Strategy and Leadership

The concept of constellations of communities is a big picture view of how communities of practice in organizations relate to one another. These communities are voluntary, and over time they form a complex, informal network of relationships, knowledge sharing, learning, and conversations that can be woven together into a powerful strategic fabric with the right kind of leadership. Like a garden, these communities must be tended and nurtured rather than commanded and controlled. The article contains examples of constellations of communities in business, non‐profit, volunteer‐oriented associations, and society at large and outlines the potential benefits of a constellation to its stakeholders.

Corporate and institutional managers don’t get the full return on investment in scenarios that they should, nor do they employ scenarios on the full range of corporate issues suited to this methodology. Most often, scenarios are used by top management to provide a better understanding of the range of possible business environments they must contend with in the future. But mid‐level managers often grumble that these big picture “strategic scenarios” don’t address the competitive issues and the critical decisions that they face in the trenches of their business. To achieve more consistently productive uses of scenarios, there are several major challenges that must be addressed for the future of the scenario method: resolve the confusion over the definitions and methods of scenarios; and clarify and enlarge the appropriate application of scenarios. Beyond the confusion caused by the different definitions and methods of scenarios lies the uncertainty about when and how to apply scenarios in the business environment. In addition to planning and forecasting, scenarios can be used for market research and new product development. A major debate revolves around whether or not scenarios have successfully developed into a tool for investment and company decision‐making. One view has been that scenarios provide context, but not direct inputs for such decisions (R&D priorities, new products, and financial investments). This approach emphasizes the role of scenarios in team building, information gathering, learning, and strategic thinking. It advocates using scenarios primarily as a tool for corporate learning and for changing corporate culture. Another view, however, holds that scenarios can and should be used for near‐term business decision‐making. Scenarios need to be applied to the numerous operational issues that companies face. As such, they are a key method of analysis, especially for highly uncertain circumstances.

Why do some management ideas take root and remain viable and others wither and die? This article offers four fundamental reasons: all organizations are basically living, social organisms; culture is more powerful than anything else in the organization; system‐focused interventions work, component‐centered interventions usually do not; interventions clearly tied to business strategy work, interventions not clearly tied to business strategy do not. The author describes research that points to four core cultures: control, based on a military system, with power as the primary motive; collaboration, emerging from the family and/or athletic team system, in which the underlying motive is affiliation; competence, derived from the university system, with the fundamental motive of achievement; and cultivation, growing from religious system(s) and motivated by growth or self‐actualization.

A brand is made up of three things: what a company sells, what a company does, and what a company is. A brand represents a set of promises. It implies trust, consistency, and a defined set of expectations. The strongest brands own a positioning in the consumer’s mind that is unique to that brand. To maximize the customer‐brand relationship, a company must understand how customers think, act, perceive, and make purchase decisions. This holistic analysis is called “crafting a customer model.” This article offers the steps for creating such a model.