Strategic Ambition

Prof.dr. Henry Robben

CustomerValue

Proposi/on

ResourceConfigura/on

CustomerValue

Proposi/on

ResourceConfigura/on

1.#‘Where#Are#We#Today?’##• Who$do$we$serve$now?• What$do$we$offer$now?• How$do$we$do$that?

(Chapters#2#7#3)#

2.’Where#Do#We#Want#To#Be#Tomorrow?‘#• Who$do$we$want$to$serve?• What$do$we$want$to$offer?• How$do$we$intend$to$do$that?$

(Chapters#4#7#5#7#6)

Figure 4.7Three Questions of Strategic Marketing

3.’How#Do#We#Get#There?‘#•What$is$the$project$roadmap?

(Chapters#7#7#8)#

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For once the largest car manufacturer in the world, bankruptcy was a short drive away...

The one-time ugly duckling is now the largestcar manufacturer in the world...

Is there a more appealing brand of sports car in the world?

A company does not need to be

BIGIt needs to be

STRONGand

SUSTAINABLE

A Visionof the Future

"The#further#ahead#we#consider,the#less#the#precision#we#should#aYempt#to#impose.

Looking#ahead#thus#becomes#less#a#maYer#of#influenceand#more#a#maYer#of#interest"

General#A.M.#Gray#7##"WarfighMng"

'Begin#with#the#end#in#mind'#is#based#on#the#principlethat#all#things#are#created#twice.#There's#a#mental#or#first#creaMon,

and#a#physical#or#second#creaMon#of#things.#The#extent#to#which#you#begin#with#the#end#in#mind

oRen#determines#whether#or#not#you#are#able#to#createa#successful#enterprise##

Steven#Covey#7##"The#7#Habits#of#Highly#EffecMve#People"

5

What is your

Big

Hairy

Audacious

Goal?

The BHAG…If you aim for the moon and miss,

you will still be among the stars…

The moon and the stars, as seen from near Everest Base Camp

Your company’s

and

Your Personal Objectives

Toward a BHAG.

What are you deeply

passionate about?

What can you be the best in the world at?

What drives your economic

engine?

Free after Jim Collins’ ‘Hedgehog Principle,” in “Good to Great”

BHAG

Your Company and You!

An Amazing Story!

An Amazing Picture!

WOW...Customers, employees, members and all other stakeholders are very positive about the company.

All are very happy with what the company has established.

All you have to do is write that article!

In the article, you write

•what has been accomplished

•how it has been accomplished

•with whom

•which strategic choices have been made

•investments and returns

•your personal role in all this!

Choose a medium and a title

Titles are important. They carry the main message. Make sure it is there.

Think BIG. Think DIFFERENT. Go WILD. Have FUN.

Develop a couple of strong one-liners. Create an elevator pitch. “Beat the devil’s advocate”

5 or 10 years from now!

Five years from now, an incredibly positive article appears on your company. Imagine that a journalist interviews you on the success of the company.

The highly successful IT group Decos is about to embark on a new ambitious venture: space. After con-quering the world with it’s innovative products it has become almost a household name for corporate America.

The Decos products have shaped the transformation that has hap-pened from where IT was a support tool, to where IT became the essential system in processes in health care, government and in-dustry. Decos technology helps clients interconnect and run their SURFHVVHV� PXFK� PRUH� HI¿FLHQWO\��It’s Cartracking system is the lead-ing edge product in road pricing systems across the USA and world-

wide, selling millions of units per year. It’s document management solutions provide the paperless, location free working environment for millions of people, reducing WUDI¿F�DQG�LPSURYLQJ�TXDOLW\�RI�OLIH��,Q�WKH�PHGLFDO�¿HOG�'HFRV�KDV�UHY-ROXWLRQL]HG� WKH� ¿HOG� RI� GLDJQRVLQJ�and treating hearing loss, one of the major challenges of the aging population. The Decos group uses its Decos labs in India to develop software on a global scale.

