𖣯Strategic Management: Strategic Perspectives (Part II: The Elephant in the Room)

Strategic Management Perspectives

There’s an ancient parable about several blind people who touch a shape they had never met before, an elephant, and try to identify what it is. The elephant is big, more than each person can sense through direct experience, and people’s experiences don’t correlate to the degree that they don’t trust each other, the situation escalating upon case. The moral of the parable is that we tend to claim (absolute) truths based on limited, subjective experience [1], and this can easily happen in business scenarios in which each of us has a limited view of the challenges we are facing individually and as a collective. 

The situation from the parable can be met in business scenarios, when we try to make sense of the challenges we are faced with, and we get only a limited perspective from the whole picture. Only open dialog and working together can get us closer to the solution! Even then, the accurate depiction might not be in sight, and we need to extrapolate the unknown further.  

A third-party consultant with experience might be the right answer, at least in theory, though experience and solutions are relative. The consultant might lead us in a direction, though from this to finding the answer can be a long way that requires experimentation, a mix of tactics and strategies that change over time, more sense-making and more challenges lying ahead. 

We would like a clear answer and a set of steps that lead us to the solution, though the answer is as usual, it depends! It depends on the various forces/drivers that have the biggest impact on the organization, on the context, on the organization’s goals, on the resources available directly or indirectly, on people’s capabilities, the occurrences of external factors, etc. 

In many situations the smartest thing to do is to gather information, respectively perspectives from all the parties. Tools like brainstorming, SWOT/PESTLE analysis or scenario planning can help in sense-making to identify the overall picture and where the gravity point lies. For some organizations the solution will be probably a new ERP system, or the redesign of some processes, introduction of additional systems to track quality, flow of material, etc. 

A new ERP system will not necessarily solve all the issues (even if that’s the expectation), and some organizations just try to design the old processes into a new context. Process redesign in some areas can be upon case a better approach, at least as primary measure. Otherwise, general initiatives focused on quality, data/information management, customer/vendor management, integrations, and the list remains open, can provide the binder/vehicle an organization needs to overcome the current challenges.

Conversely, if the ERP or other strategical systems are 10-20 years old, then there’s indeed an elephant in the room! Moreover, the elephant might be bigger than we can chew, and other challenges might lurk in its shadow(s). Everything is a matter of perspective with no apparent unique answer. Thus, finding an acceptable solution might lurk in the shadow of the broader perspective, in the cumulated knowledge of the people experiencing the issues, respectively in some external guidance. Unfortunately, the guides can be as blind as we are, making limited or no important impact. 

Sometimes, all it’s needed is a leap of faith corroborated with a set of tactics or strategies kept continuously in check, redirected as they seem fit based on the knowledge accumulated and the challenges ahead. It helps to be aware of how others approached the same issues. Unfortunately, there’s no answer that works for all! In this lies the challenge, in identifying what works and makes sense for us!

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Resources:
[1] Wikipedia (2024) Blind men and an elephant [link]

𖣯Strategic Management: The Impact of New Technologies (Part III: Checking the Vital Signs)

An organization which went through a major change, like the replacement of a strategic system (e.g. ERP/BI implementations), needs to go through a period of attentive supervision to address the inherent issues that ideally need to be handled as they arise, to minimize their future effects. Some organizations might even go through a convalescence period, which risks to prolong itself if the appropriate remedies aren’t found. Therefore, one needs an entity, who/which has the skills to recognize the symptoms, understand what’s happening and why, respectively of identifying the appropriate actions.

Given technologies’ multi-layered complexity and the volume of knowledge for understanding them, the role of the doctor can be seldom taken by one person. Moreover, the patient is an organization, each person in the organization having usually local knowledge about the patient. The needed knowledge is dispersed trough the organization, and one needs to tap into that knowledge, identify the people close to technologies and business area, respectively allow such people exchange information on a regular basis.

