Decision
Leverage™ is
a term applied to a set of powerful commercial
techniques that are strategic rather than operational.
“You
could spend
weeks training
and toiling
to reduce your
company’s
operational
costs by one
percent next
year and when
you’d
achieved your
goal you would
have a bottom
line cash improvement
that may only
be a fraction
of a single
percentage
point. On the
other hand,
you might develop
a whole new
approach, in
a matter of
days or even
hours, that
doubled, tripled
or increased
even more,
your net earnings.”
The
skills needed
for operational
excellence,
although vital
when executing
a given strategy,
are not those
that produce
winning strategies
in the first
place. Operational
superiority
comes from
detailed, performance
and delivery
oriented thinking.
It rightly
ignores the
vagaries of
the future
and is immediate
and action-focused.
Strategic thinking
deals with
long-term important
issues that
have the power
to change results
by orders of
magnitude.
It is highly
creative and
presses its
way through
a large number
of different
plans, carefully
analysing how
the fuzziness
of the future
will impact
on each. And,
finally, it
aligns the
company’s
board behind
the single
approach that
delivers superior
value through
all the combinations
that have been
explored.