Tool: Force Field Analysis Type: Analytical

1. Tool: Force Field Analysis Type: Analytical Description: Force Field Analysis identifies the external forces that will oppose or support achievement of a project’s goals Deliverables: • The force field map • Understanding of the environment in which the problem/opportunity exists Benefits: • Identifies make-or-break events or developments and strategy objectives • Enables team to plan for or reduce the impact of barriers and reinforce the strength of drivers When to use: • When complex external forces are involved in a situation • In Phase II to analyze the problem/opportunity When not to use: • When the issue is simple to analyze and/or relevant forces are limited and clear

2. Tool: Force Field Analysis Type: Analytical Potential inputs to this tool are: • Initial definition of the situation • Research performed and synthesized • Brainstorming generates creative ideas • Facilitation Guidelines keeps the discussion focused Guidelines Materials: Large white board or butcher paper, markers Approximate time: 1/2 day People:Entire team or sub-team on separate forces

3. Tool: Force Field Analysis Steps for construction 1. Identify the current situation. Clearly document in a few bullet points the situation the project is addressing in the center column of a five-column chart. ILLUSTRATIVE Worst case Drivers Current situation Barriers Best case • Biotech soybean usage in SOYACAKE product is the target of activist pressures • Activists will call for label • Consumers are largely unaware of the use of biotech soy • FDA currently maintains use of biotech soy is safe • Sales are strong

4. TIP Choose a specific point in the future to focus the discussion. Be sure that the description of events is realistic Tool: Force Field Analysis Steps for construction ILLUSTRATIVE 2. Describe the worst case future. In the far left column, clearly document the worst potential future outcome. Use previous analysis or research, not wild assumptions. Worst case Drivers Current situation Barriers Best case • Sales decline because of noisy controversy • Activist groups shape public opinion on biotech • Public fears increase about use of biotech products • FDA requires labeling of all products • Biotech soybean usage in SOYACAKE product is the target of activist pressures • Activists will call for label • Consumers are largely unaware of the use of biotech soy • FDA currently maintains use of biotech soy is safe • Sales are strong

5. Tool: Force Field Analysis Steps for construction ILLUSTRATIVE 3. Describe the best case future. In the far right column, clearly document the best potential future outcome. Worst case Drivers Current situation Barriers Best case • Sales decline because of noisy controversy • Activist groups shape public opinion on biotech • Public fears increase about use of biotech products • FDA requires labeling of all products • Biotech soybean usage in SOYACAKE product is the target of activist pressures • Activists will call for label • Consumers are largely unaware of the use of biotech soy • FDA currently maintains use of biotech soy is safe • Sales are strong • Sales increase • Public views biotech products as healthy and acceptable food ingredients • Activists halt campaign • FDA releases statement confirming the safety of biotech products • FDA rejects suggestion of mandatory labeling

6. TIP Do not permit internal drivers and barriers into the analysis. Focus only on external drivers and barriers Tool: Force Field Analysis Steps for construction 4. Identify the drivers. In the “Drivers” column, identify the political, social, economic, technological or other external forces that could prevent the worst case from occurring. ILLUSTRATIVE Worst case Drivers Current situation Barriers Best case • Sales decline because of noisy controversy • Activist groups shape public opinion on biotech • Public fears increase about use of biotech products • FDA requires labeling of all products • Activists unable to capture public interest on issue • Public weary of food-related issues • Media saturated with other food concerns; downplay use of biotech products • FDA lobbied by other users of biotech products • Biotech soybean usage in SOYACAKE product is the target of activist pressures • Activists will call for label • Consumers are largely unaware of the use of biotech soy • FDA currently maintains use of biotech soy is safe • Sales are strong • Sales increase • Public views biotech products as healthy and acceptable food ingredients • Activists halt campaign • FDA releases statement confirming the safety of biotech products • FDA rejects suggestion of mandatory labeling

