Vaughan Evans - 25 need-to-know strategy tools
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- Book:25 need-to-know strategy tools
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- Year:2014
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Includes 10 handy dos and donts of strategy development
Need powerful decision-making tools at your fingertips?
Want to get the most out of strategic thinking models like Porters Five Forces?
Only want what you need to know, rather than reams of theory?
With the critical strategy tools required to drive your business forward, this book tells you what you need to know, fast.
Vaughan Evans: author's other books
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To Carys, Tool 25!
Vaughan Evans is an independent strategy consultant ( www.vaughanevansandpartners.com ) specialising in strategy and business planning for corporate clients and strategic due diligence for private equity.
An economics graduate from Cambridge University and an Alfred P. Sloan fellow with distinction from London Business School, Vaughan worked for many years at international management and technology consultants Arthur D. Little and at investment bankers Bankers Trust Co.
Vaughan is also a popular speaker and seminar leader, and regularly delivers speeches on how to keep strategy simple yet backable.
He is the author of a number of successful business books, including The Financial Times Essential Guide to Developing a Business Strategy (2013), the highly acclaimed Key Strategy Tools (2012) and the best-selling The Financial Times Essential Guide to Writing a Business Plan: How to Win Backing to Start Up or Grow Your Business (2011).
We are grateful to the following for permission to reproduce copyright material:
reprinted with permission of the publisher. From Hot Spots , copyright 2007 by Gratton, L., Berrett-Koehler Publishers, Inc., San Francisco, CA.
adapted from Competing for the Future , Harvard Business School Press (Hamel, G. and Prahalad, C.K. 1994) p.26.
In some instances we have been unable to trace the owners of copyright material, and we would appreciate any information that would enable us to do so.
Your clue is in the title: need-to-know
This books aim is simple. It presents a set of tools that you, as a manager or entrepreneur, need to know. These are the basic tools of strategy, the essentials you need to do your job effectively.
This is not a complete strategy toolkit. Nor is it a do-it-yourself manual. And it certainly isnt a strategy textbook for the business school student. Other excellent books serve all these purposes.
Nor is this, necessarily, a book on the latest, cutting-edge thinking in strategy. There is some of that, but only where such tools have already become essential.
This is a book on what you need to know about the tools of strategy. No more, no less.
It is restricted to 25 tools because these are the core elements you need on a day-to-day basis in your strategic planning. It is designed for busy business people who want a curated set of tools that will help them achieve the best results in the shortest amount of time.
If, after reading this book, you want to dig deeper into the full set of strategy tools, these are contained in a companion book, Key Strategy Tools: The 80+ Tools for Every Manager to Build a Winning Strategy (Pearson, 2012).
Strategy has a myriad of definitions. General Sun Tzu in the 6th century BC defined it as know your opponent, while rather more recently Kenichi Ohmae summed it up as in a word, competitive advantage (thats actually two words, but whos counting?!).
I am an economist by training, so feel the need to bring the word resources into a broader definition. Economics is succinctly defined as the optimal allocation of a nations scarce resources. Thus, at the micro-economic level: Strategy is how a firm achieves its goals by deploying its scarce resources to gain a sustainable competitive advantage.
The tools here are not arranged randomly, nor are they listed in some meaningless order such as by the originators alphabetical name.
They are presented in the order in which they would be deployed typically in a strategy development process.
One such process introduced in this books more voluminous companion, Key Strategy Tools (referred to above), is the Strategy Pyramid. This consists of nine building blocks (see ).
Figure 0.1 The nine building blocks of the Strategy Pyramid
The tools of this book are set out following the same process:
Block 1 Knowing your business see of this book
Block 2 Setting goals and objectives see Tools (including Collins and Porrass big, hairy, audacious goals)
Block 3 Forecasting market demand see
Block 4 Gauging industry competition see (Porters five forces, of course!)
Block 5 Tracking competitive advantage see Tools
Block 6 Targeting the strategic gap see Tools
Block 7 Bridging the gap with business strategy see Tools (including Kim and Mauborgnes blue ocean strategy)
Block 8 Bridging the gap with corporate strategy see Tools (including tools from Hamel and Prahalad, Mintzberg, Christensen and Rumelt)
Block 9 Addressing risk and opportunity see .
You can read 25 Need-to-Know Strategy Tools either from beginning to end, following a logical strategy development process, or you can just dip in and out, when you want as you please.
But remember that this book doesnt cover everything there is to know about strategy if you need to know more, some further reading is suggested at the end of the book.
Do not be dismayed by strategy or strategic thinking. I often meet business folk who preface their strategic insights by saying: Unfortunately I have never had any training in strategy, but what I think is
Such humility is endearing but misplaced. Strategy is 90 per cent common sense. That many managers and entrepreneurs treat it with such awe is partly down to my own profession of strategy consulting. It is, I am afraid, in the commercial interests of many of my peers to maintain the myth.
Not so in this book. You will find that it is written in an easy-to-read style. Jargon is avoided wherever possible. And tools are related to the real world.
I have chosen tools that will help you in your business. These are not tools that are just clever, designed to give one smart professor at one prominent business school bragging rights over another. These are tools that can be used by you.
Pocket the huge sums that you would otherwise pay to consultants. Read this book and let it be your guide on how to use strategy tools for the benefit of your business.
To help you on the way, I have added one case study per tool of how one company, typically well known, has used the tool effectively or, in some cases, should have used it!
Strategy is all about direction. You want to get your business from where it is today to where you want it to be tomorrow.
Let this book help you get there.
Enjoy!
One thing we need to address upfront is how this book approaches the two distinct, but related, fields of strategy: business strategy and corporate strategy. A business, or, more technically, a strategic business unit (SBU), is defined as an entity with a closely inter-related product (or service) offering and a cost structure largely independent of other business units. Thus, in a large, multi-business corporation, an SBU may well have not only its own CEO, CFO, COO, CSMO and CIO, but its own CTO, head of all R&D in that SBU.
An SBU is an entity substantive enough to warrant drawing up its own strategy, independent of strategies its fellow SBUs may be drawing up.
SBU strategy is known more simply as business strategy. Tools of this book deal with business strategy.
Corporate strategy is, in the first instance, how you allocate resources between your businesses. Which will you invest in, which will you hold for cash generation, which will you sell, which may you be forced to close down? This is corporate strategy as portfolio planning see , Optimising the corporate portfolio.
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