The people who should know the best the organization are in theory the management, however they are usually too far away from technologies and often too busy with management topics. IT professionals are close to technologies, though sometimes too far away from the patient. The users have a too narrow overview, while from logistical and economic reasons the number of people involved should be kept to a minimum. A compromise is to designate one person from each business area who works with any of the strategic systems, and assure that they have the technical and business knowledge required. It’s nothing but the key-user concept, though for it to work the key-users need not only knowledge but also the empowerment to act when the symptoms appear.

Big organizations have also a product owner for each application who supervises the application through its entire lifecycle, and who needs to coordinate with the IT, business and service providers. This is probably a good idea in order to assure that the ROI is reached over time, respectively that the needs of the system are considered within the IT operation context. In small organizations, the role can be taken by a technical or a business resource with deeper skills then the average user, usually a key-user. However, unless joined with the key-user role, the product owner’s focus will be the product and seldom the business themes.

The issues that need to be overcome after major changes are usually cross-functional, being imperative for people to work together and find solutions. Unfortunately, it’s also in human nature to wait until the issues are big enough to get the proper attention. Unless the key-users have the time allocated already for such topics, the issues will be lost in the heap of operational and tactical activities. This time must be allocated for all key-users and the technical resources needed to support them.

Some organizations build temporary working parties (groups of experts working together to achieve specific goals) or similar groups. However, the statute of such group needs to be permanent if the organization wants to continuously have its health in check, to build the needed expertize and awareness about occurred or potential issues. Centers of excellence/expertize (CoE) or competency centers (CC) are such working groups with permanent statute, having defined roles, responsibilities, and processes for supporting and promoting the effective use of technologies within the organization, respectively of monitoring and systematically addressing the risks and opportunities associated with them.

There’s also the null hypothesis, doing nothing, relying solely on employees’ professionalism, though without defined responsibility, accountability and empowerment, it can get messy.

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🧭Business Intelligence: New Technologies, Old Challenges (Part I: An Introduction)

Each important technology has the potential of creating divides between the specialists from a given field. This aspect is more suggestive in the data-driven fields like BI/Analytics or Data Warehousing. The data professionals (engineers, scientists, analysts, developers) skilled only in the new wave of technologies tend to disregard the role played by the former technologies and their role in the data landscape. The argumentation for such behavior is rooted in the belief that a new technology is better and can solve any problem better than previous technologies did. It’s a kind of mirage professionals and customers can easily fall under.

Being bigger, faster, having new functionality, doesn’t make a tool the best choice by default. The choice must be rooted in the problem to be solved and the set of requirements it comes with. Just because a vibratory rammer is a new technology, is faster and has more power in applying pressure, this doesn’t mean that it will replace a hammer. Where a certain type of power is needed the vibratory rammer might be the best tool, while for situations in which a minimum of power and probably more precision is needed, like driving in a nail, then an adequately sized hammer will prove to be a better choice.

A technology is to be used in certain (business/technological) contexts, and even if contexts often overlap, the further details (aka requirements) should lead to the proper use of tools. It’s in a professional’s duties to be able to differentiate between contexts, requirements and the capabilities of the tools appropriate for each context. In this resides partially a professional’s mastery over its field of work and of providing adequate solutions for customers’ needs. Especially in IT, it’s not enough to master the new tools but also have an understanding about preceding tools, usage contexts, capabilities and challenges.

From an historical perspective each tool appeared to fill a demand, and even if maybe it didn’t manage to fill it adequately, the experience obtained can prove to be valuable in one way or another. Otherwise, one risks reinventing the wheel, or more dangerously, repeating the failures of the past. Each new technology seems to provide a deja-vu from this perspective.

Moreover, a new technology provides new opportunities and requires maybe to change our way of thinking in respect to how the technology is used and the processes or techniques associated with it. Knowledge of the past technologies help identifying such opportunities easier. How a tool is used is also a matter of skills, while its appropriate use and adoption implies an inherent learning curve. Having previous experience with similar tools tends to reduce the learning curve considerably, though hands-on learning is still necessary, and appropriate learning materials or tutoring is upon case needed for a smoother transition.