7. TIP Emphasize critical and creative thinking. Be sure that assumptions are valid and that outcomes are realistic Tool: Force Field Analysis Steps for construction ILLUSTRATIVE 5. Identify the barriers. In the “Barriers” column, identify the external forces that could prevent the best case from being achieved. Worst case Drivers Current situation Barriers Best case • Sales decline because of noisy controversy • Activist groups shape public opinion on biotech • Public fears increase about use of biotech products • FDA requires labeling of all products • Activists unable to capture public interest on issue • Public weary of food-related issues • Media saturated with other food concerns; downplay use of biotech products • FDA lobbied by other users of biotech products • Biotech soybean usage in SOYACAKE product is the target of activist pressures • Activists will call for label • Consumers are largely unaware of the use of biotech soy • FDA currently maintains use of biotech soy is safe • Sales are strong • Activists have strong relationship with FDA • FDA is being criticized by government watch dog groups for not being proactive on consumer disclosure • Media groups, including “60 Minutes,” are critical of company’s position on use of biotech products and labeling • Major media coverage of the issue • Sales increase • Public views biotech products as healthy and acceptable food ingredients • Activists halt campaign • FDA releases statement confirming the safety of biotech products • FDA rejects suggestion of mandatory labeling

8. TIP A common failure is to perform analysis and then proceed as if it had not been done Tool: Force Field Analysis Steps for construction ILLUSTRATIVE 6. Identify critical learnings. Ask what the analysis has identified that needsto be incorporated into possible strategies. Refer to these lessons when formulating strategies. Worst case Drivers Current situation Barriers Best case • Sales decline because of noisy controversy • Activist groups shape public opinion on biotech • Public fears increase about use of biotech products • FDA requires labeling of all products • Activists unable to capture public interest on issue • Public weary of food-related issues • Media saturated with other food concerns; downplay use of biotech products • FDA lobbied by other users of biotech products • Biotech soybean usage in SOYACAKE product is the target of activist pressures • Activists will call for label • Consumers are largely unaware of the use of biotech soy • FDA currently maintains use of biotech soy is safe • Sales are strong • Activists have strong relationship with FDA • FDA is being criticized by government watch dog groups for not being proactive on consumer disclosure • Media groups, including “60 Minutes,” are critical of company’s position on use of biotech products and labeling • Major media coverage of the issue • Sales increase • Public views biotech products as healthy and acceptable food ingredients • Activists halt campaign • FDA releases statement confirming the safety of biotech products • FDA rejects suggestion of mandatory labeling Use this as possible tactic in future analysis

9. Tool: Force Field Analysis Template Worst case Drivers Current situation Barriers Best case

10. Tool: SWOT Analysis Type:Analytical Description: SWOT Analysis identifies and evaluates a company’s internal strengths and weaknesses, and external opportunities and threats in response to a specific problem/opportunity Deliverables: • Assessment of the company’s internal strengths and weaknesses (SW) • Analysis of the external environment’s opportunities and threats (OT) Benefits: • Particularly useful to help a team quickly and systematically evaluate the implications of the external environment • Analyzes the range of company capabilities in relation to problems or issues presented When to use: • To conduct a strategic analysis of both the company’s internal capabilities and external environment in order to clarify what the company might do in the context of the situation; in Phase IV to help clarify the company’s current position in the evolving issue environment When not to use: • SWOT Analysis should normally be done only after research has been performed. It is not a Brainstorming technique to identify what the team knows at the start of the project • Should not be used if the team needs a full analysis of all the forces at work in a situation — use more rigorous analytical tools

11. Tool: SWOT Analysis Type:Analytical Potential inputs to this tool are: • Research performed and synthesized from Force Field Analysis can support the internal and external analysis • Facilitation Guidelines keep the discussion focused • Brainstorming elicits creative ideas Guidelines Materials: White board or butcher paper, markers Approximate time: 1/2 day People: Entire team or designated sub-team

