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RUTH B MOTT

STRATEGIC THINKING
AND HOW DO I GET IT?

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Strategic Thinking and how do I get it?
1st edition
2016 Ruth B Mott & bookboon.com
ISBN 978-87-403-1470-0

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STRATEGIC THINKING AND HOW DO I GET IT? Contents

CONTENTS
Author Biography 5

Introduction 7

1 Chapter 1 8

2 Agility 17

3 Strategic Alliances 23

4 Conclusion 28

References 29

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STRATEGIC THINKING AND HOW DO I GET IT? Author Biography

AUTHOR BIOGRAPHY

Ruth Mott has been a successful consultant and Executive Coach for 16 years.

Typical corporate projects included working with companies to align their teams to support
their business objectives, make better hiring decisions, increase individual productivity, and
inspire and implement action and change.

As an Executive coach Ruth works with individuals and professionals dealing with the complex
issues in the workplace.

Ruth has a multifaceted background. Prior to becoming an executive coach, she spent
several years as an executive in the healthcare industry, and an administrator, producer
and director in public television.

Ruth led a statewide committee through the development and passage of new healthcare
legislation that ultimately affected every resident of the State.

In public television Ruth became an expert at designing and delivering clear, concise,
compelling messages, and teaching others how to do the same.

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STRATEGIC THINKING AND HOW DO I GET IT? Author Biography

In addition to enjoying her work, Ruth is an avid cinema-goer, a theater lover, supporter
of the arts, non-profit organizations and an animal lover. She has two children, and her life
has been enhanced greatly by her two grandchildren!!

In 2012, Ruth authored a book entitled I Love You Now Get Over Yourself addressing
the 7 most common issues her clients bought to her. Each chapter is one issue and contains
a case study and a workbook. It is available on Amazon.

Ruth can be contacted at http://www.MottCoaching.com;


On Facebook, LinkedIn, and Twitter

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STRATEGIC THINKING AND HOW DO I GET IT? Introduction

INTRODUCTION
There are hundreds of business books for the student, the professional, and the generally
interested. Many of them are excellent, and others are not. But what they all have in common
is one important thing: a way to think about the world of business and management.

Thinking in a systematic way, using tools and new techniques for approaching issues in the
workplace can be a key element for success. However, if one can learn to be a Strategic
Thinker, the level and depth of their decisions and actions will be far more creative
and effective.

We know the story of Steve Jobs and Mac/Apple. When he was there, Mac was successful
but stagnant. When he was fired, Mac was on its way down. When they brought him back,
the i series was born. Jobs was the epitome of strategic thinkers in that he was focused
on the future and believed that if he gave people something they didnt even know they
wanted, but served and enhanced their lives, Apple would again be an industry leader.

Many believe that Strategic Thinking is something one is born with, and while that may
be true, it is a skill that in many aspects can be learned.

The content of this book is designed to help the reader explore the elements of Strategic
Thinking, and some tools to help develop their ability to think strategically to accomplish
their goals.

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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

1 CHAPTER 1
Strategic thinking is a process of thought for achieving a desired outcome. In other words,
a particular way to think and act to successfully get what you want.

Strategic thinking requires you to consider the elements, potential, and effects of your
approaches, and to examine each with a critical, honest eye. It requires clarity about What
you want to change and Why you want to change it. The How to and Who is needed to
achieve the goal, becomes the Strategic Plan a detailed blueprint for achieving the goal.

There are skills one needs to develop to become a strategic thinker. Some people are just
naturally so, others need to learn those skills, but everyone has the potential to think strategically.

Some of the skills necessary to be an effective Strategic thinker are:

1. Ability to see the big picture. That is, to have a vision for a better future. This is
true whether the goal is to change a process, or to change direction.
2. Ability to ask the right questions in order to clarify the scope of the project. For
example: Will we need to raise funds? Will we need additional human resources?
3. Ability to develop strategic alliances. For example, will we need other people,
companies, or departments to participate in this effort?
4. Ability to change direction quickly. That is, if something we thought was going
to move us forward, instead is creating difficulty, do we have flexibility to change
direction quickly?
5. Ability to outline the steps necessary to achieve the goal. Can we build a business
plan, or tell a compelling story illuminating the advantages the change?
6. Ability to bring together the right people. Do we have the right people in house
to develop and implement the strategic plan

Strategic thinkers are focused on the future and have a vision for a desired outcome.

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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

Figure 1

The truth is, we can all have some semblance of competence with some or all of these
skills. There are those who believe only certain professionals can be charged with the task
of thinking strategically. Frankly, it is my contention that mothers are the best strategic
thinkers, academic degrees notwithstanding!