In what concerns the implementation of mature technologies, most of the challenges were seldom the technologies themselves but of non-technical nature, ranging from the poor understanding/knowledge about the tools, their role and the implications they have for an organization, to an organization’s maturity in leading projects. Even the most-advanced technology can fail in the hands of non-experts. Experience can’t be judged based only on the years spent in the field or the number of projects one worked on, but on the understanding acquired about implementation and usage’s challenges. These latter aspects seem to be widely ignored, even if it can make the difference between success and failure in a technology’s implementation.

Ultimately, each technology is appropriate in certain contexts and a new technology doesn’t necessarily make another obsolete, at least not until the old contexts become obsolete.

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📦Data Migrations (DM): Conceptualization (Part II: Plan vs. Concept vs. Strategy)

Data Migrations Series

A concept is a document that describes at high level the set of necessary steps and their implications to achieve a desired result, typically making the object of a project. A concept is usually needed to provide more technical and nontechnical information about the desired solution, the context in which a set of steps are conducted, respectively the changes considered, how the changes will be implemented and the further aspects that need to be considered. It can include a high-level plan and sometimes also information that typically belong in a Business Case – goals,objectives, required resources, estimated effort and costs, risks and opportunities.

A concept is used primarily as basis for sign-off as well for establishing common ground and understanding. When approved, it’s used for the actual implementation and solution’s validation. The concept should be updated as the project progresses, respectively as new information are discovered.

Creating a concept for a DM can be considered as best practice because it allows documenting the context, the technical and organizational requirements and dependencies existing between the DM and other projects, how they will be addressed. The concept can include also a high-level plan of the main activities (following to be detailed in a separate document).

Especially when the concept has an exploratory nature (due to incomplete knowledge or other considerations), it can be validated with the help of a proof-of-concept (PoC), the realization of a high-level-design prototype that focuses on the main characteristics of the solution and allows thus identifying the challenges. Once the PoC implemented, the feedback can be used to round out the concept.

Building a PoC for a DM should be considered as objective even when the project doesn’t seem to meet any major challenges. The PoC should resume in addressing the most important DM requirements, ideally by implementing the whole or most important aspects of functionality (e.g. data extraction, data transformations, integrity validation, respectively the import into the target system) for one or two data entities. Once the PoC built, the team can use it as basis for the evolutive development of the solution during the iterations considered.

A strategy is a set of coordinated and sustainable actions following a set of well-defined goals, actions devised into a plan and designed to create value and overcome further challenges. A strategy has the character of a concept though it has a broader scope being usually considered when multiple projects or initiatives compete for the same resources to provide a broader context and handle the challenges, risks and opportunities. Moreover, the strategy takes an inventory of the current issues and architecture – the 'AS-IS' perspective and sketches the to 'TO-BE' perspective by devising a roadmap that bridges the gap between the two.

In the case of a DM a strategy might be required when multiple DM projects need to be performed in parallel or sequentially, as it can help the organization to better manage the migrations.

A plan is a high-level document that describes the tasks, schedule and resources required to carry on an activity. Even if it typically refers to the work or product breakdown structure, it can cover other information usually available in a Business Case. A project plan is used to guide both project execution and project control, while in the context of Strategic Management the (strategic) plan provides a high-level roadmap on how the defined goals and objectives will be achieved during the period covered by the strategy.

For small DM projects a plan can be in theory enough. As both a strategy and a concept can include a high-level plan, the names are in praxis interchangeable.

