As Halloween approaches, it's fitting to delve into the world of strategic management and explore some of the most common and spine-chilling mistakes that organizations make.
The first in our series is the "Frankenstein Strategy," a monstrous approach that can haunt the success of even the most well-intentioned businesses.
Frankenstein Strategy
The Birth of a Monstrosity
Much like Mary Shelley's famous literary creation, the Frankenstein strategy emerges when an organization attempts to piece together various elements without a clear vision or a single direction. This misstep often occurs when input is solicited from numerous divisions, stakeholders, and consultants, resulting in a strategy that resembles a haphazardly stitched-together monster.
Believe it or not, this is a rather common occurrence within companies. The CEO emails the Function Heads, requesting them to develop individual strategies. Once these strategies are submitted, they are often haphazardly stitched together into a single, unwieldy monster.
The Dark Origins
The Frankenstein strategy is born from the desire to be inclusive and democratic. Organizations believe that by incorporating input from everyone, they foster diversity of thought and make everyone feel heard. However, the outcome is often far from the intended result. Instead of a harmonious symphony, the strategy becomes a cacophony of conflicting ideas and priorities.
Especially when each Function promotes its own interests. However, an organization operates within the constraints of limited resources, making it impossible to cater to every individual interest. The CEO should not necessarily prioritize inclusivity or democracy in this context. Instead, their primary duty is to allocate resources strategically, channeling them into initiatives that will directly contribute to the achievement of the company's overarching goals.
The Horrors of the Frankenstein Strategy
Lack of Clarity:
The most glaring issue with the Frankenstein strategy is the lack of clarity. With multiple voices pulling in different directions, the overall direction becomes blurred, leaving employees confused about the organization's true purpose.
Resource Drain:
Allocating resources in a Frankenstein strategy is akin to spreading butter on too much bread. Budgets and efforts are stretched thin across numerous initiatives, leaving little room for excellence in any single area.
Execution Nightmare:
Executing a strategy without a clear direction is like navigating through a dark and haunted forest. Teams find understanding their roles and responsibilities difficult, leading to poor execution and inefficiencies.
Competitive Vulnerability:
In today's fast-paced business environment, agility is key. An unfocused strategy makes it challenging to respond swiftly to market changes or seize emerging opportunities, leaving the organization vulnerable to competitors.
Stakeholder Bewilderment:
External stakeholders, including investors and customers, can become perplexed by the lack of strategic direction. This confusion erodes trust and loyalty, casting a shadow over the organization's reputation.
The Exorcism: Banishing the Frankenstein Strategy
To exorcise the Frankenstein strategy from your organization, here are some steps to consider:
Define a Single Clear Direction:
The CEO and top leadership must define a clear direction for the organization. This direction should articulate the company's purpose, long-term goals, and the path to achieve them.
The primary driver of success lies in ensuring that every action taken by the company is aligned in a singular direction, avoiding the incorporation of conflicting objectives.
Limit Stakeholder Involvement:
While diverse input is valuable, limit the number of voices contributing to the strategy development process. Engage key leaders and experts who can provide valuable insights without overwhelming the process.
I understand that some people may disagree with me, but in strategy, there can only be one head chef. While you can have sous chefs to provide assistance, the primary chef role can only belong to one person.
Support the Strategy with Relevant Resources:
Prioritize projects/initiatives based on the organization's strategy. Allocate resources strategically to ensure that the most critical goals receive the attention and resources they need.
You must ensure that no resources are allocated to projects that do not stem from the strategy. The power of a strategy lies in its capacity to refrain from engaging in activities that do not align with its core objectives (i.e., by not doing everything!).
Widespread Communication of Strategy:
Communicate the strategy clearly and consistently throughout the organization. Ensure that every employee understands the strategy, their role in achieving it, and the progress being made.
This will allow your employees to serve as a countercheck and proactively halt any activities or decisions that do not align with the strategy.
Empower Cross-Functional Teams:
Foster collaboration between divisions through cross-functional teams. These teams can help bridge gaps and ensure alignment in the execution of specific initiatives.
By assembling individuals from various functions within the same team, we can prevent silos and ensure functional alignment with the strategy during execution.
Regularly Monitor and Adapt:
A focused strategy doesn't mean rigidity. Establish a system for ongoing monitoring and evaluation, adapting the strategy as needed to respond to market dynamics and opportunities.
Make sure not to be bewitched by opportunities that aren't related to your goals. It's crucial to steer clear of any opportunities that do not align with your objectives.
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In the spirit of Halloween, banishing the Frankenstein strategy from your organization's strategic management practices can bring about a transformation as profound as Dr. Frankenstein's monster. With a focused, cohesive strategy in place, your organization can rise from the shadows and thrive in today's competitive business landscape.
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