STRATEGY a presentation by Geoff Ball & Jerry Talley Edgewise Consulting LLC GB 650-941-1497,...

STRATEGY

a presentation byGeoff Ball & Jerry Talley

Edgewise Consulting LLCGB 650-941-1497, [email protected]; JLT 650-967-1444, [email protected]

Strategy

Strategy - Choice making regarding the allocation of resources to move toward a desired goal or purpose, toward what we are seeking to create in the world.

Copyright©2001 Edgewise Consulting LLC

Why Strategy

Alignment AND empowerment Clarity in decision making Effective use of resources Focus activity and thinking while retaining

connection among the parts Opportunity to step back and dialog about

unresolved conflicts that impede the effectiveness of the organization

Taking a step back to test assumptions and look at implications

Assessing uncertainties and risks


Strategy Work has three parts Creating

Assessment of the current situation Development of intent Choice making among strategic options

Planning Making the broad strategic ideas more concrete and

specific Strategy to tactics; goals to objectives; all to action Allocating resources

Executing the plan Building understanding and commitment among

implementers Assigning responsibilities Doing the work


“Strategy” can be articulated as:

Principles in a “Strategic Framework” “We need to be abreast of and influencers

of ‘best practices based on research.’ Policies to deal with a crisis

No layoffs; deal with by unpaid vacation and 10% salary reductions (to cut expenses)

Allocation of monies in a budget based on relative priority of goals

Setting new directions in products or services


Threats and Opportunities - Trends and Uncertainties

Technological Factors Environmental Factors Economic Factors Political Factors Social and Cultural Factors


Vulnerabilities (Threats)

Markets Competition Technology Supplier Markets Government regulations Economy


Capability

Areas of capability:core competencies & expertiseskills, knowledge & informationenough people with right skills, etc.process skillscapital and access to fundingrelationships and networkstechnology & information systemswork systems; work process designorganizational structureorganizational culture

INTENT

CAPABILITYSTAKEHOLDERS


Strategy Workshop Input includes:

Key weaknesses Key Opportunities Key Threats Key Strengths Products & Markets Old and new products

and markets Major goals next 3 years Acquisitions?

How see organization in five years - products, services, clients, performance

Events & trends that drive the business

Company Intent -- mission, etc. - as you understand it

Expectations for Strategy Workshop

Other issues or inputs


Some Representations for Strategy Work

Flow for a person

Our event in their life

Customer’sPoint of view

Our place in a Network of organizations, individuals and technologies

Processflows


Processes that cross organizational boundaries

Product Development: (Concept to Prototype)

Sales: (Prospect to Order) Manufacturing (Parts to Product) Order Fulfillment: (Order to Payment) Post Sales Support: (Sales to Effective

Use)


Competitive Position - relative rating

Rate yourself against the competition on these factors: Ability to meet market needs and preferences Costs Service Reputation Financial strength Proprietary position Market share


DRIVING AND TESTING

INTENT

CAPABILITY


Intent

Intent - What we are headed toward - our WANT. Often expressed in:

Purpose:

Mission:

Values:

High level goals:


Intent to Capability

What does our intent imply for our capability? What capability will we need to carry our our intent.

Capability


Additional Prep Work - possibly needed information

Current -- Mission, values Goals Core assumptions Strategies Products and services Value propositions Customers & clients Financial situation

Suppliers Core competencies Organizational

system Organizational

structure Organizational

culture


Resources (how to mobilize)

Time of peopleMoneyManagement attentionCommitment [energy of employees, and …]Competency – skills, knowledge, proprietary informationInformationRelationships – customer loyalty, brand loyalty, goodwill, alliances, reputation Stocks of needed material resourcesQuality of work systemsOrganizational structure


Stakeholders

KeyPlayers

StakeholderValues

List of stakeholder classes we have and what are their interests?EmployeesCustomersInvestorsBoardRegulatorsSenior ManagementSuppliersDistributorsVolunteers


Common Organizational Dilemmas

Order /\ Freedom Individual /\ Group or team Concentration /\ Expansion Speed/volume /\ Quality Market focus /\ Market breadth Long-term investment /\ Current

performance and return Individual/private /\ Collective/public Planning /\ Doing Innovation /\ Stability Alignment /\ Empowerment


Process Tools for Strategy Work

Computer Technography Group Graphic Wall Charting Sample Strategic Plans Information tables Good questions to ask - and when to as

them


Key Players in each Stakeholder Group

Categories are the following. Who SPECIFICALLY is in each of these categories for us?Employees -Customers -Investors -Regulators -Senior Management -Suppliers -Distributors -


Culture - A Framework

In describing culture consider the following


Technological Factors

Context


Stakeholders values

Stakeholder

Values:•Timely•Cost•Quality•Aesthetic•Effective

Stakeholders vary in whatthey consider important.This can be expressed by the weighting they give certain values.


Capability to Intent

What does our capability suggest regarding our intent?To what extent should our intent be guided by our capability?Do we have a special capability that we should leverage in our intent?


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NINE DILEMMAS LEADERS FACE - Thomas Stewart

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Broad BasedLeadership

High visibilityLeadership

Independence

Interdependence Short Term

Long Term

Creativity

Discipline

Change

Trust

BureaucracyBusting

Economies of Scale

People

Productivity

Leadership

Capability

RevenueGrowth

Cost Containment

Nine Dilemmas that Leaders Face


Thinking Dualities

Analytical SystemicLogical Intuitive

Hierarchical Networked Sequential SimultaneousDivided Holistic

Convergence Divergence

In Western thinking we emphasize the left column. Strategy work requires both sides to be effective.


CONTEXT - Grove Consulting Template (www.grove.com)


INDUSTRY STRUCTURE Grove Consulting Template (www.grove.com)


Ends and Means (Goals & Strategies)

n Point not the goal until you plot the coursen For ends and means to man are tangled son That different means quite different aims

enforcen Conceive the means as end in embryo. — German poet


Choices in building an organization

See table

STRATEGY a presentation by Geoff Ball & Jerry Talley Edgewise Consulting LLC GB 650-941-1497,...

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Transcript of STRATEGY a presentation by Geoff Ball & Jerry Talley Edgewise Consulting LLC GB 650-941-1497,...