12. 1. Prepare. Review the project goals and relevant research and analysis that has taken place. 2. Identify the internal strengths and weaknesses of thecompany. Consider these strengths and weaknesses in relation to the issue and preliminary problem definition. Be as specific as possible about strengths and weaknesses. Document them on a flip chart. Examples of key questions: What strengths enable the organization to take advantage of or counteract a problem? What weaknesses would prevent the organization from overcoming problems or could be accentuated by the project actions? Tool: SWOT Analysis Steps for construction ILLUSTRATIVE Project goals • Maintain consumer loyalty • Avoid negative impact on sales TIP Stick to the project issues as the centerpiece of discussion. Often SWOT discussions veer off into tangents that have minimal relevance to the subject at hand Strategy Levers Research Internal Weaknesses Strengths • Popularity of SOYACAKE • Strong relationships with FDA • Sales force’s ability to communicate with customers • Don’t have a label informing consumers • Don’t have a good argument against a label • Weak relationships with activist groups Remember that strengths and weaknesses are internal. They include the competencies under the direct control of the company that are needed to operate in the currentsituation Refer to the list of company capabilities identified with the Strategy Lever Identifier tool TIP

13. 3. Identify the opportunities and threats posed by the external environment. Examples of key questions: What opportunities are available to the organization that can be helpful in achieving the overall goal? What threats exist externally that might restrict the ability to meet the goal? Document the opportunities and threats on a flip chart. Tool: SWOT Analysis Steps for construction ILLUSTRATIVE External Opportunities Threats • FDA support on safety of biotech • No legal requirement for label • Activist groups have mixed record • Public is increasingly skeptical of health issues in press • Activist groups’ occasional success • Reaction from company’s customers (i.e., retailers) if confronted by SOYACAKE consumers • Competitors’ products don’t contain biotech ingredients • Media interest in public scares • “60 Minutes” TIP Do not confuse strengths with opportunities and weaknesses with threats. Strengths and weaknesses are internal factors only, while threats and opportunities are external only

14. 4. Categorize. Make four lists of items (strengths, weaknesses, opportunities and threats) that will have a direct bearing on the preliminary problem/issue definition and the types of decisions to be made. 5. Review and refine the SWOT list. Consolidate items if possible and remove duplications/inconsistencies. Group/bundle items according to themes and, if possible, elaborate on emerging themes or rewrite to clarify. 6. Identify critical learnings. Ask what the analysis has identified that needs to be incorporated into possible goals or strategies. Refer to these lessons when formulating strategies. Tool: SWOT Analysis Steps for construction ILLUSTRATIVE WEAKNESSES STRENGTHS • Popularity of SOYACAKE • Strong relationships with FDA • Sales force’s ability to communicate with customers • Don’t have a label informing consumers • Don’t have a good argument against a label • Weak relationships with activist groups Do not make guesses or vague statements, even if particular SWOT items are unknown. If something is unknown, the need for information should be recorded and a research assignment should be initiated TIP THREATS OPPORTUNITIES • FDA support on safety of biotech • No legal requirement for label • Activist groups have mixed record • Public is increasingly skeptical of health issues in press • Activist groups’ occasional success • Reaction from company’s customers (i.e., retailers) if confronted by SOYACAKE consumers • Competitors’ products don’t contain biotech ingredients • Media interest in public scares • “60 Minutes” TIP A common failure is to do analysis and then proceed as if it had not been done

15. STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Tool: SWOT Analysis Template

16. Tool: Best Case/Worst Case FuturesType: Analytical Description: Best Case/Worst Case Futures envisions opposing future external environments that a company may face Deliverables: • Descriptions of positive and negative future environments and potential actions for each Benefits: • Helps the team to develop strategies and options responsive to possible changes in the external environment • Encourages creativity and new idea generation in developing strategies When to use: • Best Case/Worst Case Futures is useful for projects in which the external environment may change significantly during the life of the project and key variables in this environment are relatively well understood • In Phase II to analyze the problem/opportunity and develop strategic options When not to use: • Best Case/Worst Case Futures is not well suited to projects for which the external environment is very complex or the variables determining its future shape are highly interrelated

17. Guidelines Materials: White board, flip chart or butcher paper, adhesive notes, markers Approximate time: 2 – 3 hours People: Entire team or sub-team addressing an issue Tool: Best Case/Worst Case FuturesType: Analytical Potential inputs to this tool are: • The external analysis developed in the opportunities and threats sections of SWOT Analysis • Brainstorming to elicit creative ideas

