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Too Much focus?
Question:
>Conventional marketing wisdom is that companies must focus their >resources on certain business areas where they have most chance of >winning. No one can deny that this idea is very sensible and should give >rise to competitive strategies. >However, I increasingly wonder about the practical implications of >focus. What are our key areas? What are the competitors up to? How >knowledgeable are we when we set corporate strategies ‘in stone’?
I think what I am reading is that you are pointing out weaknesses in top down management. If I read it correctly, you are suggesting that strategies are traditionally set in stone at the top and then the inertia of the organization struggles to fulfill these strategies. Have to say I agree but I don’t think that looking at a broader range of possibilities is really the greatest advice. Indeed, if a decree is given, you can bet that several kinds of research have been done into "options" before those ideas are put down as strategies. Look at almost all major forms of advertising. They are tested and tested and tested again before they are released. Yet, very few ads ever really "score" in a meaningful way. Most of the time, this has to do with the fact that they management has taken very little time to look at the relationships between their company and the competition. You can have all of the great strategic initiatives in the world BUT… it seems like the most effective campaigns are built on little holes in the defensive wall of the competition. Kind of like someone finding a tiny chink in the armor and then driving for that. I’d say the most effective strategies COME from the desire to implement a particularly devastating tactic. Tactics come from whatever the CURRENT situation is. You can’t develop a great tactic by looking at reams of market research data because it’s like looking in a rearview mirror while trying to drive forward…not useful. In military history, the biggest victories came when an army exploited a small weakness in an enemy. The "strategy" was built from below…not decreed from above. Dan Dabrieo * Success Partnership Network * http://www.dabrieo.com Computer Consultants: If you have a burning business question that’s taking a bite out of your sleep time. Ask a free question of someone who’s been there and done that. Go to the URL above and take a look.
Response:
:> Conventional marketing wisdom is that companies must focus their :> resources on certain business areas where they have most chance of :> winning. No one can deny that this idea is very sensible and should give :> rise to competitive strategies. :> However, I increasingly wonder about the practical implications of :> focus. What are our key areas? What are the competitors up to? How :> knowledgeable are we when we set corporate strategies ‘in stone’? [rest of original quoted text snipped. Please be considerate and reduce for brevity as my news server does not accept 90% quoted text and 10% reply. -JG] :Ken, :You raise some good points. The reason strategies are based on :judgement is because they are subjective to a great degree. It takes a :good strategic mind to assess a situation, recognize opportunities, and :determine a sound method for achieving goals. :But just because a person/company is focused does not mean they are set :in stone. In fact, a good strategy allows for some flexibility. :Today’s marketplace (for most industries) is far more dynamic than :ever. So the world of strategic planning has changed with that. :I’m glad you brought up the issue of scenarios. The cutting edge of the :strategic planning arena is that it is becoming more of "scenario :planning": developing various strategies based on the likelihood of :different scenarios occurring. Each one is similar in situation :assessment and objectives, but they then differ in market threats and 
pportunities. :I don’t believe the answer to managing the era of change is less focus. :Instead, it is applying focus across different possibilities, and like :you mention, during the earliest stages possible. But regardless of how :mature the company/industry/market, the combined focus and lateral :thinking should be applied. :Raman I agree with you Raman. My point was that many companies do focus on just one solution or scenario. They often don’t recognise paradox. Ken Hetherington Warrenridge Limited, Business & Brand Development Consultants Tel. 0181 902 1644; Fax 0181 900 1231 The Inspiration, Ideas and Information to grow profitably
Response:
