The Impact of Anti-Strategy on Market Effectiveness – Part IV

The Impact of Anti-Strategy on Market Effectiveness – Part IV

By: Jim Gitney   |   blank  May 15, 2015

Market Effectiveness requires requires robust programs for service, marketing and sales.Anti-Strategy causes a negative impact on Market Effectiveness and your customers know it.  Let’s start with a couple of definitions before we get into the meat of this article: Anti-Strategy: Conscientious employees trying to do the right things without the guiding principles of a clear strategy.

Market Effectiveness: Those functions and processes that translate strategy into products and demand creation.

Note: This article is the third in the series on Anti-Strategy.  The entire series can be found here.

Often, Anti-Strategy results from external pressures causing short-term tactics to supersede long-term strategies. Some examples might include:

  • A company trying to keep up with explosive growth, its only plan being “fill orders and add capacity as quickly as possible.”
  • Given the recent economic downturn and intensifying global competition, many companies and their employees strive simply to “survive the day”.
  • Failing to revise sales approaches and product roadmaps despite recent dramatic market changes because “that is what we have in the plan or the budget.”

The preceding are examples of no strategy at all. Do any of the following examples of Market Effectiveness Anti-Strategy sound familiar?

  • A company commits to “launching a large number of new products” while their targeted customers push to prune lines and dramatically reduce inventories.
  • A salesperson diligently chases a “big opportunity” that his company will never be able to support profitably or will not increase sales.
  • A pricing manager doggedly quotes at extremely high margins in a new category with explosive growth potential and many potential competitors.
  • A product manager with a 90% market share in a mature category feverishly and futilely tries to “grow the business” instead of harvesting it to fund other growth opportunities in the company.
  • A product engineer spends most of her time and extensive resources designing new products for a category reliant upon technology that will soon be obsolete.
  • A product development leader believes that what works in the US must work in Europe.

Every company we have worked with suffers from Anti-Strategy to some extent. Frequently it is because strategy isn’t used as the basis for setting company, functional and individual objectives and using these as a common platform for a healthy culture. A company’s Market Effectiveness is driven by the relationship among its business strategies, product development and demand creation as portrayed below.

Market Effectiveness Graphic

It is critical to have a strategy that is grounded in market and company reality, is current, and is well understood throughout an organization. Such strategy needs to be the product of the company’s senior leaders working together and parts of the greater organization collaborating to craft related plans. Group50 has the tools, experience and know-how to review your company’s strategy and help ensure that it delivers needed results going forward. Consider Group50’s Market Effectiveness Assessment as a step in gauging how well your company’s sales-oriented activities mesh with its strategy.

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Group50 has designed a series of strategic assessments, workshops and Strategic Execution tools that enhance business performance. Call us at (909) 949-9083 or email us at or request more information here.

This entry was posted in Anti-Strategy, Market Effectiveness, Weekend Thought, on May 15, 2015

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