BOD - Ideas into Action - Disciplined Execution of the Strategy FAR
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21-Oct-2014 -
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Transcript of BOD - Ideas into Action - Disciplined Execution of the Strategy FAR
Strategy to Action
FAR
Five Foundations of Effective Strategic Thinking
Business Acumen
Personal Experience
Pattern Recognition
Strategic Insight
Disciplined Execution
Most people think of:
Rivalry Among Existing
Competitors
Threat of New
Entrants
Bargaining Power of Buyers
Threat of Substitutes
Bargaining Power of Suppliers
“Simplicity is the ultimate sophistication” Leonardo da Vinci
Effective Strategy = Valued Differentiation x Disciplined Execution
What strategy is not…• More, better, faster is not a strategy.• Effectiveness and efficiency are
necessary… but not sufficient.• Superb execution of fundamental
business processes… is expected.• Being extremely good at what you are
supposed to be good at… gets you no extra credit at all.
The Four – I’s
• Ignorance• Inflexibility• Indifference• Inconsistency
Page 3
How to avoid the Four I’s • Aggressive external market focus.
• Aggressive customer focus.
• Keep the “Main Things” the main things.
• Bullish on knowledge sharing and learning.
• Passion and commitment at all levels.
• Foster a healthy paranoia.
• Revel in change.
From the CEO of a little 241 billion dollar company…
Look, what is strategy but resource allocation? When you strip away all the noise, that’s what it comes down to. Strategy means making clear-cut choices about how to compete. You cannot be everything to everybody, no matter what the size your business or how deep its pockets…
Jeffrey Immelt
You have to figure out what to say NO to.
Breakthrough Strategies
GE: 1- 2 or F.S.C. Intel: memory to processors Microsoft: installed base Apple: chaos to elegance Saturn: no haggling
Southwest
1 type of planePoint-to-point
Fast turnsLow fares / no frills
Friendly staff
Dell
BTOJIT
Inventory turnsLogistics vs. Technology
VOC
100,000ELP
No FrillsLogistics
Southwest – Dell – Walmart What is the pattern?
• Extreme Efficiency
• Minimize Costs to as close to zero as possible – w/o negative impact
• All focused on delivering specific customer value
Educated Guess Focus
Resource AllocationBold not Risky
What NOT to do
Ideas into Action
Typically the BOD is NOT responsible for execution of the
strategic plan…
It is most often the responsibility of the CEO/ED and staff or
committees.
BOD as High Performance
Team
• D• M• C• C• M• D
irection – vivid, clear, inspiring --- shared
easurements – specific, observable, focused
ompetence – very good at what they do
ommunication – open, honest, courageous
utual Accountability – all team members
iscipline – do this every day
BOD as Change Agents
1.Irresistible case for change2.New vision of the future3.Sense of urgency4.Guiding coalition5.Plan for small wins6.Empower others
Accountability
• 100% Clarity + Appropriate Authority
• 100% Agreement
• Tracking & Post
• Coach, mentor, train, support
• Reward / Punish
What are THREE things you can do right away to increase the level of disciplined execution of your strategy?