The Emergent Approach: Part 7

How to choose among strategic alternatives

Whether it’s balancing numbers and words or leveraging AI, the goal is to synthesize, not calculate, a clear vision. Strategy work is challenging, often painful, but necessary for meaningful innovation and success.

We can never know which strategy will work in advance. Neither can we operate in a multiverse, playing out all strategy alternatives to see which works best. At some point we have to choose.

Fortunately, we can be mindful of our alternatives and use "fitness criteria" to debate how well each might "bust the dominant bottleneck" and withstand whatever scenarios we believe most likely and important. This is the heart of the Strategy Alternative Matrix (SAM).?In Part 7 of my talk with Aidan McCullen , we get into the SAM and much more.

This is my weekly repost of my extended conversation with Aidan McCullen for his podcast: The Innovation Show.

You can buy The Emergent Approach to Strategy here: Amazon US | Amazon UK

Whether you buy the book or not, I'll respond to comments each week.

If you want to catch up, here's Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6

Overview

Summary of the episode:

• Models Are Not Absolute Truths (2:03) Dr. Compo emphasizes that strategy models are never entirely accurate but serve to create coherence, guide thought, and help navigate uncertainty. They are tools to align people and adapt to the future.
• Mindfulness and Decision-Making (4:45) Referencing Ellen Langer, the discussion highlights the importance of "making a decision and then making it right," emphasizing adaptability and iterative improvement rather than decision paralysis.
• Emergence in Strategy (05:42) Dr. Compo discusses testing and probing systems through small actions, highlighting the Darwinian nature of emergence and how strategy evolves through iteration and adaptation.
• Numbers and Words in Strategy (17:46) Both quantitative data ("numbers") and qualitative insights ("words") are seen as soft and interpretive. SAM prioritizes understanding and synthesis over rigid calculation.
• The Strategy Alternative Matrix (SAM) Overview (20:29) SAM simplifies strategy by differentiating alternatives with a central strategic rule and fitness criteria. This one-page approach fosters clarity and collaboration while avoiding overly complex calculations.
• Using AI in Strategy (28:00) While AI can assist in assessing alternatives and synthesizing information, it cannot replace human synthesis and creativity in designing strategies.
• The Pain of Real Strategy Work (44:34) Effective strategy requires effort, iteration, and sometimes painful adaptation. The process is challenging but necessary for meaningful innovation and long-term success.
• The Role of Consultants (50:53) Dr. Compo describes consultants as facilitators who help organizations internalize strategy through collaborative design processes, fostering ownership and emotional investment.

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