By: Jill Mendoza Ran across a great article in HBR by Rita Gunther McGrath, called Transient Advantage, Rita notes;The idea of the “Transient Advantage” is this: “The dominate idea in the field of strategy – that success consist of establishing a unique competitive position, sustained for long periods of time – is no longer relevant for most businesses. They need to embrace the notion of transient advantage instead, learning to launch new strategic initiatives again, and again, and creating a portfolio of advantages that can be built quickly and abandoned just as rapidly. Success will require a new set of operational capabilities.” Here at IDO we have been discussing how we can maintain our competitive advantage in our market place and asking ourselves if our company is prepared for the Transient-Advantage Economy that we are told is in our future. This HBR article has a test you can take to see if your organizations’ current way of working is preparing you for this Transient –Advantage Economy. Here are some examples of the questions you may want to ask yourself to see if you are ready:
- Do you recognize that failures are unavoidable and try to learn from them?
- Do you budget in quick cycles, either quarterly or on a rolling basis?
- Are you comfortable changing your plans as new information comes in?
- Do you find it very easy to be candid with senior leaders when something goes wrong?
If your answers are no to these questions you may want to take a hard look at your current strategy. In closing; one thing about strategy that Rita notes has not changed: “It still requires making tough choices about what to do and, even more important, what not to do. Even though you are orchestrating scores of arenas, you can do only so many things. So defining where you want to compete, how you intend to win, and how you are going to move from advantage to advantage is critical. While we might be tempted to throw up our hands and say that strategy is no longer useful, I think the opposite conclusion is called for. It’s more important than ever. It just isn’t about the status quo any longer.” Photography: Courtesy of Pace Gallery Artwork: Tara Donovan, Untitled (Styrofoam Cups), 2008, Styrofoam cups and glue, installation dimensions variable