No, this blog is not about what a leader should do in this Covid-19 situation, I don’t know about it, and not sure if anyone does. Recently I was watching an interview of martin reeves on this Xpert app, Amazing app if you want to deep dive into the lives of your idols, he was referring to the Challenges that leaders of today face from the business environment, and remarked that Your strategy needs a strategy.
The dynamics of the market can change any minute. One disruptive technology, one wrong move and you are a leader no more. Leaders of today need to know different strategies that fit the different situations. They need to have different offensive and defensive approaches in their strategic arsenal. This is not something that I came up with but I was so convinced and was thinking why didn’t this thought cross my mind. But anyways it somehow crossed the mind of Martin Reeves. being BCGian (From Boston consultancy group), He and his associates namely Knut Haanæs and Janmejaya Sinha, came up with a solution. They call it ‘The Strategy Palette’.
“The strategy palette proposes five distinct approaches to strategy, helping leaders to match their approach to their business environment and execute effectively, combine different approaches, and animate the strategic collage of approaches”. –BCG Website
There is huge diversity in the business environment. Be it predictability of the environment or favourability and harshness of the business, Leaders need to make sure that their approach to the strategy, fit to their business environment in order to succeed. The strategy palette gives a frame of reference to understand and then design or adjust the strategy. It talks about the three-parameter that can bring in challenges and opportunities for a business. These three parameters are:
The strategy palette suggests that when an environment is stable and predictable you can take the classical strategy approach, i.e analyze, plan, and execute. when the environment is stable but some unprecedented changes occur you need to take an adaptive approach, i.e stop planning and be adaptive and agile. On the other hand, if the environment is predictable but is highly malleable the leader has to take a visionary approach, i.e revive your business with some visionary changes. In a situation when the environment is highly unpredictable and malleable, you need to take a shaping approach, i.e shape your environment, use your network, and trust by customers to do so. Finally, when the environment has been very harsh on you, use the renewal approach, i.e do not spend heavily and take any of the above strategies and renew your business.
There is a lot more than this to the strategy palette, I’ll add the link to the interview below you if you wish to learn in-depth about the strategy palette.
BCG website – https://www.bcg.com/about/people/experts/martin-reeves
Other interesting blog – https://magazine.xpert.tv/only-a-socially-responsible-business-survive/