18. Tool: Best Case/Worst Case FuturesSteps for construction 1. Review external threats and opportunities. Review the SWOT Analysis and/or other analyses of the external environment 2. Develop best case scenario. Describe a future in which the company maximizes each of the opportunities and mitigates the impact of each of the threats facing it 3. Describe worst case scenario. Describe a future in which the company fails to take advantage of any opportunities and each of the threats materializes Best Case/Worst Case Futures can be used in a team setting in a short period of time ILLUSTRATIVE SWOT analysis External analyses Best case scenario • SOYACAKE is featured in the “60 Minutes” investigation as an example of safe biotech product • Public support for activist groups’ claims against product is weak/declines • Sales of SOYACAKE stay strong TIP Use the external opportunities developed in the SWOT Analysis as a starting point Worst case scenario • FDA removes support on biotech safety and institutes mandatory labeling • Activist groups increase consumer fear of biotech products • Sales decrease Use the external threats developed in the SWOT Analysis as a starting point Avoid oversimplifying the descriptions; more specific conditions will lead to more specific actions TIP

19. TIP Encourage each team member to participate using either structured or unstructured Brainstorming Tool: Best Case/Worst Case FuturesSteps for construction 4. Brainstorm. Imagine that the described future has occurred. Document the actions that would need to be undertaken today to achieve the best case or to avoid the worst case 5. Identify critical learnings. Ask what the analysis has identified that needs to be incorporated into possible strategies. Refer to these lessons when formulating strategies ILLUSTRATIVE Best case scenario Description Actions to achieve • Public response to activists’ claims weakens • Promote safety of biotech products Worst case scenario Description Actions to avoid • Proactively and voluntarily label product • FDA requires mandatory labeling of biotech products TIP A common failure is to do analysis and then proceed as if it had not been done

20. Tool: Best Case/Worst Case Futures —Scenario PlanningSteps for construction Scenario Planning is a variation of Best Case/ Worst Case Futures that was developed by SRI Consulting for use in identifying the range and boundaries of uncertainty in the external environment. Typically, two to four plausible future scenarios are developed during a lengthy and complex process. Experienced outside facilitators should be sought. Set out below is a brief and general description only. Use when . . . • External environment is complex and uncertain • Implementation is likely to occur over a two-year (or more) period • Sufficient time is available (four or five two-day workshops over a two- to three-month period) • Senior management participation is crucial • Experienced outside facilitators are available 1. Clarify strategic decisions. Ask what are the types of decisions that will need to be made to achieve the project’s goals. 2. Identify key decision factors. Ask what would we most like to know about the future because, if we know this, we would be able to make better decisions. 3. Identify environmental forces. Identify what external forces will determine the future of each of the key decision factors. 4. Evaluate scenario logics. Each forceis assessed based on two things: first, its potential impact on the project’s decisions; and second, how uncertain we feel about where it is going. 5. Develop scenarios. The different scenarios are largely the product of asking in what different directions could these forces move. These different scenarios should be extreme but plausible. 6. Develop strategy implications.

21. Tool: Best Case/Worst Case Futures Template Best case scenario: Description Actions Worst case scenario: Description Actions

22. Tool: Goal Clarification Tool Type: Analytical Description: Goal Clarification Tool enables the team to develop more tightly focused project goals and ensures alignment between the project and the company’s overall vision. Three components are included: Success Definition, Mission Alignment and SMART Deliverables: • Specific project goals linked to a shared definition of success • Mission Alignment balance statement that identifies how the project supports the overall company strategy • A completed SMART validation checklist Benefits: • Reduces potential dissension and conflict since it requires that work on the project cannot begin until key stakeholders agree on the purpose and deliverables • Focuses the team on its mandate by setting specific and measurable outcomes for completion When to use: • Goal Clarification Tool is particularly useful for projects with goals that are complex, unclear, uncertain or difficult to measure • In Phase II for clarifying the project goal before strategic options are selected; in Phase III as a reference during the development of the implementation plan When not to use: • Goal Clarification Tool is not necessary when project goals are an obvious reflection of the company’s goals or when the outcomes sought can be achieved in the short term

23. Tool: Goal Clarification Tool Type: Analytical Potential inputs to this tool are: • Statement of the project definition • Results of analyses performed with Force Field Analysis, SWOTAnalysis, Best Case/Worst Case Futures • Brainstorming to identify success definitions • Facilitation Guidelines to keep the discussion focused Guidelines Materials:Whiteboard, flip chart or butcherpaper, markers Approximate time: 1/2 day People: Senior management, project sponsor, project team, other relevant stakeholders

