Is Your Favorite Strategic Framework Standing Still?
I'm always drumming away at this: Our business environment is dynamic, not static. Staying relevant is a necessity, not a goal. Inspirational business leaders know this; business schools are catching up. The paper "Dynamic Competitive Strategy: Towards a Multi-perspective Conceptual Framework" by Jeffrey P. Shay and Frank T. Rothaermel digs deep into the strategic models that have shaped business thinking for decades. While the language is academic, the insights are clear for those of us steering our companies through uncharted waters.
The “What”: They've taken four classic strategy models -- BCG's Growth Share Matrix, Ohmae's Competitive Advantage Routes, Hamel and Prahalad's Core Competency Agenda, and D'Aveni's Hypercompetition Model -- and woven them into a dynamic tapestry. You know the models here. But chances are, you prefer one or maybe two. Shay and Rothaermel get this, and give business leaders 3D glasses to see strategy in all its dimensions. The secret sauce? They've overlaid these models onto Handy's sigmoid curve -- a growth curve -- turning static snapshots into a living, breathing strategic journey that's more like real life.
If you’re a PhD candidate or glutton for punishment, here’s the paper.
The "So What?": For leaders, it means understanding your product isn't just a star or a dog -- it's on a journey, constantly evolving, demanding different strategies at different stages. It's about seeing the connections, the rhythm of change, and knowing when to nurture, when to pivot, and when to let go. This isn't your grandfather's strategy playbook; it's a roadmap for navigating the twists and turns of modern business, where today's cash cow might be tomorrow's question mark.
Here’s the thing: Many of the most successful leaders today already embody the dynamic, multi-perspective approach the paper advocates. They’re living the playbook for navigating complexity and seizing growth.
Riding the Wave: Satya Nadella at Microsoft
When Satya Nadella took the reins at Microsoft, he saw that the company was perched at the peak of its first wave. Reliant on Windows and Office, it was a giant at risk of stumbling. So, he pivoted -- hard. Cloud-first, AI-focused. He didn't just shift gears; he built an entirely new engine while the car was still speeding down the highway. It’s exactly what the paper suggests: start developing your next growth curve before the current one peaks. Nadella didn’t just shift Microsoft’s strategy; he rewired its culture, fostering collaboration and breaking down silos. This wasn’t just a pivot -- it was an overhaul.
Betting on the Future: Mary Barra’s Vision at GM
Mary Barra is doing something at General Motors that most leaders only dream about: She's taking a legacy brand and rewriting its story. Heavy investment in electric vehicles and autonomous tech? That’s not just a shift; it’s a full-on leap into the future. Barra is betting on tomorrow, positioning GM to lead, not follow. She’s not just reacting to change; she’s creating it.
Crafting New Pathways: Andy Jassy's Playbook at Amazon
Jeff Bezos made navigating new curves look like a Sunday drive. From e-commerce and cloud computing to groceries and streaming, he’s turned Amazon into a relentless growth machine. The secret? He’s obsessed with the customer, always asking, “What’s next?” Andy Jassy isn't just following Bezos' footsteps, he's carving his own path. In a bold move, Jassy's ditching the hybrid work model and flattening Amazon's org chart like a pancake. His eyes are on culture. Jassy sees the office as the crucible of innovation, where Amazon's DNA gets passed on through osmosis, not Zoom. He's betting big on face-to-face collaboration, even if it means ruffling feathers. And those layers of middle management? They're getting trimmed faster than Prime delivery times. Jassy's not just tweaking the machine; in a high-stakes gamble, he's rewiring it for the next growth spurt.
Reigniting Purpose: Sundar Pichai at Google
Sundar Pichai’s leadership at Google is a masterclass in the need for a dynamic strategy in the midst of a complex and shifting environment. Faced with antitrust battles, the ethical minefield of AI, shifting revenue models, talent retention, and a push into hardware, Pichai is steering Google through uncharted waters. The company is being pulled in different directions: Balancing rapid innovation with regulatory compliance, driving AI research while ensuring responsible development, and diversifying beyond its core ad business as digital advertising faces headwinds. Pichai has responded with a strategic reshuffle aimed at increasing agility. It should enable a dynamic strategy: Adapt quickly, move resources nimbly, and always be ready to jump to the next curve before the current one flattens out. Google’s deep investments in AI and cloud are bets on future mega opportunities, even as they work to fortify their hardware and ecosystem plays, while exploring new white spaces with existing strengths.
The “Now What?: The best leaders aren’t just riding the wave—they’re shaping it. They see beyond the static models and embrace the dynamic complexity of today’s world. They’re not just following trends; they’re setting them.
For the Brave Business Leader:
Are you preparing for the next growth curve, or are you still squeezing the last drops out of the current one?
How are you integrating your company’s strengths with emerging opportunities in the market?
Are you fostering a culture that can pivot and adapt, or are you stuck in the comfort zone of what’s always worked?
Now is the time to ask yourself these questions. The world won’t wait for you to catch up. Start building your next curve today.
Want a sounding board? Reach out at strategy@growthinnovationstrategy.com.
