Strategic Thinking: A Four Piece Puzzle (Birnbaum, 2004)

Book Description
Strategy consultant, Bill Birnbaum, shares his lessons learned during 24 years helping management teams develop their business strategy. His anecdotal stories offer important lessons and also an enjoyable read. He offers techniques for...(1) Achieving and maintaining focus, (2) Understanding and responding to markets and customers, (3) Leading and motivating people, (4) Managing both projects and processes.

From the Publisher
A business manager recently asked Bill Birnbaum, "Which parts of your new book, ‘Strategic Thinking’ are most valuable to the reader."
"That’s a tough question," Bill responded, "for the answer very much depends on the needs of each particular organization." "However," he continued, "there are certain parts of the book which are almost universally applicable."

Bill went on to explain that…

Chapters 1 through 4 deal with the important subject of focus. For while the most successful organizations are tightly focused (on product or service offering, on markets and customers served, or on systems and operations), far too many organizations are unfocused. They unwittingly spend resources chasing far too many opportunities -- and chasing them all at the same time. These first four chapters of the book offer tools and techniques for focusing, thus deriving benefit from concentration of resources.

Chapter 6, "The Opportunity Grid," presents the model which is consistently most popular with clients. In Bill’s 24 years experience as a strategy consultant, he's found that clients embrace this model more than any other. And for good reason. The Opportunity Gird helps mangers think through -- and visualize -- their specific strategic options. For example, they can easily visualize whether they’d be better off focusing on product / service development, or on market / customer development.

Chapter 12 is another which is almost universally applicable. For it deals with "Building Knowledge in Your Organization." Here in the 21st Century, knowledge is clearly a major determinant of success in any business. The challenge, of course, is to build organizational knowledge. In chapter 12, Bill shows how knowledge builds through three levels -- data, information and understanding. He explains that increasing from one level to the next makes the communication (sharing) of knowledge possible. And he shows that only upon arrival at the final level (understanding), can knowledge be used to develop strategy. Finally, Bill offers 12 proven steps for building knowledge in your organization. For those who’ve struggled developing their mission statement, Appendix A will be helpful. There, Bill shows a simple technique for developing your mission statement even with many people participating. Also, he clearly differentiates among mission, vision, values and philosophies. Managers who’ve previously been confused by the definitions of these terms will find comfort in Appendix A.

In Appendix B, Bill suggests "Reinventing the Strategic Planning Process." There, he explains why the traditional strategic planning process is in need of replacement. And he offers a new planning process -- "Strategy 21™" -- a process more appropriate to the realities of our 21st Century.

p.11 In thinking strategically, you'll be concerned with doing the right things, rather than doing things right. This distinction is important.

p.14 The most important benefit of strategic thinking is the resultant strategic vision shared among your management team. This shared strategic vision must be based on your management team's deep understanding of the business. The management team's strategic thought, its shared vision, and its deep understanding of the business, empower your organization in its competitive environment.

p.15 most business managers know that SWOT stands for strengths, weaknesses, opportunities and threats. An analysis of the company's current situation, the SWOT, or "situation analysis," provides a look at both the internal and external aspects of the organization.

p.29-30,32 An important aspect of focus is setting just a few objectives. Objectives, as you know, are the measurements you'll use to track your success... The problem with having too many objectives is that it causes lack of focus... the statistics for each and every machine during each and every shift don't belong in the company's strategic plan. Instead, a composite number representative of overall factory efficiency might belong in the strategic plan...The message... is clear. Keep your focus. Keep your objectives lists short. Make sure your objectives measure the most important "stuff."

p.33 The trick to establishing Key Performance Indicators is to decide "what matters most" in your business. In effect, decide on your strategy. Then develop a set of Key Performance Indicators to track progress against that strategy.

p.34 I suggested that the team set objectives in three steps:

1. Decide on the essence of all of the objectives, then

2. Decide on the formula for measurement of all of the objectives, then

3. Quantify each of the objectives.

p.36 "Is it worth it? Is having this objective so important that we're willing to build a new measurement system to track its progress?"... I'm simply suggesting that you and your team take a realistic look at the question, "Is it worth creating a measurement system to track the objective?"

p.40 The way in [to a percentage of the market for a product] is to do something different. But different how?

p.119 No idea is too crazy. Every idea counts for it just might trigger someone else's "winner" idea.

p.121 "Every strike brings me closer to the next home run." -Babe Ruth

p.121 First be sure you're doing "the right thing." Then - and only then - do that right thing well. Effectiveness (doing the right thing) first, efficiency (doing it well) second.

p.130 nobody can sprint forever.

p.205 A monitoring process will help you track the implementation of your strategy

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