24. Tool: Goal Clarification Tool — Success Definition Steps for construction • 1. Set the background. As a team, imagine that the company is at a point in the future, five or ten years from now, and has achieved success with regard to this issue. Ask: • “How can success be described?” • “What is the environment like?” • Document the future vision on a flip chart. Success Definition is a way to create project goals by framing the discussion around characteristics of success. ILLUSTRATIVE Future success vision • Sales of SOYACAKE are steady • Widespread public acceptance of use of biotech soy as a safe food product • FDA gives SOYACAKE product full safety endorsement • 2. Identify success factors. Use Brainstorming to identify the characteristics that enable the company to succeed. For example: • Alliances • Regulatory decisions • Communications • Lobbying. Success factors • Regulatory framework • Public perceptions of biotech • Attitudes of retailers/distributors • Activist groups’ position

25. Tool: Goal Clarification Tool — Success DefinitionSteps for construction ILLUSTRATIVE 3. Define success factors. For each factor listed, brainstorm to create definitions that describe success. Couch the descriptions at some point in the future. Success factor Description • Regulatory framework • Public perceptions • Attitudes of retailers/ • distributors • Activists • FDA supports use of biotech • Accepting — biotech is safe • Strong support for product • End attempts to sway public TIP Where possible, try to use quantitative measures to describe success. For example, “favorable legislation on advertising” or “ally support on waste issue” 4. Create project goals. Using the success factors as a starting point, identify ways the project can help achieve success. Document these statements and consider them the project goals. Project goals • No decline in sales of SOYACAKE during the Chinese New Year • Long-term protection of product against biotech controversy TIP Ensure that goals are closely linked to the stated purpose of the project

26. Tool: Goal Clarification Tool — Mission AlignmentSteps for construction Mission Alignment provides assurance that the project’s analyses, goals and direction are consistent with the company’s overall mission. 1. Identify the company’s overall mission/vision. Discuss and identify the major goals and strategies of the company. Document the goals and strategies in a few sentences and bullets. ILLUSTRATIVE Company strategy • Gain position as leading manufacturer of soy-based foods • Assure good relations with FDA TIP If there is a specific department or organization sponsoring the project, be sure that its mission/vision is identified • 2. Review the project’s goals. Conduct a discussion that identifies: • Reason for undertaking the project • Specific goals of the project • People/locations that will be affected • Major activities to be performed • Expected time line and budget. • Summarize the project goals. Project goals • No decline in sales of SOYACAKE during the Chinese New Year • Long-term protection of product against biotech controversy

27. Tool: Goal Clarification Tool — Mission AlignmentSteps for construction 3. Create the Mission Alignment balance. On a white board or flip chart, summarize the project goal on the left and the company strategy on the right to create a “balance.” 4. Confirm alignment. Comparethe major outcomes of the project and discuss how they support the business and company strategy. Describe the major ways the project supports the company strategy and document this description on the bottom of the Mission Alignment balance. 5. Adjust the project goals. Examine the strength of the alignment and, if necessary, make adjustments to the project goals. ILLUSTRATIVE Mission alignment Project goals Company strategy • No decline in sales of SOYACAKE during the ChineseNew Year • Long-term protection of product against biotech controversy • Gain positionas leading manufacturer of soy-based foods • Assure good relations with FDA TIP Check this alignment with the project sponsor Aligned with regulatory strategy Aligned with marketshare goals Alignment

28. Tool: Goal Clarification Tool — SMARTSteps for construction SMART characteristics can be used to confirm that a project’s goals are clear and complete. 1. Ensure that goals meet the SMART criteria. Use the validation checklist to ensure that each goal meets the SMART criteria. Revise as necessary. SMART goals are: • Specific — sufficiently detailed • Measurable — can be quantified or measured in some sense • Aggressive — achieving the goal means operating at or near optimal capacity • Realistic — the company has the ability to achieve the goal • Time specific — defined with a set time frame. ILLUSTRATIVE SMART checklist • Specific • Measurable • Aggressive • Realistic • Time specific ü ü ü ü ü TIP Certain projects may not achieve all the criteria, but should attempt to meet most Refer to attached SMART validation checklist

