The Emergent Business Strategy
The best business strategy is emergent, not planned, from the bottom up instead of top down. Strategy is emergent from a process of learning and discovery, and adaptation. What should an entrepreneur focus on to design a better business strategy?
Problem To Solve: How to come up with a business strategy that is adaptable in evolving markets.
How To Use This Tool
When entrepreneurs bring their product or service to the market, the emergent strategy process should be followed: 1. Use empathic listening skills to determine what customers need. 2. The market is constantly changing and it’s impossible to predict and know everything. Therefore, learning should take priority over rational design. 3. The decision-making process in your organization needs to be dispersed because the best ideas are crowdsourced. 4. Unforeseen events occur and implementing new knowledge is more adaptive than formulating a plan that works now but might be obsolete in the future. 5. Structure shapes strategy. It’s unrealistic and costly to change a structure everytime a CEO comes up with a new vision. Therefore, strategy must adjust.