During my time as a student at the China Europe International Business School, I took a course called Re-Thinking Strategy for the Digital World taught by Jeff Sampler. Jeff’s course turned traditional strategic planning on its head and taught us how management innovation from the East can be relevant in the West. Jeff’s class was packed with new ideas that I had never been exposed to. In this blog post, I share some high-level learnings from his class and some key thoughts Jeff shares in his book, Bringing Strategy Back.
The traditional/usual tools of strategy are sorely out of sync with today’s business needs because:
- Windows of opportunity close far faster than they once did
- Growth rates are uneven across markets
- Today’s competition is more asymmetrical than ever
“The world changes so fast that it makes little sense to rely on standard models of prediction. After all, five-month plans are rendered obsolete the instant competitive winds shift, not to mention the once-vaunted five-year plans. So where does this leave executives who need to prepare for the future? Bringing Strategy Back presents a compelling case that strategy can be reinvented and retooled to become more relevant than ever.” -Jeff Sampler
In his book, Bringing Strategy Back: How Strategic Shock Absorbers Make Planning Relevant in a World of Constant Change, Jeff Sampler discusses four strategic shock absorbers that allow leaders to build resilient organizations that are able to withstand chaos. Jeff’s framework allows us to see how an organization might be able to stay ahead of the pack despite other competitors having access to similar resources and capacity. The foundation for his research is 15 case studies on Indian companies. I highly recommend reading his book as it gives companies insights for planning in environments characterized by turbulent and rapidly growing markets.
With the four strategic shock absorbers, leaders all around the world at organizations of any size and type can build strong organizations that withstand chaos and instability. Sampler says that giving up the old way of strategic planning can seem risky; however, customizing the best approach for your business will make a positive difference. With this new framework, Bringing Strategy Back shows how to be prepared and proactive, rather than reactive, even when the future is uncertain.
The Four Strategic Shock Absorbers
1. Accuracy
Your business should focus on its strengths and capabilities while simultaneously creating a strategic wedge, which opens up new opportunities. This will enable you to better understand the external environment, and seize opportunities before they become visible to others. Minimize time required to react by preparing decision triggers (assigning some form of critical threshold that if crossed would trigger action).
2. Agility
Your business should constantly adapt in order to seize and repeat opportunities. You should engage in frequent strategic planning. This will allow your organization to respond to market changes with speed and flexibility. SPEED IS CRITICAL! Ensure flow of information is consistent.
3. Momentum
Focus on the end result, and try not get too caught up in the details of how to get there. As long as you understand where your organization is heading, you will be fine even if everything changes as the environment shifts.
4. Foresight
You should anticipate bumps in the road, opportunities in advance, and ultimately have a contingency plan. This includes identifying strategic assumptions and monitoring them to ensure they remain accurate.
Jeff recommends taking a proactive approach instead of a reactive one. His research and work on strategy is interesting to say the least. It matters little where in the world you conduct your business – every corner of the world experiences rapid change and turbulence. Contrary to traditional "choose one strategy and implement like hell", Jeff offers unique ideas for making strategic planning adaptive. Business leaders need to reorient their approach to absorb shocks that can strike at a moment’s notice.
More about Jeff:
Jeff Sampler is an adjunct professor of strategy and technology at China Europe International Business School. His work has appeared in publications such as Fortune, Journal of Management Studies, and Sloan Management Review. Dr. Sampler has served on the boards of FTSE 100 corporations and start-ups and has been an advisor to two heads of state. He is regularly featured in top media outlets like Newsweek, BBC, and CNBC.
