John Sterling

Translating strategy into effective implementation: dispelling the myths and highlighting what works

Several reasons are frequently offered to explain (or to justify) failure to implement strategy. Some are valid but many have merely gained credibility from being repeated often. By discrediting the myths, we can more clearly look at a number of approaches that can greatly enhance the effectiveness of strategy implementation. There are seven key reasons for strategy failure. Unanticipated market changes – strategies can fail because the market conditions change before the strategy can take hold. Three preventative actions are cited: (1) effective competitor responses to strategy – to out‐perform the competition, competitive intelligence is a must; (2) too little investment – if insufficient resources are applied, the strategy will fail. Modeling will aid the executive to make smarter deployment of limited resources; and (3) failure of buy‐in – insufficient buy‐in to or understanding of the strategy among those who need to implement it will cause failure. Good strategic management is a function of people actively considering the strategy as they make day‐to‐day decisions in an ever‐changing world. Lack of focus – resources are wastefully dissipated if priorities are unclear. Put the strategy on one page: focus to execute. Poorly conceived business models – sometimes strategies are simply bad.

A plan for a US newspaper industry counterattack against disruptive innovators

Purpose – Firms offering a variety of disruptive innovations – for example, Craigslist.com – are successfully undercutting the traditional newspaper business model; this paper aims to describe a unique mode of counterattack.Design/methodology/approach – The American Press Institute (API) recognized that the transformation taking place in the newspaper industry was a textbook example of disruptive innovation, as described by strategist Clayton Christensen. Working with Christensen and his colleagues at the consulting firm Innosight, API developed a counter‐offensive program customized to the issues and changes facing newspaper companies.Findings – The paper finds that the Newspaper Next Game Plan is essentially a strategic framework designed to enable newspaper organizations to structure and prioritize their approach to both the core business and the disruptive innovation opportunities that will drive long‐term success and growth.Practical implications – APIs newspaper‐centric version of the innovation me...

Think disruptive! How to manage in a new era of innovation

Purpose – The current downturn may offer a unique opportunity for astute corporate leadership to undertake the kind of innovation that disrupts markets, channels or even industries says Scott Anthony, president of innovation consultancy Innosight, co‐founded by disruptive innovation guru, Clayton Christensen. This paper aims to investigate this issue.Design/methodology/approach – In this interview, Anthony reviews how the tenets of disruptive innovation – identify the job the customer cannot get done, look for innovative ways to get that job done, focus on experimentation and learning – apply in a recessionary environment.Findings – Anthony warns that in recessions, a company may think has a choice – risk innovation or choose the safety of survival mode. But it is a false choice. The only way to survive is to innovate.Practical implications – Anthony explains that “Scarcity is a great innovation enabler. Lean teams have to focus on the most critical issues.”Originality/value – Anthonys golden rule: “The ...

Reaping value from intellectual property: DuPont's strategic approach achieves global growth

Purpose – Explains how companies can learn from the best practices DuPont uses to aggressively manage its intellectual property and grow its licensing revenues.Design/methodology/approach – This case extracts three key success factors from the DuPont approach and describes how they are applied in practice.Findings – At a strategic level, companies need to have a corporate level commitment to capturing and growing value from its intellectual assets – a proactive approach, not a passive, opportunistic approach. Companies need to focus resources on facilitating the creation of licensing revenue growth – either centrally, as at DuPont, or within every substantial business unit that “owns” licensable intellectual assets. And, companies need to create incentives for business units to devote attention and resources to its intellectual property portfolio.Practical implications – Smaller technology companies have a strong motivation to aggressively manage their intellectual property and grow their licensing revenu...

Company culture provides competitive edge for Sargento Foods

People and culture are a core element of strategy at the Wisconsin‐based cheese processing and marketing company, Sargento Foods. Its competitive advantage stems from the capabilities and loyalty of its 1,200 employees. Three interrelated business drivers define the company’s core strategy – a focus on cheese products, a commitment to outstanding customer and consumer response, and an economic engine centered on customer profitability. This three‐pronged strategy is guided by the company’s cultural philosophy – people, pride and progress. The culture and the commitment to people is the foundation for all other strategic initiatives. For over 50 years, Sargento has translated their philosophical commitment to people and culture into meaningful long‐term action through several HR programs cited in the article.

