Is Your Strategy Being Hijacked by Numbers?
I am concerned that strategy is being hijacked by analysts and too many numbers; too many spreadsheets; the larger the better. As a result managers in many organisations dread the annual strategic ritual. It consumes so much time and has so little impact on how they run the business. No wonder strategy has such a bad rap in many outfits.
This is a real pity because strategy can be one of the most powerful ways to move all the people in an organisation towards its vision but only if we do it differently.
There are two schools of thought about the Strategic Process:
TWO SCHOOLS OF STRATEGY
The logic school is based on several unspoken assumptions:
Both schools have their strengths and weaknesses. It would be wrong to disregard either; however, most New Zealand organisations are hijacked by the numbers approach. As a result, many strategic workshops are boring, and not nearly as successful as they could be. Worst still, strategy becomes a ritual to be suffered rather than an opportunity to get everyone involved and excited about the future direction.
Bruce Holland was trained as an accountant so he knows numbers and their limitations. He was the Group Strategic Manager at the Bank of New Zealand before becoming a consultant. In 1992 he formed Virtual Group and works with many organisations helping their strategic processes.
Bruce is the author of the book: Cracking Great Leaders Liberate Human Energy at Work and the supporting Program designed to liberate human energy throughout the organisation.
Bruce is also a mentor at GoConsult.nz. The early years of consulting can be a jungle with many risks before the rewards. GoConsult.nz mentors help maximise the rewards of consulting and minimise the risks of transition. He has made available Intellectual Property for other consultants who don’t have the skills or time to develop their own IP to help their clients develop organisational genius and strengthen their human energy fields.
This is a real pity because strategy can be one of the most powerful ways to move all the people in an organisation towards its vision but only if we do it differently.
There are two schools of thought about the Strategic Process:
- Logic School - A linear or left brain school based largely on Analysts and specialists and numbers
- Magic School - A nonlinear or right brain school based largely on Line Managers and stories and action learning.
TWO SCHOOLS OF STRATEGY
The logic school is based on several unspoken assumptions:
- That visions can be represented in numbers. Think about it: how can things like friendships, trust, and cooperation be reduced to numbers? Also, numbers turnoff most of the people who should be involved. For practical people it’s far better to use stories and action learning where they get to understand and experience the new vision.
- That analysts and specialists are the best people to drive strategy. In my experience Line Managers are far better drivers of strategy because they understand the issues and reality in the market place. They are also the people who must execute the strategies and therefore their ownership is vital. But Line Managers are often uncomfortable with analysis and numbers. As a result they can’t participate fully or have sufficient ownership of the strategies when they are presented to them by analysts.
- That the ideas needed to create a winning strategy do not exist within the Line Managers and need to be imported from outside. In my experience this is simply untrue. I’ve found the ideas are always available from within.
- That you can create a powerful vision of the future after thinking extensively about the present. Yet when strategy is based on numbers it almost always starts with the current P&L and balance Sheet. In my experience, thinking too deeply about the present tends to limit the possibilities considered for the vision.
Both schools have their strengths and weaknesses. It would be wrong to disregard either; however, most New Zealand organisations are hijacked by the numbers approach. As a result, many strategic workshops are boring, and not nearly as successful as they could be. Worst still, strategy becomes a ritual to be suffered rather than an opportunity to get everyone involved and excited about the future direction.
Bruce Holland was trained as an accountant so he knows numbers and their limitations. He was the Group Strategic Manager at the Bank of New Zealand before becoming a consultant. In 1992 he formed Virtual Group and works with many organisations helping their strategic processes.
Bruce is the author of the book: Cracking Great Leaders Liberate Human Energy at Work and the supporting Program designed to liberate human energy throughout the organisation.
Bruce is also a mentor at GoConsult.nz. The early years of consulting can be a jungle with many risks before the rewards. GoConsult.nz mentors help maximise the rewards of consulting and minimise the risks of transition. He has made available Intellectual Property for other consultants who don’t have the skills or time to develop their own IP to help their clients develop organisational genius and strengthen their human energy fields.