IIBA®, the IIBA® logo, BABOK® and Business Analysis Body of Knowledge® are registered trademarks owned by International Institute of Business

Analysis. CBAP® and CCBA® are registered certification marks owned by International Institute of Business Analysis. Certified Business Analysis

Professional, Certification of Competency in Business Analysis, Endorsed Education Provider, EEP and the EEP logo are trademarks owned by

International Institute of Business Analysis.

A PERFECT STRATEGY WITHOUT EXECUTION AND TRACKING: A USELESS EXERCISE

How the business analysis could help

Angelo Pansini Finmeccanica/Selex ES Land & Naval Systems Division Strategy Director

Bridging the Gap between Strategy and Execution

The challenge for better business outcomes

2

Even an outstanding Strategic Plan, without

an effective execution, is a useless exercise

Business Analysis represents the

indispensable tool to feed a Strategic Plan,

and make its execution effective

INTRODUCTION (1/2)

3

INTRODUCTION (2/2)

This means that an effective strategy

execution should be based on two pillars

1. A set of pre-requisites that must characterise the Company strategy

2. A clear, shared and applied toolset for strategic control

On the other hand, execution effectiveness depends

on the quality of the Strategic Plan: a Strategic Plan

and its execution are two sides of the same coin

4

PRE-REQUISITES FOR A “HIGH QUALITY” STRATEGY….AND EXECUTION

DISTINCTIVE

DESCRIPTIVE

CREDIBLE

CONCRETE

MEASURABLE

1

2

3

4

5

A «Smart

Strategy»

The «Right Execution»

5

1^ PRE-REQUISITE Who is the customer ?

What does he value ?

Where and with whom do we compete ?

How effective is our offer proposition ?

How do we coherently shape the strategy ?

Products/Geographies

ATR42

ATR72

Europe

RRJ

USA Far

East Russia

«Traditional»

Segmentation

User Groups

(Airlines Type)

Use Destinations

(Mid range, fast links)

Technologies

(HS Train vs Aircraft)

«Multi-dimensional»

Segmentation

Who

What

How

DESCRIPTIVE

6

1^ PRE-REQUISITE

Smart segmentation: the crucial starting point

7

1^ PRE-REQUISITE

The “4th dimension”: where do you compete ?

8

1^ PRE-REQUISITE

A tool to assess the Competitive Environment

Asses the strategic position properly identifying and

analysing the forces actually relevant to our business

9

2^ PRE-REQUISITE

What differentiates ourselves from our

competitors, making us - if possible - “unique”

Pursue the Operational Excellence enabling the full

exploitation of the Company Distinctive & Core Capabilities (rivalry is increasing everyday, everywhere, we must relay upon our Operational

Excellence and Distinctive & Core Capabilities)

DISTINCTIVE

10

2^ PRE-REQUISITE

PRODUCT COMPETITIVENESS

SWave® VQ1 - Type 1

Selex ES product

Thales product

BAE product

Market Share

Geographical Footprint

Performance

Technology Advantage

Price Competitiveness

Reputation

COMMENTS & GAP EXPLANATIONS

ACTIONS TO IMPROVE

PRICE COMPETITIVENESS

GEOGRAPHICAL FOOTPRINT

MARKET SHARE

PERFORMANCE

REPUTATION

TECHNOLOGY ADVANTAGE

A tool to assess Company Distinctiveness & Core Capabilities

Identify and analyse your peer competitors

10

Competitor A

Competitor B

11

2^ PRE-REQUISITE

A tool to assess the Source of Competitive Advantage

Identify the source of competitive advantage “really”

applicable to our business (whatever is the strategy, the source of competitive advantage is

generally unique and strictly business specific !!)

12

3^ PRE-REQUISITE (PLAN + EXECUTION)

Strategic objectives shall be perceived by the

organization as realistic, achievable, and consistent

with available resources and competitive levers

A Business Model is a set of organizational and strategic solutions

through which a company acquires a competitive advantage

CREDIBLE

13

3^ PRE-REQUISITE

Identify the

Business Model

necessary for

delivering value to

the customers

«External»

Credibility

Understand what

are the user’s

needs to be

satisfied

14

The IIBA’s Business Analysis Framework

Business

Analysis

Strategy Analysis Requirements Analysis &

Design Definition Solution Evaluation

15

4^ PRE-REQUISITE (PLAN + EXECUTION)

From strategy, objectives and actions shall be

defined, which must refer to relevant timeframes

Objectives, Actions and KPI

GROW

INTERNATI-

ONALLY

2

Be the preferred partner of

the IT and UK MoDs

…………..

………….

………….

PROTECT,

REINFORCE

AND EXPLOIT

THE CORE

1

Objective

MAXIMISE THE

INTER-LOB

AND INTER-

DIVISIONAL

SYNERGIES

3

Main Actions Risks & Criticalities Timing KPI

Technical risks on new

developments

…………………

…………………

Q1 2016

1st Half 2017

Late 2018

Main Domestic orders

(Legge Navale, FREMM,

…………………)

…………………………

…………………………

………………….

…

…

2015 split = 60/40%

2019 split = XX/XXX

…

…

…………………

…………………. ………………………… …………………

CONCRETE

15

16

4^ PRE-REQUISITE (PLAN + EXECUTION)

MISURABILE Gli obiettivi strategici devono essere ‘quantificabili’ e

‘controllabili’, quantificati e controllati

KEY OBJECTIVES EXPECTED RESULTS COMMENTS

1 Increase substantially our share of the UK Land C4I Market: • ……………………………………………………

• A solid transnational team able to exploit the learning and knowledge from FNEC into the UK programmes

• …………………………………………………. ……………………………………….

2 Apply the credibility learning and principles to other subsequent large UK C4ISR programmes as they mature ………………………

A solid position into key UK programmes will ensure improved placement as these major C4ISR projetcs develop

Likely to be Q3 / Q4 before customer intentions on these programmes is clear

TYPE ACTIONS MILESTONES COMMENTS

TECHNICAL • Establish transnational team to deliver

the strategy • ……………………………………….. Progress

- ……………………………. - ……………………………..

Uncertainty - …………………………………. - …………………………………

COMMERCIAL • ………………………………………….

INDUSTRIAL & ORGANIZATION

• ………………………………………………

Transnational team launched

2015 2016

1Q 2Q 3Q 4Q 1H 2H

Detailed discusions initiated with potential partners

Aquisition / Business Model Analysis Initiated

Status Key:

On Track

Uncertain/At Risk

Failed

Achieved

Superseded

17

In conclusion ……….

Implement a structured,

conscious, “fact-based” process

Identify and apply tools to track

and check the process

Ensure the alignment between

Strategy (Strategic Plan) and key

figures (Budget/Plan)

STRATEGY

EXECUTION

18

Jack Welch Chairman and CEO of General Electric

between 1981 and 2001. During his tenure at GE, the company's value rose 4000%

“If you don’t have a competitive advantage don’t compete”

….. but, at the end of the story ….