After reading this weeks articles, we could easily come to the conclusion that not only are we flying blind (Baghai, Smit, & Viguerie, 2009), but our analysis of the analytics (Davenport, 2006) are somewhat wonky, to say the least. We have been slowly sinking into the sunset with our current business strategy. Our production quality was low and our products were not selling. It was time to call in the consultants and get some sound advice on how to move forward. Baghai, Smit & Viguerie (2009) detail three distinct methods for growth. Mergers & acquisitions, market share gain and portfolio momentum. We had already put a product into each market segment to try to capitalise on both portfolio momentum and market share. We had also tried to cut the price of the goods we were making in order to grow our market share. Nether strategy had worked, so it was time to look at the business from the outside and try to analyse what was not working for us.
So, we consulted to oracle and were led to a couple of workable solutions. We tried to isolate those strategies that had not worked, as well as looking at what we had not done, that we perhaps should have, that might have contributed to our current situation. The quality problem was the simplest. We decided that it was easier and cheaper to build it in than it was to fix it afterwards. Optimise the supply chain (Davenport, 2006) and build better products. It may seem obvious to others but we just didn’t know how to do that. We have since learned and are on the way to fixing it. As for market growth, there are unfortunately not enough rollovers left in the experiment for us to get this sorted. So we asked ourselves what do we do? We had already undertaken two of Baghai et al. (2009) solutions so why not try the most radical one of all. Find a partner and construct a merger where both parties can profit. Many businesses that are struggling do exactly that. Find a stronger partner and join forces. I’ll let you know next week how we fare in this endeavour.
Baghai, M., Smit, S., & Viguerie, P. (2009). Is your growth strategy flying blind? Harvard Business Review, 87(5), 86-96.
Davenport, T. H. (2006). Competing on analytics. Harvard Business Review, 84(1), 98-107.