The Eisenhower Principle Applied to Business Strategy Management

Recently, I was reminded of General Dwight Eisenhower's penchant for effectively executing strategy. In World War II, Eisenhower coordinated the largest military undertaking ever with the D-Day invasion of Normandy. He not only managed huge sea, air, and land forces, but also accounted for unpredictable weather as well as the political wills of Roosevelt, Churchill, and de Gaulle.

When asked about his success, Eisenhower said "Whenever I run into a problem I can't solve, I always make it bigger. I can never solve it by trying to make it smaller, but if I make it big enough, I can begin to see the outlines of a solution."

Eisenhower's approach to problem-solving is unique and made him a successful leader in many different settings. The "Eisenhower Principle" he outlines remains relevant and applies directly to business strategy management and leaders today.

What Eisenhower Taught Us About Business Strategy Management

Organizations sometimes take an approach towards strategy management that is too detailed or too narrowly focused. Management By Objective (MBO) can give you a random set of objectives that do not link together in any coherent fashion. Key Performance Indicators (KPIs) also can get an organization focused on something small, and not necessarily strategic. While both approaches have some great benefits, sometimes they come up short in holistically managing the strategy.

With the Balanced Scorecard, a Strategy Map allows an organization to see the entire strategy on one page. This one page view allows an organization to see how their objectives link together and how their measures align to the entire strategy. "Themes" or groups of objectives can really help an organization focus on its strategy. Themes can be created by looking for common areas across a set of strategic objectives, or they can be devised by using the Eisenhower Principle.

In this approach, think about the areas where you are really struggling with your strategy, and take a step back. Are there some underlying causes or issues that need to be addressed? Is there a bigger problem that needs to be addressed? Can you take a step back and see the issue in a different way that will allow you to take a divergent approach towards solving the crisis?

I think many times stepping back from the frenetic activity or crisis will allow an organization to see a new approach, underlying theme, or broader set of issues that need to be addressed in order to better achieve their mission. Improving the performance of an objective, measure, or initiative may not need laser focus, but instead a broad view of the entire management of your business' strategy and all the factors. Next time you are faced with a problem, apply the Eisenhower Principle... make it bigger.

FAQ:

What is business strategy management?

Business strategy management is the ongoing process of formulating, implementing, and evaluating strategies that enable a company to achieve its long-term goals and objectives. It involves making strategic decisions about how to allocate resources, compete in the marketplace, and create value for customers and stakeholders.

What is business strategy in strategic management?

In the context of strategic management, business strategy refers to the specific approaches and actions that a company takes to achieve its competitive advantage within a particular industry or market segment. It outlines how a company will differentiate itself from competitors, attract and retain customers, and generate sustainable profits.

What is business policy and strategy management?

Business policy and strategy management is a broader field that encompasses both the formulation of high-level policies and the development and execution of specific strategies to achieve those policies. It involves making decisions about the overall direction of the company, its target markets, its competitive positioning, and its resource allocation.

How do you implement the Eisenhower Principle in business strategy?

The Eisenhower Principle, also known as the Eisenhower Matrix, is a decision-making tool that categorizes tasks into four quadrants based on their urgency and importance:

- Urgent and Important: Do these tasks immediately.
- Important, but Not Urgent: Schedule these tasks for later.
- Urgent, but Not Important: Delegate these tasks if possible.
- Not Urgent and Not Important: Eliminate these tasks.

Applying this principle to business strategy, you would:

Focus on the most important strategic initiatives: Identify the projects and activities that will have the biggest impact on achieving your long-term goals.
Delegate or eliminate non-essential tasks: Free up time and resources by delegating or eliminating tasks that are not critical to your strategy.
Plan for the future: Schedule time to work on important, but not urgent tasks that will help you achieve your long-term goals.
Avoid distractions: Minimize interruptions and distractions so you can focus on the most important tasks.

Why is strategic management important in business?

Strategic management is crucial for business success because it:

Provides a clear direction: It helps businesses define their vision, mission, and goals, and develop a roadmap for achieving them.
Creates a competitive advantage: It helps businesses identify and leverage their unique strengths to outperform competitors.
Optimizes resource allocation: It ensures that resources are allocated to the most impactful projects and initiatives.
Enhances decision-making: It provides a framework for making sound, data-driven decisions that align with the overall strategy.
Promotes adaptability: It helps businesses stay agile and respond to changes in the marketplace.