| BUSINESSWEEK ONLINE : NOVEMBER 1, 1999 ISSUE | ||||||||
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| BUSINESS WEEK E.BIZ -- MANAGEMENT
Strategies at Net Speed The 5-year plan is dead, and so is the 3-year version. In the Information Economy, many companies are now writing--and rewriting--the strategic plan every quarter. Here's how some firms are able to turn on a dime: Scenario At Solutia, Monsanto's chemical spin-off, strategists now plan for four different short-term outcomes for each initiative, enabling them to change and act fast when they have to. Reality Checks Sun Microsystems President Ed Zander holds weekly ''whack-o-meter'' sessions, among the company's key decision-makers to assess ways that rivals might ''whack'' Sun in the marketplace. That sets the stage for quick reactions. ''It helps us think strategically,'' says Zander. Communication At Accompany, a Silicon Valley-based online buying club, executives broadly communicate strategy-shifts within hours of making decisions in group e-mails and meetings, ''so that everyone feels invested in the outcome and ready to fly,'' says CEO Jim Rose. Hire for Speed Fill jobs with people who thrive on change and ambiguity. At Accompany, ''we're not interested in people who can only deal in black and white,'' says Salim Teja, vice-president of strategic development. ''They'd slow us down.'' Hasten the Budget Cycle At Ingram-Micro, the company now devises ''rolling forecasts'' from the financial balance sheet for five quarters out, adjusted every 60 days. And at Internet clothing startup Bluefly.com, budgeting requires weekly revisions to keep up with changes in strategy. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS How Fast Is Net Fast? TABLE: Strategies at Net Speed INTERACT E-Mail to Business Week Online | |||
