Just watch the confusion on the faces of most corporate CEOs when you ask them the names of the members of their strategic team. You may not believe but a large majority of corporates are working without one. The Founder/CEO thinks that he knows it all since he has built the company.
Big mistake. I will share today the nuts and bolts of what is a strategic team. And with examples on how to build one.
Here is a very relevant picture.
“Here Lies John Brown, A Farmer Of Renown.
He Felled A Tree, Then The Tree Felled Him.”
This could be the epitaph of many large companies which could not diversify, were not agile enough, could not grow out of their core businesses and eventually faded from the radar under their own weight. It is no wonder that out of the Top 500 companies 40 years back, only 74 are still on the Fortune 500 list. A death rate of more than 10 per year. An eye popping number.
The secret weapon of successful companies is a great in-house strategic team. These companies do not “OUTSOURCE” their strategic planning and thinking to Mckinseys or KPMGs of the world. That is akin to outsourcing one’s vision.
No organization can afford to outsource their strategic vision and the “inner eye”. While the big vision may come from the Founder/CEO the strategy and execution must be in the hands of an inner core team of smart strategists.
Let us look at some stories how they seized opportunities by enlarging their strategic decision making.
When Ratan Tata was asked about his purchase of Corus Steel Of UK for 8 Billion Dollars, his answer was “This was the call of Muthu and Arun.” He meant Muthuraman and Arun Gandhi.
Such a big investment could be launched and concluded without his direct involvement is a tribute to the vision of top leadership.
When Anand Mahindra was asked about purchase of Satyam Computers his answer was similar. He said “I am not involved in that business. Please ask Vineet Nayyar and Gurnani. It was their call.” His organization has reached a mature strategic level where big ticket decisions can be taken without his direct involvement.
How many corporates have put together this level of in-house Strategic Team ? Almost all successful ones. Only an in-house strategic team can feel the guts of the organization, its human resource capabilities and its intrinsic strengths and weaknesses – crucial information for implementing any great grand plans.
Here is an excellent take on strategic thinking from Rajiv Bajaj, the CEO of Bajaj Auto Ltd. “Strategy is more about what you choose not to do rather than what you choose to do.”
What next ? Well, just do it. Start building your in-house “Strategic Team” today. In today’s environment, strategic planning and visioning is a big thing! Very big. No large organization will survive without it. And there is no way that you can “outsource” the core strategic vision of your company.
Here is another great quote on strategy by the founder of Honda Motors. “Strategy without action is a daydream. Action without strategy is a nightmare”. There is a great message here both for startups as well as established companies. The choice is clear.
That’s all for now. Till we meet again.