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The Mind Of The Strategist: The Art of Japanese Business, by Kenichi Ohmae
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This book, full of actual examples, aims to bring to life all of the dynamic, subtlety, and variety of business strategy as it is practiced in the real world and in real companies. The author does not purport to be inventing strategy in this book or to be revealing the secrets of Japanese business and strategic planning. Rather, he is exploring with the reader the ways in which the strategist must think, the key principles and thought patterns that real-world strategists have used to move their companies forward in Japan and throughout the world. He explores the relationship of the Strategic Triangle formed by the company, the customer, and the competition and shows how these factors must be the basis for all strategic thinking and planning.
- Sales Rank: #229681 in Books
- Brand: Ohmae, Kenichi
- Published on: 1991-08-22
- Released on: 1991-08-01
- Original language: English
- Number of items: 1
- Dimensions: 8.00" h x .80" w x 5.60" l, .0 pounds
- Binding: Paperback
- 304 pages
From the Back Cover
A Masterful Analysis of Company, Customer, and Competition
Kenichi Ohmae-voted by The Economist as “one of the world's top five management gurus”-changed the landscape of management strategy in The Mind of the Strategist. In this compelling account of global business domination, Ohmae reveals the vital thinking processes and planning techniques of prominent companies, showing why they work, and how any company can benefit from them.
Filled with case studies of strategic thinking in action, Ohmae's classic work inspires today's managers to excel to new heights of bold, imaginative thinking and solutions.
“In many ways, Ohmae can be considered the modern reincarnation of a much older guru, Adam Smith.”-Journal of Marketing
“A fascinating window into the mind of one of Japan's premier strategists…full of ideas about how to improve strategic thinking.”-Michael E. Porter, Graduate School of Business Administration, Harvard University
About the Author
Internationally known as “Mr. Strategy,” Kenichi Ohmae was a partner at McKinsey & Company for 23 years, and today he is chairman of Ohmae & Associates. He is the author of more than 100 books.
Most helpful customer reviews
37 of 37 people found the following review helpful.
Creating the right mind-set for strategy formulation
By Gerard Kroese
Kenichi Ohmae was Chairman of the Japan office of McKinsey & Company, the world-famous strategy consulting firm. He has been described as "Mr. Strategy" and has written several books and articles on strategy-related topics.
Kenichi Ohmae believes that successful business strategies do not result from rigorous analysis but from a particular state of mind. "In what I call the mind of the strategist, insight and consequent drive for achievement, often amounting to a sense of mission, fuel a thought process which is basically creative and intuitive rather than rational." He uses theoretical knowledge from the various academic scholars and puts them in its place - "a place distinctly secondary to creative intuition in the tool kit of the successful strategist." The book split up in three parts, each consisting of 5 to 7 chapters.
In Part I - The Art of Strategic Thinking, the author concentrates on the basics of the mental process. In Chapter 1 - Analysis: The Starting Point, Ohmae introduces the strategic thinking process. He introduces various useful diagrams and flow processes for a more reliable recipe for success: "the combination of analytical method and mental elasticity that I call strategic thinking." In the chapters 2 to 6, the author explores the different directions the strategic thinker can pursue in quest of innovative strategies. In the final chapter of Part I, Ohmae explains how the right mindset for strategic thinking and how to develop the required strategy.
In Part II - Building Successful Strategies, Ohmae shifts his focus from process to content. "In the construction of any business strategy, three main players must be taken into account: the corporation itself, the customer, and the competition." He refers to them as the three C's or the strategic triangle. Within the next three chapters, Ohmae discusses the strategies based on those three C's: (1) "Customer-based strategies are the basis of all strategy. ... There is no doubt that a corporation's foremost concern ought to be the interest of its customers rather than that of its stockholders and other parties. In the long run, the corporation that is genuinely interested in its customers is the one that will be interesting to investors." (2) "Corporate-based strategies are functional. Their aim to maximize the corporation's strenghts relative to the competition in the functional areas that are critical to success in the industry." (3) "Competitor-based strategies can be constructed by looking at possible sources of differentiation in functions ranging from purchasing, design, and engineering to sales and servicing. The main point to remember is that any difference between you and your competitors must be related to one or more of the three elements that jointly determine profit: price, volume, and cost." In the final chapter of Part II, Ohmae discusses corporate strategy. He claims that corporate strategy needs to address two issues: First, the integration between the individual business and the total corporation. And second, should there be a corporate strategy that is different from the individual business.
Part III - Modern Strategic Realities discusses the environmental factors influencing strategy thinking and strategy formulation. The chapters in this part are not as much related to each other as the previous parts. Ohmae identifies and discusses five economic trends that have an impact on long-term business strategies, whereby he notes that the strategic thinker needs to take those trends into consideration when shaping strategies. Due to those economic trends, seven major changes are ongoing in a global perspective. Ohmae discusses those seven changes in a very interesting chapter 14. In the next chapter, the author discusses the various myths and realities about Japan products and Japanese companies, and discusses the four main differences between Japanese and Western companies. This chapter provides some great insights into Japanese strategic and business thinking. In Chapter 16, Ohmae tackles strategic decision making. Ohmae believes that founders of successful businesses do not simply gamble. In his opinion entrepreneurs follow a five-step process for successful, foresighted management decision making: (1) Clear definition of the business domain. (2) Logical hypothesis based on an extrapolation of forces at work in the business environment. (3) Focus on a few strategic options, instead of many, open to the business. (4) The company must pace its strategy and not overreach itself. (5) Management must be prepared to change the basic direction of the business, if conditions demand it. Each of these five steps are discussed in detail. In the final chapter of the book, the author discusses strategy formulation: "... to bring insight to fruition as a successful strategy takes method, mental discipline, and plain hard work." He also discusses the creativity required for the development of business strategy.