When a vision of the future is developed, the process for achieving it is called a Strategic
Plan. Operational effectiveness is not a strategic plan. Operational effectiveness is a measure
of how well and how efficiently a process is working. A Strategic Plan is about what has to
be done, by when, and by whom. And it must include continual feedback and evaluation
as it moves along its time line.

A Strategic Plan not only works specifically toward an outcome, it allows more control over
the process. That is, by knowing what needs to happen, modifications can be more easily
made than if caught by surprise.

The strategic thinker looks at a 500 piece puzzle, and while others want to put
the Puzzle together, the strategic thinker says: lets count the pieces to be sure
there are 500. I dont want to get to the end and find there are pieces missing.

Lets compare an outcome thought about by two families.

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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

Example 1

Both families have 2 children and both have decided to go to a world famous amusement
park. Family A is happy to be visiting such a magical place and decides to take in as much
as they can in one day. They drive, they park, they purchase their tickets expensive tickets
I might add and they enter the park.

Family A starts at the beginning of the park for each ride and each exhibit. The lines are
very long and the walking is difficult. It happens to be 86 degrees Fahrenheit. By the end
of the day, everyone is exhausted, the children are cranky, and what was to have been a
wonderful day turns into something of a nightmare. The plan here was linear. Drive/park/
buy tickets/see as much as possible.

Family B is also happy to be visiting such a magical place but they approached it differently.
Before they started out, they sat down with the children and asked them what specific
rides and exhibits they wanted to see. They decided that after they parked and got their
tickets, they would start at the end of the park and work their way forward. While the lines
would be long, they would be much shorter at the end of the day because most people,
including Family A would start at the beginning of the park and work their way back. Family
B approached the event with a strategic plan.

1. Strategic Planning Methods


Im going to stop here for the moment to talk about methods for using Strategic Thinking
to develop a Strategic Plan.

There are many approaches. The Merlin Exercise is one of the most popular. The premise
is based on the legend of Merlin the Magician. Merlin could see the future. Based on his
visions, he was able to advise the King of future events and the King could then develop
his strategies for dealing with them before they happened.

We cannot see the future. We can have a desired outcome, something we want to see in
the future, but there is no way to predict it. The Merlin exercise starts in the future. If
the outcome is to be realized within 12 months or even 12 days, you produce a calendar
with the extent of time you want the process to take. If 12 months, then you start by
writing down in the 12th month what the outcome is. Then work backwards from there.
E.g., what has to happen in the 11th month to be assured that the 12th months outcome
will be accomplished. Likewise, what happens in the 10th and so on. This is the Strategic
Plan. The next part of the process works from the beginning rather than the end. After
you have filled in the monthly outcomes necessary to achieve the final goal, the specific
tasks associated with each months contribution are specified, and the appropriate people
for completing the months work are assigned.

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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

As each months tasks are detailed, the questions become What happens if we havent been
able to reach the months goals, what do we do to either make it up or change direction?
What am I prepared to do and what am I prepared to lose? Thus giving you more control
over HOW the strategic plan is implemented. We cannot predict the future, but we can
plan for it as consciously as possible.

Figure 2

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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

2. The Black Swan


Another approach is called The Black Swan. The concept is to be aware, as much as possible,
for the improbable to happen. Example: you have seen millions of swans, all over the world,
and all of them are white. It is highly improbable that there are swans of other colors.

Research is conducted and papers are written based on the premise that all swans are white.
Then one day, while continuing to study white swans, a black swan appears! By not preparing
for the improbable a swan of a different color all efforts must now be modified.

One needs to be prepared for failure as well as success. By addressing the question What If,
as well as we can before the activity is undertaken and constantly asking it throughout the
plan, we are better prepared, better able to cope and better able to re-direct our resources.

Figure 3

Now back to our 2 families. The end of the day for Family B was decidedly more enjoyable
than Family A. They had seen most of what they intended, they didnt have to wait in lines
that were hours long, and, while a bit tired, were feeling quite content.

Then!

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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

The Improbable Happened


The power source for all the rides and exhibits had failed. Nothing was working. The sky
started to darken and opened up with torrential rain. The forecast had been sunny skies! So
now Family A is distressed as well as soaked. But Family B? Earlier I said mothers are the
most natural strategic thinkers. Well Family Bs mom, did think that a Black Swan the
improbable could happen and noted every restaurant within every area they visited. She
led them to a dry, safe place to replenish (the restaurants were still functioning) to wait out
the power glitch as well as the storm!

Example 2

Lets bring these concepts into the business world.

