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A view from the Top. John shonk Bob Odgers Don Ewalt. Strategy. Evolution Strategy vs. Tactics and the trade off Focus on value creation and creating options Strategy vs. Alignment. Strategy Formulation. Current State What are the alternatives? Where do we go?. 4+2 To Sustain.
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A view from the Top John shonkBob OdgersDon Ewalt
Strategy • Evolution • Strategy vs. Tactics and the trade off • Focus on value creation and creating options • Strategy vs. Alignment
Strategy Formulation • Current State • What are the alternatives? • Where do we go?
4+2 To Sustain • Strategy • Execution • Culture • Structure Secondary Practices • Talent • Innovation • Leadership • Mergers and partnerships
Have a Balanced Scorecard • Answers 4 basic questions • How do customers see us? • At what must we excel? • Can we continue to improve and create value? • How do we look to our companies shareholders?
What Should The Board Do? • Make knowledgeable its role, agenda, and information • Management performing with integrity • Set the tone and culture • Help formulate corporate strategy • Make sure corporate aspects are aligned and consistent • Assist in understanding expectations of shareholders and regulators
Globalization • 12 global trends: • Population trends • Urbanization • Spread of infectious disease • Resource management • Environmental degradation • Economic integration • Knowledge dissemination • Information technology • Biotechnology • Nanotechnology • Conflict • Governance
Major Implication • Laws of Abundance • Right location • Highest demand, lowest barriers • Different value for different people at different times • Sustained value • Human capital
New Laws • Size means scrutiny • Cutting cost raises compliance risk • Strategy must involve society • Reducing risks means building trust • Shareholders = Stakeholders • Global growth requires gains • Productivity needs sustainability • Differentiation depends upon reputation • Governance needs representation
Analyzing an Industry • What is Industry? • Profit Potential • Industry Evolution • Analyzing Industry • Analyzing Product/Market Scope
Analyzing your Resource Base • What are Strategic Resources? • Forces for Change
Formulating Business Unit Strategy • Foundation • Strategy Formulation • Value Disciplines
Hypercompetitive Market Due to globalization= lots of Rivalry (red oceans) - how to survive:
Hypercompetitive Market 1. Innovation: creating value, leveraging core comps. - Sustaining: year to year improvements (Ipods) - Disruptive : imitations, maybe cost less. (cheap MP3s) Speed: responding to current and future business needs. - Immediate satisfaction (fast pizza, road service) - Industry shifts (technology changes)
Global Strategy 1. Innovation: creating value, leveraging core comps. - Sustaining: year to year improvements (Ipods) - Disruptive : imitations, maybe cost less. (cheap MP3s) Speed: responding to current and future business needs. - Immediate satisfaction (fast pizza, road service) - Industry shifts (technology changes)
Shaping the portfolio (growing) Green fielding Merger/ acquisition Ventures. alliances
Portfolio Management : selection and management of all of an organisation’s projects, programmes and related business-as-usual activities taking into account resource constraints