Global strategies in a new world order
Repositioning and renewing businesses have the edge
The new book ‘Return on Strategy’ is based on a study of 50 global businesses from the US, Europe and Asia, and it breaks with the traditional mindset that businesses can use just one simple recipe to achieve strategic success. Instead, the study shows that the businesses with the greatest return on strategy are the businesses that find their own (different) way of creating a solid, competitive position. They usually do this by thinking creatively, by breaking some of the conventional ground rules or by finding the unique X-factor.
No true recipe for success
According to one of the authors, Professor Flemming Poulfelt from CBS Leadership Lab, strategy literature is filled with examples of normative recipes for success, which the business management ought to follow in the strategy planning process.
-The problem is that there is no golden recipe that will work for all businesses. We have seen many examples of businesses losing their competitive edge because they think following a particular recipe is enough, Flemming Poulfelt says.
Razor-sharp positioning is necessary
Even businesses with prior success have a tendency to stop prioritising renewal, which means that they lose their competitive edge, Flemming Poulfelt explains:
- Businesses often lose their edge once they have experienced success. They rest on their laurels and forget their competitors. That is the reason why the businesses have to focus on being innovative and capable of change to satisfy a market that is constantly changing in order to stay successful.
Being able to renew oneself is therefore crucial in terms of business strategies. The renewal may take place in the so-called ’red oceans’, where the competition is cut-throat and intensive, Flemming Poulfelt underlines using Ryanair as an example. The airline operator has managed to stay innovative, and it is the largest airline in EU today.
The GPS of the businesses
Instead of handing out golden recipes, Flemming Poulfelt and his two co-authors encourage the companies to find out what gives them the edge.
-Among other things, the book includes what we call roadmaps, which does not provide the businesses with the truth as such, but rather works as a navigational aid, or a GPS, on which the businesses may base their strategy planning efforts. Through persistent work on this, it is possible for the business to achieve a better return on strategy, Flemming Poulfelt says.
Return on Strategy - How to Achieve It!
The authors of the book Return on Strategy – How to Achieve It are CEO and Adjunct Professor Michael Moesgaard Andersen, PhD Fellow Morten Froholdt and Professor Flemming Poulfelt. The book was published on 9 December by Routledge, New York.
Read more about the book here.