Strategic Navigation: A Systems Approach to Business Strategy

Rating:
Summary: Deliberate Yet Flexible Strategic Design
Review: I am a second-year MBA at the University of California who also holds a Ph.D. in engineering (systems theory). Prior to attending business school, I held roles as information solution architect and project manager at a Fortune 20 firm.

I thought "Strategic Navigation" was fabulous -- easy to read, not verbose, and extremely useful and informative. By fusing business strategy and the practical methods of Theory of Constraints (ToC), the author has provided us an easy, consistent way to form, plan, and deploy business strategy. Wow !

In he first 10 pages Dettmer (the author) summarizes in succinct detail ten (10) schools of thought on strategy formation which he groups into two categories -- deliberate (traditional) and emergent (contemporary). He carefully outlines the pros and cons of each of the ten schools.

In the following 50 pages the author covers four action-oriented approaches to strategy: 1) Hoshin, 2) U.S. Military, 3) Boyd's Maneuver Warfare, and finally 4) Constraint Management Model (CMM) (from the ToC). For business strategy applications the author builds a case that the CMM is a superior hybrid that borrows the best of nos. 1 and 2. He also asserts that the intrinsic flexibility and speed provided by no. 3 are also provided to a degree by the CMM framework.

In the final two-thirds of the book, the author presents how to use the CMM framework to develop business strategy. In about 140 pages he gives a robust method for analysis and design of strategy -- a systems approach to business strategy.

For me this framework is compelling. In the world of information solutions (IS) I have used frameworks developed by IS experts that take (as inputs) seemingly chaotic collections of business and technical factors and then output (within a reasonable amount of time) a viable, robust information solution design.

The CMM approach handles strategy development in a similar way. However, by comparison CMM may be a bit simpler, more logic-driven, and more comprehensive, which all are necessary to enable managers to exercise due diligence in a timely way around the strategy life cycle of a firm.

I highly recommend "Strategic Navigation". To complement the book I would advise the reader to buy a companion book that focuses on concrete, known, and useful strategic business "tricks and methods" in areas such as incentives, pricing, bargaining, marketing, etc. Thus, Dettmer's book would address the design process, and the second book would supply the content -- a winning combination.

Rating:
Summary: Deliberate Yet Flexible Strategic Design
Review: I am a second-year MBA at the University of California who also holds a Ph.D. in engineering (systems theory). Prior to attending business school, I held roles as information solution architect and project manager at a Fortune 20 firm.

I thought "Strategic Navigation" was fabulous -- easy to read, not verbose, and extremely useful and informative. By fusing business strategy and the practical methods of Theory of Constraints (ToC), the author has provided us an easy, consistent way to form, plan, and deploy business strategy. Wow !

In he first 10 pages Dettmer (the author) summarizes in succinct detail ten (10) schools of thought on strategy formation which he groups into two categories -- deliberate (traditional) and emergent (contemporary). He carefully outlines the pros and cons of each of the ten schools.

In the following 50 pages the author covers four action-oriented approaches to strategy: 1) Hoshin, 2) U.S. Military, 3) Boyd's Maneuver Warfare, and finally 4) Constraint Management Model (CMM) (from the ToC). For business strategy applications the author builds a case that the CMM is a superior hybrid that borrows the best of nos. 1 and 2. He also asserts that the intrinsic flexibility and speed provided by no. 3 are also provided to a degree by the CMM framework.

In the final two-thirds of the book, the author presents how to use the CMM framework to develop business strategy. In about 140 pages he gives a robust method for analysis and design of strategy -- a systems approach to business strategy.

For me this framework is compelling. In the world of information solutions (IS) I have used frameworks developed by IS experts that take (as inputs) seemingly chaotic collections of business and technical factors and then output (within a reasonable amount of time) a viable, robust information solution design.

The CMM approach handles strategy development in a similar way. However, by comparison CMM may be a bit simpler, more logic-driven, and more comprehensive, which all are necessary to enable managers to exercise due diligence in a timely way around the strategy life cycle of a firm.

I highly recommend "Strategic Navigation". To complement the book I would advise the reader to buy a companion book that focuses on concrete, known, and useful strategic business "tricks and methods" in areas such as incentives, pricing, bargaining, marketing, etc. Thus, Dettmer's book would address the design process, and the second book would supply the content -- a winning combination.

Rating:
Summary: Dettmer combines Boyd and Goldratt to form a Huge Hit
Review: STRATEGIC NAVIGATION - A Systems Approach to Business Strategy

Ever heard the expression, "You don't know what you don't know"? For some twenty years, a relatively unknown physicist by the name of Eliyahu M. Goldratt has been changing the world of business, due in no small part to the efforts of author and business expert H. William Dettmer. Dettmer's previous two books on the subject of the "Logical Thinking Processes," as they relate to Goldratt's Theory of Constraints (TOC), have set a new standard for explaining the true power of TOC.

Now Dettmer has done it again, only bigger! Strategic Navigation applies the thinking processes to business strategy and its implementation. Although he uses a history of military planning as a tool of explanation, let me be perfectly clear, this book in no way promotes a military philosophy of "win-lose" or decimating one's competition. Dettmer is simply a master of thoroughly decoding a complex concept and his history of military planning in this book is not only appropriate, it is truly enlightening.

Strategic Navigation is destined to force TOC to the tipping point. Actually, it completes the evolution of TOC and brings it to a more robust model known as the Constraints Management Model (CMM). Dettmer documents the application of CMM in the world of strategy by using the thinking process tools of TOC in combination with the learning theories advanced by the late Colonel John R. Boyd, (USAF retired). This synergy is profound. "40-Second Boyd," as he was known, and his "energy-maneuverability theory" were responsible for the success of the F-15 and F-16 fighter designs.

Combining Boyd's OODA (Observe, Orient, Decide and Act) loop with logical thinking process tools gives Constraints Management Method its edge. Also, by clearly separating the tools of CMM from the philosophy, Dettmer, reaching well beyond those who have gone before him, has delivered his greatest gift to business leadership yet. In fact, Strategic Navigation is so insightful, it could easily be mistaken for Dettmer's dissertation for a Ph.D. in Holistic Systems Thinking. It is that exceptional.

"The CM model draws its strength from valid theory (TOC and Boyd's OODA loop) and proven practices (hoshin kanri and military strategic planning). It provides flexible tools that can instill a 'big picture' vision for everyone within the organization." - Strategic Navigation; page 55

Dettmer picks up one of my favorite soapbox stands: the importance of clearly defining the goal or purpose of the business as prerequisite for any measurable success! It highlights his brilliance in holistic or systems thinking, instructing us in using the proper measurements to reward individuals for actions that serve the good of the whole, not local optima. Another favorite of mine is insistence that a system, like a link chain, have only one weakest link at any given moment in time. In Dettmer-speak, he tells us, "Only one critical success factor is the true limiting factor of the whole system at any given time." He goes on to explain how the success of the overall system grows from recognition of that fact.

In Strategic Navigation, you'll also find a fitting tribute to W. Edwards Deming's feedback loop. Then, Dettmer takes it and Goldratt's POOGI (Process Of On-Going Improvement) loop to new heights by injecting Boyd's OODA loop. This effective combination
facilitates a construct that allows strategists to "get inside" the decision cycle (or evolution cycle) of competitors or the environment - i.e., allows you to stay at least one step ahead.

Finally, the appendices alone are worth the book price. They offer real examples and templates for application of the substantial contents. You'll also discover that while Dettmer introduces Colonel Boyd in a concise manner, he prompts you to want to learn much more about "40-Second Boyd."

Enjoy!