When To Change Strategy

Jul 28, 2022

Discover the critical moments when businesses must change their strategies to survive. Explore the importance of identifying customer needs and the fine line between strategy and tactics. Learn from Chipotle about enhancing perceived value, and uncover alarming stats about managers' understanding of strategy. Delve into five essential steps for crafting effective strategies and the invaluable concept of 'contextual radar' to navigate dynamic market conditions. This insightful discussion is a must-listen for anyone aiming to boost their strategic acumen!

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ANECDOTE

Resistance to Change Illustrated

Studies show that 90% of heart surgery patients fail to sustain recommended lifestyle changes.
This highlights human resistance to change, even when lives are at stake, paralleling business strategy shifts.

INSIGHT

Five Moments to Change Strategy

Five critical moments demand strategy reevaluation: goals change, customer needs evolve, innovation arises, competitors shift value perception, and capabilities fluctuate.
Recognizing these signals helps prevent business decline by timely strategic adjustments.

ANECDOTE

Chipotle’s Value Innovation

Chipotle transformed fast food by marketing healthy, transparent sourcing as a core value.
This innovation raised perceived value and disrupted the standard fast-food industry.

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The ability to modify strategy at the right time can literally save or destroy a business. This week, we hear from our special dead guest, Rod Serling, and his narration of The Strategy Light Zone. We talk about a checklist of five moments when it's critical to reevaluate your strategy, how to look for evolution and customer needs, the distinction between strategy and tactics, and what we can learn from Chipotle on increasing the perceived value of a product or brand. You’ll also learn about the five steps to a solid strategy process.

What You’ll Hear In this Episode:

Research published in the Harvard Business Review showed that 43% of managers couldn't state their own strategy and 67% of managers believe their organization is bad at developing strategy. Both of these dismal numbers may be in part due to the fact that only 19% of managers say their companies have a distinct process for developing strategy.
A checklist of five moments when it's critical to reevaluate your strategy.
Goals are what you are trying to achieve and strategy is how you're going to get there.
As you accomplish goals and new goals are established, changes in resource allocation are often required to meet them.
How to look for evolution and customer needs.
The distinction between strategy and tactics was articulated even as far back as 2500 years ago by Chinese general and philosopher Sun Tzu.
Expertise in any domain is the result of deliberate practice, not natural born talent.
How the contextual radar tool helps us determine when to change strategy.

Quotes/Tweetables:

“Goals are what you are trying to achieve and strategy is how you're going to get there.”

“ The end game of business strategy is to serve customers' needs in a more profitable way than the competition.”

“When determining whether or not to change strategy, it falls under your own roof.”

Connect with Us!

Strategic Thinking Institute

Rich Horwath on LinkedIn

Rich Horwath’s YouTube Channel

Rich Horwath on Instagram

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Mentioned :

Chipotle

Sun Tzu

Rod Serling