Bad or fake strategy abounds. What is "bad strategy". The hallmarks of "bad strategy".

1. Strategy:
Recognizing Fake Strategy
By
Dr. Michael McDermott
mcdermottm1@nku.edu
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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2. Fake or Bad Strategy is
Widespread
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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3. Fake Strategy:
The Process and Outcome
Goal
Setting
Lack of
Direction
Confusion
© Michael McDermott, 2014;
mcdermottm1@nku.edu
Panic
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4. The Three Pillars of Fake Strategy
Fake Strategy
Bad
Failure to Mistaking
Define the Goals for Strategic
Challenge Strategy Objectives
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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5. The Three Key Hallmarks of Fake
Strategy
Failure to Face
the Challenge
Mistaking Goals
for Strategy
Bad Strategic
Objectives
• You must define the challenge
• If you cannot define the challenge, you
cannot evaluate the strategy or improve it
• Do not confuse desire with a plan to
overcome obstacles
• Fail to address critical issues
• Objectives are impracticable
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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6. Bad Strategy in 3D
The Focus is on 3D
• Desire;
• Drive; and
• Determination
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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7. The 3D Essence of Bad Strategy
Desire
Drive
© Michael McDermott, 2014;
mcdermottm1@nku.edu
Determination
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8. Incoherence:
The Essence of Bad Strategy
• At best pursuing multiple unconnected
objectives
• At its worst, it involves pursuing conflicting
objectives
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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9. The Cost of Bad Strategy
It is a source of
weakness
because it is
incoherent
© Michael McDermott, 2014;
mcdermottm1@nku.edu
9

10. Recognizing Fake Strategy
Organization is in Denial
It’s Pretentious
(refuses to define the
challenge)
Fake
Strategy
It has a “Bad” Objective
Its focus is Goals
© Michael McDermott, 2014;
mcdermottm1@nku.edu
(Irrelevant or
impracticable)
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11. Good Strategy defines a
critical challenge
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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12. What’s Goin’ On?
Diagnosis is
the
essence of
strategy
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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13. Strategy and Two Popular Misconceptions
1. Strategy is formulaic or
mechanistic
2. Strategy is goal-setting
© Michael McDermott, 2014;
mcdermottm1@nku.edu
13

14. Strategy and Two Popular Misconceptions:
Implications for Learners
Strategy is formulaic or mechanistic
You should abandon any notions that there is a “magic
template” that delivers strategy;
You need to begin to feel comfortable with ambiguity and
learn to cope with “lack of direction”
Strategy is goal-setting
Anyone can quickly create goals that everyone loves, but
again this is not strategy
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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15. Addressing Popular Misconception 1:
Strategy is Formulaic
Genuine strategy
cannot be
created by
adopting a
“painting by
numbers”
approach
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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16. Strategy by Numbers is Pointless
• It results in radically different companies in
very diverse situations producing strategies
that are at worst identical and at best very
similar.
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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17. Addressing Popular Misconception 1:
Strategy is Formulaic
1.
2.
3.
4.
5.
6.
Market
Penetration
Product
Development
Acquisitions
Enter Emerging
Markets
Divest ‘dogs’
Increase R&D
expenditure
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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18. Is this Strategy?
• “We aim to consolidate our presence in our
developed markets, continuing to create
innovative products, and are well–positioned
to penetrate emerging markets”.
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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19. Step 1 in Bad or Counterfeit Strategy:
Fill in the blanks
Vision
• INSERT BANAL HERE
Mission
• INSERT BANAL HERE
Core Values • INSERT BANAL HERE
Goals
• INSERT BANAL HERE
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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20. Faking Strategy
• Simply working through a
template of ‘tools’ cannot
deliver genuine strategy
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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21. Simply working through a
template of ‘tools’ cannot
deliver genuine strategy
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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22. Yes. And this is THE
most difficult
aspect of this class.
Accepting this fact
Are you
serious?
Simply working through a
template of ‘tools’ cannot
deliver genuine strategy
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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23. The Learning Evolution in this Class
Apply
Knowledge
Acquire
Knowledge
Advanced
Skills
(i.e. Basic
skills)
© Michael McDermott, 2014;
mcdermottm1@nku.edu
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