Creating Strategic Slack


In considering strategies for supporting or protecting core distinctive competences and growing new ones, the issue of resource demands has to be considered. One means of releasing resources is to review those distinctive competences that are no longer central to the strategic future. As is often the case in organizations, competences and distinctive competences emerge, and become embedded into the culture/conciousness of the organization. However, as organizations change their strategic direction, the utility of these competences may reduce, sometimes with them becoming completely irrelevant. Identifying these will free up resources—creating strategic slack. Where competences (or the activities supporting them) are to be withdrawn, careful considration of how this is to be achieved is necessary (who needs to be consulted? What needs to be put into place?) so as to ensure that the resources are freed up rather than covertly protected.

 

An obvious means of freeing up resources is through outsourcing. Through building the business model, those areas that are considered potential candidates for outsourcing will have been scrutinized. Often organizations outsource units, departments and tasks without considering the overall impact on the business model, or on a distinctive competence. Understanding how the particular area or task to be outsourced fits in with the overall model can thus ensure a more sustainable and coherent approach.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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Strategy-making Outcomes


  1. Identification of a system of strategies that reinforce one another and allow the issues and concerns of those participating to be managed and the new strategic future to be realized.
  2. Production of a set of strategies that protect the identified core distinctive competencies.
  3. Renewal/development of new patterns of competences and distinctive competences.
  4. Agreed plans for diminishing arresting or outsourcing activities that enable resources to be made available for other activities.

Once the business model has been developed, it is important to review the original set of issues. This is partly to ensure that those issues which group members feel important are being considered but also to review their prioritization and therefore where management attention and resources should be focused. Developing the business model will almost certainly have suggested a rethink of the importance of managing the issues.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir.