Commanding Your Strategy: The Leader's Guide to Successful Planning (P.8 - Common Pitfalls)

Strategic thinking and planning have always been critical for success, and history provides numerous examples of organizations that fell prey to the common pitfalls outlined in the chapter. One such example is Kodak, the iconic American photography company that filed for bankruptcy in 2012.

Kodak's overemphasis on short-term results is often cited as a major contributor to its downfall. The company was so focused on its film and camera businesses that it failed to invest in digital technology. By the time Kodak realized its mistake and tried to catch up, it was too late, and competitors like Canon and Nikon had taken the lead in the digital camera market.

Resistance to change also played a role in Kodak's decline. The company was so invested in its traditional film and camera business that it was slow to recognize the growing demand for digital photography. According to former Kodak CEO Antonio Perez, "We were so in love with our past that we forgot about our future."

Another example of the importance of stakeholder engagement in strategic thinking and planning is the Ford Pinto case. In the 1970s, Ford launched the Pinto, a subcompact car that quickly became a best-seller. However, the Pinto had a serious design flaw that made it prone to exploding in rear-end collisions. Ford executives were aware of the problem but decided not to recall the vehicles, citing the high cost of doing so. This decision resulted in numerous deaths and injuries, and a public relations disaster for the company.

The Ford Pinto case highlights the importance of engaging stakeholders in the decision-making process. If Ford had taken into account the safety concerns of its customers and employees, it might have made a different decision and avoided the tragedy that followed.

The lack of flexibility and adaptability also proved costly for Blockbuster, the once-dominant video rental chain. In the early 2000s, Blockbuster was a thriving business with over 9,000 stores worldwide. However, the rise of streaming services like Netflix posed a serious threat to Blockbuster's business model. Instead of adapting to the changing market, Blockbuster doubled down on its brick-and-mortar stores and late fees, which alienated customers and ultimately led to its demise.

Blockbuster's failure to adapt to the changing market demonstrates the importance of being flexible and adaptable. As former Blockbuster CEO John Antioco noted, "We had every opportunity to be in the space that Netflix is in now. It's just that we didn't have the foresight to see it."

In conclusion, the common pitfalls outlined in the chapter have proven costly for many organizations throughout history. By avoiding an overemphasis on short-term results, embracing change, engaging stakeholders, and being flexible and adaptable, organizations can develop a successful and sustainable strategy. As the philosopher Seneca once said, "It is not that we have a short time to live, but that we waste a lot of it." The same can be said of organizations that fail to engage in effective strategic thinking and planning.

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