Adaptive Strategies Blog

We are in times of deep uncertainty and people wonder about how to do planning during uncertain times. All you know for sure is that your strategy needs to adapt. What to do? Maybe it would help to do a bit of role playing. I’ll add a new white paper to my website by mid-week, but here’s a few role-playing tips to consider while you wait.

• Play the general and conduct war games with your best people. What do you want to accomplish and how will the terrain (economy) and the enemy (competition) react to your moves? What can you do to react to their moves?
• Play the coach and watch game films. Study your entire industry and see what they are doing. What can you learn from their successes and mistakes.
• Play the project planner and consider the elements of risk you are facing and what mitigating moves you can make and what contingengy plans you need to put in place.

I have nine more tips for you and will have them posted on my “publications” tab by mid-week. Download them if you want them (free — no e-mail address required).

But here’s the question for you. Who do you role play when you think about dealing with uncertain times?

What did your customers want from you last year? What do your cunstomers want from you today? What will your customers want from you tomorrow? Has it always been the same and, moreover, could your customers count on you to deliver?

Strategy and marketing discussions have long included the subject of “our value proposition.” And, truth be told, our value proposition was usually internally focused and often meant “we’ll try.” It was kind of soft.

What customers want is a value PROMISE that they can use to make decisions as to where to spend thier money. Not sure of the difference? What’s the value proposition of the Post Office regarding package delivery? What’s the value promise of FedEx regarding package delivery? See the difference?

A value promise may be words to you, but it is the major purchase criteria used by your customers? Does it change during “tough econimic times?” Absolutely! Ask Starbuck’s. An early value promise was “You will be seen as cool and hip if you’re seen carrying our coffee cup.” (or something like that.) During tough economic times we forego “cool and hip” and look for other promises.

So here’s your opportunity to “play consultant.” If you were asked to give advice to Starbuck’s regarding a new value promise, what would you say?

After you fix Starbuck’s, think about the value promise your company needs to provide to your customers. Want to make it personal? What’s your value promise to your employer? Is it a promise or a proposition?

I was prepping for a speech I’m giving next week and I came across a wonderful HBR article from 1997. (”Strategy Under Uncertainty,” HBR, Nov/Dec, 1997) It’s apretty long article and I’m not going to review all of it here, but I do want to comment on a way to think about adapting during these tough times.

Take the time to consider your organization’s future and the degrees of uncertainty you are facing. Then consider your options for action.

• You could do nothing and wait for the storm to pass.  (not recommended)
• You could take some “no-regrets” actions like improving communications and relationships with customers and employees. (highly recommneded)
• You could put some  low-cost options in place (like basic business education for the workforce) and prepare for the inevitable uptick in business. (highly recommended)
• If your organization is healthy you could place some “big bets” like buying a competitor and take advangtage of weaker competitors’ troubles. (depends on your real business health).

Here’s the bottom line. Sure, times are tough; but this is NOT the time to hide in a corner and whimper. Do what you can to keep your organization prepared for the future. It’s in your hands.

Many managers look upon conflict as something that should be avoided or, if it happens, should “go away” as quickly as possible. However, conflict also has the potential to expose reality and, becuase of this, has the potential to be a new source of information that can be used to adapt your strategy.

Think back to the early days of just-in-time inventory management. There was plenty of conflict over whether or not we could run a manufacturing operation with minimal inventory. But it was discussed and we found that we could, in fact, rethink the role of inventory in running a manufacturing company. The conflict exposed a new reality.

Think about today and some of the generational conflict over the use of technology. Us old guys want to send lengthy e-mail messages; “the kids” feel that a Tweet is fine. Who’s going to win? It doesn’t make any difference — the discussion will cause us to rethink the ways we communicate in buisness.

Got conflict in your organization?? Great — use it as a basis to rethink your reality. Have fun.