Recently read a report that Samsung IT & Mobiles operating profit plummeted by 73.9% y-o-y. Overall, it reported a 60% drop in company-wide operating profit. While rival, Apple, increased profits. This is something that Ive been saying might happen to my Speed Profit participants for over a year now (unless Samsung made drastic changes). And unless Samsung make drastic changes in the near future, this profit drop will not be just a blip in their growth. Nope, I dont have a crystal ball. Nope, Im not an investment analyst. But I understand strategy that allows me to see what most dont see. Often times its hard to explain as most people see whats right in front of them. They think about the immediate thing. They think short-term. Strategy on the the other hand, usually looks at mid to long term decisions and patterns. Scratch that! Actually its not that difficult to explain strategy... its just difficult for them to listen and accept it. When I cover the strategy segment in my Speed Profit workshops, I sometimes see some participants eyes glazed over. Often times theyre just looking for the short-term immediate tactics to apply, which I also cover in details. But those who get the strategy lessons will be able to make massive leaps even in the mid to long term. Its like playing chess: A tactician will see the next move. A strategist will see several moves ahead of you. I remember reading a quote that says: A tactician looks at 1 - 3 years. A strategist looks at 5 - 10 years as mid term. Then I read something that in my opinion was very relevant in this context as well from Bill Gates: Most people overestimate what they can do in one year and underestimate what they can do in ten years. To illustrate it another way: Learning tactics is like learning how to run the fastest, the most effective and efficient way. Learning strategy is like knowing the direction to run to, the when to speed up and when to slow down, etc.They require different thought processes and considerations. You can be very good in sprinting and might even overtake others in the short term (much like what Samsung did). But in the long term, you might find that you had been running towards the wrong direction... and wasted a lot of time and energy (much like what Samsung is experiencing right now). Unfortunately, most SME business owners are too busy and bogged down in their work to appreciate the art and science of business strategy. Often times they just look for the tactics. The same goes for youngsters nowadays. They want to learn tactics and skip learning about strategy.
Posted on: Sat, 01 Nov 2014 14:33:57 +0000
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