Skip to main content

Business Strategy

How can you exploit conditions to your advantage?

What style of game should you be playing? and where do you need to be playing it? Your strategy must have a hypothesis that links decisions to predictions on how you intend to maximise your potential.

Establish systems that support anti-fragile business models that benefit from shocks, volatility, and stressors to create a platform for taking opportunities as soon as they arise and defending against threats before they occur.

Context​

Time and Timing​

Speed and timing, many opportunities have limited time windows before they close.

How will tokenization and shared ownership change strategic decision making?

Strategy Failures​

Insufficient capability to control speed and direction.

  • Don't understand cost, time and quality
  • Too many goals, not enough focus
  • Ill-informed decisions
  • Insufficient belief in the story

What will happen when AI strips away unproductive time?

Experiments​

Use scientific method to run experiment that test your hypothesis for the path to progress. Size commitment to bets based on learning from progressive experiments.

warning

Never get too attached to your ideas, always stay in touch with your values.

Platform​

Lead from the edges: Cultivate a hive-mind by create efficient decentralised processes enable humans to sense and respond to solving problems while evolving their innate talent.

  • Better connections
  • Variety
  • Antifragile
  • Fair competition

Culture​

What is the value of collective alignment of intent and belief in plans to succeed?

  • What are you sacrificing to take this fork in the road?
  • Is this mandatory forced by external circumstances or an evolutionary choice?
  • What other options are there?

Scorecard​

The Balanced Scorecard (BSC) is a comprehensive strategic management system that helps organizations translate their vision and strategy into measurable objectives and actions.

Perspectives​

The BSC examines organizational performance through four key lenses:

Financial Performance Tracks traditional financial metrics like profitability, return on investment, and operating costs to measure shareholder value.

Customer Focus Evaluates customer satisfaction, retention, and service quality to understand how customers perceive the organization.

Internal Processes Examines operational efficiency, quality control, and process improvements needed to excel at delivering value.

Learning & Growth Assesses employee capabilities, information systems, and organizational culture to support continuous improvement.

Benefits​

The balanced scorecard provides several strategic advantages:

  • Creates a holistic view by combining financial and non-financial metrics
  • Forces managers to consider tradeoffs between different performance areas
  • Helps communicate strategic priorities throughout the organization
  • Connects day-to-day activities to long-term strategic goals

Implementation​

Close gaps and complete feedback loops.

  • Conduct regular reviews of business strategies and operations.
  • Establish feedback loops that allow for rapid response and adjustments to strategies.

Risk Management​

  • Identify potential risks and vulnerabilities in your current business model.
  • Develop strategies to mitigate these risks and to thrive in volatile conditions.
  • Consider stress testing your business under various scenarios to identify weak points.

Diversification and Adaptability: Diversify products, services, and markets to reduce dependency on a single revenue stream.

  • Create a culture of adaptability where change is expected and embraced.
  • Invest in continuous learning and development to stay ahead of industry trends and shifts.

Leverage Technology​

The organisation that could use technology but hasn't is already paying for it.

  • Implement technologies that enhance flexibility and scalability, such as cloud computing and AI.
  • Ensure that your tech stack is adaptable and can integrate new technologies as they emerge.

Supply Chain Resilience​

  • Develop a supply chain that is resilient to disruptions, possibly through diversification of suppliers or localizing certain elements.
  • Embrace technologies and practices that enhance supply chain visibility and agility.

Cash Flow​

Financial Prudence and Strong Cash Reserves

  • Maintain a strong balance sheet with sufficient liquidity to weather unforeseen events.
  • Avoid over-leveraging and have contingency plans for financial crises.

Customer-Centric Approach​

  • Stay closely connected to customer needs, which can rapidly change in volatile environments.
  • Be prepared to pivot based on customer feedback and market trends.

Innovation​

Formula for calculating bets on experiments to discover breakthroughs that fuel growth.

  • Encourage innovation as a core value within your organization.
  • Adopt a 'test and learn' approach to business decisions, allowing for experimentation and learning from failures.

Compliance​

Legal and Regulatory

  • Ensure that your business model is compliant with current laws and adaptable to potential regulatory changes.
  • Monitor changes in the legal landscape that could impact your business.

Engagement​

Customer to stakeholders

  • Engage with all stakeholders (employees, customers, suppliers, investors) to build trust and gain diverse insights.
  • Use stakeholder feedback to inform strategic decisions and risk management.