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♟️Strategic Management: Opportunities (Just the Quotes)

"No man can tell what the future may bring forth, and small opportunities are often the beginning of great enterprises." (Demosthenes, "Ad Leptinum", cca. 4th century BC)

"Present opportunities are neglected, and attainable good is slighted, by minds busied in extensive ranges and intent upon future advantages." (Samuel Johnson, "The Idler", 1801)

"Results are obtained by exploiting opportunities, not by solving problems. [...] Resources, to produce results, must be allocated to opportunities rather than to problems." (Peter F Drucker, "Managing for Results: Economic Tasks and Risk-taking Decisions", 1964)

"The best way to come to grips with one’s own business knowledge is to look at the things the business has done well, and the things it apparently does poorly. […] Knowledge is a perishable commodity. It has to be reaffirmed, relearned, repracticed all the time. One has to work constantly at regaining one’s specific excellence. […] The right knowledge is the knowledge needed to exploit the market opportunities." (Peter F Drucker, "Managing for Results: Economic Tasks and Risk-taking Decisions", 1964)

"A natural companion to the competitive advantage is the synergy component of strategy. This requires that opportunities within the scope possess characteristics which will enhance synergy." (Igor Ansoff, "Corporate Strategy", 1965)

"Leaders do not avoid, repress, or deny conflict, but rather see it as an opportunity" (Warren G Bennis, "Why Leaders Can't Lead: The Unconscious Conspiracy Continues", 1976) 

"Needs and opportunities are always there. We just have to drive ourselves to find the practical ones." (Taiichi Ohno, "Toyota Production System: Beyond Large-Scale Production", 1978)

"No matter how difficult or unprecedented the problem, a breakthrough to the best possible solution can come only from a combination of rational analysis, based on the real nature of things, and imaginative reintegration of all the different items into a new pattern, using nonlinear brainpower. This is always the most effective approach to devising strategies for dealing successfully with challenges and opportunities, in the market arena as on the battlefield." (Kenichi Ohmae, "The Mind Of The Strategist", 1982)

"No other area offers richer opportunities for successful innovation than the unexpected success." (Peter Drucker, "Innovation and Entrepreneurship", 1985)

"Opportunities abound for linking productivity to business strategy." (John L Grahn, Harvard Business Review, 1986)

"The opportunities and threats existing in any situation always exceed the resources needed to exploit the opportunities or avoid the threats. Thus, strategy is essentially a problem of allocating resources. If strategy is to be successful, it must allocate superior resources against a decisive opportunity." (William Cohen, "Winning on the Marketing Front: The corporate manager's game plan", 1986)

"Problems can become opportunities when the right people come together." (Robert Redford, Harvard Business Review, 1987)

"But business fosters a particular fondness for tactics. That emphasis can lead to an imbalance that reduces the opportunities for success. We get so wrapped up in tactics - doing things to meet a quota or deadline, executing someone else's orders - that we miss the reason behind the tactics. Eventually the purpose of the tactic fades away, but the rules, quotas, deadlines, forms, and frustration remain." (Terry Richey, "The Marketer's Visual Tool Kit", 1994)

"Effective people are not problem-minded; they're opportunity minded. They feed opportunities and starve problems." (Stephen Covey, "Daily Reflections for Highly Effective People", 1994)

"The key to successful brainstorming lies in the team's willingness to suspend disbelief and experiment with new ways of looking at opportunities - something that can be done with a Morpho Box. At this point, concentrating on only the positive possibilities without reference to the inherent problems makes the process work." (Terry Richey, "The Marketer's Visual Tool Kit", 1994)

"Don’t solve problems; pursue opportunities. […] In both the short and long term, our ability to solve social and economic problems will be limited primarily to our lack of imagination in seizing opportunities, rather than trying to optimize solutions. There is more to be gained by producing more opportunities than by optimizing existing ones." (Kevin Kelly, "New Rules for the New Economy: 10 radical strategies for a connected world", 1998)

"[...] a strategic inflection point is a time in the life of business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end." (Andrew S Grove, "Only the Paranoid Survive", 1998)

"Clear goals, multiple strategies, clear roles and responsibilities, boldness, teamwork, speed, flexibility, the ability to change, managing risk, and seizing opportunities when they arise are important characteristics in gaining objectives." (Margaret Y Chu, "Blissful Data", 2004)

