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Strategy Dynamics Essentials by [Warren, Kim]

Strategy Dynamics Essentials [Print Replica] Kindle Edition


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Product Description

In this book Kim provides the reader with a reliable method to develop “joined up” strategies and plans for common business situations – a powerful addition to current tools and frameworks. The initial focus is on the core “strategic architecture” of the business, which explains how performance arises from its system of real elements (customers, staff, products, capacity, cash). Later chapters extend the method to deal with the quality and development of customers and other resources, competition, policy decisions, intangible factors and organizational capabilities.

The strategy dynamics method deploys the rigorous, scientific method of system dynamics - essentially the application of engineering control theory principles to social systems.

The method leads to the creation of working, quantified models of any enterprise, or any part thereof, of any scale, in any sector—or of any issue that such an enterprise may face.

Kim uses clear, every-day language, and develops examples demonstrating how to create working, quantified models we need to develop and manage strategy.

The book is supported by the Sysdea strategy planning software. Many of Kim’s example models are available online for the reader to explore. Free single model accounts for Sysdea are available – www.sysdea.com.

Product details

  • Format: Kindle Edition
  • File Size: 9241 KB
  • Publisher: Strategy Dynamics Ltd; 2 edition (28 June 2015)
  • Sold by: Amazon Australia Services, Inc.
  • Language: English
  • ASIN: B010MGNK1C
  • Text-to-Speech: Enabled
  • X-Ray:
  • Word Wise: Not Enabled
  • Enhanced Typesetting: Not Enabled
  • Average Customer Review: Be the first to review this item
  • Amazon Bestsellers Rank: #363,965 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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Amazon.com: 2.5 out of 5 stars 2 reviews
4.0 out of 5 stars Turn your strategy into a detailed model and stop it being wishy-washy good intentions 31 May 2015
By Paul Simister - Published on Amazon.com
This is not an ordinary book on strategy and therefore it won't be suitable for many people who are looking for a how to guide.

The author recognises the problem of well meaning but wishy washy strategic plans that are intended to increase long term profits and cash flows but fail to provide a link from strategic objectives through to tactics and performance numbers.

The book introduces a concept of business modelling based on cause and effect relationships between resources and flows. Resources are measured at a snapshot in time e.g. cash at the bank at the end of a particular day. Flows are movements in or out of the resources over a period of time. It's easiest to think of this concept as a bank account or a bath tub without a plug. Important resources that need attention include the number of customers and the number of skills that employees have of good standing that determine the performance of the business.

These relationships are presented in a diagram using special software although the same logic could be done with a spreadsheet but presentation would be an issue. The diagrams are easy to understand when you look at a single resource affected by several flows in or out but adding additional resources means the diagrams become more complicated until you become much more familiar with reading them. I must also point out that the diagrams are very hard to see and read using a normal kindle reader so, after looking at the sample and finding it interesting, I think you'll be much better off with the printed book.

It's not an easy read, just as reading about any software is hard going but, I think it can fire up your imagination. It did mine.

Yes the strategy dynamics model of a business is complicated but it's still a simplification of the real business where it's hard, perhaps impossible to identify and understand cause and effect relationships, especially when there is a time delay e.g. increasing marketing in month 2 may only see an increase in sales revenue in month 5 and in cash in month 7 when the customer pays. Without such a model that looks forward as well as back, you're left with theoretical ideas about how the business works but these are unlikely to be shared with colleagues and may be full of inconsistencies as you attribute good and bad events to multiple causes.

I was first introduced to the idea of systems dynamics by the book The Fifth Discipline by Peter Senge where the idea of stocks (resources) and flows and reinforcing and balancing feedback systems in the mid 1990s. I was excited by the possibilities these ideas could bring to competitive strategy but it hasn't developed as I'd hoped or expected.

This is a good step in the right direction although I should point out that, unlike general systems thinking that tries to give the big picture view of what's happening, this strategy dynamics modelling approach works the other way. It breaks down the business into smaller cause and effect relationships which are of more practical use to tactical decisions. I'd like to think that both approaches can be used and reconciled.

I bought one of his earlier, larger books in the early 2000s. I found that hard going and I don't think I finished it but this is easier, partly because it's smaller. It's still tough unless you get excited about the insights that the modelling approach can provide. I think it's useful to start thinking about part of your business in terms of resources and in and outflows so that you can gain an impression of the improved understanding that can be available from building a strategy dynamics model and how it can link through into ideas like strategy maps and the balanced scorecard.

Ultimately it's a long marketing letter for the author's company training and software. I think I'm impressed enough to take this further.
0 of 1 people found the following review helpful
1.0 out of 5 stars One Star 16 March 2015
By Bindu - Published on Amazon.com
Verified Purchase
Boring to read