Lean Strategy

David  Collis

Article | Harvard Business Review

Lean Strategy

Abstract

Strategy and entrepreneurship are often seen as polar opposites. Yet the two desperately need each other: strategy without entrepreneurship is central planning; entrepreneurship without strategy leads to chaos. The two approaches can be reconciled through the Lean Strategy process which ensures that startups innovate in a disciplined fashion and make the most of their limited resources by knowing "what not to do". Deliberate strategy sets the bounds within which entrepreneurial experimentation takes place, while the results of that innovation leads to learning that reshapes the strategy. Lean Strategy enables company builders to pursue viable opportunities, stay focused, and align the entire organisation while supporting front-line entrepreneurial activities.

Keywords: strategy; strategy implementation; entrepreneurship; strategy alignment; Strategy; Entrepreneurship;

Format: Print

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Citation:

Collis, David. "Lean Strategy." Harvard Business Review 94, no. 3 (March 2016): 62–68.

Describes Siemens corporate initiative to drive a digital transformation throughout the company. Compares Siemens decentralised approach with GE's, failed, centralised approach to driving change throujghout the organisation.

Teaching Note for HBS Case No. 719-411.Updates the classic Edward Jones strategy case as the firm shifts to a new "Solutions" business model from its previous "product" model in response to changes in the brokerage industry, technology and demographics, and its own success. Investigates how a firm can change its business model, without altering its competitive positioning / strategy. Allows for studying the "Complete Strategy Landscape" as the value to be captured from a strategy declines and must be replaced by a business model that creates more value.

Two esports entrepreneurs must choose on which business model to focus their time and money. After successfully launching an online esports coaching platform, a number of new opportunities emerge in the rapidly growing esports space that now has close to one billion gamers and an online audience that is greater than the Superbowl. Should they focus on a B2C business, a B2B business? Develop an analytics capability to support "sabremetrics" for esports or a content creation capability? How can they best exploit ownership of the world's top team in the "Hearthstone" league. The choice will depend on the future industry structure and how the two can most effectively "follow the money."

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