john Reed of Citicorp was known for insisting that his executives get the big picture. As chairman and CEO, he demanded that business unit heads present their proposed strategies in no more than a few slides. Executives who failed to meet Reed’s exacting standards for brevity met with his unconcealed displeasure. And if it happened too often, they ran the risk of being left out of the loop on future strategy sessions.
Many leaders share Reed’s obsession with the big picture, yet our research shows that few companies actually have a clear strategic vision. The problem, we believe, stems from the strategic-planning process itself. The process usually involves the preparation of a large document—culled from a mishmash of data provided by people from various parts of the organization who often have conflicting agendas and poor communication. The report typically begins with a lengthy description of the industry and the competitive situation. There follows a discussion of how to increase market share here and there, capture new segments, or cut costs, which leads to an outline of numerous goals and initiatives. A full budget is almost invariably attached, as are lavish graphs and a surfeit of spreadsheets.
No wonder so few strategic plans turn into action; executives are paralyzed by the muddle. But it doesn’t have to be that way. We suggest an alternative approach to strategic planning, based not on preparing a document but on drawing a picture we call a “strategy canvas.” This approach consistently produces strategies that are easy to understand and communicate, that engage more people within an organization, and that unlock the creativity of participants. In the following pages, we’ll describe how one leading European financial services company used our approach, to notable effect. First, though, let’s look at what makes a good strategy canvas.
Revealing Your Strategic Profile
Academics and consultants have developed an armory of tools to help companies understand their strategic positioning, and many of those tools have yielded successful strategies. Our approach—drawing a strategy canvas—is unique because it does three things in one picture. First, it shows the strategic profile of an industry by depicting very clearly the factors that affect competition among industry players, as well as those that might in the future. Second, it shows the strategic profile of current and potential competitors, identifying which factors they invest in strategically. Finally, our approach draws the company’s strategic profile—or value curve—showing how it invests in the factors of competition and how it might invest in them in the future. The basic component of our strategy canvas, the value curve, is a tool we developed in our research and consulting work. (For a full description, see our previous HBR articles “Value Innovation: The Strategic Logic of High Growth,” January–February 1997, and “Creating New Market Space,” January–February 1999. )
To illustrate how a strategy canvas works, we’ll take you through one we’ve created for the short-Haul airline industry. In the exhibit “The Strategy Canvas of the Short-Haul Airline Industry,” the factors of competition for the industry are listed on the horizontal axis. The vertical axis indicates the degree to which airlines and the providers of alternative services invest in the competitive factors. A relatively low position means a company invests less and, hence, offers less in that factor—or, in the case of price, asks for less. If you look at meals, for example, Southwest provides little in the way of free refreshment, though not as little as you would get if you drove yourself. By connecting the dots across all the factors for each player, you reveal the strategic profiles of Southwest, its direct competitors, and its main alternative, the car.
จอห์นกก Citicorp ถูกรู้จักใน insisting ว่า ผู้บริหารของเขาได้รับรูปภาพขนาดใหญ่ เป็นประธานและซีอีโอ เขาแค่ให้ หัวหน้าหน่วยธุรกิจนำเสนอกลยุทธ์การนำเสนอในภาพนิ่งไม่เกินไม่กี่ ผู้บริหารที่ไม่ตรงตามมาตรฐานความต้องการของลิ้นกระชับกับของเขาไม่พอใจ unconcealed และถ้ามันเกิดขึ้นบ่อย หนีความเสี่ยงจากการถูกทิ้งออกจากลูปในรอบเวลากลยุทธ์ในอนาคตผู้นำหลายร่วมครอบงำจิตใจของลิ้นกับภาพใหญ่ ได้วิจัยของเราแสดงว่า เพียงไม่กี่บริษัทมีวิสัยทัศน์ชัดเจนเป็นจริง ปัญหา เชื่อ เกิดจากกระบวนการวางแผนเชิงกลยุทธ์ตัวเอง กระบวนการมักจะเกี่ยวข้องกับการจัดเตรียมเอกสารขนาดใหญ่ — culled จาก mishmash ข้อมูลโดยคนจากส่วนต่าง ๆ ขององค์กรที่มักจะมีวาระการประชุมที่ขัดแย้งและการสื่อสารที่ดี รายงานเริ่มต้น ด้วยคำอธิบายยาว ๆ ของอุตสาหกรรมและสถานการณ์การแข่งขันโดยทั่วไป มีตามคำอธิบายเกี่ยวกับวิธีการเพิ่มส่วนแบ่งการตลาดมา จับเซ็กเมนต์ใหม่ หรือตัดต้นทุน ซึ่งนำไปสู่เค้าหลายเป้าหมายและแผนงาน งบประมาณเต็มเกือบเสมออยู่ มีกราฟฟุ่มเฟือยและเปรอของกระดาษคำนวณNo wonder so few strategic plans turn into action; executives are paralyzed by the muddle. But it doesn’t have to be that way. We suggest an alternative approach to strategic planning, based not on preparing a document but on drawing a picture we call a “strategy canvas.” This approach consistently produces strategies that are easy to understand and communicate, that engage more people within an organization, and that unlock the creativity of participants. In the following pages, we’ll describe how one leading European financial services company used our approach, to notable effect. First, though, let’s look at what makes a good strategy canvas.Revealing Your Strategic ProfileAcademics and consultants have developed an armory of tools to help companies understand their strategic positioning, and many of those tools have yielded successful strategies. Our approach—drawing a strategy canvas—is unique because it does three things in one picture. First, it shows the strategic profile of an industry by depicting very clearly the factors that affect competition among industry players, as well as those that might in the future. Second, it shows the strategic profile of current and potential competitors, identifying which factors they invest in strategically. Finally, our approach draws the company’s strategic profile—or value curve—showing how it invests in the factors of competition and how it might invest in them in the future. The basic component of our strategy canvas, the value curve, is a tool we developed in our research and consulting work. (For a full description, see our previous HBR articles “Value Innovation: The Strategic Logic of High Growth,” January–February 1997, and “Creating New Market Space,” January–February 1999. )To illustrate how a strategy canvas works, we’ll take you through one we’ve created for the short-Haul airline industry. In the exhibit “The Strategy Canvas of the Short-Haul Airline Industry,” the factors of competition for the industry are listed on the horizontal axis. The vertical axis indicates the degree to which airlines and the providers of alternative services invest in the competitive factors. A relatively low position means a company invests less and, hence, offers less in that factor—or, in the case of price, asks for less. If you look at meals, for example, Southwest provides little in the way of free refreshment, though not as little as you would get if you drove yourself. By connecting the dots across all the factors for each player, you reveal the strategic profiles of Southwest, its direct competitors, and its main alternative, the car.
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