In this corner of Strategic Thinking, I continue to simplify what appears to be the complex issue. For SIMPLE THINGS are attractive and – as the practice shows – practically more useful.
In a cloud of literature about STRATEGY, we normally stumble into a forest of concepts:
- Strategic DEVELOPMENT
- Strategic COMMUNICATION
- Strategic MANAGEMENT
- Strategic MAKING
- Strategic PLANNING
- Strategic THINKING
- Etc.
Let us look from a hypothetical angle.
If each of these strategic concepts is really very important for business,
If each of them should be matched by a specific competence, then in a strategically minded company, a whole team of strategy specialists should be employed.
And then, likely, they would spend a lot of time on “strategic” disputes and effectively curtailing … a strategic development of the company.
Complicated and impractical. Both intuition and practice suggest that real life is much simpler.
QUESTION. What is strategy in general and how to employ it effectively?
ANSWER lies in the simplicity of the Process of Value Creation itself.
Let’s elaborate on the answer.
The goal of every process is to create some value for someone. That’s why STRATEGY is a purposeful and long-term Value Creation Process implemented by an individual or an organization. It is a path leading from a standpoint A to a desired vision of wellbeing B.
The value creation PROCESS consists of 2 basic [reality-determining] elements.
No. 1 – Thinking
No. 2 – Doing
Thinking [1] articulates the desired Goal and projects a Path to the Goal.
The path is practically implemented by the Value Creation Process [2 – VCP].
Next: an experience gained enables the VCP to be improved via Thinking [1]:
- better quantifying the Goal [of meeting and, at the same time, making demand grow],
- perfecting the VCP [processes, technologies to create supply].
Very simple. It seems … too simple …
But, in practical terms, this simplicity IS the key to an efficiency of any strategy.
Hence. a CHALLENGE: how to develop a mindset in the company that would improve the Value Creation Process as efficiently as possible.
Indeed, widely used process improvement methods, such as, 6 sigma, LEAN, Agile, etc. are very useful. However, even these well-proven practices are not always easily implemented because of a lack of an intelligent effort on the part of a body of employees of a company.
It turns out that thinking is difficult, even very difficult …
So, the REAL challenge creating a simple and efficient strategy is this:
How to develop thinking as the basis of the Value Creation Process in an organization?
Mindaugas Kubilius