Shaping Network Society

Adaptive Advantages and Deliverology

The trend in 2009 is to argue that in times of crisis, strategy needs to be more attuned to the changing realities of an organizations environment. As Stefan Stern argues in the FT:

At BCG, Reeves and Deimler has produced a paper, “New bases of competitive advantage”, that looks at something they call “adaptive advantage”. This is strategy, too, but not as we know it.

“Organisations with adaptive advantage recognise the unpredictability of today’s environment and the limits of deductive analysis,” they write. New problems are constantly emerging. Well-run businesses respond effectively to them.

How? First, they process relevant data – “signals” – quickly, and react to them. Google is an obvious master of this, getting closer than anyone else to understanding how online advertising works. Second, they see clearly how their business fits into a wider context. Amazon has made sure its Kindle e-book reader is supported by a network of valuable partners. Third, they are alive to social change and shifting customer preferences. Toyota managed this with its hybrid Prius car. Fourth, they experiment effectively, as Procter & Gamble does when trialling products. Last, they draw on the talents of the best people they can find – whether they employ them or not. Software companies such as Red Hat and TopCoder oversee large networks of programmers, using the best people with great flexibility. Their permanent staff is relatively small. But they have access to many more.

So it becomes clear that in rapidly changing environments we need to control our processes better than ever before, so we can understand the impacts of environmental changes on our processes and react upon them in real-time. In order to cope with potential blindspots, we need to build as much critical reflexivity into our processes right from the start and construct powerful levers that allow us to implement changes with no lag.

An there of course Michael Barber comes to mind, with his take on the delivery unit he headed for Tony Blair from 2001 to 2005 and his approach of deliverology, which is a critical strategic approach asking: What are you trying to do? How are you trying to do it? How do you know you are succeeding? If you’re not succeeding, how will you change things? How can we help you? Do read his Instruction to Deliver, where in chapter three he outlines his approach to deliverology. Here my quick “adaptive advantage” reading of his approach:

– Setting Goals – deliverology allows you to reflect on the goals you really care about – now!

– The Map of Delivery – reflect your boldness and quality dimensions.

– Delivery Chains – outline potential paths to achieve your outcomes (might be through your process or by influencing other processes)

– Trajectories/League tables – compare processes in your portfolio on the medium term trajectory they are on.

– Stocktakes – choreograph the people sessions where you account and control.

About Philipp

Philipp Müller works in the IT industry and is academic dean of the SMBS. Author of "Machiavelli.net". Proud father of three amazing children. The views expressed in this blog are his own.

28. October 2009 by Philipp
Categories: Blog | 1 comment