Many markets depend on a complex interaction of several variables: geopolitics, technical innovation, the swing of the capital market, the competitive dynamics, shifting consumer preferences, and so on. These volatile markets throw a steady stream of opportunities and threats, and managers can neither predict nor control the shape, size and timing of future events with accuracy. In such circumstances, the traditional linear view of strategy - a plan then execute - is woefully inadequate, as it prevents people to incorporate new information into action. But instead of thinking about strategy as a linear process, why not consider it inherently iterative - loop instead of a string? According to this view, every strategy works in progress, which should be reviewed in light of the ongoing interactions between the organization and its changing environment. To meet these interactions, the strategy cycle consists of four main steps: understanding the situation, to choose what to do (and what not to do), that does these things, and make changes based on new information. Rethinking strategy as an iterative cycle is fairly simple, but considering that the new thinking in practice it is not. It is important to remember that the discussions - formal and informal, short and long, one-on-one and in groups - is the key mechanism for coordination within the company. So, to put the strategy into practice cycle, managers at all levels in the organization must be experienced in leading discussions that reflect the four main stages (creation of meaning, making choices, making things happen, and make versions). Companies such as Diageo Ireland, All America Latina Logistica and services venture emergence show that each of the four types of discussion has a different goal, which requires a certain tone, background information, leadership and related tactics. "Hide
by Donald N. Sull Source: MIT Sloan Management Review 11 pages. Publication Date: July 1, 2007. Prod. #: SMR251-PDF-ENG
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