Print this pageContext, Context, Context
Context -- Often Misunderstood and Underrated
Organizational leaders often place a higher value on successful strategies in other organizations than on truly understanding in-depth their own organization. Placing more weight on the strategies of others than on understanding their own organization's context has at least two significant problems. First, someone else has first mover advantage and has shown the rest of the world the successful strategy. Second, and the more significant problem, is that the full context of what made the strategy a success elsewhere is largely unknowable.
False Context -- Fallacy of Objectivity
In an effort to bring objectivity to decision making, management often builds mental frameworks based on the strategic successes of other businesses. These frameworks are then used to interpret the cause-effect relationships in their own organization. These frameworks are essentially a false context. Using these frameworks to objectify leadership can lead to fatal flaws. First, businesses can never be viewed totally objectively by the people in the business because businesses are a product of those people. Second, leaders who act as though they are outside the nitty-gritty of the business produce a gap of cynicism between the managers and the managed. This gap destroys the leader's capability to lead.
Context -- It is UNIQUE
The contextual factors that make a strategy successful for a particular company, at a particular time and place, are unique. For as much as is written about cases of successful strategy, with the dissection of markets, competitors, competencies, culture, political climate, visions, goals, missions, etc. -- successful imitation of a particular strategy is a rarity. That does not mean that the cases of successful strategy should not be studied to gain insight. Strategic thinking improves through the diligent study of successes, and failures, of other organizations. The application of this insight and strategic thinking to an organization's unique context produces successful strategy.
Context First
Understanding context is a prerequisite to strategy formation. Strategically relevant factors can only be properly interpreted given a context. A strength in one context is a weakness in another. A threat to one organization may be an opportunity for another.
Ever-Changing Context
Dynamic forces are constantly working to shape both the organization and its environment. These forces include globalization, technology, management practices, values, politics, and so forth. The organization seeks to evolve, adapting to its ever changing environment. An understanding of the current context stimulates and guides this evolution.
Tailoring the Strategy Approach to the Context of the Business
The BAi approach to strategy provides a general framework -- containing a set of tools, techniques, methods, and guidance -- from which an approach is customized to fit the context of the business. The approach is learn-by-doing oriented which produces an adaptive learning capability. This iterative approach provides incremental business benefits while refining both the strategy and strategy process. Also, with its cyclical execution, the strategy process deals proactively with the changing context of the business.
