The Role of A Strategist Is Diversifying

Today's unpredictable environment has emphasised the need for businesses to go beyond traditional strategic planning. Strategists have begun to acknowledge this by diversifying and increasing the complexity of their roles. Furthermore, global organisations and strategists are beginning to recognise the importance of frequent strategic dialogue that involves a focus group of senior executives. Businesses that need to upscale their strategic efforts should start to engage with broader internal and external groups and mirror the dynamism of the external environment. 

Research on Strategic Implementation  

In 2010, McKinsey & Company, a global management consulting firm, surveyed 2,135 executives worldwide and found only 35% were generating strategies that passed more than three tests. Mckinsey created these three tests to measure the likelihood that a given strategy would beat the market. 

Furthermore, McKinsey found that businesses who identify themselves as "very effective developers of strategy" take pleasure in producing higher profits than their competitors. For example, they are twice as likely to review strategy on an ongoing basis instead of annually. 

 Consequently, McKinsey's research supports their observation about a business's capacity to innovate in developing and delivering strategy. The chief strategists who are the best at driving dynamic approaches provide them with professional credibility extending beyond a traditional process-facilitation role. 

Analysis of The 13 Facets of The Chief Strategist Role

To dive more deeply into the diverse characteristics of chief strategists, McKinsey performed a statistical cluster analysis on their 13 facets which they described as most important to their efforts. 

The Architect Strategist

The architect makes up 40% of the executives McKinsey surveyed. They use fact-based analysis to identify industry shifts and comprehend their organisation's opportunity for competitive advantage. In addition, organic growth is a primary concern and improving business performance to meet challenging organic goals is an essential part of the architect's role. When monitoring a competitor's performance, the architect can challenge their own business to set ambitious goals. Moreover, they drive mergers, acquisitions, divestitures, joint ventures and other areas for growth. They may take the lead for deal-sourcing and integration teams and work to find the appropriate acquisition goals in line with their business's vision. The architect is fairly common as it is the most traditional characteristic of a strategist's role. 

The Mobiliser Strategist

Additionally, 20% of chief strategists surveyed are mobilisers. Mobilisers play essential leadership roles to build "higher organisational IQ on strategy". They ensure that strategy meetings are indeed strategic and that people are highly skilled in implementing those strategies. Furthermore, they always know what questions to ask and analyse assumptions. They ensure that their business is continuously learning and adapting to ever-changing trends and influences. Mobilisers communicate strategies effectively to all stakeholders involved so that the business seamlessly undergoes the strategic process. You'll find mobilisers mostly in industries whose business models are heavily reliant on talent. 

The Visionary Strategist

14% of chief strategists surveyed are visionaries. Visionaries are trend forecasters. They scan the landscape for trends and interruptions that may create opportunities or risks for the business. They'll analyse big data to grasp unique perspectives on where the next growth opportunity will come from and identify the resources or solutions needed to serve it. The most likely to be visionaries, according to McKinsey's survey, were technology and consumer-products strategists. However, visionaries can be successful in slower-moving industries as well. Lastly, visionaries are well placed to run innovative processes.

The Surveyor Strategist

Surveyors make up 14% of the chief strategists who identify potential disruptions and quickly advise the business of the potential impact, and opportunity shifts can produce. They place their eyes beyond the horizon, and like visionaries, pay attention to changing trends. However, they focus on the long-range topics that can alter how an industry operates. Surveyors often possess a deep knowledge both of government and regulatory strategy. Strategic surveyors often work in traditionally regulated industries.

The Fund Manager Strategist

Fund managers account for 12% of the chief strategists, often reallocating resources and optimising the corporate portfolio of a business. They focus on performance, are dynamic in their techniques and encourage their business to enter and leave businesses. Moreover, the fund manager continues to nurture and trim their current portfolios. Fund managers usually exist in companies with portfolios of brands—for example, fast-moving consumer goods companies or capital-intensive assets and projects. Furthermore, fund managers depend on sturdy analytics that supports decisions to rebalance the portfolio. Fund managers will need to help leadership teams overcome their natural bias to maintain the status quo. 

Beyond Profiles 

Nevertheless, which profile best suits the requirements of a company and its leadership team; three issues need consideration for businesses and strategists wanting to up their strategic game: career background, resource allocation, and prioritisation. 

Why Does Career Background Matter?

Often new strategists tend to gravitate towards what they know. For example, McKinsey states that "chief strategists who are former investment bankers are 2.5 times more likely to focus on business development than an average strategist". Consequently, "former project leaders are two times more likely to prioritise the project-delivery facets of the chief strategist's role". McKinsey's survey suggests that basing priorities on prior experience doesn't necessarily correspond with improving strategic performance. If a company chooses to hire an individual with a similar background, they need to be careful to avoid overemphasising familiar mindsets and activities. 

Resources

Whichever type of strategist you may be or are required to be, a shift in how a company allocates its resources must accompany its strategy. McKinsey states that "companies tend to allocate 90% or more of their resources to the same places year after year, regardless of changes in the environment or their strategies". Businesses need to become more dynamic when reallocating resources. Companies will improve delivery and show less volatility to annual returns directed to shareholders on average than their dormant counterparts. 40% of those surveyed mention concerns about translating strategy to action. But, only 10% involve resource reallocation as their top three facets of their role. Furthermore, for those that do list resource reallocation as a priority, only 24% feel they reallocate effectively. 

Prioritise

Essential to allocating resources is prioritisation- critical as strategists roles diversify. McKinsey states that "chief strategists are up to four times more effective at facets of the specific role they prioritise". Strategists and their hirers will need to make decisions. What drives these decisions will depend on the circumstances of the business. And, to some degree, the capabilities of individual strategists and their executive partners. Businesses that have explicit conversations about expectations, the division of roles and responsibilities across the executive team will enhance their dynamics and effectiveness. When a new strategist takes over and the business focus changes, reassess priorities and have meaningful conversations. Moreover, decide if the strategist will shape and drive the process that creates the strategy or take responsibility for crafting the strategy itself.

The current strategic landscape is complex, and over time, it's easy for mismatches to occur. Identify these mismatches and reprioritise to reap the rewards and boost strategic insights and actions. 

If you're interested in learning about history's best business pivots, check out our article, "History's Best Business Pivots".

Keep learning, 

Kobi Simmat - Director & CEO of the Best Practice Group.