auditing organizational strategies, mckinsey quarterly
Our University of Wisconsin orgtheory correspondent (former orgtheory guester Russ Coff) sent me some links related to McKinsey’s test and audit for organizational strategy (given our previous post about the SMS strategy certification). The current, Jan 2011 issue of McKinsey Quarterly features ten audit-like tests for organizational strategy.
Here are the questions:
- Will your strategy beat the market?
- Does your strategy tap a true source of advantage?
- Is your strategy granular about where to compete?
- Does your strategy put you ahead of trends?
- Does your strategy rest on privileged insights?
- Does your strategy embrace uncertainty?
- Does your strategy balance commitment and flexibility?
- Is your strategy contaminated by bias?
- Is there a conviction to act on your strategy?
- Have you translated your strategy in an action plan?
(By the way: orgtheory.net answers “yes!” on all the above questions, including the bias one.)
So, I see the point of “audits” like this, though still am skeptical about whether strategies, in radically uncertain environments, can meaningfully be assessed ex ante. Nonetheless, the whole strategy audit thing is an interesting concept (and trend/fad?) that many people appear to be thinking about.