- As the pace of change accelerates,
it's more important than ever for companies
to be aligned on vision and strategy.
Many companies have shortened
their strategic planning horizon
because they feel too much will change beyond that.
Other companies have adopted a Zoom Out, Zoom In approach,
where they first align on a shared 10 to 20 year vision
of the future,
and then, focus on the near-term activities
that can advance that vision in the next six to 12 months.
Strategic plans are as important as ever.
But the need to revisit them and communicate them
more transparently becomes more important
than the digital era.
Actively pursuing ideas that might cannibalize
existing offerings are more important.
To paraphrase, the former CEO of Intel, Andy Grove,
you need to become your own best competitor
so that others don't beat you to the punch.
In the digital era, it's important to establish
vision and strategy, as well as to make your culture
and mindset explicit.
Let me take the example of Tesla.
That company was the first American car company
to go public since Ford's IPO in 1956.
And as a result, they had a blank slate
to define their vision and strategy
and build a culture for the digital age.
Tesla's long-range vision is clear.
Accelerate the world's transition to sustainable energy.
Tesla's been very public about the strategy it's pursuing,
to realize their mission.
Build an expensive, low-volume sports car.
Use that money to build a medium-volume car
at a lower price.
And then, use that money to create
an affordable high-volume car.
Also, provide zero emission
electric power generation options.
After making significant progress over the course
of a decade, the company publicly updated its strategy
in 2016 in a post entitled, "Master Plan, Part Deux."
Create stunning solar roofs
with seamlessly integrated battery storage.
Expand the electric vehicle product line
to address all major segments.
Develop a self-driving capability
that's 10 times safer than manual
via massive fleet learning.
All of this has been shared publicly
as a means of attracting the sorts of people
who want to be part of this audacious vision.
A bold strategy requires a bold culture and mindset.
Tesla has a mission-driven culture
that fucuses on innovative problem solving.
There are six major cultural attributes of Tesla,
some of which could be lifted and translated
to other companies who wish to operate more like
an innovate digitalative organization.
Move fast, do the impossible,
constantly innovate, reason from first principles,
think like owners.
We're all in.
With your strategy, and in defining your culture,
you should be similarly transparent and bold.
The transparency will ensure you attract the right people
and that they push in the same direction.
The boldness will ensure they're pushing
towards the biggest opportunities possible.