Development of a Strategic Adaptation Quotient: Measuring Success in Achieving Breakthrough Strategies

This blog is the first of a series of point of view pieces on strategic adaptation, an innovative approach developed by Newport Consulting Group principal, Dr. Martin Stein, complementing the notion of systems thinking during the strategic planning and implementation processes.  For more information on this service, and to read the full article discussion, visit our strategy page here.

The book by Peter Senge, the Fifth Discipline, has encouraged many companies to create learning programs. Shell Oil for example is actively pursuing opportunities for sharing of knowledge across companies. There is new importance to the meaning of Knowledge Exchange as Daimler-Chrysler invests in an Engineering Book of Knowledge using customized software to create an online, systematic way of storing “lessons learned” in the automotive industry production process. Other companies such as Ford Motor see the benefits of reusing R&D test results with tremendous annual cost savings. Cargill has established an executive officer for Knowledge Assets to help capture information about hidden knowledge assets. The list of companies interested in improving their ability to learn and share this learning grows daily.

Newport Consulting Group principal, Dr. Martin Stein, has developed an innovative approach to the implementation of Senge’s concepts, assisting several clients in the application of the learning approach to strategic implementation.[1]

It is essential for companies to create a measure of the effectiveness of strategic adaptation. This measure will help organizations gauge the degree to which internal units and the company overall adapt and diagnose areas of weakness in strategic adaptation, which may require mitigation, training and additional resources. Further, a measure of overall effectiveness serves as a benchmark so that progress relative to other industry segment participants can be evaluated. As a component to managerial compensation, including accelerators and greater incentives for outcome-based success, these metrics track strategic implementation as an input to the overall pay plan. Changes to the strategic adaptation quotient can be monitored after training programs to determine their effectiveness and improvements can become part of the overall corporate “dashboard” of indicators indicating progress toward corporate strategic implementation.

LinkedIn Community Formed

A new LinkedIn discussion group will help provide a forum and knowledge exchange website for the exchange of information about best practices and to report on the results of early applications of Strategic Adaptation. Please visit the LinkedIn group here and provide your ideas and suggestions about this innovative management practice.

[1] A case study of the use of this approach, Strategic Adaptation, was published in the Journal of Organizational Excellence.  A copy of this article is available on request if you contact us.


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Filed under Change Management and Leadership, Operations, Risk Management, Strategy

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