Shaping Network Society

Pulling the Rug From Under Classical Strategy

The following guest blog was written by Sofia Elizondo from the BCG Strategy Institute. She is a long term member of the Shaping-Network-Society community and is looking forward to your comments. She has outlined several future entries, so there is more to come!

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Classical business strategy was about the ability to predict, plan accordingly, and orchestrate flawless execution. The goal was to be bigger, differentiated from the rest, and therefore more profitable.

Not anymore. This game is over.

Today, we see that the largest companies are no longer the most profitable and size can become a hindrance for change. Industry leaders cannot maintain their positions as long as they used to. Everyone has access to the information that used to provide competitive advantage. New social behaviors – like peer production, mobility, and firm disloyalty – are shaking rigid organizational structures. New value propositions – like sustainability, authenticity, or public value – are redefining wealth.

Volatility across many dimensions is increasing at a dizzying pace and classical strategy cannot keep up. By the time corporate strategic planning centers predict and plan, the real world has changed again.

• Is strategy as we know it doomed to extinction?
• Can strategy adapt to its changing environment?
• How?

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.

07. July 2009 by Philipp
Categories: Blog | Tags: authenticity, communicative strategy, competitive strategy | 1 comment