Now, locked in tight with its solid customer base, it has proposed a new constellation of satellites to be launched next year, to be used in the next generation of tracking a collaboration systems still under wraps within the Decos Labs today.

Decos has shown to be able to reinvent itself time and time again,

and on an ever increasing scale. Currently passing the USD 250 mil-lion per year mark and still growing over 40% per year. It seems that this phenomenal growth will con-tinue for this ambitious company.

We called the company founder and entrepreneur Paul Veger to challenge his next step. Why embark on such a risky new adventure? “Any new idea challenges the current frame of mind. This is how we recognize the new ideas. In the Decos group we have em-braced innovation in a way that is totally new for a large corpora-tion. We have given the space and the budget for our ambitious employees to come forward with ideas, and we support them in realizing their technological dreams.”

September 2015Uitgave 1 The Technology journal

The Decos IT group ready to conquer the next frontier: Space

Software Development

advertentie

redactie Paul Veger 7KH�QHZO\�GHOLYHUHG�EXVLQHVV�MHW�RI�WKH�'HFRV�ÀHHW

So Decos, while being a technol-ogy group, is a place that is all about realizing dreams. Decos has the people, the infrastructure and WKH� ¿QDQFLDO� VWUHQJWK� WR� VXSSRUW�innovation on this scale. Paul: “In recruitment we look for the spark in the eyes of our new colleagues. I watch for the energy level, and we have created an environment that is stimulating, creative and result oriented. This is a combina-WLRQ� WKDW� LV� QHZ��XQLTXH�DQG�YHU\�rewarding for all of us that enjoy the Decos culture. In 2009 we had a strategy session with the en-tire management team, there we dreamed this up, and realized it.”

And for the investors looking to join this success story ? There is only one way to get a hold of Decos shares: come and join the compa-ny! This entire success is employee RZQHG�DQG�VHOI�¿QDQFHG��7KH�VWRFN�has grown from the original issu-ing price of €29 in 2005 until €3800 per share today. Paying a healthy dividend too. Want to join? Get your resume in and do not forget to show the spark in your eyes.

Given the future that you have

written...what is the

Business Roadmapthat will make this possible?

The Present

Strategic Ambition

A Business Roadmap is the portfolio of strategic projects that brings you from the present to the

strategic ambition.

Strategic Project #

Purpose

Description

Priority

KPIs

Why does the project need to get done?

What does the project entail?

Must have / Important / Nice to haveFinish / Start

Measure / Monitor / ModifySMART / Stimulating

RACI Responsible, Accountable, Consulted, Informed

1. Platform balance2. Acquisitions 3. New pricing system

4. Market intelligence 5. Post-mortem, segmentation6. Sales forecasting per sku

7. Key performance indicators8. Systems9. Logistics10. Cost reduction11. BPR

12. Rental innovation13. Direct-to-retailer14. Sales and account plans15. Catalogue / PLC16. Promotions

17. Competence profile18. Training19. Link BHAG to marketing goals

Incorporate ChangingContexts

Build and UseOptimal Systems

Passion to ExceedExpectations

Create theIntelligent Enterprise

Nurture (Retail)Customer Orientation

J F M A M J J A S O N D J F M A M J J A S O N D

J F M A M J J A S O N D J F M A M J J A S O N D

14.Sales andAccount

Plans

(Important : GfK must provide data one month earlier. See Project 4)

OverallS&MPlan

(15-05)

SalesPlan

(15-07)

AccountPlan

(15-09)

OverallS&MPlan

SalesPlan

AccountPlan

SalesPlan

AccountPlan

Business IntelligenceCBL-Line MonitoringDemo Week 2 of April

(03-06)

15.Catalogue/

PLC

Planningand

Roll-Out(15-04) Adjustment

Adjustment

Adjustment Adjustment Adjustment Adjustment AdjustmentMovieMinutes

16.Promotions

Disneybrand

evaluation

Disney brand eva-luation, including

mediaDisneybrand

evaluationObjectives

perCBL-line

Newpromoagency

Disney brand eva-luation, including

media

Year 1 Year 2

Generating)Strategic)Projects:)Phase)1.

