As we are heading into week 09 and our second to last learning journal I get the sense that everyone is drained out over their second semester in 2014. I am one who is looking forward to a nice, long, relaxing holiday. However there is still plenty of work to be done first before that. This week our Mikes Bikes team has moved forward on the strategy we developed in week 8 (had to indulge in a new strategy in week 7 as our SHV was around $1). But then again is our “growth strategy flying blind?” We have definitely come along way as a group since the beginning of semester. We’ve had our challenges and have overcome them. Nonetheless as R&D director I have my own strategy for the final rounds that I would like to discuss with our team before Week 9s roll-over. What I have learnt this week is growth is granular, but most companies aren’t.
The reading by Baghai, Smit, and Viguerie (2009) really got me thinking about our team’s strategy. With so many thoughts going through my mind I was wondering: had we chosen the right strategy from the start? How many potential strategies are there? What are our competitors’ strategy? How many strategies do we need? Is it too late to change our strategy now? And latter of the questions really got me thinking. Maybe I have come up with a new approach to gain market share and economic value in the last few roll-overs. Was it too late? I will find out.
After viewing previous roll-overs I could analyse that growth is granular: consisting of small gains or particles. However the reverse effect happens when growth declines, it jumps down quickly, real quickly as our team has seen. When our SHV did increase every time it was always less than $10, it felt good at the time but comparing to where all competitors sit now maybe it wasn’t the best. It also felt miniature compared to Solo Mikes Bikes and practise roll-overs as a firm. This is due to many factors, especially increase in competition. Our growth was steadily sitting at the granular stage!
Baghai et al. (2009) also go onto mention that “many great companies continue to measure, manage, and organize themselves on the basis of relatively aggregated data. These companies are likely to miss important shifts in their performance and their markets”, and I feel this is what has happened with my team due to many reasons. One of them being the quality and specs of our bike were not up to standards of competitors but this wasn’t realized until a few weeks ago. Since then our hypotheses has been tested in the market where we developed a new Adventure and Leisure bike where we have been to able increase sales due focusing on the market rather than all the data available (as noted above data can be a problem).
Apart from this testing method I feel that this is my last opportunity to prove to our shareholders we can be a highly attractive company and the next time I might have to do this is in my future career/ job.
Looking back, if this strategy works in the final few roll-overs then I will regret not coming up with is sooner. However I feel that this is the sense of weekly journals, readings, and team discussion. We are always learning what others are exposing to us.
Any way I look forward to discussing my new strategy with my team and hopefully it works out to be the best option where we see an opposite to a granular effect.
Baghai, M., Smit, S., & Viguerie, P. (2009). Is your growth strategy flying blind? Harvard Business Review, 87(5), 86---96.