CHALLENGING THE NORM(AN)

Building the Future means Challenging the norm. We know that conditions have really changed in the post GFC environment. Economists refer to this process of continuos change and turbulence as the “new normal”. Adaptation and innovation is required just to stand still, let alone to grow and thrive. Being innovative often means that we have to question - even challenge - conventional and established processes. But to follow this approach blindly (ie always challenging convention) can be as dangerous as refusing to change and always following convention. Its useful to explore this issue a bit more broadly. Scientists and researchers refer to existing approaches as theories or paradigms. These represent short-cuts (the brain refers to these as heuristics) to solving problems or addressing challenges we come across frequently. It means that we don’t have to adopt first-principles analysis and problem solving every time we encounter an situation. This way, we “save” our energy and resources to address unique issues or challenges that really require some original thought. So, existing theories and paradigms are useful in that they allow us to be creative and innovative in areas that really need it. But sometimes, the existing paradigm “blocks out” information and presents us with an incomplete picture of the situation. Usually the blocked information is represented by “outlier” data - ie data that no longer conforms to the “norm” of the theory. In general, conservative people tend to ignore outlier data too long and don’t question the validity of the theory. Similarly, more radical thinkers tend to overplay the value of the outlier data and will question the validity of the theory at the earliest signs of data that doesn’t conform to the theory. Both approaches are dangerous - that’s why I said that being challenging the norm all the time is as limiting as never challenging the norm. So, the key is to judge where your innovation and challenging the norm is best applied.

I’m interested in your take as to when / where to challenge the norm..........

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Part 3: Accelerate Performance With Strategic Alignment - Develop The Appropriate Culture

By Norman Chorn • March 27, 2023

In my previous article "Accelerate Performance with Strategic Alignment - Define the logic of your strategy", we demonstrated the alignment between the market and business strategy by matching the logic of the market with the logic of the strategy. The Explore logic emphasises a market where customers seek new solutions for emerging requirements. The strategy responds by exploring new opportunities and driving for growth. The Exploit logic occurs in a more stable market where customers seek lower costs and reliability of supply. The appropriate strategy focuses on operational efficiency and building close customer relationships. Culture is key to shaping the capabilities of the business to successfully implement strategy . It drives the way that people behave, decisions are made and actions are taken. It determines, therefore, the strategy that is actually realised in the market, as opposed to that which is merely intended. We make a key distinction between the desired culture and the appropriate culture. The desired culture is what people may choose because it sounds attractive and in vogue. However, the appropriate culture is the culture that is required to successfully implement the chosen strategy. Often, these can be different. For example, people might seek to develop a culture that is ‘innovative’, ‘flexible’ and ‘empowering’, but this may not be the appropriate culture needed to successfully implement the business strategy. DEVELOP THE APPROPRIATE CULTURE FOR YOUR STRATEGY Developing the appropriate culture requires a deliberate emphasis on certain cultural attributes and making trade-offs on others. As we will see, the attributes that are traded off are usually the opposites of those that are emphasised.

Part 2: Accelerate Performance with Strategic Alignment - Define the Logic of your Strategy

By Norman Chorn • March 27, 2023

In Part 1 "How to Accelerate Performance with Strategic Alignment - Understand the Logic of the Market" we outlined different market conditions and defined them in terms of two overarching logics — Exploring and Exploiting . To briefly recap, an Exploring logic is one where customers are seeking new solutions for emerging needs. It’s all about change and action. An Exploiting logic occurs in a more stable market in which the issues are about lowering costs and working collaboratively with customers. It’s a market that focuses on stability and cohesion. FORCES THAT SHAPE YOUR STRATEGY Clearly, it is one of these two logics — or a combination of both — that will shape your strategy as you operate in these markets. See figure 1 below that describes how these logics will form your business strategy: