Rita McGrath: anticipating and exploiting strategic inflection points

Abstract

Purpose An interview with Rita McGrath a pioneer of “discovery-driven planning,” now widely recognized as one of the most effective approaches for strategy development in the face of uncertainty. Design/methodology/approach Her research and experience interacting with executive teams positions her to offer corporate leaders practical perspectives and advice on how to approach strategically the great opportunities and dangers that lie ahead in this VUCA environment. Findings Major inflection points that create real change unfold gradually, then suddenly. Because they do take a while to unfold, an astute strategist who was paying attention to the signs could take advantage of the inflection. The future doesn’t happen all at once. It begins to unfold unevenly, and if you can “interview” where it is starting to take place now, you can begin to develop an early point of view about it. Practical implications There’s no substitute for watching how customers interact with your product or service and listening to their conversations about their experience. Originality/value McGrath’s thesis is when an inflection point does indeed reach a tipping point, it can feel as though it came out of nowhere. Her advice: if you are making a series of small options-style investments that are at the “edges” of your mainstream activities, you are likely to pick up on weak signals that allow you to, in an optimistic scenario, surf along an inflection point so that when the opportunity presents itself, you can move with speed to capture an advantage.