Smart KPIs (Key Performance Indicators) are needed for companies, planning to execute an equally smart corporate strategy. This is especially true for companies that are data- driven disruptors, such as Uber, Alibaba, Airbnb and Amazon. Digitally savvy companies have flipped over the traditional way of framing KPIs. These KPIs have now become the central organizational tenets. Data and business analytics now need to form a key cog in the same. The cost of acquiring new customers may also be offset to a large extent if these KPIs are well- defined. There is also a KPI Virtuous Cycle. This comprises of data governance, decision rights and the KPIs themselves. The first of these- data governance- is also related to the analytics earlier mentioned. Decision rights involve both the human as well as machine decisions.

Source:https://sloanreview.mit.edu/article/smart-strategies-require-smarter-kpis/

Uploaded Date:28 September 2019

There is often a faulty belief that is lauded in that having a clear-cut corporate strategy limits the flexibility that companies seek in the modern, tech-driven world. It apparently closets thinking and imagination. Yet, that is not true as great execution requires a fully-functioning operational team run on strategic terms. Of course, one must always have the flexible options of choosing plans that work rather than simply those stated. A clear statement of the current choices befalling the company are necessary to target customers, define its value proposition and directing people across various company departments. Companies towards the start of their journey must remain clear about defining these essential choices.

Source:https://www.strategy-business.com/blog/Strategy-Talk-Can-Strategy-Be-Decisive-and-Flexible?gko=5b2f1

Uploaded Date:28 September 2019

The CEO of Safari-com, the Kenyan telecom giant, found out unintentionally, the power of social media and digital marketing. His company was earlier lauded for being champions of the poor, having revolutionized the mobile banking sector through the tool of M- Pesa. But now, so- called digital ninjas were attacking Safaricom for its high price rates, all over the company’s social media handles. On closer inspection, it appeared, that they may have a point, as the payment mechanisms were a lot complicated. The company then went on a spree rectifying this, as well as the prevalent company culture. Managing “next- gen” expectations with the corporate realities can be tough to navigate. Thus, a youth network called BLAZE was set up by the company to work on their requirements. At the end of the year, profits soared once again, rather than face an exodus of younger customers as was the forecast earlier. Companies and brands thus need to be prepared for disruption, and not be bound by conformity.

Source:https://www.strategy-business.com/article/Be-Prepared-for-Disruption-Thinking-the-New-Unthinkables?gko=9473a

Uploaded Date:28 September 2019

The world is now richer than ever before, but it is also more unequal than at any time in the past. The top tenth of the world’s population controls about eighty- five percent of the wealth. That is why, more than ever before, companies need to take the lead in having a purpose beyond mere profits. This needs to be enshrined in the corporate strategy itself. The concept of shared value is now being promoted across the board. This was first coined by the management thinkers Mark Kramer and Michael Porter. There are four common attributes to this concept. The purpose needs to be authentic, serious, significant and even profitable.

Source:https://fortune.com/2019/08/19/change-the-world-shared-value-purpose/

Uploaded Date:29 August 2019

In the ongoing ecosystem economy, each company is trying to evolve its own corporate strategy, in order to survive the transformation. Some of them have developed a penchant for helping other firms creating value, as has been the case with Google’s Nest. Many assume that in case they are the platform creators, then need to also be its chief architect, but this is wrong. A superior product or service will automatically place one as the prime mover or orchestrator of any ecosystem. Two major terms exist for allowing the participation. One is access. This refers to the system being open, closed or managed. The other is attachment, implying the ability to co- specialize with others, who act as complementors in the system. Trade- offs need to be a part of this stage. Some organizations will also need to adapt according to the changing tide. A question remains on how many ecosystems, must a single operator manage. Uber for instance has diversified in to a lot. But this is a clever strategy being adopted by many. Facebook for instance now has an edge in digital marketing thanks to its grip on its platform of social media. Several competitors could also turn in to collaborators in a parallel ecosystem.

Source:https://hbr.org/2019/09/in-the-ecosystem-economy-whats-your-strategy

Uploaded Date:29 August 2019

Purpose now needs to be central to the corporate strategy for any business. This involves the leadership playing two critical roles. On the one hand, the playing field requires redefining. On the other, the value proposition needs reshaping. For this, authentic business intelligence has to be captured, so that companies can act on the trends identified, as perfectly well done by the Swedish company Securitas AB. And like the case with Mahindra Finance, trust building has to be at the root of all service executions. Pain points need specific surgical focus, as done by Mars Petcare. Developing a purpose isn’t easy and won’t happen in a single day. But it has undying benefits to the soft side, such as in unifying the organization, motivating the stakeholders and in broadening the overall impact.

