Implementation

Creating and Presenting Strategic Plans

Part 1

Two Types

Implementation

Major Break: Strategic Discontinuity

Incremental change

Incremental change

Implement strategies

Develop Strategies

Evaluate strategies Feedback

Legend:Flow of decision making

Flow of feedback

Set goals, targets

Formulate a mission

Analyse the firm

S W

Analyse the

environment O T

A Textbook Model Strategic Management

Competitive position

Asset utilization

Markets addressed

Leadership

The Strategy Compass:Concentric Discussion

Rigorous explicit numerical targets

Flexible vague areas of intention

Versus

Two Types

• Rigour versus flexibility

• Learn from life - strategic planning for children

A Balanced Approach

A balance between

The long term strategy: non-explicit and verbal:

Strategies for Successfully Raising Children

•Social success

•Professional success

•Personal success

•Academic success

Shorter-term strategies: explicit and measured:

•Sports competitions etc

•School examinations

Shorter term measured tasks in context of appropriate innate strategic principles

Strategies for Successfully Raising Children

Personal

Professional Academic

Time (Years)

Social

= Examinations, shorter run

E

E

E E

E

E

E

E

Shorter term measured tasks in context of appropriate unchanging laws of strategy

(CALM)

Strategies for Successfully Developing Firms

Leadership

Markets Asset

Time (Years)

Competitive

= Shorter run strategic plans

Individual products or projects are less important than

adhering to the innate strategic principles

Innate strategic principles in which shorter run strategies are always set

Habitually Successful Firms

‘We don’t make ‘automobiles’ which are utilitarian machines you use to get from point A to point B. We make ‘cars’, moving works

of art that express the driver’s love of quality.’

Bangle, C. (2001)

Innate Strategic Principles: BMW

‘The Toyota Production System grew out of the workings of the company

over 50 years and it has never actually been written down.’

Spear, S. and Bowen, H. K., (1999)

Innate Strategic Principles: Toyota

• Oral tradition versus written word

• The Strategy Compass: a template for discussion

(Network Rail vesus GE)

The ‘Shape’ of a Strategic Plan

Stage 1: Articulate the strategic principles

Stage 2: Develop the shorter run strategic plan

A Two Stage Approach

Strategy Compass to describe in words, not figures, our posture in terms of:

Competitive position

Asset utilisation

Leadership

Markets addressed

Stage 1: Articulate the Principles

Complete the skeleton strategic plan

Stage 2: Fill in the detail

The Detail

Who What When

Quality DriveA. N. Other X/X/201X

The End