In an economy and business world ruled by ideas, the only sustainable form of leadership is that which puts a premium on well-developed strategy. Many of us today are wondering how to define a long-term strategy in an economy that moves at the speed of sound-or even as fast as the Internet.

Ron Ricci, vice president for Cisco Systems, a leading manufacturer of network components, says that the next phase of the Internet economy goes beyond the "what if" to the "how." Similarly, in the parallel universe of architecture, we have also moved past talking about "whether" to reinvent the profession; we are in the "how"-the mechanics of actually carrying it out.

The challenge of that particular "how" is: how can firms transform their existing culture into a new culture that fulfills their vision?

Focus!
Any long-term strategy starts with focus, the definition of the business one is really in. The focus is the first step in building a "brand." There is no secret to the process of building a brand; one puts the focus on:
• A specific audience, market, or client type
• A specific value, process, or delivery
• A specific tone of voice, i.e., how the firm presents itself.
Note the consistent use of the word "specific."

Once you define your brand, you need to communicate its values consistently. That consistency begins to give you a competitive advantage, which is supported by:
• Effective use of your knowledge management and collective intelligence framework (January AIArchitect, page 6)
• Your strategic alliance network (October 2000 AIArchitect, page 6)
• Acknowledgment of the reintermediation trend (November/December 2000 AIArchitect, page 6).

ClickZ Today, an electronic magazine dedicated to online marketing, proclaimed in its January issue that 2001 would be the year of reintermediation (the bringing together of people and knowledge) and the network. It notes that as knowledge fragmentation accelerates, the need for reintermediation grows. There is a parallel in our profession: As the building industry fragments into increasingly specialized segments, the need for an overarching "ARCHITECTURE" grows. (Remember—you read it here first.)

Strategies for staying ahead
To achieve a competitive strategy in an economy in which "today's good idea is tomorrow's commodity," one can't rely on strategies that may have worked in the past. Management consultant Alan Burton-Jones, author of Knowledge Capitalism (Oxford University Press, London, 1999), presents knowledge-based approaches to innovation and business organization that allow firms to stay ahead in the new economy. Burton-Jones believes there are four basic variations to innovation and organization:
• Exploitation strategies: Through long-term research and development, value is created by building strong capabilities in a particular field. The creative process involves progressive refinement.
• Exploration strategies: In fast-moving industries, value is created and retained by staying ahead of the field and being prepared to remove underperforming assets.
• Continuous innovation strategy: Because the value of staying ahead of the curve can be retained for only a limited time, a firm can survive only by continuous innovation based on fast, often discontinuous, learning. The firm gains its strength through new knowledge absorption, integration, and combining knowledge of various issues.
• Value sacrificing: The concept here is to subordinate your values to the client's needs in order to get a project and related processes on the fast track.

Reinvented firms will devise their own blends of innovative strategies to work within their particular focuses and client bases. To keep its competitive edge, any firm must continually maintain its internal knowledge while searching for new, external knowledge.

And, as you work to build your firm's external knowledge base, you will-by definition-be constantly reinventing your firm.

Copyright 2001 The American Institute of Architects. All rights reserved.