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Welcome

Welcome to the February edition of Strategic Innovation Newsletter, delivered on the first Tuesday of each month.

January for me is a time of reflection and strategising. We are in interesting times, the agitation of the economy is shaking up top management, and showing who has the vision and depth of character to set a new course.

We have no idea what the economy will do in the short term, but we do know what we are passionate about and what we are good at. There is always room for another passionate person to drive their business and actually care about their customers.

"Those who have knowledge, don't predict. Those who predict, don't have knowledge." - Lau Tzu

Nothing fails like success.

Agitation

The first step in a business embarking on a new strategy is accepting that things are not as you would like them to be. This is the agitation. Now of course it would be nice if we were the ones that decided when and how to change, but often it is external circumstances that either inspire or force us to correct our course or change tact.

Breaking the Status Quo

Defining the problem and the future implications can help management teams acknowledge that a new strategy is necessary. In the late 1980’s when Lee Iaccoca took over at the helm of Chrysler, there was strategic imperative.

He took strong tactical decisions, such as providing longer-term warranties, as well as strategic, such as selling the profitable tank division, declaring “we are a car manufacturer not a defence contractor.”

But if Chrysler had not been on the verge of bankruptcy, would they have had the inspiration of the burning bridge behind them to make the necessary changes?

Exemplars

This week the IMF has lowered its global forecasts and The Australian ran the headline “the worst year since the great depression.' It is no wonder executives are delaying investment.

The evidence suggests now is a good time to be bold, a recent article in The McKinsey Quarterly, Dec 2008 looked at the characteristics of companies that came out of the Great Depression as leaders. Companies like DuPont invented and commercialised Neoprene and Nylon, and Radio Corporation of America (RCA) was able to become a leader in its field.

Further household names such Hewlett- Packard and Polaroid began as start-ups during the same period.

Bottom Line

Great leaders embody straight talk, quality and the pragmatic thinking needed to set the right course. Success in business is not so much about the people as much as the people who can create the right strategy. The first step is accepting the challenge; agitation is a necessary first step.

So what’s your strategy?
 

Techniques of the month: Breaking Through the Status Quo

With your team, right down the business problems you face. Extrapolate what will happen if you continue with the status quo.

You will be able to work out which are real and which are imagined. For the real create the leverage on yourself to change. Create consensus that change is required.

Finally ask the question; If not now, when?
 

Announcements: Business Breakfast - Managing Change & Transition

The next monthly Business Breakfast Briefing will cover the topic, Managing Change and Transition.

Dealing with change and crisis is difficult in any business environment let alone one as turbulent as managers and business owners face today.
 

This business-briefing topic will cover advice and tools for controlling stress, and sharing information during transition.

You have no time for theory and jargon, and you don’t need to change the world, just pragmatic tools that allow you to adjust to the new realities quickly.
This seminar will show you tips, and tools so you can develop an effective transition plan for your organisation.

Learn tools to help you:

• Recognise the need for organizational change
• Execute the different approaches to change
• Stay competitive during turbulent change
• Overcome strong resistance from employees

Join Daniel Lock for a presentation that will inspire you to re-think your business model from the ground up and deliver you these results and more!

Date: Tuesday 17 February 2009
Time: 7:15am (7:30am start) to 9:00am
Where: To be advised (Adelaide city square)
Cost: $39 per person

DON'T MISS OUT ON THIS EVENT
Book Now: www.mybookingmanager.com/DL170209