The CEO of Company X, a widget-making company, believed he needed to expand the


companys production by 30% within a year. He examined all his options, looked at the
finances and talked with others in the organization. He looked at the rate of growth of
his competitors as well as his companys market share. He determined that 30% was the
right figure. Feeling certain then, he called together those people who would develop the
strategic plan. He wanted the plan in 30 days.

The group agreed to use the Merlin Exercise to develop the strategic plan. Starting at the
12th month, the month of the production launch, they worked backwards writing in each
months desired outcome. Then, working forward, they outlined the steps necessary to
achieve defined goals; tasks assigned to particular individuals or groups; dates for feedback
and meetings to determine if they were on the right paths or whether they would need to
change direction. Time to accomplish each task was included so progress could be measured.

One crucial element of the plan was, in the 8th month, to secure the funds necessary to
purchase some new pieces of machinery needed for increasing production.

Someone raised the possibility of not being able to raise the funds and the wisdom of having
an alternative outcome just in case. But others believed that the partners in this endeavor
were solid and it was highly unlikely to be a problem.

In the 7th month two of the funders went bankrupt. A Black Swan had entered.

Because they based everything going forward on attaining the needed funding, they had
to rethink it all. Would everything they had accomplished to that point now be irrelevant?

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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

It had a happy ending because the person who raised the possibility of a Black Swan a
strategic thinker had a solution. He suggested they look at changing the widget slightly,
without harming its usefulness. By doing so, they did not need to replace a very expensive
piece of equipment. Please note: This approach was a very creative one to solve the
problem and changed all the activity going forward (See figure 2).

3. How Does It Relate to Me?


If you want a promotion, a raise, a new home, or the like, you are more likely to get your
desired outcome if you think strategically. Define your goal and remember to think of the
larger picture. What do you want and why? What questions do you have to ask yourself
and others, if appropriate? Who else needs to be involved, friend or foe? If you have
to change direction, can you? Can you build a plan showing the advantages of your
desired outcome and how it benefits everyone or mostly everyone?

360
thinking .

360
thinking . 360
thinking .
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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

Figure 4

Write down what outcome you would like to achieve for yourself in the next 6 months or
any time frame you like. Then go through the list of skills and write your strategic plan.

The following page is a worksheet for you to begin building and using your strategic thinking
abilities to design a strategic plan.

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STRATEGIC THINKING AND HOW DO I GET IT? Chapter 1

Worksheet

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STRATEGIC THINKING AND HOW DO I GET IT? Agility

2 AGILITY
Agility: Nimbleness, dexterity; Ability to think and draw conclusions quickly; Ability to
solve new and unfamiliar problems quickly.

The above statement is the dictionarys explanation of what agility means. I would add one
more element to the definition. An agile mind is an open mind.

The important message in this chapter is that there are several different scenarios in
which being agile applies. Namely: physical agility, business/organizational agility, and
mental agility.

Mental agility is necessary for both physical and business agility as well as a skill in its own
right. Indeed, mental agility is a significant factor in successful Strategic Thinking.

Figure 5

Physical Agility
Physical agility refers to having a flexible body, having control over muscles, strength,
and stretch. For example, professional dancers must be physically agile to perform
complicated choreography.

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STRATEGIC THINKING AND HOW DO I GET IT? Agility

If you have seen a dance performance and marvel at the ease and grace of the dancers, and
how they make it all seem so effortless, then you know what physical agility looks like.
Mentally, they have to remember the moves, remember the timing, and be aware of their
surroundings, like where the end of the stage is!

Same in professional sports. For example, hockey players have to skate at full speed, stop
instantly, and change direction in split seconds. In addition, the greatest hockey players
possess mental agility.

Wayne Gretsky, a retired professional hockey player (New York Rangers and the Los Angeles
Kings), is considered one of the greatest of all time. He was able to read the opposing teams
next move and place himself where he believed the puck was going to be. Skating madly,
reading the play, placing himself where the puck would be, getting the puck, changing
direction (and scoring) all in spit seconds. Thats physical and mental agility!

Mental agility is the ability to think quickly, make a decision quickly, and execute quickly.

Figure 6

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STRATEGIC THINKING AND HOW DO I GET IT? Agility

Business/Organizational Agility

Today when every industry faces turbulent change as a matter o course, agility becomes
the difference between sustaining performance and falling behind.

(The Agility Factor, Williams, Worley and Lawler III)

A large corporation, by its nature, cant be as agile as a small company in changing direction
quickly. In such organizations, agility has to be built into the culture. That is, the leadership
has to believe that its workers have valuable ideas that contribute to the companys success.

