Is or Is Not The Opposite Stupid on its Face?

Roger Martin - Key Distinction in Strategy

Context and Purpose

• Roger Martin shares insights from working with successful clients.
• Focuses on strategy development through client engagement.
• Emphasizes thinking through strategies rather than providing solutions.
• Insight involves distinguishing between types of strategic items.

Insight on Strategic Items

• Key Question: Is the opposite of a choice stupid on its face?
  • Yes: Opposite is stupid (e.g., IT solutions aiming for suitability).
  • No: Opposite isn't stupid (e.g., modularity vs. integrated systems).
• Categorize strategic items based on this distinction.

Strategic Choices vs. Operating Imperatives

• Strategic Choices:

  • Opposite isn't stupid; represents meaningful differentiation.
  • Focus on gaining a competitive advantage.
  • Involves bold and unique decision-making.

• Operating Imperatives:

  • Opposite is stupid; essential actions for baseline operations.
  • Focus on avoiding falling behind.
  • Involves best practices and benchmarking.

Approaches to Strategy

• Different thinking required for the two categories:
  • Strategic Choices: Creativity and uniqueness; zero help from benchmarking.
  • Operating Imperatives: Precision and replication of best practices.

Practical Implications

• Limited number of Strategic Choices; ideally 3-5.
• More Operating Imperatives permissible; around 5-10.
• Emphasizes need for a unifying theory.

Practitioner Insights

• Helps in clear communication and inclusivity within organizations.
• Fulfillment of Operating Imperatives supports Strategic Choices.
• Strategic Choices: Oriented towards creativity.
• Operating Imperatives: Focus on replication and benchmarking.

Recommendations

• Use consultants for Operating Imperatives based on industry experience.
• Avoid using consultants with industry experience for Strategic Choices.
• Ethical approach: Benchmark non-competitors with permission.

Conclusion

• Highlights the importance of differentiating between strategic and operational elements for effective strategy formulation.
• Advocates for ethical practices in consulting and benchmarking.