csi Newsletter 2022 english

18 | macsi_mum | 2022
DOMINIK KAUFMANN AND NILS LANGHANS,
MANAGING DIRECTORS OF THE
KAUFMANN/LANGHANS STRATEGY CONSULTANCY
WHY
TRATEGY
FREQUENT FAILURE AND
HOW A STRATEGIC PROCESS NEEDS
TO PERFORM IN THE DIGITAL AGE
STRATEGY NO LONGER
across the entire organisation, to somehow
PERFORMS AS IT NEEDS TO.
Slow, frustrating, poor results – the
traditional process involving months
of strategic development and subsequent
implementation has never
worked particularly well. However, in
most companies it is standard practice
– with significant consequences.
In the digital age, lost strategy work
increasingly threatens the competitivity
of companies. A rethought strategic
process which produces fast results
through short iterations and, at
the same time, mobilises the overall
organisation may help here.
bring everybody on board and mobilise them
for the new direction. A difficult, if not hopeless
undertaking which frequently stirs up more frustration
and confusion than enthusiasm and clarity.
The result: no result. According to various
studies, between 70 and 90 percent of strategies
fail in their implementation.
DISRUPTION IN THE
AUTOMOTIVE SECTOR IS
IN FULL SWING.
One thing is clear: strategy work according to
the waterfall principle has never worked particularly
well. Yet, in the analogue age, the miserable
efficacy of most strategy processes didn’t
companies no longer need to solve complicated
problems. Now, more and more frequently,
they face complex challenges with fully transparent
routes to solutions. The example of the
automotive and mobility industry makes it particularly
clear how, within a few years, accepted
certainties about value and value creation
were turned on their head. In the shortest time,
new, upcoming players have come to the fore,
while former giants are now foundering. It can
be said with come certainty that disruption is
in full swing in the automotive sector – and in
The mix of the massive acceleration of the digital
age and the increasing complexity of strategic
questioning means that strategy in many
companies is simply no longer doing what it
needs to do: it neither delivers stability and
orientation in tumultuous times, nor does it ensure
sufficient flexibility and adaptability. The
strategy fails where it is most urgently needed.
The solution for this problem is as simple as it
is challenging: companies need to overcome the
deep chasm between strategy development and
strategy implementation to keep pace with the
increasing speed of the digital age. And: they
must completely close the file on consecutive
thinking – first perfect development and then
carry much weight: most other companies pro-
many other sectors too. The ever-faster speed
implementation – and instead unify the devel-
In many organisations, the strategy process
ceeded with a similar level of inefficiency and
with new technology, new business models and
opment and implementation of strategies from
still works in roughly this way: a small number
the problems companies had to solve followed a
new working methods are spreading in the dig-
the ground up. Establishing a continuous strat-
of people sits brooding in a quiet little room
clear cause and effect connection. It was par for
ital age is radically shortening innovation cycles
egy process which produces results in short it-
until finally, after months, white smoke signals
the course not to reach or even mobilise every-
and planning timelines. Nor is there any end in
erations and mobilises the entire organisation is
appear: we have a strategy! However, the pride
one with the strategy. However, things have
sight to the acceleration. The consequence: the
becoming increasingly critical to the success of
in the grand design developed is mixed with a
fundamentally changed over the last decade:
consecutive process from protracted strategy
meeting this requirement.
rumble in the gut: how can we actually imple-
development, subsequent translation into daily
ment it? An attempt is made to roll out the strat-
operations and downstream implementation is
egy developed in a small circle in strict secrecy
simply too slow and too inefficient, and threatens
companies’ competitivity.