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Posts tagged with ‘strategy’

Jean-Louis Gassée Decodes Satya Nadella’s Email

The other day, Satya Nadella releases a sprawling memo, ostensibly to clarify Microsoft’s strategy under his leadership, and it positions the company as a ‘productivity and platform’ company, not the ‘devices and services’ orientation that Ballmer introduced in 2012, and reorganized the company around.

As a result, we should expect another top-to-bottom reorganization of the company, but Nadella only hinted at that, not really revealing any specific plans. And not announcing a departure from any line of business, either (see Satya Nadella wants to focus on the core of Microsoft’s business, which is… everything).

Jean-Louis Gassée took a look at the memo, and tried to break it down, and he found a lot of smoke but little fire. But then he tried to decode it:

Tortured statements from CEOs, politicians, coworkers, spouses, or suppliers, in no hierarchical order, mean one thing: I have something to hide, but I want to be able to say I told you the facts.

With all this in mind, let’s see if we can restate Nadella’s message to the troops:

This is the beginning of our new FY 2015 – and of a new era at Microsoft.

I have good news and bad news.

The bad news is the old Devices and Services mantra won’t work.

For example: I’ve determined we’ll never make money in tablets or smartphones.

So, do we continue to pretend we’re “all in” or do we face reality and make the painful decision to pull out so we can use our resources – including our integrity – to fight winnable battles? With the support of the Microsoft Board, I’ve chosen the latter. We’ll do our utmost to minimize the pain that will naturally arise from this change. Specifically, we’ll offer generous transitions arrangements in and out of the company to concerned Microsoftians and former Nokians.

The good news is we have immense resources to be a major player in the new world of Cloud services and Native Apps for mobile devices. We let the first innings of that game go by, but the sting energizes us. An example of such commitment is the rapid spread of Office applications – and related Cloud services – on any and all mobile devices. All Microsoft Enterprise and Consumer products/services will follow, including Xbox properties.

I realize this will disrupt the status quo and apologize for the pain to come. We have a choice: change or be changed.

Stay tuned.

With or without the clarity that Gassée would have him use, Nadella definitely has something up his sleeve, and  he only hinted at it so far. But this is going to be a rough time to be a Microsoftie, I bet.

Michael Porter argues that the ‘essence of strategy is choosing what not to do’ but ‘the real world essence of strategy is figuring out the best route from available means to desirable ends’.

This dangerous fashion for saying ‘no’, choosing what not to do’ and ‘taking emotion out of strategy’ flies in the face of what inspires innovators. Doing less, being realistic, avoiding risk is lifeless language in a world of living strategy and necessary passions…

The Innovation Book (2014)

Porter offers us nothing, just the ‘design school’ mumbo jumbo that can look back and point at the moving pieces, but which can predict or make nothing. There is no there there.

(Source: maxmckeown)

Companies fail or fall short of their potential not because of bad strategies, but because of a failure to implement good ones.

Metaphors matter: Talking about how we talk about organizations - Stowe Boyd via GigaOM Pro →

I’ve been involved in a complex discussion with a broad group of social tool makers, org culture theorists, change agents, and others, regarding the nature of change in organizations and the role — and challenges — of change agents. I decided to recap thoughts on organizational metaphors (a la Gareth Morgan) and Joanne Martin’s work on organizational culture, and then connecting it with Henry Mintzberg’s work on emergent strategy. 

an excerpt

From Martin’s viewpoint, I am advancing an argument that is –as its core — a usurping of the guiding metaphor of organization culture.

Today’s entrepreneurial culture in business is grounded in an integrative metaphor: the CEO as visionary develops a strategy for the business, then lays it out so that others in the elite rally around it, and then it is inculcated into the controls and culture of the business, which are monolithic.

"The coming cooperative organization is scary, because it places ambiguity and uncertainty at the center of organization dynamics. It is based on not knowing exactly what to do, in a world increasingly difficult to read. It values experimentation over execution, places agility above process, and puts learning ahead of knowing. It asks more questions than it can answer, and it may not even know how to answer them."

But the reality of business is that the average employee is increasingly disengaged: they are rejecting alignment with the leadership-provided storyline and monolithic culture. At the very least the reality is that culture has drifted into a differentiated form, with various subcultures believing what they believe, and varying degrees of dissent, rebellion, or passive assent.

From the mindset of integration, this is a manifestation of a sick culture, and something to be fixed. From the mindset, however, of fragmentation, this is a middle ground, a transition zone. As we head toward a more cooperative form of work, and leave behind the consensus requirements of the ideal integrated culture, then the role of leaders change.

As I wrote in the recent piece Moving toward emergent strategy: slowly, if at all, the nature of strategy changes in a time of great change, when the future is difficult to foresee. The role of leadership changes with it, as well. Instead of concocting a strategic vision and pushing it out to the organization through cultural and managerial channels — the deliberate style of strategy — leadership must shift to distributed, action-based strategic learning about what is actually happening in the market: emergent strategy. This, as Henry Mintzberg observed, does not mean chaos, but unintended order.

To come full circle, if the goal of my circle of friends is to concoct a way to way to help change agents within business organizations, I feel we should start with a metanarrative about the changed groundwork for business, the shifting role of strategy and leadership, and, lastly, the fading of consensus and collaborative organizational culture as a consequence.

The coming cooperative organization is scary, because it places ambiguity and uncertainty at the center of organization dynamics. It is based on not knowing exactly what to do, in a world increasingly difficult to read. It values experimentation over execution, places agility above process, and puts learning ahead of knowing. It asks more questions than it can answer, and it may not even know how to answer them.

The power dynamic for change agents is always all uphill: if they want to lead the business forward, they have to convince leaders that they can’t stop the future by saying no, and the best way ahead is through. But we would be making a mistake by sticking to the contemporary metanarrative, one that would reduce this to increased alignment, immediate increases in productivity, or near-term fixes in what is viewed by management as a broken culture.

The challenge, then, is not to reëngage the workforce in solid, uniform cultural norms and allegiance to the company’s official vision — an approach more suitable for the previous decade or century — but to disengage management from the limited metaphor of Martin’s integration mindset. And the place to start is by reconsidering the nature of strategy — and its practice — in a postnormal, chaotic, and changeable world.

The old industrial economy was driven by economies of scale. The new information economy is driven by the economics of networks.

Carl Shapiro and Hal Varian, Information Rules

Strategy renders choices about what not to do as important as choices about what to do.

Michael Porter

But I am never going to optimize short-term revenue at the expense of user experience or long-term goals. If people think we are going about this too cautiously, they can think that and I don’t care.

- Dick Costolo, Twitter CEO, cited by Michael Copeland via Wired

love @dickc’s clarity about what’s important

(via bijan)

Culture eats strategy for lunch - Shawn Parr

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