Strategy & Leadership

Quick takes

Editor’s letter

As businesses in a wide range of industries increasingly adopt digital ecosystems, the benefits include opening up new and untapped customer segments and channels, enabling access to new and untapped talent pools and expanding previously unexplored modes of innovation. Ecosystems – defined as digitally enabled networks that enhance value propositions by linking business functions, suppliers, distributors, partners, customers and other stakeholders – are now an engine that drives performance. Multiple studies confirm that value creation and competitive advantage are increasingly tied to organizations’ ability to engage partners and stakeholders. IBM Institute of Business Value’s most recent research has found that revenue growth of ecosystem leaders outpaces others by a five-to-one ratio. Yet despite these notable successes there is also a dark side to digital ecosystem engagement. Large ecosystems have become a central to business strategy while little attention has been paid to the potential for cyber threats. Increased openness of business operations can result in greater risk. Security must graduate into a central enabler of business transformation. If businesses do not fundamentally rethink their security equation, ecosystems and the trust on which they are built, which often take years and billions of investment dollars to build, can be squandered in minutes by ever-growing security threats. Large ecosystems have become a central to business strategy while little attention has been paid to the potential for cyber threats. Mature, risk-mitigated ecosystems are starting to resemble a mature supply chain, where some risks are precluded by design, some partners are favored based on established trust criteria and remaining risks are explicitly managed transactionally as part of the partner relationship.

The Oxford Strategy Insights Project was designed to assess the current approaches, aims, and focus of strategists across industries and geographies. The project received input from 167 executives and managers across twenty-six industries, spanning over thirty countries, regarding their firm’s strategy process. The biggest gap highlighted by the Oxford Strategy Insights Project is effective strategy execution. An overwhelming majority of respondents indicated that their organization’s strategy execution efforts are ineffective and slow, with accelerated implementation being the exception rather than the norm. In line with these findings, few firms appear to be applying the best practice of establishing an implementation management infrastructure including a “Program Manager” tasked to manage and coordinate the firm’s strategy implementation effort. The one positive element related to strategy execution is that most firms seem to have an effective strategic measurement and reporting process. Organizations that can execute their strategies increase the likelihood of realizing the full potential of their plans. However, the study’s main finding is that effective strategy execution is severely lacking. Strategists need to become more foresighted, with a much greater focus on implementation. Although the value of effective strategy execution has been well documented for over five-decades in both academic and management practice literature, new research has found that most strategists are still short-sighted, viewing strategy as primarily planning with a limited focus on implementation.

This masterclass examines former IBM CEO Ginni Rometty's personal memoir of her life and career as a study of authentic leadership in action, and her concept of “good power” through which she distills the major insights on leadership she gleaned along the way. This masterclass examines the insights from a former IBM CEO's “memoir with purpose” as an example of the classic perspective on authentic leadership developed in the “True North” series of studies by Harvard's Bill George and his research associates over two decades. Ginni Rometty's “good power” concept and principles, as developed in her “memoir with purpose,” represent a practical guide for aspiring leaders seeking to become a positive force for change, and they make a valuable addition to the literature on authentic leadership. Her “good power” concept and experience-based principles, as developed in her “memoir with purpose” make a valuable addition to the literature on authentic leadership. Her “good power” concept and principles, as developed in her “memoir with purpose,” represent a practical guide for aspiring leaders seeking to become a positive force for change. Her memoir, with its conception of “good power,” strongly encourages corporate leaders to adopt a “stakeholder perspective” and become more active and outspoken, forces for positive change in the wider societies within which they operate. Reflective memoirs as analytical as this one, from someone who has led at the highest level in the business world, are still rare in the genre.