[Study] What is Strategy? Porter (1996) HBR

OE is not Strategy, Porter (1996) said.

He argued that Operational Effectiveness (OE) is to perform the similar activities comparing to rivals but better. Besides, he also differentiated that Strategy/Strategic Positioning (SP) is to act differently different activities or perform similar activities but in different ways.

It is questionable that performing better and performing in different ways can be the same? A company that can perform better than their rivals means the company's activities are different in some way comparing to rival's activities. Furthermore, Porter (1996) said that Activities are the basic units of competitive advantage. Therefore, i can argue that SP include but not limit to OE.

Manager have been preoccupied with improving OE, Porter (1996) said.

I totally agree with this idea because Management and Governance are completely different. In fact in COBIT 5, they actually separate domains into Management and Governance. Managers mainly responsible for improving and managing daily operations which is OE. Governance people tent to govern the company by provide leadership and strategy in a 'big picture'.

Witness the of proliferation of OE techniques accelerated by support from consultants, Porter (1996) said.

Never thinking about this before, as an IT consultants, I have to amazingly admit that we mainly focus on OE  and somehow think that as an Strategic Positioning for our clients.

Using case studies as effective evidences for proving ideas

Thinking about my future thesis, I may also use case studies to as evidences for my arguments. I personally think that it is more practical and easier to be understood.

So sum up, at general management's core is strategy:

- Defining a company's position: to know what we are? how can we be unique comparing to rivals?
- Making trade-offs: the more OE goals the more blur company's strategic position/uniqueness becomes
- Forging fit among activities: to be unique, it is a combination strategy embedded in all company's activities. The level fitness of activities in the company defines the level of difficulty for imitators to do the same. (0.9 x 0.9 = 0.81, 0.9x0.9x0.9x0.9 = 0.656). Therefore, it creates sustainable strategic development for the company as well.