Friday, June 20, 2008

Despite the advances made in the
sophistication of many companies' strategic
planning processes, companies still cannot
develop models of the increasingly complex
environment in which they operate, according
to a recent Harvard Business Review article
("Strategy as a Wicked Problem," Harvard
Business Review, May 2008 pp. 98-106). The
article cites frustrations
expressed by several CEOs that they face
complex issues that cannot be resolved by
gathering additional data, defining issues
more clearly, or breaking them down into
smaller problems. Why? Because these
complex strategy issues aren't just difficult
or persistent, they're "wicked."

According to the article, wickedness is more
than a degree of difficulty. Wicked issues
are different because traditional processes
can't resolve them. What constitutes a
wicked problem?

  • The problem involves many stakeholders with different values and priorities
  • The issue's roots are complex and tangled
  • The problem is difficult to come to grips with and changes with every attempt to address it
  • The challenge has no precedent
  • There's nothing to indicate the right answer to the problem
I would contend that a well developed
competitive intelligence capability,
intrinsically linked to the strategy
development process, can help shed light on
wicked issues. Indeed, as we have observed
in the course of our consulting work, many of
our clients' Key Intelligence Topics -- the
complex external issues that carry
implications for a company that the CI
function must address -- embody wicked issues.
They include the persistent threat of new
entrants into an industry, unpredictable
regulatory developments, macroeconomic
conditions, and ongoing competitive
challenges.

While there are no set answers
to such topics -- and therefore no single
intelligence assessment or report that can
"answer" the issue -- it is the responsibility of
the CI function to provide the latest
insights and assessments of the impact these
issues are having on the organization.
Persistent intelligence deliverables that
don't try to solve wicked issues, but that
provide updates, a context, or judgments
about likely outcomes,
help management come to a common viewpoint on
the degree of impact of such issues, and to
help develop a strategic position on them.

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