Rowan Spazzoli

Strategist. Lecturer. Consultant

Bad Strategy Part 4/4: Bad Strategic Objectives

Over the last few days I’ve been looking at the “Four Hallmarks of Bad Strategy” from Richard Rumelt’s book Good Strategy/Bad Strategy. Each of these will be linked to a South African example and concluded with a tip to avoid that element of bad strategy.


The fourth and final element of bad strategy that Rumelt highlights is that of “bad strategic objectives”. He explains that there there are two types of bad strategic objectives:

  1. Dogs dinner objectives: instead of having one or two key strategic objectives, an organisation will try to write up a wish list.
  2. Blue sky objectives: a “blue sky objective” is a simple statement with no path to achieve it

South African Example: Kauai Straws

I saw a great example of this the other day. I was at Kauai and noticed that they’d put a sign up that said they were no longer serving their drinks with straws. This is a really great initiative because single use straws are an unnecessary waste.

However, the sign also read that if you did want a straw you could ask the cashier for one. And clearly the cashier had gotten frustrated with this, so they moved the straws to next to the sign.

This nullified Kauai’s entire strategic objective to eliminate straws. Because it was a “blue sky” objective that didn’t have a path to achieve it

Setting good strategic objectives

Setting better strategic objectives involves two main considerations. First, keep them simple and focused. Test them by seeing if they can be recited easily by anyone they apply to.

Secondly, set objectives that have paths to achieving them. If you want to remove the straws, find a substitute or get rid of them entirely. Set tangible links to how your strategy will be successful, otherwise it is meaningless.


Image was taken at the Kauai 

Song of the day: Mitis - Away
Blog 120/365. Read more about my #365of25 journey here

 

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Bad Strategy Part 3/4: Mistaking goals for strategy

Over the next few days I’ll be looking at the “Four Hallmarks of Bad Strategy” from Richard Rumelt’s book Good Strategy/Bad Strategy. Each of these will be linked to a South African example and concluded with a tip to avoid that element of bad strategy.


The third element of bad strategy that Rumelt highlights is that of “mistaking goals for strategy”. He explains that many people and organisations set goals that they expect to act as their strategies. The example he uses is a company with the following “Strategy”:

“We want to grow revenues at more than 20% per year with margins at 20% or more” is mistaking goals for strategy”

Student Strategies

There was a student last year that told me their strategy was to get 75% or more for the course. Although this is an admirable goal, it isn’t a real strategy. There are many ways that it can be improved on. For example, having a set of coherent actions instead of just an objective would turn it into a strategy.

It’s easy to fall into the pitfall of substituting goals for strategy. The best way to test your strategy for this is to simply ask, “how?” If your strategy is even partly able to answer this then you’re on the right track.


Image was taken at the start of the Cape Town Marathon.

Song of the day: Day I Die - The National
Blog 119/365. Read more about my #365of25 journey here

Note this post was a little late, I thought I’d queued one up for yesterday but turns out I hadn’t 🙂

 

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The Friday Shoutout: Jonga

Today’s shoutout goes to one of the most exciting social enterprises in South Africa: Jonga. The CEO and co-founder, Ntsako, came and gave a talk to the students in the Strategic Thinking course.

Jonga describe themselves on their website as follows:

“Jonga is a tech start up and social enterprise that provides simple, low cost and most importantly community based alert systems for lower to middle income households. It consists of an alarm and app combo that notify you and allow you to panic when being burgled or just allows you to panic when experiencing or witnessing crime whilst in the streets. It then sends a panic notification along with your location to all the Jonga app users within the area. Its purpose is to allow for real crime reporting, making people aware about potential threats in the vicinity and lastly prompting community watch responses.”

Launch

The team launched their device last week, after an extensive period of development. They’ve made some great partnerships over that time, including media houses, angel investors and startup competitions. And they’ll be rolling out their devices in association with Santam, one of South Africa’s biggest insurers.

Did I mention that all they are did all of this during their undergraduate degrees?

I am in awe of the work done by this team, and cannot wait to see what the future holds for them!


Image was from today’s guest lecture about Jonga delivered by Ntsako.

Song of the day: Major Happy - Fred V and Grafix
Blog 118/365. Read more about my #365of25 journey here

 

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Bad Strategy Part 2/4: Failure to face the problem

Over the next few days I’ll be looking at the “Four Hallmarks of Bad Strategy” from Richard Rumelt’s book Good Strategy/Bad Strategy. Each of these will be linked to a South African example and concluded with a tip to avoid that element of bad strategy.

Note: this post discusses strategy in South African politics. It is not an endorsement for the party being discussed. It is instead an analysis of a shortcoming of their strategy.

The second element of bad strategy that Rumelt highlights is that of “failing to face the problem”. He explains that failure to identify problems means that your strategy is ultimately just a wish list. In order to craft an effective strategy, you need to understand why things haven’t worked well in the past and confront this.

SA Example: The White DA

The Democratic Alliance has been trying everything they can to get into power at a national level. They have made advances in some regards, having won some big local level elections last year.