Conference report – Dynamic discourse drives effective strategy implementation: Association for Strategic Planning's annual conference recap

Purpose – The purpose of this paper is to report on the Association for Strategic Planning Conference.Design/methodology/approach – The paper provides a conference report for the 2012 Association for Strategic Planning Conference, held in Lincolnshire, Illinois, USA from May 30‐June 2, 2012.Findings – The paper reveals presentations of practitioners and veteran consultants who share what is working in their practice of strategic management.Originality/value – The paper provides reviews of papers presented at the 2012 Association for Strategic Planning Conference provided by practitioners and veteran consultants who share what is working in their practice of strategic management.

A non‐profit theater's strategy focuses on experiences

Purpose – This case study aims to demonstrate how the Timeline Theatre, a non‐profit organization that has won awards for managerial excellence and artistic achievement, has implemented both an experience‐driven strategy (its conscious choice) and an ongoing commitment to co‐creation of unique value through experiences (its values‐based approach). By adopting both, TimeLine has achieved significant artistic and organizational growth.Design/methodology/approach – The case traces the non‐profits strategy development and its implementation of two innovative strategic management concepts.Findings – The paper finds that TimeLines strategy and core values are both important factors underpinning its run of success.Practical implications – The case provides a model for other organizations that want to experiment with these strategic concepts.Originality/value – The ideas of co‐creation of value and experience‐based strategy are mutually reinforcing and become more powerful taken in combination. In settings wher...

The Persistence Project: seeking to advance the art of “success study”

Purpose – “The Persistence Project” – an ambitious new research project led by two Deloitte Consulting veterans, consultant Mumtaz Ahmed and noted author Michael Raynor – seeks to advance the art of “success study.”. This paper aims to investigate this issue.Design/methodology/approach – Starting in 2007, Mumtaz Ahmed and Michael Raynor worked on developing a rigorous statistical method for identifying exceptional performers with Professor Andrew D. Henderson of the University of Texas at Austin. The paper looks at the method by way of an interview.Findings – The paper finds that their preliminary efforts so far have revealed that the benchmarks for greatness are much higher than generally perceived.Research limitations/implications – There are a number of critical elements of research design that set this study apart. First, the authors have taken a unique approach to identifying companies that have achieved exceptional results. Typically, research of this type sets benchmarks – e.g., 3× the market for 1...

Rubicon Technology: a high tech start‐up successfully practices strategic focus

Rubicon Technology, a materials science company focused primarily on the manufacture and marketing of high quality single crystals possesses unique and advantageous technology. But having technological advantages is not enough. Concerted focus is required to translate that technical advantage into product performance that makes a significant difference in customer operations. With market intelligence, an honest self‐assessment and logical analysis, a sustainable market position was developed. The company avoided the temptation of chasing the market with the greatest upside potential and instead elected to target products and markets that were more accessible and aligned well with the experience and capabilities of the company’s technical and operations staffs. Recently, the company has invested enough (in manufacturing facilities and knowledge) to keep its future options open relative to additional vertical integration. Rubicon’s experience with strategic alliances confirms that they can play a crucial role in closing capability gaps and delivering a total package of value to key segments of the market. Rubicon has succeeded largely because, after selecting products and markets that offered excellent potential returns, it focused relentlessly on improving and aligning its technology and its operations to meet expressed customer and market needs. Rubicon has captured at least 10 percent of the LED/LD substrate market worldwide. More importantly, it has moved quickly from the high burn rate of a start‐up to breakeven, and it is on the road to profitability.

Strategy development for the real world

A respected Wisconsin metro newspaper, confronting significant market change and eroding profit opportunities, gathered a broad cross‐section of its management team together a little more than a year ago to take a fresh look at its business strategy. The resulting strategic plan strikes a balance between focusing on key operational targets and creating distinctive editorial products that ensures the paper remains the “indispensable source of news and information” in its markets. This case study examines how The Milwaukee Journal Sentinel used strategic planning to craft a strategy that keeps profits flowing despite in an increasingly competitive market environment. This case demonstrates that even when a company is pushed to improve operational performance it still cannot ignore the need to create a distinctive strategic position in its market. And, even when a company enjoys a leading market position, it cannot afford to relax its commitment to operational excellence.