Friday 23 September 2016

It's strategy Jim, but not as we know it ...

A friend of mine who was a leading light in the development of Information Strategy and Architecture practices in the 80s and 90s, retired a few years ago. The key driver being his disillusionment with organisations who said that there was no time for developing strategy.

In the time since then, Enterprise Architecture has enjoyed a considerable re-birth and growth, everything has gone digital and organisations have started to publish strategies which read more like marketing guff expounding bland benefits, than anything which informs the reader or directs action.

A couple of things have brought this to mind recently. the first was that I picked up a copy of Richard Rumelt's "Good Strategy Bad Strategy", in which he emphasises the need for a situation diagnosis of what is needed to succeed, proposing an integrated and coherent policy which addresses this, and a small set of supporting actions. This is a great read and worth while for anyone interested in Business Strategy.

Yesterday, I went to very stimulating talk about post merger integration by Henry McNeill at the British Computer Society. Afterwards as we huddled around the wine and sandwiches, several key themes came out:

  • Many companies are still not aligning acquisition activity with business strategy;
  • There was violent agreement that clarity of the aims, target state and value proposition of an acquisition is imperative for successful integration;
  • Participation of IT from due diligence onwards, provides an ideal opportunity for IT to show how it can help the business articulate and deliver against a strategy for the exploitation of the newly acquired business. Sadly, many organisations are still bringing IT in on Day 1 after deal completion and missing opportunities to mitigate risks and address early integration opportunities quickly. Some still take years to work out what to do with them.
This brings me to the point of today's commentary. My experience has been that almost all business strategies are usually incomplete and fail to unify the senior management of the business. IT needs a coherent exposition of Strategy which identifies the "game changing" opportunities or risks in the business market place to be able to prioritise its investments, define what common capabilities are needed and to support effective innovation. Working with business leaders at C suite and direct report level to "elicit the real business strategy that they work to" and agree the opportunities is valuable to the business as a whole. It's often a great way to get everyone to understand each others problems and can help unify purpose.  However, its got to be continuous to support the ever shifting business environment as businesses go Digital and Agile. Strategy has to take a Fail Early, Refactor and Learn approach to continuously calibrate its diagnosis, unifying policy and action plan. There's a role for the CIO in this.


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