29. Tool: Goal Clarification Tool — Mission AlignmentTemplate Company strategy/values Project goals Alignment

30. Tool: Goal Clarification Tool — SMARTTemplate Validation checklist Check if goal meets each criterion Goal: ü S Specific — sufficiently detailed and not too general M Measurable — measurable in some sense (e.g., improve favorable public opinion rating to 80%) A Aggressive — in the sense that achieving it requires the company to operate at or near optimal capacity R Realistic — the company has the capabilities, resources and capacity to achieve it and the achievement does not depend on outside events T Time specific — a timeframe is defined for achieving the goal ü ü ü ü

31. Tool : Strategic Option Development Tool, Top DownType: Analytical Description: Strategic Option Development Tool, Top Down is used to identify and define a range of strategic options for pursuing a particular objective or goal Deliverables: • Six to ten strategic options with associated detailed actions Benefits: • Analyzes and defines actions for existing strategy ideas • Facilitates comparison of strategic options through creation of groupings of actions When to use: • Strategic Option Development Tool, Top Down is used in complex planning situations when many options may exist • In Phase II to identify options; in Phase IV may be helpful in developing strategic options When not to use: • Not necessary for situations with few options • Not for development of detailed actions or work steps — use Tree Diagram or Work Plan tools instead

32. Tool: Strategic Option Development Tool, Top DownType: Analytical Potential inputs to this tool are: • Analyses done in Forcefield Analysis, SWOT Analysis and Best Case/Worst Case Futures • Facilitation Skills keeps discussion focused Guidelines Materials: Large white board or butcher paper, markers Approximate time: Multiple meetings People: Entire team or sub-team

33. Strategy levers • Marketing and distribution • Regulation/legislation • Alliances and partnerships • Communication messages • Technology development Tool: Strategic Option Development Tool, Top Down Steps for construction ILLUSTRATIVE 1. Describe potential strategies.Team members detail any strategies they wish to pursue to address the project goal. Strategy ideas • Consumers’ right to know campaign • Mobilize FDA • Mobilize scientific allies TIP If team members do not have strategy ideas previously developed, use Strategic Option Development Tool, Bottom Up 2. Identify strategy levers.Think about strategy levers the company can use to achieve the strategy and develop actions under each appropriate lever. 3. Develop actions.As a team, for each strategy idea, develop the necessary possible actions necessary to implement or execute the idea using each lever. Be sure that the actions are consistent with the project goals. List as many actions as appropriate under each lever. Lever Marketing Regulation Alliances Messages Strategy Consumers’ right to know Label product Get FDA endorsement of label Activist endorsement Use “60 Minutes” Mobilize FDA No tactic under this lever Get FDA endorsement of safety Mobilize FDA relationship Use FDA’s position on product safety Mobilize scientific allies No tactic under this lever Jointly lobby FDA Build coalition of biotech users Use “biotech isn’t different” campaign TIP Review output from other tools to help create actions: Best Case/Worst Case Futures, Brainstorming, SWOT Analysis, Fishbone Diagram Strategy 4 Action Action Action Action

34. Tool : Strategic Option Development Tool, Top DownSteps for construction ILLUSTRATIVE 4. Clarify each strategy.Once all the action items are developed, describe the strategy again. Be sure to encompass all the possible actions that the team identified and selected for each strategy — grouping them when necessary for clarity. At the end of this step, check that each strategy has a complete set of associated actions that are both relevant and doable. Strategy Description • Embrace the consumers’ right to know • Proactively and voluntarily label the product about use of biotech ingredients and get activists to applaud the action 5. Present the ideas to the team. If working in sub-teams, allow team members time to develop as many strategy ideas as they desire and to present their three or four top options to the group. Strategy idea 1: Consumers’ right to know Strategy idea 2: Mobilize FDA Strategy idea 3: Mobilize scientific allies • Get FDA endorsement of safety • Mobilize FDA relationship • Use FDA’s position on product safety • Voluntary label • Activist endorsement • “60 Minutes” report on biotech • Sales force communication • Get FDA endorsement of label • Jointly lobby FDA • Build coalition of biotech users • Use “biotech isn’t different” campaign TIP If there are few options to select from or for the team to generate, skip to Step #6