: Conventional marketing wisdom is that companies must focus their : resources on certain business areas where they have most chance of : winning. No one can deny that this idea is very sensible and should give : rise to competitive strategies. : However, I increasingly wonder about the practical implications of : focus. What are our key areas? What are the competitors up to? How : knowledgeable are we when we set corporate strategies ‘in stone’? : Faulty "facts" : Strategies are developed largely by the application of JUDGEMENT to the : ‘facts’ and experience of brand owners. Some ‘facts’ are indisputably : true, but others are based on assumption and THEIR view of the : marketplace through the lens of the company’s own culture and ‘accepted : wisdom’. : Needless to say, this can produce disastrous results. Focus if, : accurately targeted is good; but if based on faulty perception, it is : not. : So perhaps we should widen our perspectives before focusing down : to a narrow field of operation? There will be more chance of : challenging inaccurate assumptions, and seeing more possibilities. : Scenarios : Another observation: There is a tendency to plan, based on a single : scenario. For example we may assume that a trend, which we have grown : accustomed to, remains in place in the medium to longer term. This : assumption may be true or if untrue the consequences may be relatively : harmless, but what would be the consequences of it not being so. : If the consequences of a change of trend are a minor loss of sales, or a : need for a small adjustment which is easily manageable, all is well. But : if the consequence would be disastrous for the business, it surely is a : case of having ‘all of ones eggs in one basket’. : There are several recent examples of new entrants into a market, : breaking the established ground-rules; supermarkets moving into banking : for example. : We live in an era of change. How should we manage this? : Maybe less focus? More lateral thinking – at least in the early stages : of business planning. Ken, You raise some good points. The reason strategies are based on judgement is because they are subjective to a great degree. It takes a good strategic mind to assess a situation, recognize opportunities, and determine a sound method for achieving goals. But just because a person/company is focused does not mean they are set in stone. In fact, a good strategy allows for some flexibility. Today’s marketplace (for most industries) is far more dynamic than ever. So the world of strategic planning has changed with that. I’m glad you brought up the issue of scenarios. The cutting edge of the strategic planning arena is that it is becoming more of "scenario planning": developing various strategies based on the likelihood of different scenarios occurring. Each one is similar in situation assessment and objectives, but they then differ in market threats and opportunities. I don’t believe the answer to managing the era of change is less focus. Instead, it is applying focus across different possibilities, and like you mention, during the earliest stages possible. But regardless of how mature the company/industry/market, the combined focus and lateral thinking should be applied. Raman — Explorit Entrepreneurial Services Business planning, coaching, and marketing to help entrepreneurs build their ventures and achieve their goals. Member of International Small Business Consortium (http://www.isbc.com)
Response:
Conventional marketing wisdom is that companies must focus their resources on certain business areas where they have most chance of winning. No one can deny that this idea is very sensible and should give rise to competitive strategies. However, I increasingly wonder about the practical implications of focus. What are our key areas? What are the competitors up to? How knowledgeable are we when we set corporate strategies ‘in stone’? Faulty "facts" Strategies are developed largely by the application of JUDGEMENT to the ‘facts’ and experience of brand owners. Some ‘facts’ are indisputably true, but others are based on assumption and THEIR view of the marketplace through the lens of the company’s own culture and ‘accepted wisdom’. Needless to say, this can produce disastrous results. Focus if, accurately targeted is good; but if based on faulty perception, it is not. So perhaps we should widen our perspectives before focusing down to a narrow field of operation? There will be more chance of challenging inaccurate assumptions, and seeing more possibilities. Scenarios Another observation: There is a tendency to plan, based on a single scenario. For example we may assume that a trend, which we have grown accustomed to, remains in place in the medium to longer term. This assumption may be true or if untrue the consequences may be relatively harmless, but what would be the consequences of it not being so. If the consequences of a change of trend are a minor loss of sales, or a need for a small adjustment which is easily manageable, all is well. But if the consequence would be disastrous for the business, it surely is a case of having ‘all of ones eggs in one basket’. There are several recent examples of new entrants into a market, breaking the established ground-rules; supermarkets moving into banking for example. We live in an era of change. How should we manage this? Maybe less focus? More lateral thinking – at least in the early stages of business planning. Ken Hetherington Warrenridge Limited, Business & Brand Development Consultants London UK Tel. +44 181 902 1644; Fax +44 181 900 1231 The Inspiration, Ideas and Information to grow profitably