Sorensen Jesper B. - Arguing for Organizational Advantage

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Table of Contents

Making Great Strategy

Making Great Strategy

Arguing for
Organizational
Advantage

Jesper B. Srensen
Glenn R. Carroll

Columbia University Press

Publishers Since 1893

New YorkChichester, West Sussex

cup.columbia.edu

Copyright 2021 Jesper B. Srensen and Glenn R. Carroll

All rights reserved

EISBN 978-0-231-55315-5

Library of Congress Cataloging-in-Publication Data

Names: Srensen, Jesper B., 1967 author. | Carroll, Glenn, author.

Title: Making great strategy : arguing for organizational advantage /
Jesper B. Srensen and Glenn R. Carroll.

Description: 1 edition. | New York City : Columbia University Press, 2021. |
Includes bibliographical references and index.

Identifiers: LCCN 2020023410 (print) | LCCN 2020023411 (ebook) |
ISBN 9780231199483 (hardback) | ISBN 9780231553155 (ebook)

Subjects: LCSH: Strategic planning. | Leadership. | Success in business.

Classification: LCC HD30.28 .S6277 2021 (print) | LCC HD30.28 (ebook) |
DDC 658.4/012dc23

LC record available at https://lccn.loc.gov/2020023410

LC ebook record available at https://lccn.loc.gov/2020023411

A Columbia University Press E-book.

CUP would be pleased to hear about your reading experience with this e-book at .

Cover design: Lisa Hamm

Cover image: Adobe Stock

To

Patricia Chang and Nikolaj, Benjamin, and Chloe Chang Srensen

Lihua Wang and Lishan Nan Carroll

Contents

Part I
Introduction

Part II
Three Activities for Making Great Strategy

Part III
Applying Strategy Arguments

Part IV
Arguing Deeper

Part V
Conclusion

Part VI
Appendices

S trategy is hardreally hardto do well. Leaders of all organizations typically proclaim publicly that they have the right strategy, but these efforts often fall short of whats needed to guide an organization effectively through challenging times. Executives will admit to this embarrassing fact in anonymous surveys, but will never publicly question whether their firms have great strategies. Worse yet, they often dont know what to do about the dilemmas they find themselves in.

Why is making great strategy so difficult? At the top of the list is the exceedingly difficult nature of strategic decision making. Strategy involves undertaking major, interrelated, and often irreversible decisions to ensure long-run success in an uncertain future. Often it involves making and justifying bets that others think are foolish. More fundamentally, strategy involves trade-offs: saying no to some opportunities in the hope of realizing greater ones.

Yet when the time comes to confront upcoming challenges head-on and devise a strategic plan that allocates resources to address the wolf at the door, many executives deliver something short of whats needed. Instead of making great strategy, they produce what Richard Rumelt calls bad strategy: they describe trends, they articulate grand goals, and they make nice diagrams with pithy sayings, often using the help of outsiders. In our view, they dodge.

How do you make strategy great? What leaders need is to develop and forcefully articulate the executive teams

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