Yes, I do like this book. And yes, I do find it difficult to write a review about it. This book is not a guide or framework into Japanese strategic thinking. In fact, Ohmae only really spends one chapter on the difference between Japanese and Western business systems. It is more about the right mind-set for strategy formulation and strategy development. There are some great lines in this book, and the various figures, diagrams and sketches are extremely useful. I wish that I had read this book several years ago as it gives great insights into the strategy process and development. But again, this book is not a guide or framework. It is an excellent complement to books such Porter's 'Competitive Strategy' (1980) and 'Competitive Advantage' (1985). Highly recommended to anybody interested in strategic management and strategy development/process. The authors uses a very simple US-English writing style.
24 of 25 people found the following review helpful.
Not only a business book, but also a HOW TO THINK TRAINING
By Emir
This is the best book I have ever read about Strategic Thinking. What is different and not existing in other popular books as 'Thinking Strategically, Co-opetition, Leading the Revolution, Competitive Strategy...' etc is HOW to think instead of WHAT to think.
The book's main chapter's include the following competencies:
Part I-The Art of Strategic Thinking:
--> What is strategy?
--> What can be the possible ways to overcome competitor?
--> How strategic mind should work?
(Instead of analysis to idea, idea to analysis)
Part II-Building Successful Strategies:
--> Define yourself - the corporation
--> Define the others - the competition
--> Define the rewarders - the consumers
--> And finally define the above 3C in one map
Part III-Modern Strategic Realities:
--> What is the affect of economic environment to 3C's?
--> How to cope with strategic changes?
--> A case analysis: A nations strategic gain: Japan
--> How to project the future 3C's?
--> And finally is there a strategic success formula?
The main thing I captured from the book is: strategic thinking is a way of life, not a special time event. Working in a US multinational for years, I am more and more aware of the facts and success path defined by Mr. Ohmae - McKinsey guru. Especially, determining the strategic degrees of freedom of any issue (can be a business issue, or a weekend tennis journey, or even life -I applied-) and determining the actions to take to get the determined result is the best thing I learned.
This is a short book (wrt to other strategic management books) but it teaches how to think instead of popular strategy methods.
It is a must read & can be taken as foreword of all business books.
14 of 14 people found the following review helpful.
Essential reading for all Managers
By B.Sudhakar Shenoy
Last week I received an identical request from two sources to recommend a good book on business strategy. One is a first year MBA student and another a senior executive in a large multinational. Without hesitation, I recommended this book.
Strategy has been a subject matter of interest to Business and Military than to any other profession. In both these cases it is a about doing something differently to gain advantage over the adversary either in the battlefield or in the marketplace. Strategy is not just a piece of paper or a corporate manual but a state of the mind to win against all odds. So many books and theories have been written on this subject and still it continues to be a topic that cannot be defined as an exact science. If there is one topic that can be listed as the most important for any MBA program, undoubtedly it is Business Strategy.
Another reason for revisiting this book is that in the last decade, we have been overloaded with concepts of digitization and technology as the main drivers of business. We have seen technologies that are excellent but have failed miserably in the marketplace. Technocrats have failed to convert bits and bytes into bucks. In the quest for technical excellence, strategy has taken a back seat. We need to fill this vacuum of strategic thinking.
But then the problem is to have a strategy to understand and apply this vital topic ! It is here that this book is one among the best I have come across till date.
Strategy is a combination of elastic thinking and application of analytical method. Omahe explains this well and warns that strategy is not just somebody's spark of genius but a process that needs rigorous effort and continuos refinement. He brings in the framework of listing the concrete phenomena, grouping, abstraction and determination of approach that are actionable and practical. The three Cs' of the strategic triangle - Corporation, Customer and Competitor are at the core of this book. Each C is discussed in detail with excellent illustrations and case studies.
If you need to read an executive summary, I recommend Chapter 7 - The Secret of Strategic Vision. In this chapter one paragraph in my opinion contains the essence of strategic thinking.
"Strategic thinking in business must break out of the limited scope of vision that entraps deer on the highway. It must be backed by the daily use of imagination and by constant training in logical thought process. Success must be summoned; it will not come unbidden and unplanned. Top management and its corporate planners cannot base their day-to-day work on blind optimism and apply strategic thinking only when confronted by unexpected obstacles. They must develop the habit of thinking strategically, and must do it as a matter of course. Ideally, they must approach it with real enthusiasm as a stimulating mental exercise."
The book was first published in 1982. Hence some of the assumptions on key economic trends under "Modern Strategic Realities" have undergone major corrections. However, the framework for strategic thinking still holds good. Though the examples are mostly from Japanese companies, Omahe concludes the book by pointing out that " Creativity, mental productivity and the power of strategic insight know no national boundaries. Fortunately for all of us, they are universal."
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