However, I don’t think that their existing strategy will ever get them in to power at a national level. And the reason is because they are continuously failing to address a fundamental problem:

The DA is perceived to be the party of and for white people

And many South African voters either don’t like this or are scared of what this might mean if the DA get into power. Regardless of whether these fears and dislikes are valid, they are what people perceive, which ultimately direct their voting.

The DA have never tackled this issue head on. Their 2014 National Manifesto and their 2016 Local Manifesto did not contain the word “white” once. They 2016 manifesto used the word “Black” on one ocassion and doesn’t use the word “race” at all.

Some might say that this can’t be the case because now they have a black leader. But I’d argue this has done little to address the problem. They need to find a way to do this if they want to achieve their objectives.

 

Face the problem

 

The solution to this pitfall is simple in theory and difficult in practice: face the problem head on. Avoiding it gets you no where. In tackling the underlying problem, it allows for the development of a more effective strategy


Image is from the 2014 elections when everyone was posting pictures with their thumbs and stamps. I was feeling left out so posted this homemade version to social media.

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Blog 117/365. Read more about my #365of25 journey here

 

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Bad Strategy Part 1/4: Fluff

Over the next few days I’ll be looking at the “Four Hallmarks of Bad Strategy” from Richard Rumelt’s book Good Strategy/Bad Strategy. Each of these will be linked to a South African example and concluded with a tip to avoid that element of bad strategy


The first element of bad strategy that Rumelt highlights is that of “fluff”. This can be described as the empty, unnecessary words and terms that are used in organisations to describe their strategy.

The example he uses is this. Try guess what type of company it comes from:

Our fundamental strategy is one of customer-centric intermediation” 

Any guesses?

No?

That is the vision statement of a bank in America. And all it says is “we facilitate transactions”. Their strategy is nothing but fluff.

SA Example: UCT’s Fluffy Strategy

In 2016 UCT issued their “Strategic Planning Framework” for 2016-2020. Their very first goal reads as follows:

Goal 1: To forge a new inclusive identity that reflects a more representative profile of students and staff, and the cultures, values, heritage and epistemologies of the diversity of UCT’s staff and students

This is one hell of a fluffy goal. How do we measure it? When do we know we’ve reached it? What exactly does this identity look like?

The goal itself isn’t necessarily bad. In fact, I agree that UCT does need to become more inclusive in a lot of respects. This has particularly become evident over the last few years.

My concern is the strategy and thinking around the goal. They’ve substituted proper strategy for fancy and unnecessary words.

Dodging the Fluff

Writing up fluffy strategies is tempting because we’re able to hide our uncertainty behind meaningless statements. Avoiding doing so is difficult as it requires us to not only avoid the lingo but to also dig deeper into what we’re trying to do.

Therefore, dodging the fluff requires two things. Firstly, use simple language to describe your overarching strategy. But more importantly, be certain of what you’re actually trying to achieve in the first place.


Image is from 2015 when my flatmate and I tried to start a Stikeez business off the back of the Pick N Pay trend. That’s a story for another time 🙂

Song of the day: Tom Rosenthal - Don't Die Curious
Blog 116/365. Read more about my #365of25 journey here

 

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A Strategy for Differentiation

On Friday I gave my first lecture to the BUS4050W (Strategic Thinking) class. My main focus for the session was to relate strategy to their careers and how they could get ahead. Part of this was about differentiation, or how they could stand out from the crowd.

I explained that many of them will be competing for the same jobs, along with other graduates with similar degrees from around the country (and the world). In order to get ahead, they need to develop a strategy that sets each of them apart from this crowd. And the strategy will depend entirely on their own objectives. The questions I posed to them were as follows:

  1. Where are you now?
  2. Where do you want to be?
  3. How do you get there?

In other words, they need to analyse their current position, set their goals based on what they want to achieve and then come up with a set of coherent actions that will get them to that goal.  And they need to make sure they set themselves apart.

The Red Fire Extinguisher 

To illustrate my point, I told them a story that I borrowed from the past course convenor, Dale. It goes as follows:

Dale was working at a highly disruptive and innovative fintech startup in the early 2000s. Their team was growing quite rapidly, and they had hundreds of job applications for various positions.

One day, a bright red fire extinguisher was dropped off at reception, with the instruction that it get to the CEO. The CEO came down to check this weird arrival and opened the attached note. The note on the fire extinguisher said:

“I want to set your marketing department on fire”

It was accompanied by a formal CV showing that the person had an impressive work history.

They were hired, and started their job the next week.

Differentiation to get ahead

This story is simple but powerful, because an action like that can fundamentally alter your chances at success. It’s not to say that this exact strategy would work everywhere. Dropping off a fire extinguisher at an accounting firm is likely to just get you some weird looks and no job.

So it’s important that we develop our own strategies to set ourselves apart. In doing so, we get ourselves into a more powerful position and ultimately are able to reach our objectives and goals.


Image is from this afternoon’s prom walk 🙂

Song of the day: Particula - Major Lazer & DJ Maphorisa(ft. Nasty C, Ice Prince, Patoranking & Jidenna)
Blog 105/365. Read more about my #365of25 journey here

 

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