Source:https://hbr.org/2019/09/put-purpose-at-the-core-of-your-strategy?utm_campaign=hbr&utm_source=twitter&utm_medium=social

Uploaded Date:29 August 2019

We Work is on the verge of being listed in the stock exchange and has received a heavy valuation, in spite of the consistent quarterly losses. Interestingly, the company sees itself as part of the technology sector, and uses financial indicators likewise. Several experts have denounced We Work’s claim as unsatisfactory, instead claiming that it is a modern real estate company. As a result, these people do not believe in an EBITDA- induced valuation as is being the standard now. Experts though need not brush aside We Work’s tech credentials oh so quick. This is because like Google, Yelp, Uber, Twitter, Facebook and even Airbnb, We Work too has lower variable costs. The capital investments are likewise, pretty low. This does not apply to We Work as its depreciation concerns would be significant. Neither does We Work have the level of data warehousing capability that the likes of Apple, Yelp, Tesla etc. possess. The network effects of such companies is also significant. We Work also comes out short in the last of the factors that states that the expansion in ecosystem can take place without incurring too large a cost.

Source:https://hbr.org/2019/08/no-wework-isnt-a-tech-company-heres-why-that-matters

Uploaded Date:29 August 2019

CEOs from one- hundred and eighty- one companies have come together on a Business Roundtable (BR) to reiterate their views on how their businesses are much more than mere profits. The conventional business theory on profit maximization has come under much attack from society. So, these companies are making changes to their corporate strategy documents, thus taking a break from the Milton Friedman worldview. The latter held that social initiatives by corporates were designed primarily to somehow in the long run, help boost their profitability. This brand of stakeholder capitalism has come under fire, due to its excessive focus on one stakeholder group alone- the shareholders. A thorough study led by some academicians has clearly outlined how with time, those that have a higher purpose, tend to outperform the others, when it comes to their profits.

Source:https://hbr.org/2019/08/181-top-ceos-have-realized-companies-need-a-purpose-beyond-profit

Uploaded Date:26 August 2019

It is a common misconception that technology is the main fuel behind digital transformation. Companies thus spend a lot in order to procure the best of new technology. Likewise, they spend a lot on the talent recruitment of the best of technology pros. However, it has time and again been observed, that a cultural transformation is the first step before any such game- changing technology is introduced in. This has been discussed at the length in the new book launched The Technology Fallacy, written by several academicians from the management field. Companies need to focus on several non- technical drivers such as talent, corporate strategy, leadership and organization structure. Humans are the real stars of this evolution and not technology.

Source:https://sloanreview.mit.edu/article/transformation-without-technology/

Uploaded Date:21 August 2019

There is much value to be derived from building relationships with those who are lower in the organizational hierarchy. While connections with peers and seniors are often highlighted, this aspect gets ignored. Recruitment and business research firm Career Builder made a shocking, though expected revelation, by stating that in the US alone, seventy- eight percent of the working population survives on a paycheque to paycheque basis. Its repercussions towards the bottom of white- collared jobs is unexpected. Contrary to popular perceptions, there is actually lesser fear of job loss at the bottom, as even unemployment will not have the devastating effects that will affect those in the middle, who tend to be older, with families to support. Those lower can easily switch from one position to another. Genuine respectful conversations need to be had with entry- level professionals, but not with a purely transactional end- point in view.

Source:https://www.strategy-business.com/blog/The-fortune-at-the-bottom-of-the-org-chart?gko=c88fb

Uploaded date:21 August 2019

Collaboration has become even more crucial in the modern business world than it used to be. This is because it allows aggregation and for platforms to develop. Unfortunately for a lot of companies, they have decided to go it alone, to reduce their dependence on others. This leads to certain complications. Accidental adversaries are created even when relations would begin well. Initially, they tend to share leads, which lead to even bigger deals being cracked. Individuals as a result panic, on not being able to meet their own goals. So, leaders drive their team members to higher targets. This leads to a drop in the referral count, and a subsequent decline in results for all the stakeholders. Talent management experts claim, that right at the first stage when the professional relation was budding, boundaries need to be drawn out as this will help identify the side effects, hidden from view thus far.

Source:https://www.strategy-business.com/blog/Turning-Accidental-Adversaries-into-Allies?gko=dfba4

Uploaded Date:20 August 2019