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The social side of strategy - McKinsey Quarterly - Strategy - Strategy in Practice

The social side of strategy - McKinsey Quarterly - Strategy - Strategy in Practice
In 2009, Wikimedia launched a special wiki—one dedicated to the organization’s own strategy. Over the next two years, more than 1,000 volunteers generated some 900 proposals for the company’s future direction and then categorized, rationalized, and formed task forces to elaborate on them. The result was a coherent strategic plan detailing a set of beliefs, priorities, and related commitments that together engendered among participants a deep sense of dedication to Wikimedia’s future. Through the launch of several special projects and the continued work of self-organizing teams dedicated to specific proposals, the vision laid out in the strategic plan is now unfolding. Wikimedia’s effort to crowdsource its strategy probably sounds like an outlier—after all, the company’s very existence rests on collaborative content creation. Our objective in this article isn’t to present a definitive road map for opening up the strategy process; it’s simply too early for one to exist. Closer to home

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Interactions - Ice Breakers and Exercises 1. The maker doesn't want it; the buyer doesn't use it; and the user doesn't even see it. What is it? 2. A child is born in Boston, Massachusetts to parents who were both born in Boston, Massachusetts. How multinationals can attract the talent they need - McKinsey Quarterly - Organization - Talent Global organizations appear to be well armed in the war for talent. They can tap sources of suitably qualified people around the world and attract them with stimulating jobs in different countries, the promise of powerful positions early on, and a share of the rewards earned by deploying world-class people to build global businesses. However, these traditional sources of strength are coming under pressure from intensifying competition for talent in emerging markets. Talent in emerging economies is scarce, expensive, and hard to retain. In China, for example, barely two million local managers have the managerial and English-language skills multinationals need. One leading bank reports paying top people in Brazil, China, and India almost double what it pays their peers in the United Kingdom.

2012 Global CEO Study Overview For some time, businesses have been refining and optimizing their networks of suppliers and partners. But something just as meaningful has been happening – the sudden convergence of the digital, social and mobile spheres – connecting customers, employees and partners in new ways to organizations and to each other. In speaking face-to-face with 1,709 CEOs, general managers and senior public sector leaders around the globe, leaders confirmed that our new connected era is changing how people engage. Vision Statements - How to Write a Vision Statement A vision statement is your ticket to success. A photograph in words of your company's future, it provides the inspiration for both your daily operations and your strategic decisions. Without a vision statement, effective business planning would be impossible; it's the vision statement that provides the destination for the journey, and without a destination, how can you plan the route?

Organizing for an emerging world - McKinsey Quarterly - Organization - Strategic Organization As global organizations expand, they get more complicated and difficult to manage. For evidence, look no further than the interviews and surveys we recently conducted with 300 executives at 17 major global companies. Fewer than half of the respondents believed that their organizations’ structure created clear accountabilities, and many suggested that globalization brings, as one put it, “cumulative degrees of complexity.” However, our research and experience in the field suggest that even complex organizations can be improved to give employees around the world the mix of control, support, and autonomy they need to do their jobs well. What’s more, redesigning an organization to suit its changing scale and scope can do much to address the challenges of managing strategy, costs, people, and risk on a global basis. Rethinking boundaries

How Coping Strategies can Make Your Business Less Relevant  When was the last time you took a fresh look at the value or relevance of your business to today’s marketplace? Did you take action? Businesses of all types, sizes and locations are impacted by shifting global business conditions, rapidly changing business models and innovation. These forces cause a shift in the context of business, what is meaningful and of value to customers. How to Write Your Mission Statement A mission statement is a key tool that can be as important as your business plan. It captures, in a few succinct sentences, the essence of your business's goals and the philosophies underlying them. Equally important, the mission statement signals what your business is all about to your customers, employees, suppliers and the community. The mission statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community. "Mission statement help clarify what business you are in, your goals and your objectives," says Rhonda Abrams, author of The Successful Business Plan: Secrets and Strategies. Your mission statement should reflect your business' special niche.

Breaking strategic inertia: Tips from two leaders - McKinsey Quarterly - Strategy - Growth Frameworks abound for developing corporate strategy. But there’s no textbook or theory that explains how to deliver on that strategy by shifting capital, talent, and other scarce resources from one part of a business to another. One reason is that the moves each organization must make at any point in time are unique. Another is that different senior executives have different roles to play. But that’s not to say companies can’t learn from one another—in fact, understanding the broad range of reallocation challenges faced by different executives sheds valuable light on common pitfalls and the decision-making processes for sidestepping them. Featured here are perspectives from two different industries and corners of the C-suite.

The "random collision" theory of innovation This post originally appeared on the Fortune website. Leaders tend to surround themselves with people who are like them. Creating environments where "unusual suspects" can meet is the key to generating new business ideas. Collaborators are everywhere. Net Present Value (NPV) Definition NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account. If the NPV of a prospective project is positive, it should be accepted. However, if NPV is negative, the project should probably be rejected because cash flows will also be negative.

How to put your money where your strategy is - McKinsey Quarterly - Strategy - Growth Picture two global companies, each operating a range of different businesses. Company A allocates capital, talent, and research dollars consistently every year, making small changes but always following the same broad investment pattern. Company B continually evaluates the performance of business units, acquires and divests assets, and adjusts resource allocations based on each division’s relative market opportunities. Over time, which company will be worth more? If you guessed company B, you’re right.

Innovation Isn't About New Products, It's About Changing Behavior Behavior is the unknowable variable in every innovation, and it is the variable that most determines the opportunity a new business model has to evolve and take advantage of the new behavior. It's The Behavior, Stupid We are at the tail end of an era that has focused almost entirely on the innovation of products and services, and we are at the beginning of a new era that focuses on the innovation of what I like to call "behavioral business models." These models go beyond asking how we can make what we make better and cheaper, or asking how we can do what we do faster.

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