"[...] incomplete, inaccurate, and invalid data can cause problems for an organization. These problems are not only embarrassing and awkward but will also cause the organization to lose customers, new opportunities, and market share." (Margaret Y Chu, "Blissful Data", 2004)

"Decision making is the process of identifying problems and opportunities and then resolving them. Decision making involves effort before and after the actual choice." (Richard L Daft & Dorothy Marcic, "Understanding Management" 5th Ed., 2006)

"Cumulative errors depend largely on the big surprises, the big opportunities. Not only do economic, financial, and political predictors miss them, but they are quite ashamed to say anything outlandish to their clients - and yet events, it turns out, are almost always outlandish." (Nassim N Taleb, "The Black Swan: The Impact of the Highly Improbable", 2007) 

"Systemic problems trace back in the end to worldviews. But worldviews themselves are in flux and flow. Our most creative opportunity of all may be to reshape those worldviews themselves. New ideas can change everything." (Anthony Weston, "How to Re-Imagine the World", 2007)

"Every moment – every blink – is composed of a series of discrete moving parts, and every one of those parts offers an opportunity for intervention, for reform, and for correction." (Malcolm Gladwell, "Blink: The Power of Thinking Without Thinking", 2008)

"Synergy is the combined action that occurs when people work together to create new alternatives and solutions. In addition, the greatest opportunity for synergy occurs when people have different viewpoints, because the differences present new opportunities. The essence of synergy is to value and respect differences and take advantage of them to build on strengths and compensate for weaknesses." (Richard L Daft, "The Leadership Experience" 4th Ed., 2008)

"With respect to SWOT, threats are represented by the competitive products or their characteristics that offer the competition the best opportunity to damage your reputation." (Steven G Haines, "The Product Manager's Desk Reference", 2008)

"Bringing together the right information with the right people will dramatically improve a company's ability to develop and act on strategic business opportunities." (Bill Gates,  "Business @ the Speed of Thought: Succeeding in the Digital Economy", 2009) 

"Businesses always have opportunities to improve service, product lines, manufacturing techniques, and the like, and obviously these opportunities should be seized. But a business that constantly encounters major change also encounters many chances for major error." (Warren Buffett, "Warren Buffett on Business: Principles from the Sage of Omaha", 2009)

"Implementing new systems provides organizations with unique opportunities not only to improve their technologies, but to redefine and improve key business processes. Ultimately, for organizations to consider these new systems successes, the post-legacy environment must ensure that business processes, client end users, and systems work together." (Phil Simon, "Why New Systems Fail: An Insider’s Guide to Successful IT Projects", 2010)

"For the most part, the best opportunities now lie where your competitors have yet to establish themselves, not where they're already entrenched." (Paul Allen, "Idea Man: A Memoir by the Cofounder of Microsoft", 2011)

"Data are essential, but performance improvements and competitive advantage arise from analytics models that allow managers to predict and optimize outcomes. More important, the most effective approach to building a model rarely starts with the data; instead it originates with identifying the business opportunity and determining how the model can improve performance." (Dominic Barton & David Court, "Making Advanced Analytics Work for You", 2012) 

"Even with simple and usable models, most organizations will need to upgrade their analytical skills and literacy. Managers must come to view analytics as central to solving problems and identifying opportunities - to make it part of the fabric of daily operations." (Dominic Barton & David Court, "Making Advanced Analytics Work for You", 2012)

"The passage of time and the action of entropy bring about ever-greater complexity - a branching, blossoming tree of possibilities. Blossoming disorder (things getting worse), now unfolding within the constraints of the physics of our universe, creates novel opportunities for spontaneous ordered complexity to arise." (D J MacLennan, "Frozen to Life", 2015)

"A clear, thoughtful mission statement, developed collaboratively with and shared with managers, employees, and often customers, provides a shared sense of purpose, direction, and opportunity." (Philip Kotler & Kevin L Keller, "Marketing Management" 15th Ed., 2016)