An example of how agility turned a large corporation around is the story of Exxon. In 1989,
after a catastrophic oil spill in Alaskas Prince William Sound , the company suffered greatly
from 1) rapid and disastrous devalued share prices, 2) losing market share significantly, and
3) their arrogance about its responsibility for the spill and its affect on the environment.

When it became clear that the company was in danger of failing, a new CEO was hired.

He turned the company around within 2 years. He dropped the businesses and markets
that werent doing well; he increased efficiency; and created an agile culture by instilling a
shared sense of purpose; and he merged Exxon with a competitor, Mobil Oil (a Strategic
Alliance, the subject of Chapter 3). He also put himself out in front of the public and
took responsibility for the awful results of that spill. Exxon is now number 2 on the list
of Fortune 100 companies.

So while it took a few years to turn things around, one of the major elements was the
CEOs strategic thinking and open mindedness, which led to the creation of an agile culture
within the organization.

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STRATEGIC THINKING AND HOW DO I GET IT? Agility

Figure 7

Agility is strategically relevant.

(The Agility Factor, Williams, Worley, and Lawler III)

In Chapter 1, our widget company needed to act quickly once the decision was made to
change the widget design in the 8th month.

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STRATEGIC THINKING AND HOW DO I GET IT? Agility

New permissions had to be obtained quickly, new designs had to be drawn and produced,
and a new roll-out date had to be met within a one months extension more easily
accomplished than Exxons turnaround, because of its smaller size.

Improving Agility
We all know that improving our physical agility requires physical exercising. Stretching,
dancing, balancing, lifting, all help us to be more limber, agile. And stronger.

Agility of mind requires the same thing. That is, our brains need to be exercised as well.
Deliberately attempting to solve puzzles, riddles, math problems, design issues, and the like,
help train our brains to think creatively.

Fundamental to agility and strategic thinking is to question the underlying assumption.


In our widget-making firm, the engineer who suggested redesigning the widget instead of
finding new funders, is an example of questioning the assumption.

In the Exxons story, the CEO jettisoned some of the businesses where they were not making
an impact. He questioned Exxons underlying assumption that more is better.

Figure 8

In life, agile thinking is required every time a plan is changed at the last minute, or we
jump in to save an accident from happening, or we simply overcome an obstacle that has
been put in our path unexpectedly. How agile we are decides the outcome.

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STRATEGIC THINKING AND HOW DO I GET IT? Agility

In a lighter perspective, every super-hero is a master at agile thinking. Maybe thats why
we like them so much. After all, wouldnt we like to have the agility, physical and mental,
of James Bond! (Not to mention the fabulous automobile!)

Agility of mind is the ability to be creative, open minded, and quick thinking. Some people
are able to be agile in all areas, some in one or two. But we can all be better in any of them.

Figure 9

The following page is a work sheet with some suggested activities to help sharpen your own
agility. After you have finished an activity, write your thoughts about your experience and
grade yourself on how well you did.

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STRATEGIC THINKING AND HOW DO I GET IT? Strategic Alliances

3 STRATEGIC ALLIANCES
Strategic Alliances allow businesses and individuals to achieve an objective that otherwise could
not be realized alone. In most cases, a strategic alliance is when one or more companies come
together to create a new product or technology, but each company remains independent.

Strategic alliances come in all sizes and shapes. There are big business alliances, small
business alliances, and even personal alliances. There are many configurations of Strategic
alliances such as full partnerships where the investment is equal and the profits are shared.
Or the creation of a new company forged by two or more organizations coming together
for a specific purpose.

Its important to understand that a strategic alliance is not a merger. A merger is when
two companies become one. Usually, one company acquires the other. That is, one
company buys the other.

Figure 10

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STRATEGIC THINKING AND HOW DO I GET IT? Strategic Alliances

It is also important to know not all alliances are friendly! In Some cases the alliance is
achieved grudgingly. For example Apple and IBM.

Apples relationship with IBM in the early days of the 1980s was often that of a brash
young upstart doing battle with the established, more corporate rival.

(The New Economy, October 27, 2014)

Apple had its own and proprietary operating system which it kept for use only on Apple
products. IBM had the heaviest market share of enterprise-wide computing. Apple attempted
to break into IBMs market with negative advertising calling IBM Big Brother and other
more personal unflattering comments.

Each one wanted to influence the others market. After a decade of insults and lack of
success, they decided to join forces.

IBM worked with Apple to give the latters consumers access to enterprise systems and
Apple in turn, developed an IOS exclusively for IBM users.

