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23 December, 2021

Coherence and Advantage

With much being made of disruption and acceleration along with the need to pivot, reinvent and reform it’s timely to discuss how to do this without losing sight of protecting and creating enduring advantage. 

Let’s define enduring advantage as having a coherent system of strategy, operating model and capabilities along with identity, culture, structure and offerings that are differentiated and valued within a given market. For example, Amazon strategy is to be ‘Earth’s most customer centric company’ with differentiation based in vast selection, low prices and fast delivery.

Too often the need or perhaps even just the desire to disrupt is approached without coherence. For example, new digital systems are implemented without understanding how they align with strategy and enable the organisation to compete.

When disruption is tackled without strategic coherence, we often end up moving further away from enduring advantage.  For example, we adopt the processes that are defined for us by the new digital system and become a ‘me too’ rather than a leader and innovator.

To reform AND build enduring advantage, start with:

A precise position

Know how you are different, the value proposition you represent to clients and how this flows through to your cultural and service experience

A powerful strategic centre

Be ruthless about prioritising change that is coherent with strategy and reinforcing of advantage

Evolving advantage

When markets shift or the competitive landscape changes, evolve by evolving strategy and coherence therewith

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