Feature
Issue No. 19 - October/November 2004
Physics of Strategy
Now maybe you are thinking that you are not a fan of physics, or any science, and you know most things about strategy - so why bother reading on? The answer is that physics terms are often used in defining strategies (I am almost certain that you have used them too) and you can consider this article as a way to clarify and reinforce important points for successful strategy implementation.
Or maybe you are a fan of physics and are wondering what this could possible have to do with strategy. Read on.
Let‘s start with speed. How often have you heard or said that speed to market, or speed in implementation or acting faster that your competitors is a strategy for success? In physics, speed is distance travelled over a period of time. The important thing to recognise is that speed can be in any direction - sideways, forward, backwards, in circles or all over the place. Being fastest in getting to the wrong markets won‘t help, nor will rapid implementation of poor strategies, or beating your competitors to win an unprofitable customer.
Don‘t confuse activity with effectiveness. Reward your employees based on results rather than effort - those who arrive early and leave late may be doing crosswords, or I should update and say playing solitaire on their computer. Look out for the people who are always running around putting out fires - you may find that they are the ones with the matches. Persistence and adrenalin are important but can also burn people out when their efforts are not directed well.
What we need is strategies for speed in the right direction. It just so happens that almost every year 10 student could tell us that this is velocity. Velocity is defined as ‘the rate of change of position [or speed], in a given direction‘. Hence a key to great strategies is velocity.
Velocity is moving in the right direction and high velocity is moving fast in the right directions. When we consider velocity we define strategies for wh...