Purpose

Description

Why0does0the0project0need0to0get0done?

What0does0the0project0entail?

Name Name0and0number0of0the0project

Which)projects)do)we)need)to)execute?

minutes

Strategic)Project:)Phase)1.

Purpose

Description

Priority

KPIs

Why0does0the0project0need0to0get0done?

What0does0the0project0entail?

Must)have)/)Important)/)Nice)to)haveFinish)/)Start

Measure)/)Monitor)/)ModifySMART)/)Stimulating

RACI Responsible,)Accountable,)Consulted,)Informed

Name Name0and0number0of0the0project

Strategic)Project:)Phase)1.

Per project:

Evaluate each project on:1. Business Opportunity2. Feasibility3. Economic Results

minutes

Business*Opportunity.Excellent

5)years

Moderate

3)years

Poor

<)1)year

<)5)years <)3)years <)1)year

Hidden treasure

Temporary relief

Promises

No man’s land

Home Base

Business'Ef*iciency:

Competitive

Sustainability

Business'Creation:

When'Does'the'Project'Earn'Money?

1

2

3

2

64

96

3

Change'in'the'marketDiferrent)CASame)CA

Home Base

Increm

ental

Moderate

Turnaround

Incremental Excel Creating)new)value)space

Same battlefieldSame army

Same battlefieldDifferent army

Different battlefieldSame army

Different battlefieldDifferent army

Resources'required

(‘assets'&''competences’)

Feasibility.

4

6

8

6

129

1612

8

Success:'Probability'of'making'itExcellent

Moderate

Poor

0)% 50)% 100)%

Bet the business

Waste the business

Growing the business

Erode the business

Home base

Return

Economic*Results.

9

12

15

12

2016

2520

15

Home base Company'Leverage

excellent

average

none

localimplementation(19unit/market)

selectiveimplementation

(multiple9units/markets)

globalimplementation

(all9units/markets)

Localleverage

Localharvest

Globalleverage

Globalharvest

Competence'Leverage

for'the'Future

Leverage.

Business'Opportunity.

Exce

llent

5 ye

ars

Mod

erat

e3

year

sPo

or<

1 y

ear

< 5 years < 3 years < 1 year

Busin

ess'E

fficien

cy:

Compe

11ve'Sustainability

Business'Crea1on:When'Does'the'Project'Earn'Money?

Feasibility.

Incr

emen

tal

Mod

erat

eTu

rnar

oundResources'R

equired

Change'in'the'marketIncremental' ' ' ' New'Value'Space

Economic'Result.

Exce

llent

Mod

erat

ePo

or

0% 50% 100%

Return

Probability'of'Making'It

Leverage.

Exce

llent

Aver

age

Non

e

Future'Leverage

Company'LeverageLocal' ' ' ' Global

Strategic)Project:)Phase)2.

PurposeDescription

Priority

KPIs

Why)does)the)project)need)to)get)done?

What)does)the)project)entail?

Must0have0/0Important0/0Nice0to0haveFinish0/0Start

Measure)/)Monitor)/)ModifySMART)/)Stimulating

RACI Responsible,)Accountable,)Consulted,)Informed

Name Name)and)nummer)of)the)project

Year%1 Year%2 Year%3

Must%Have

Important

Nice%to%Have

End)Time)and)Type)of)Project

Strategic)Project:)Phase)3.

Purpose

Description

Priority

KPIs

Why)does)the)project)need)to)get)done?

What)does)the)project)entail?

Must)have)/)Important)/)Nice)to)haveFinish)/)Start

Measure0/0Monitor0/0ModifySMART0/0Stimulating

RACI Responsible,0Accountable,0Consulted,0Informed

Per project:

Sources of Strategic Projects

δ (FBM, PBM)

External Analysis

Internal Analysis

BHAG

Understanding the business and the entrepreneur

Understanding the environment