Strategy creation and achieving operational effectiveness are treated as distinct functions by executives, and they are not mistaken following that strategy. But linking strategy with operational effectiveness can lead to the creation of successful business models. Here you will find some excellent examples of how some companies have been able to do this, including the peanut story which comes from Southwest Airlines.

Protecting business ideas by covering them with a cloak of secrecy is very common, big companies like Apple are extremely secretive about new products or even updates on existing products. It works for Apple because it does not need anyone’s advice to make the right decisions. However, for most small to mid-sized business and startups secrecy can lead to failure. As an entrepreneur with a great new idea, you are so taken over by it, that you may not see the whole picture, or be able to account for all the significant factors that could affect your idea.

Most executives would strongly agree at the importance of focusing on core competency. But as the case of Eastman Kodak Company, IBM, Nokia and many others show that in today’s disruptive technological landscape it may not always be a good idea. All of the aforementioned companies stuck to their core competency for far too long and as a result, they had to suffer through major losses. Although core competencies play a vital role in any company’s success, it needs to be ready to go beyond that and evolve with the changing business landscape.

The success of Wal-Mart and Target compared to the struggles of Kmart can make for a
revealing case study on why some companies thrive while others don’t especially in this case when they are in the same business and appear to have similar offerings. The big difference is while Target and Wal-Mart have a clear understanding of how they should provide value to their customers and choose their “way to play” after careful deliberation, Kmart does none of this.

Source: HBR

The author has had significant experience running hands-on workshops on disruptive innovation. He has found, contrary to the general beliefs of CEOs that most organizations have enough creative people already working with them and the senior leaders need not look outside for innovative ideas. The problem, in most cases lies with the organization itself, or more specifically, its systems which constrain the collective creativity of workers in subtle ways.

 American car manufacturers have long dreamt of vehicle customization on a mass scale but have not been able to achieve it because their traditional American customers are an impatient lot who are generally ready to accept what is on offer if they can have a great deal even if the car does not completely fit with their desires and requirements. But that might be about to change as BMW has launched a massive marketing campaign to convince customers to order custom made vehicles which they can have within 2-6 weeks of placing their order. 

You will frequently hear CEOs from different companies committing to make innovation a cornerstone of their organization. Some of them just make a noise and settle down in the usual routine, but there are many who are passionately committed to their vision and have also devised detailed and effective strategies to make it a reality. They give it their best shot but are unable to achieve what they set out to.

Rosabeth Moss Kanter the author of “Supercorp” discusses how providing for societal benefits as a part of business strategy can help companies reap substantial benefits. These societal benefits need not be goals which conflict with a company’s interests or to fulfill which it has to go out of its way. One of the examples she provides is of Procter & Gamble which had employees staying low-cost housing in Brazil to observe how the company could serve them best.