BOOK REVIEW: The Strategist: Be The Leader Your Business Needs by Cynthia A. Montgomery (2012)

BOOK REVIEW: The Strategist: Be The Leader Your Business Needs by Cynthia A. Montgomery (2012)Nurhidayah binti Lod2011510981Muhammad Asyraf bin Zabani2011743015Muhammad Izzuddin bin Aminuddin2011779647

IntroductionCynthia A. Montgomery is well known among people who has studied a theory known as Resource Based View.

The Strategist is based on her teachings on the executive education program at Harvard Business School.

It is an excellent read that challenges managers to think about their own vision of what they and their organisation contribute to society.

In the intro, she sets out her stance: Youre about to get a revisionist view of strategy. Its not that what youve learned is incorrect. Its that its incomplete.Montgomery quotes the German military commander Helmuth von Moltke, who noted that no plans survive contact with the enemy, and that strategy should therefore be viewed as a system of decision making, of "penetrating the uncertainty of veiled situations to evaluate facts, to clarify the unknown, to make decisions rapidly, and then to carry them out with strength and constancy".This book is not really a how-to book explaining how to put together a strategy for an organization although it does outline the steps required to do that. Rather, the key lesson for this book is, as the title suggests, an explanation of what it is to be a strategist.

Based on three key case studies (IKEA, Apple and Gucci) the book is an interesting read.

With a nice balance of theory and practical advice the book provides a good introduction to the idea of strategy while ensuring that readers realize that strategy and strategizing are dynamic processes that necessarily involve change.My ultimate goal here is not to teach strategy, says Ms. Montgomery, but to equip and inspire you to be a strategist, a leader whose time at the helm could have a profound effect on the fortunes of your organization.SummaryThe book is far more about the process of being a strategist rather than just setting down a new set of models to be learned and applied.

It challenges the reader to ask some fundamental questions about their own strategy in the company and how they go about implementing it.

Strategy should not be seen as a one off solution but a journey in need of continuous, not intermittent, leadership.

The strategy, like every great strategy, says Montgomery, was a "system of value creation, a set of mutually reinforcing parts". Everything the company did reinforced its new focus.

Montgomery encourages leaders and managers not just to define a strategy but to become a strategist.

Montgomery teaches mid-career executives at Harvard and writes that many of them say how hard it is to kick off the old in pursuit of the new, but once they have made the choice and taken the necessary actions, they feel a great sense of liberation.

The first part of her book quotes heavily from Michael Porter.

Does your company matter? Thats the most important question every business leader must answer. If you closed its doors today, would your customers suffer any real loss?The Reality of StrategyHaving seen hundreds if not thousands of such strategies in their initial form, what is clear to me is this: Many leaders havent thought about their own strategies in a very deep way. Often, there is a curious gap between their intellectual understanding of strategy and their ability to drive those insights home in their own businesses. (The Strategist, page 11)Failing as a StrategistThe story you will write as a strategist will be set against the backdrop of your industry. It must be true to its realities, while having a difference thats all its own. (The Strategist, page 37)

There seems to be, at least, two failings of strategists. The first is overconfidence, and the second is ignorance.

Overconfidence comes in the form of the super-manager.

Overconfidence is related to ignorance.

a significant measure of a firms success depends on competitive forces beyond a managers control, and they use that knowledge to their own advantage by picking playing fields where they can win and, within those fields, carefully positioning their businesses to work with, not against, the forces. (The Strategist, page 31)Leading with Purpose and StrategyEvery concept of strategy that has entered the conversation of business managers sustainable competitive advantage, positioning, differentiation, added value, even the firm effect flows from purpose. (The Strategist, page 49)

This is where The Strategist really excels. It drives the vital points of defined purpose and whole strategy.

A purpose needs to be real. Here are four relevant elements:

A good purpose is ennobling. There needs to be a level of inspiration; it delivers meaning to the people in the organization and the work they do.

A good purpose puts a stake in the ground. It defines what the organization will be and not be. It is about trade-offs.

A good purpose sets you apart; it makes you distinct. It is not about generic descriptions software company or non-profit organization. It is what makes the organization different from others and what may drive innovation and approach.

Above all, a good purpose sets the stage for value creation and capture. It must create good economic outcomes. If your company disappeared today, would the world be different tomorrow? (The Strategist, page 56)Six hallmarks of great strategies:Anchored by a clear and compelling purpose

Add real value

Clear choices

Tailored system of value creation

Meaningful metrics

PassionStrategies at Apple, Gucci, IKEA and MascoAside from some very challenging questions, the book also gives an excellent outline of the strategies of a few companies.

To begin with there is a very entertaining outline of a case study on Masco and its attempts to move the faucet (tap) industry to furniture.

This is followed by two excellent chapters on IKEA.

Chapter 3 gives a wonderful outline of the rise and fall and rise again of Gucci.

De Sole noted that Gucci's traditional high-end leather goods were not selling as briskly as its seasonal items, so the company implemented a plan to become "fashion-forward, high quality and good value". This involved reinventing the design process, promoting a young designer, Tom Ford, and revamping production, the supply chain, marketing and retail.

The final one is Apple. This too is a concise and interesting outline, the only problem being that the Apple Story has been told and retold so many times that it seems to have lost its impact a little.Interesting QuotesHaving seen hundreds if not thousands of such strategies in their initial form, what is clear to me is this: Many leaders havent thought about their own strategies in a very deep way.

A good purpose puts a stake in the ground It says We do X, not Y. We will be this, not that. Its a commitment.

As we saw with Apple, the strategists work is never done. Achieving and maintaining strategic momentum is a challenge that confronts an organization and its leader every day of their entwined existence.

Duplication If you had the recipe, you could make Coca-Cola, for instance, but you wouldnt be able to duplicate its brand recognition, its supply and distribution lines, or its pricing.

If you feel your companys strategy is too complex to summarize in one or two paragraphs, thats likely a sign that the strategy itself is unclear, or convoluted in some way.

If youre frustrated with your strategy or with your statement, keep at it. Writing a bad strategy statement is often the necessary prelude to writing a good one.

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