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But where did the members conviction come from Did they do research and analysis to decide on a strategy From Bhid s study, we doubt that. Sure enough, in the second section of the consortium plan, Collaborative Growth, we find that they built on what works:
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Coastline Pool Consortium originated in 1984 when two of the present members, Whitecap Pools and Waterway Accessories, joined forces in an advertising campaign to promote the installation and use of pools and related products.
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The plan then quotes the president of Whitecap on the success of that joint activity:
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We discovered that we could stretch the advertising dollar almost twice as far and yet each could double the consumer response to individual ads and commercials. We also found that we could slice administrative and staff costs through this kind of cooperative effort, and in many cases receive from each other sound sales and marketing advice that we might not have thought of on our own.
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Based on this success, they added a third partner, and the idea of a consortium began to grow. In other words, the art of what works. Again we recall Musashi s Book of Five Rings: The strategist makes small things into big things, like building a great Buddha from a one-foot model. For the consortium, what worked on a small scale led to something bigger. The coup d oeil came not in a flash, but as an idea that began to grow in the fertile ground of success. The consortium plan goes on to tell us that the members discuss their long-term strategy every time they add a new member. Their annual report includes the results of the discussion, to give everyone a picture of the consortium s entrepreneurial vision, and thus to enable people to understand the benefits, impacts, and challenges of their respective business operations and responsibilities. So the strategy kept evolving as new members joined, and the consortium spelled out the new strategy every year in its annual report. Yet still it had no plan. That came later, when the consortium decided to ask for a loan from Anchor Bank.
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In the rest of the consortium plan, we learn about the consortium s competition, its marketing and sales, and its operations, and we are given a financial analysis. All in all, the consortium plan offers a striking example of a simple, clear statement that explains a strategy based on what works. The Coastline Pool Consortium business plan is an easy model for others to imitate, in part or in its entirety. And yet, it s a small plan. What about big plans The Baldrige Award goes to big companies that dwarf the Coastline Pool Consortium. In large firms, a written strategic plan keeps everyone working together. Without it, won t people all go off in different directions A small operation like the Consortium can do without a mission, vision, and goal statement, but what about Lucent Technologies If not its 20 percent plan, then what Lucent has 56,000 employees in more than a dozen countries around the world. If it doesn t set a common goal, doesn t it risk ending up with 56,000 different strategies The Lucent Web site in 2002 offered an answer to this question. The Web site referred to a strategic focus, a strategic direction, and a strategic thrust. All three of these terms seem to mean the same thing: not a specific goal to reach or plan to follow, but a general strategy statement. Here it is:19
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Our strategy is to use our core technology strengths in optical, data and third generation (3G) wireless along with our unique capabilities in network software and worldwide services to offer segment-specific solutions for integrated wireline networks and mobility networks focused on the individual needs of the largest leading service providers around the world.
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With this strategy statement, it is then up to each part of Lucent to develop the details of its own plan. We see in this Lucent example a major trend in strategic planning: Headquarters sets an overall strategy, and divisions then work out specific plans. It s a form of strategic flexibility from top to bottom. That is, the top does not change its strategy. It just keeps that strategy loose enough to allow different units to develop their own flexible plans.
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