Your Strategy Needs A Strategy Reeves

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Your Strategy Needs a Strategy

Martin Reeves | TED © 2014
Strategy isn’t exactly titillating subject matter, which might be one of the reasons some leaders
balk at the idea. Yet according to management consultant Martin Reeves, in the current rapidly
changing business environment, strategy is more important than ever. Reeves offers a
multidimensional approach to choosing the most apt strategy. While veteran executives will
already be familiar with Reeves’s assertions, novices should take heed.
Take-Aways
• To execute the best business strategy, first determine in which business environment you
operate according to three factors: “unpredictability, malleability” and “harshness.”
• The “classical environment” is predictable and unbending. Traditional strategy – that is,
planning, analyzing, and so on – suits residents of this environment.
• The “adaptive environment” is unpredictable and unshapable. Thus, strategic planning is
futile, and firms must experiment to forge a path ahead. The “visionary environment,” led by
entrepreneurs, is predictable and malleable.
• The “shaping environment” is difficult to predict but conducive to shaping.
Businesses that reside in this space, such as Alibaba, have created their own ecosystems.
• Businesses in the “renewal environment” face harsh conditions. They must focus on survival
rather than seeking advantages over competitors.
Summary
Many leaders suffer from strategy fatigue. They recoil from investing time and effort in strategic
planning when the best-laid plans become defunct within mere weeks. Yet as the world grows
increasingly more complex, there is a yawning need for savvy strategy. Strategy, in simple terms,
is an instrument to help you win “competitively in a particular situation.” But there is no one-size-
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fits-all model when it comes to strategy. You must tailor your strategy according to the business
environment in which you operate. To determine your business environment, analyze your market
according to three dimensions: “unpredictability, malleability” and “harshness.” You’ll find your
business exists in one of five distinct environments:
1. The “classical environment” is predictable and unshapable. It boasts solid brands and little
technological change. Industries in this environment – such as household products and
candy – are often heavily regulated. The traditional approach to strategy – planning, analysis,
and so on – works well here.
2. The “adaptive environment” is unshapable and unpredictable. It is subject to rapid
technological change. Thus, strategic planning is futile. Firms operating in this realm must
“experiment, select, scale up and iterate” to forge a path ahead.
3. Entrepreneurs have the power to shape and predict the “visionary environment.” They conceive
of a new idea, turn that vision into reality and exploit it.
4. The “shaping environment,” whereby an “ecosystem of many companies is collectively
reshaping an industry,” is difficult to predict but is conducive to shaping. Consider Alibaba.
It is engaged in “influencing, collaborating, orchestrating and co-evolving” rather than just
competing.
5. Businesses that have fallen “out of step” with their environment enter the “renewal
environment.” These firms are no longer trying to gain advantage over their competitors;
they’re merely attempting to survive. They must concentrate on “focusing activities” and
“freeing up resources” so they can find a new approach to strategy.
“‘Strategy,’ a slightly old-fashioned, faintly pompous word, probably conjures up images

of the arcane processes of strategic planning that are generally very complex.”
Once you have determined your environment, you can refine your strategic approach
to winning. In large companies, that approach may vary across markets, products and
branches. Leaders are responsible for selecting “the right approach to winning in the right part of
the business at the right time.” Thus, strategy remains as important as ever before.
About the Speaker

Martin Reeves directs the Boston Consulting Group’s think tank for new ideas in strategy and
management.
This document is restricted to the personal use of Numan Shahid ([email protected])

getAbstract maintains complete editorial responsibility for all parts of this abstract. getAbstract acknowledges the copyrights of authors and
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Your Strategy Needs a Strategy

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“‘Strategy,’ a slightly old-fashioned, faintly pompous word, probably conjures up images

About the Speaker

This document is restricted to the personal use of Numan Shahid ([email protected])

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