it is appropriate?
- Could you be even more helpful?
Question for Post-It Note comments:
Based on your own thoughts and your discussions with others, what strikes you as most important about this topic of ‘Strategic Perspective’?

8. Some ‘dimensions’ of strategy
Context
Strategic Perspective A
Strategic
Decisions B

9. Formulation and Implementation of Strategy
B. Strategic Decisions
BIG
Strategic Decisions
Formulation and Implementation of Strategy
LITTLE
Strategic Decisions

10. B. Strategic Decisions: Challenges
Questions to discuss briefly over coffee:
How do YOU improve the quality of ‘Big Strategic Decisions’ in your organization?
- What else could you do?
What are some of the ‘Little Strategic Decisions’ that are still important in YOUR organization?
- What do YOU do to improve them?
Question for Post-It Note comments:
Based on your own thoughts and your discussions with others, what strikes you as most important about this topic of ‘Strategic Decisions’?

11. Some ‘dimensions’ of strategy
Context
Strategic Perspective A
Strategic
Decisions B
Strategy
Content C

12. “Value Creation and Capture”
C. Strategy Content
Aims
“Mission School”
INTERNAL
EXTERNAL
Resources
Opportunities
“Resource Based View”
“Value Creation and Capture”

13. C. Strategy Content: Challenges
Questions to discuss briefly on the tables:
What are YOUR own biases between the 3 corners and why?
How do YOU look at issues in each of the 3 corners?
- Could this be improved?
How do YOU help others in teams and as individuals to link all 3 corners together?
Question for Post-It Note comments:
Based on your own thoughts and your discussions with others, what strikes you as most important about this topic of ‘Strategy Content’?

14. Some ‘dimensions’ of strategy
Context
Strategic Perspective A
Strategy
Process D
Strategic
Decisions B
Strategy
Content C

15. What will help us get there ?
D. Strategy Process
Where are we now ?
Where do we want to go ?
Where could we go ?
What will help us get there ?
What do we do today?

16. D. Strategy Process: Challenges
Questions to discuss briefly on the tables:
What makes the ‘Strategy Process’ most/least effective in YOUR organization?
What roles do YOU play in the Strategy Process of your organization?
- Are these the ‘right’ roles, and could you play them better?
Question for Post-It Note comments:
Based on your own thoughts and your discussions with others, what strikes you as most important about this topic of ‘Strategy Process’?

17. Common sense… THE BLINDINGLY OBVIOUS IS INDEED OFTEN ‘BLINDINGLY’
Context
Strategy
Process D
Strategic Perspective A
Strategic
Decisions B
Content C
Common sense…