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STRATEGY FORMULATION AND EVALUATION
Adaptive StrategizingCreative Strategizing By
Abigail Pugal-Somera
Adaptive Strategy
mix of traditional livelihood systems, modified by locally or externally induced innovations, and coping strategies that have become permanent. They arise from the "dynamic interaction and mutual interdependence between human agency and the ecosystem" (Titi and Singh, 1994b).
Adaptive Strategy
Ecosystem Adaptation
Human Adaptation
Mutual Interdependence
Adaptive Strategy
used to describe ways in which individuals, households and communities have changed their mix of productive activities, and modified their community rules and institutions over the long term, in response to economic or environmental shocks or stresses, in order to meet their livelihood needs
Adaptive Strategizing
Stanford Social Innovation Review on adaptive strategy. Dana O’Donovan and Noah Rimland Flower
Adaptive Strategizing
Creating strategies that are truly adaptive requires that we give up on many long-held assumptions. As the complexity of our physical and social systems make the world more unpredictable, we have to abandon our focus on predictions and shift into rapid prototyping and experimentation so that we learn quickly about what actually works.
Natural Ways by which Enterprise Strategies Evolve
1. Geographic Expansion Locally – key cities and major provinces Internationally – nearby countries or global markets
2. Product Line Expansion Other market segments of the same industry Service extensions added to enhance the value
proposition to customers
Natural Ways by which Enterprise Strategies Evolve
3. Organizational Expansion Franchising, branching, distributing, outsourcing, sub-
contracting Other forms of networking and linkaging Mergers and acquisitions, partnerships, strategic
alliances and joint ventures
4. Horizontal and Vertical Business Integration Enter industries that are related to, supportive of and
complementary with the enterprise’s main products and services
Natural Ways by which Enterprise Strategies Evolve
Geographic Range of Alternatives
Horizontal and Vertical Business Integration Range of Alternatives
Product or Service and
Market Range of
Alternatives
Business Dispersion or Disaggregation Range of Alternatives
The Four Interrelated Questions
1. What vision it wants to pursue? 2. How it will make a difference? 3. How it will succeed?; and 4. What capabilities it will take to get
there?
Fast, Fluid, Flexible
How organizations will have to transform to survive and thrive in the Social Era is by being:
1. Fast2. Fluid and3. Flexible
Meaning strategy has to be this as well
Note
To execute adaptive strategies you need to communicate, openly, fast, otherwise an organization can become tangled up in processes and bureaucracy.
Creative Strategizing
Benchmarking against other
industries
Reconfiguring the Product or Service
Altering Customer Attitudes and
Behavior
Metaphoring and the Bonsai Method
Brainstorming and Prototyping
Benchmarking
process of measuring an organization's internal processes then identifying, understanding, and adapting outstanding practices from other organizations considered to be best-in-class
Benchmarking
Problem Solution
Customer surveys indicate long wait times for hotel rooms, especially for repeat customers.
Benchmarked admittance process with hospital emergency room departments resulting in dramatically reduced check-in times. Also netted less employees needed, automation for frequent hotel guests, and many more process improvements.
Routine maintenance on aircraft between flights such as refueling, cleaning, tire checks taking too long. Plane on the ground means more planes and personnel are required to maintain high level of service and schedules. Need to reduce ground time required in between flights without sacrificing quality or safety of passengers.
Initial benchmarking research indicated we are already #1. Brainstormed and discovered Indy 500 racing team pit crews have a similar maintenance process and a similar requirement to get their vehicle back on the track as quickly and safely as possible. After benchmarking pit crews maintenance turn-around-times for aircraft between flights were reduced by more than half saving/making the airline millions of dollars within the first few years.
Reconfiguring the Product or Service
Products are 'tangible objects that exist in both time and space'
(Shostack, 1982, p.49). Manzini (1996) describes them as
artifacts that supply the consumer with benefits, noting that
production is usually separated by time and place from
consumption.
Services 'consist solely of acts or process(es), and exist in time
only' (Shostack, 1982, p.49). They are intangible (i.e. they do not
occupy space) and, as such, they cannot be possessed; they can
only be experienced, created or participated in.
Reconfiguring the Product or Service
Focus Service Transformation
From To
Design From planned obsolescence
To sustainable product design
After Sales Support
From short term guarantee
To comprehensive after-sales support
Form of Contact From ownership To eco-leasing
Mode of Consumption
From individual consumption
To collective consumption
Need From dependence To reduced need
Sales Revenue From output maximisation
To least cost supply
Categories of changeService Types
Key Factors Crucial in Success of Services
strict regulatory and fiscal measures to deter the generation of waste
the design of products which are readily upgradable and customized to meet the needs of individual consumers
the ability of producers to develop attractive eco-leasing options
the development of adequate community computer facilities in order to minimize the need for individual ownership
Altering Customer Attitudes and Behavior
As Al Franken said in his documentary movie "God Spoke”:
"My dad was a Republican until 1964. And he was a Jacob Javits Republican. You know, he grew up in New York, he voted for Herbert Hoover. And he voted for every Republican…and then in 1964…during the civil rights struggle, my dad would say ' that is so wrong. No Jew can be against civil rights.' And my dad was a card-carrying member of the NAACP, and a Republican. And so in 1964 they nominate Goldwater, who was against the civil rights bill, and that was it. My dad was a Democrat for the rest of his life."
That change in attitude came from something that had two deep-seated convictions wrestling with each other. One was a moral conviction, the other was political (although some often mix the two together). The moral conviction was stronger, and Al Franken's father changed his political affiliation. And thus, that change in belief created a change in behavior. He was voting Republican, his paradigm was shifted, and after that he voted Democrat. It's simple cause and effect.
But that's rare. Most of the time, it's much more difficult to overturn such strong convictions and beliefs. Advertisers, when faced with this challenge, would have better luck nailing Jello to a wall.
Altering Customer Attitudes and Behavior
Four Ways to Bring About Attitude Change:
1. Changing the relative evaluation of
attributes
2. Changing brand beliefs
3. Adding an attribute
4. Changing the over-all brand rating
Metaphoring and the Bonsai Method
Metaphoring Change and Comparison
Can liken the business to a situation or phenomenon that comes from a different world but shares similar characteristics with the enterprise
The idea is to generate a lot of possible directions or solutions from the similar situation or phenomenon. These solutions can then be brought back to the world of enterprise by asking how the similar situation could possibly translate in
Metaphoring and the Bonsai Method
Bonsai Method Controlled growth
Change in a meaningful way
In a Japanese garden, the bonsai represents Mother Nature, albeit in a stylized and miniaturized form.
Brainstorming and Prototyping
Brainstorming and Prototyping Prototyping
