I continue to encounter sub-optimal Business Information System implementations.  I sit through big brand and not so big brand system vendor and implementer presentations, sift through their marketing material and visit their websites.  The word "strategy"  is scattered all over the place but frequently in absolutely inappropriate contexts.

If one reads the context of every place that the word"strategy" occurs, one must conclude that there is no single, coherent, consistent, congruent definition of the word.  To some it is wheeling and dealing, to others it is a plan or a way of doing things, to others it is an important sounding word to impress people.  The result being that strategy is, in fact, a widely discounted word.  Very few people agree what strategy is, very few people know how to determine strategy, let alone do strategy, whatever that means.

When it comes to business software I am not sure that I have ever seen the word "strategy" used correctly.  Michael Porter says that technology is never strategy, it is what people do with technology that is strategic!

What is "strategy"?

Back in 1990 I wrote a paper for a conference on the importance of aligning business information systems with strategy, and then found that I could not define strategy.  So I started to research the definition of strategy.

Professor Malcolm McDonald says "strategy is doing the right things, viewed from the perspective of the customer" and "tactics is doing things right, viewed from the perspective of the customer".  He goes on to say that if an organization "does the right things well, it will thrive", if it does them not so well, it will "survive" and if it does the wrong things, it will "die" it is simply a mater of how quickly.  The better the organization does the wrong things the faster it will die!  That definition has stuck with me and forms the basis of my corporate logo.

Michel Robert defines "strategic driving force"  and asserts that every organization has a single driving force that will seldom if ever change.  If one gets in the way of that driving force, one will compromise and damage the organization.  If one enhances it, the organization will thrive.

Professor Michael Porter asserts that "differentiation" is the " essence" of strategy.

All three of these authorities significantly influenced my thinking to the point where I concluded that"strategy is the essence of the organization and how it thrives".  It is what is unique, that which differentiates the organization, what makes it stand out so that it attracts and retains customers.

It is that essential something that has brought the organization this far and will propel it into the future.  It is the right things that cause your customers to buy from you.  It is the fundamental element that, if you damage it, you will destroy the organization and if you do it right the organization will thrive.

Strategic Essence is unique to every organization.

The interesting thing about this definition is that when I interview an executive team, individually, one on one, and ask "what is your strategy?" frequently their replies are all over the place.

When I ask them "what is the essence of your organization and how does it thrive?" they frown, they think, they scratch their heads, but, eventually, after thinking aloud, the final result of the individual interviews will generally be a fairly consistent view of the Strategic Essence of their organization.

Once you understand the concept of Strategic Essence, you begin to understand that this should be the reason you invest in new systems.  It should guide and direct the procurement and implementation of new systems and business improvement projects because the concept of the essence embraces the very core of what makes the organization successful.

This Strategic Essence originated intuitively from the founders recognizing a market need and filling it.  It embraces differentiation and competitiveness.  Organizations thrive because they are different and yet most systems implementations, focuses on operational "me too" stuff and gets in the way of the essence and therefore the competitiveness of the organization.

Some years ago I undertook a short diagnostic investigation, something that I call a "Pulse Measurement", into a systems implementation that had been stalled for nearly a year.  The client was in the Freight Forwarding and Clearing business, and they were in the process of implementing a "best of breed", "industry leader" software package -- the "obvious" choice.

I interviewed the executive team, one on one and, by the end of the first day I had established that their market was the 10% of customers who were very time sensitive, and that they had differentiated themselves with very tight response times and a service promise which amounted to "if we promise you delivery by a certain date and time and the clearance is delayed we will make good your loss".  They never had to make a payment and they had a portfolio of very satisfied and very loyal customers.

There was major tension with the software company which was also managing the implementation.  The second day of the investigation I phoned the owner of the software firm in another country and quickly established that his Strategic Essence was to be the dominant software provider in the field globally, which meant, of necessity, that he was focussed on the 90% of the market where service levels and response times were not such an issue.

There was a fundamental strategic misalignment.  I met with the executive who had briefed me and explained what I had discovered.  He took one look at me and exclaimed "of course! the lights have just gone on!"  That single discovery fully explained the tensions, the frustration, the lack of commitment to service, the entire "sorry saga" of a project that had run for eighteen months and caused nothing but heartache and frustration.

That is the power of understanding the Strategic Essence of an organization.  On the strength of that one piece of information, which delivered a massive "AHA" to the man in charge, the project was summarily terminated the same day!

I was then engaged to assist the client to select the most suitable software.  Together with my client, we visited three software companies.  At the third presentation the chief executive of the small niche player, unprompted, said "we are committed to service, in fact, we are so committed to service that if you miss a deadline as a consequence of a problem with our software we will reimburse you your losses".

I am sure you can understand that no further evaluation of software was necessary, at that presentation we ascertained that the software met the basic needs of the business but much more importantly, we had found a supplier whose strategic focus was strongly aligned with that of my client.  The software went in without difficulty.

It is not always that simple but failing to ensure alignment at the level of the Strategic Essence will alwaysgive rise to problems, and alignment with the Strategic Essence will always greatly improve the probability of a successful outcome.

4. Differentiation

5. The essence IS different

6. The essence should be comprehensively communicated

7. The essence should be the point of departure for every project

8. Enhancing the essence should be the focus of every project

9. One size fits all cannot work

I hope that this article has provided a different perspective on the relationship between systems and strategy.

I would welcome the opportunity to assist your organization to put the principles discussed in this article into practice to assist your organization to thrive.

The above is an extract from a longer article which you will receive in instalments. Please email me if you would like the full article immediately.

I offer a one day intervention through a series of one hour interviews with your management team to assist you to lift out the essence of your organization, please email me should you require information.

I also offer a comprehensive strategic planning service to engineering standards.

Yours faithfully,

Dr James A Robertson, PrEng