Challenges with misusing strategy tools and templates Using strategy tools and templates poorly, by crowd sourcing data and using them haphazardly, can lead to ineffective strategies. For example, using a SWOT analysis template without validating the input can lead to a mix of operational and market issues, where operational issues overshadow market issues. This results in an unclear understanding of strengths, weaknesses, opportunities, and threats in the market due to the lack of validation and customer research. Transcript: Speaker 1 It’s not that any of these tools or templates are terrible. It’s just we use them poorly or we use them sloppily because we sort of a crowd source among a very small number of people in the room, the data we put into them, and then we use them haphazardly. So yeah, all you could really, it’s amazing that any kind of usable strategy has ever come out of using a tool that way. It’s not that the hammer is bad, it’s that we’re taught to use it poorly. And SWOT analysis, there’s no better example, well, maybe the positioning statement where someone goes and downloads a template from the internet or they just, you know, you get it Up on the whiteboard and draw it. And then you sort of all fill in these four quadrants with whatever’s top of mind. And one of the biggest problems with that is you’re mixing operational and market issues together, right? So they’re getting co-mingled in a way that operational issues almost always crowd out the market issues because, you know, people have responsibilities and that’s what they’re Focused on. So you’re really not getting a good understanding of your strengths and weaknesses, but more importantly, your opportunities and threats in the market. But the single biggest problem is none of its validated. It was literally just stuff that came off the top of your head sitting in a room with a whiteboard. Where’s the customer research? How do you know that that item there is your biggest strength? You don’t, you just sort of have this feeling that these things are important and they may be, but there’s no validation. (Time 0:15:44)
Challenges in integrating operational and market issues in strategy development Operational issues often take precedence over market issues, hindering the understanding of strengths, weaknesses, opportunities, and threats in the market. The lack of validation in strategic planning leads to uncertainty in identifying strengths and weaknesses. Executives, even in startups, may lack insight into customer needs and behaviors, relying only on sales reports, market research, and quantitative data. This absence of customer insight hinders the formulation of effective strategies. Transcript: Speaker 1 So they’re getting co-mingled in a way that operational issues almost always crowd out the market issues because, you know, people have responsibilities and that’s what they’re Focused on. So you’re really not getting a good understanding of your strengths and weaknesses, but more importantly, your opportunities and threats in the market. But the single biggest problem is none of its validated. It was literally just stuff that came off the top of your head sitting in a room with a whiteboard. Where’s the customer research? How do you know that that item there is your biggest strength? You don’t, you just sort of have this feeling that these things are important and they may be, but there’s no validation. And as most designers in our industry know, you know, the executives in our companies, even in startups, they’re not close to the customers. They’re certainly not clamoring to get the research reports from design researchers. So how would they possibly know their customers on the most important levels if all they’re looking at is sort of sales reports or market research reports and quantitative data? So how could they possibly ever make good strategy without knowing that? There’s three sources of customer insight that almost never make it into strategy. (Time 0:16:45)