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STRATEGIC THINKING AND HOW DO I GET IT? Strategic Alliances

The contentiousness not only didnt work for either one, but it allowed Microsoft to move
in and fill the space. Later, Microsoft, IBM, and Apple formed yet another alliance.

Two well-known examples of large, friendly alliances are Starbucks with Barnes and Noble
and Hewlett Packard with Disney.

Starbucks and Barnes & Noble


By putting Starbucks in B&N stores, the coffee chain accessed a consumer group it hadnt
been able to coral, and B&N customers are staying in the stores longer with a cup of coffee
and a good book that they then buy! Win/win!

Hewlett-Packard and Disney

This partnership goes all the way back to the beginning of Hewlett-Packard (HP) itself,
and back to the heyday of Walt Disney himself. Formed in a garage by the eponymous
co-founders, the companys first successful product was an audio oscillator purchased by
Disney to certify the Fantasound system installed in theaters for its 1940 film Fantasia. HP
helped to develop the Disney World ride Mission: Space.

(3rd Eagle Consulting, BLOG, Feb 17,2013)

And then we have what I call in-house alliances. Various departments joining together
to accomplish something none of them could achieve alone. They could be friendly or
competitive, but the knowledge that together they can create something that will benefit
them and therefore the organization is greater than their adversarial relationship.

The best Strategic Thinkers are willing to look at alliances with both friendly and sometimes
not so friendly partners and see their mutual benefit for expanding markets, developing
new technologies and products.

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STRATEGIC THINKING AND HOW DO I GET IT? Strategic Alliances

Figure 11

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STRATEGIC THINKING AND HOW DO I GET IT? Strategic Alliances

The following worksheet is designed to help you determine if a strategic alliance, professional
or personal, is in your best interest. Answer the three questions as completely and honestly
as possible.

Worksheet

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STRATEGIC THINKING AND HOW DO I GET IT? Conclusion

4 CONCLUSION
Strategic Thinking is a necessary component of successful business activity. By thinking
in terms of the future what we want and what is necessary to achieve it we are able to
put in motion the actions that will deliver the desired outcome.

Strategic thinking looks at the world in the future first, and then assesses the present. The
linear thinker, which describes most of us, looks first at the present and then defines the goal.

Strategic Thinking is the foundation of a strategic plan. While strategic thinking is the
vision, the strategic plan is the blueprint for achieving that vision. The vision can be as
complicated and complex as changing a core product or process, or as straightforward as
asking for a raise. A blueprint forward in either scenario assures (as much as possible) that
the vision is realized.

The plan must have a built in ability to change direction if necessary Agility (Chapter 2).
Without it, when the process hits a bump, whether the bump is a small one with minimal
consequences, or a Black Swan, the plan will fall apart. It requires that we think ahead
and ask what if before the action is taken.

Identifying likely allies, or in some cases, unlikely allies, as the plan is being developed
is a very important ingredient for a successful outcome (Chapter 3). In business for
example, knowing who might benefit from the change you are contemplating, and who is
best to explain that benefit to the ally, helps assure the success of the plan.

In our personal lives, asking for that raise may be best done by thinking about the elements
of importance to the supervisor who grants raises. Making a good business case for why
you deserve a raise might include a document listing your contributions, changes in your
responsibilities, and likely future changes that will impact the organization and your role
in particular. Thinking strategically in this case, not only enlarges your own perspective,
but allows others to see your talents and contributions in a more holistic way rather
than as a worker in a department.

While many believe that strategic thinking is an intellectual gift, it is also a skill and, in
many respects, can be learned. If the techniques and exercises in the former chapters are
practiced, then you can become a better Strategic Thinker.

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STRATEGIC THINKING AND HOW DO I GET IT? References

REFERENCES
1. Sharma, Nitin D, (September 9, 2014)
https://sanits591.wordpress.com/category/academics/strategy-/management

2. Fulmer, Robert M, The Merlin Exercise: Future by Forecast or Future by Invention?


Journal of Management Development Vol. 12, No.6, 1993

3. Taleb, Nassim Nicholas, (Random House 2010, Second Edition) The Black Swan

4. In bed with Big Brother: Apple and IBM Form Strategic Alliance. Retrieved from
http://www.theneweconomy.com/home/strategic-alliance-ibm-apple The New Economy.
com, October 27, 2014

5. Williams, Thomas, Worley, Christopher G, and Lawler, Edward G III, The Agility
April 15, 2013. Retrieved from
http://www.strategybusiness.com/article/00188?gko=6a0baStrategy+Business,

6. Agility in the Workplace. Retrieved from


http://projectbubble.com/blog/agility-in-the-workplace-is-essential

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