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You can’t be remarkable by following someone else who’s remarkable… The thing that all great companies have in common 11:00 is that they have nothing in Maverick common. strategies maverick strategies Seth Godin (2003) Transform your Business by Becoming Remarkable The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality. Kjell Nordtrom & Jonas Ridderstrale (2002) Funky Business Organizations that did not fall into copycat traps: · Anita Roddick’s Body Shop largely redefined how cosmetics are developed and sold by challenging the industries previous assumptions. · Cirque du Soleil, a Canadian circus troupe in a dying industry, effectively collapsed two industries into one: theatre and circus. This saw Cirque open up an entire new venues and a new audience (who where prepared to pay higher prices). · Swatch challenged the assumption that a watch was a luxury or high-tech item that people only needed one of. They sold watches as collectible fashion accessories. · Some 20 years after sparking a revolution in computing Apple’s iPod is revolutionizing the way music industry thinks and operates. Mauborgne and Kim suggest that value innovation can be advanced by asking structured questions like: What factors could be eliminated that an industry has taken for granted? (For companies like Egg and First Direct it was that banks need branches) What product/service elements could be reduced below the industry standard? (For Ryanair and Southwest it was food and beverage services) What elements could be lifted above the standard? (For Dyson and Alessi it was that things like teapots and vacuum cleaners could have designer styling) What should be introduced that the industry has never offered the customer? (For Swatch it was idea that you could launch watches like fashion collections) Could a new offering win buyers without any marketing hype? (The Smart car or new Mini created demand simply through people seeing them on the streets) Beyond best practice: · “next practice” (an idea advocated in Recreating Strategy and inspired by Sony’s attitude of looking at its competitors accomplishments merely as conventions to be overturned rather than achievements to aim for); · “good practice” (an idea advanced by IBM who now discourage staff from talking of “best practice” because it implies that there is only one best way that cannot be surpassed, which encourages complacency); · identifying particular “promising practices” (an idea developed by the AIM research network in the UK which is interested in identifying how companies sponsor and bring through emergent new approaches. · understanding and discussing “worst practices” (an approach sponsored by David Snowden of the think-tank Cynefin because, he claims, “striving to avoid failure is more compelling than imitating success”). Deliberateness vs. Markets vs. Responsiveness vs. Competition vs. Compliance vs. Control vs. Globalization vs. Revolution vs. Profitability vs. Logic vs. Emergentness Resources Synergy Cooperation Choice Chaos Localization Evolution Responsibility Creativity The ‘strategy paradoxes’ that every firm must contemplate and choose a path between (Source, De Wit & Meyer, 2004) 1. Draw an organigraph or a value chimera of Synear…? 2. What were the strengths and weaknesses of Synear’s initial strategy to copy and replicate Sanquan…? 3. Work through Kim and Mauborgne’s five “value innovation” questions to determine the value innovations that Synear… achieved. 4. Can you also identify any examples of “blue ocean” strategies followed by Synear? 5. Define Synear’s particular maverick-ness, or “legitimate strangeness, in eight words or less?... 6. What do you think Synear’s next moves should be? 1. Would you have supported the decision to lend a further £50m? 2. What are the main considerations for banks involved in this form of finance? 3. It is clear from the case that it was touch and go for the entrepreneur gaining the necessary finance for his product. Why was he successful in getting finance? Could he have improved his approach to the bank? 4. Now that you are aware of the client firm’s identity, does this affect your answers to the earlier questions? What lessons can be learned about the way in which early stage finance and entrepreneurial endeavours work alongside each other? 1. Why do you think that design has become “absolutely strategic” …? 2. What other elements, apart from design, are important in automobile manufacture nowadays? 3. …Why would large automobile companies be looking to buy up smaller brands? Can you use the value chimera to depict an organization like the Ford Group? 4. Why might listening to focus groups not be a good thing in this industry? 5. Why would companies like Citroen and Renault be seeking to “inject more Frenchness” into what they do? 1. Where do you think Levi’s “standard models”… sit on the S-curve? Why are Levi’s taking the risk of developing the new customized approach described above? 2. Try drawing Levis… using a generic value chain. …Do you think Levi’s customization approaches will make its standard models obsolete? 3. …where do you think Levis’, BuildA-Bear and Land Rover’s strategies for the future are coming from? Is there a school of strategy, or combination, that reflects this?... 4. …any examples of value innovation or blue ocean strategies… in this case? 5. Following Dru’s approach what verbs would you attach to the Levis, Build-A-Bear and Land Rover…? 1. What effects might the way a workplace is designed have on the development of strategy? 2. How might the growing awareness of “diversity management” and the importance of “shaking together” different ideas and perspectives impact on the future shape of workplace design? 3. Which of the developments in workplace design… are value innovations and which are just innovations for the sake of innovation? 4. … Do you think IBM and Apple’s other competitors should have followed in Apple’s footsteps in this regard? 5. Do you think there is one best approach to workplace design…? 1. Why do you think that ideas in management and strategy that are claimed to be “new” might actually quite similar to earlier thinking? 2. …why might traditional craft organizations be better at thinking differently than larger … companies? 3. What elements are these craft organizations now “shaking together”, to use Koestler’s term, that have not been combined before? And why might this shaking be difficult for larger, more conventional organizations to copy? 4. If you were a manager of a large professional company, what lessons would you learn from the examples of the “craft” organizations described in this case and in the Time story? 1. …what is wrong with most people seeing structure in the same way? 2. …Why might the arts students have been less likely to draw the standard triangular hierarchies? 3. …drawing and humour are two particularly acute methods for exposing core assumptions. The cartoon (11-7.2) is generally found to be humorous. The question is, why? What assumptions is it attacking? 4. … what alternative shapes or forms would you draw to more accurately reflected some of the other schools or approaches described in table 11.1 in this chapter? 5. What are the advantages of using alternative forms and schools to think about strategy development? Pathfinder Checklist 1. Macro-shocks 2. Movers & shakers 3. Industry terrain 4. The big picture 5. Comp advantage 6. Living strategy 7. Character 8. Crossing-borders 9. Managing change 10. Sustainability 11. Mav’k strategies