Thursday, June 5, 2014

World Business Forum Sydney 7: Rethinking the nature of strategy

Image source: twitter.com/WBFSydney

Professor Michael Porter of Harvard Business School and Director of the Institute for Strategy and Competitiveness

The worst error in strategy is to compete with rivals on the same dimensions.

Understand your industry deeply before you focus on your market position.

Understand your positioning along the value chain clearly.

Understand that operational effectiveness is not strategy, it is about best practice.

There are seven signs of a successful strategy:
  • A unique value proposition compared to competitors.
  • A differentiated value chain.
  • A willingness to make trade-offs.
  • A willingness to make customers unhappy.
  • Integrated functional silos.
  • Continuity of strategic direction with continuous improvement.
  • A coherent approach so people know what you stand for.
More at Business Research and Insights blog of NAB