35. Tool: Strategic Option Development Tool, Top DownSteps for construction ILLUSTRATIVE 6. Select best options. Reduce the list of potential options to a set of six to ten through team discussion, Multivoting or Option Analysis Tool. Strategic option 1: Embrace the consumers’ right to know

36. Tool : Strategic Option Development Tool, Top DownTemplate Lever Lever #1 Lever #2 Lever #3 Lever #4 Lever #5 Strategy Strategy #1 Strategy #2 Strategy #3 Strategy #4 Strategy #5

37. Tool : Strategy Lever IdentifierType: Analytical Description:Strategy Lever Identifier is an approach for detailing strategy levers — a company’s controllable business assets or internal capabilities to address a strategic issue Deliverables: • A list of the most important business assets the company can use to achieve its strategy Benefits: • Enables a team to look quickly at the key business assets the company has at hand to deal with any situation • Begins the process of determining how those business assets can be used to achieve the strategy When to use: • Strategy Lever Identifier is useful when the team needs to identify the company’s internal capabilities that can be used to address the problem/opportunity • Can be used as an input to a SWOT Analysis to help systematically identify company strengths and weaknesses • Should be used as a component of Strategic Option Development Tools • In Phase II to aid in the analysis of a problem/opportunity or identification of options When not to use: • Not necessary for narrow or short-term issues

38. Guidelines Materials: Large white board or butcher paper, markers Approximate time:1 – 2 hours People:Entire team or sub-team Tool: Strategy Lever Identifier Type: Analytical Potential inputs to this tool are: • Brainstorming to elicit creative ideas • Facilitation Guidelines to focus discussion

39. Consider all the assets that could affect the project, but include only those levers that are critical. Delete those with an incidental or minor impact. TIP Include all levers that are important even if the company lacks a strong competency in that area Tool: Strategy Lever Identifier Steps for construction 1. Conduct a brainstorming session. Using either structured or unstructured Brainstorming, identify the strategy levers — the assets or elements of the business that are the most important for meeting the objectives or capitalizing on the opportunities of the project. Consider all of the company’s resources, functions and processes relevant to the project. A strategy lever is one of the parts of the business that the companycontrols. External environmental elements such as customers or competitors cannot be strategy levers (see attached page for examples of strategy levers). 2. Prioritize the levers. Prioritize and select the strategy levers that are likely to be most important in achieving the project goals. A list of ten or less is most manageable. Use Multivoting to narrow the list, if needed. ILLUSTRATIVE Strategy lever • Alliances • Marketing • Corporate affairs • Employee skills • Distribution channels • Financial resources • Communication TIP Strategy lever Priority 4 1 6 2 3 5 Investment priorities Marketing and distribution Employee skills Corporate affairs Technology development Product development

40. Tool: Strategy Lever IdentifierSteps for construction 3. Select the strategy levers. Discuss how each business element can be applied to the goals and select the top four or five to be the strategy levers. Document the ways the levers apply to the project. 4. Use the information gathered. Strategy levers can be used: • As an input to a SWOT Analysis to focus on internal strengths and weaknesses • As a component of Strategic Option Development Tools to evaluate strategic options. ILLUSTRATIVE Use in project? Strategy levers Priority 4 1 6 2 3 5 Investment priorities Marketing and distribution Employee skills Corporate affairs Technology development Product development Yes Yes No No Yes No

41. Tool: Strategy Lever Identifier Examples of strategy levers • Financial resources • Alliances and partnerships • Mergers and acquisitions • Vendors and consultants • Product development • New/existing technologies • Information technology • Regulatory approaches • Marketing and promotion messages • Marketing channels • Customer service • Distribution channels • Geographic emphasis • Existing market segment/niche focus • Production/manufacturing emphasis • Employee skills or competencies • Corporate affairs/legal specialties • Speed/time-to-market • Core values and culture • Intellectual property and trade secrets • Research and development