What is Strategy Dynamics?
Strategy Dynamics was developed to improve
the teaching and practice of strategic management. The principles and
frameworks behind the Strategy Dynamics approach are built on sound theoretical
foundations that have implications throughout the management field, as well as
in many others.
Strategy Dynamics is concerned with understanding and managing performance
through time - for commercial firms most often concentrate on earnings, though
other performance measures may be important, especially in public policy and
non-profit cases. The responsibility of strategic managers and teams is to
build and sustain strong performance into the future. To fulfil this
responsibility, management should at all times be able to answer 3 basic
questions...
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Why is business performance following its current path?
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Where is it going if we carry on as we are?
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How can we design a robust strategy to radically improve performance into the
future?
The answer to the final question - how to improve performance into the future -
must give managers specific policy recommendations ... what to do, when,
how much, in what order, coordinated how between different
functions, with what likely outcomes , and with what mechanisms for
monitoring and adjusting strategy and policy as the future unfolds.
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How is
Strategy Dynamics
relevant to ...
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How is Strategy Dynamics different from current approaches?
Most methods and frameworks for strategy analysis in use today trace back to
either
Both value-chain analysis and statistical approaches to understanding and
enhancing profitability are essentially static tools. They seek to explain
profits at each moment in terms of other causes, at that same time. In some
cases, analysis is time-shifted, in an effort to recognise that delays will
arise – e.g. is today's profitability related to R&D expenditure or
training commitments 5 years previously? In contrast, Strategy Dynamics
recognises that organisations are travelling along a trajectory through time,
whose path is determined by the accumulating history of their policies.
The key text on the approach is Kim Warren's book -
Competitive Strategy Dynamics - this is available through
booksellers and online bookstores. We also have an installable
electronic version available from our shop
Our materials also include a number of
conference presentations using the approach.
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