"Sometimes, the best way to broaden your search is to look inside your own organization. Great solutions often come along at the wrong time, and the sprint can be a perfect opportunity to rejuvenate them. Also look for ideas that are in progress but unfinished - and even old ideas that have been abandoned." (Jake Knapp et al, "Sprint: How to Solve Big Problems and Test New Ideas in Just Five Days", 2016)

"[...] strategy is about determining the problems and opportunities in front of you, defining them properly, and shaping a course of action that will give your business the greatest advantage. Balancing problem solving with creating and exploiting new opportunities through imagination and analysis is the cornerstone of a great strategy." (Eben Hewitt, "Technology Strategy Patterns: Architecture as strategy" 2nd Ed., 2019)

📉Graphical Representation: Opportunities (Just the Quotes)

"Charts offer opportunities to distort information, to misinform. An old adage can be extended to read: 'There are lies, damned lies, statistics and charts'. Our visual impressions are often more memorable than our understanding of the facts they describe. [...] Never let your design enthusiasms overrule your judgement of the truth." (Bruce Robertson, "How to Draw Charts & Diagrams", 1988)

"Graphical illustrations should be simple and pleasing to the eye, but the presentation must remain scientific. In other words, we want to avoid those graphical features that are purely decorative while keeping a critical eye open for opportunities to enhance the scientific inference we expect from the reader. A good graphical design should maximize the proportion of the ink used for communicating scientific information in the overall display." (Phillip I Good & James W Hardin, "Common Errors in Statistics (and How to Avoid Them)", 2003)

"If we attempt to map the world of a story before we explore it, we are likely either to (a) prematurely limit our exploration, so as to reduce the amount of material we need to consider, or (b) explore at length but, recognizing the impossibility of taking note of everything, and having no sound basis for choosing what to include, arbitrarily omit entire realms of information. The opportunities are overwhelming." (Peter Turchi, "Maps of the Imagination: The writer as cartographer", 2004)

"All graphics by definition employ metaphors, but some are more metaphorical than others. Sometimes the metaphor escapes from its graphical cage, takes on a life of its own and provides exciting deception opportunities." (Nicholas Strange, "Smoke and Mirrors: How to bend facts and figures to your advantage", 2007)

"Category definition and selection in the pre-graphical phase of communication offer varied manipulation opportunities. But once we get to designing the chart itself category distortion opportunities are even more attractive." (Nicholas Strange, "Smoke and Mirrors: How to bend facts and figures to your advantage", 2007)

"Design has the power to enrich our lives by engaging our emotions through image, form, texture, color, sound, and smell. The intrinsically human-centered nature of design thinking points to the next step: we can use our empathy and understanding of people to design experiences that create opportunities for active engagement and participation." (Tim Brown, "Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation", 2009)

"Competition for your audiences attention is fierce. The fact that infographics are unique allows organizations an opportunity to make the content they are publishing stand out and get noticed." (Mark Smiciklas, "The Power of Inforgraphics", 2012)

"Sparklines aren't necessarily a variation on the line chart, rather, a clever use of them. [...] They take advantage of our visual perception capabilities to discriminate changes even at such a low resolution in terms of size. They facilitate opportunities to construct particularly dense visual displays of data in small space and so are particularly applicable for use on dashboards." (Andy Kirk, "Data Visualization: A successful design process", 2012)

"The process of visual analysis can potentially go on endlessly, with seemingly infinite combinations of variables to explore, especially with the rich opportunities bigger data sets give us. However, by deploying a disciplined and sensible balance between deductive and inductive enquiry you should be able to efficiently and effectively navigate towards the source of the most compelling stories." (Andy Kirk, "Data Visualization: A successful design process", 2012)

"Data storytelling gives your insight the best opportunity to capture attention, be understood, be remembered, and be acted on. An effective data story helps your insight reach its full potential: inspiring others to act and drive change." (Brent Dykes, "Effective Data Storytelling: How to Drive Change with Data, Narrative and Visuals", 2019)