Session 1 -2

1. Session 1 -2 Executive Class Strategic Leadership Suhartono MBA., MA., PhD (cand) Contemporary Strategic Knowledge & Leadership Nature Source: Rainey (2010); Laljani (2009); Kaplan & Norton (2004); Yukl (2010).

2. Fenomena dengan Perubahan Lingkungan yg Cepat dan Tak Terduga • Perencanaan sering berubah • Visi Misi jadi tidak jelas (sering diganti) • Pemimpin dianggap plin-plan • Pemimpin dianggap tidak punya strategi • Koordinasi sering tidak jelas • Lain-lain

3. Makna Perencanaan Urgent Low High X Low Iseng Kebelet Important Perencanaan Krisis High

4. S T R A T E G I “Cara-cara yang harus dilakukan untuklebihunggul” ‘The Way We Create Competitiveness’

5. Missioning / Soothsaying VISION Now Strategy is Creating Values and Foresight Reflection Forecasting Past Performance is a baseline for deciding What we do for the future now Now Past Future

6. Missioning / Soothsaying VISION Now Strategic isBelieving Values and Foresight BELIEVING IS SEEING Reflection Forecasting SEEING IS BELIEVING Now Past Future

7. Menciptakan masa datang. Top-down -- Bottom-up Membimbing perilaku manajemen Berfokus pada customereksternal lebih dulu Efektivitas Penekanan pada proses Proaktif Memperpanjang masa kini (biasanya lebih pendek dp perencanaan strategis) Bottom-up / staff-generated Tidak membimbing perilaku manajemen Berfokus pada customer internal dulu Efisiensi Penekanan pada rencana Reaktif Perencanaan lain : Perencanaan strategis :

8. Kategori Perusahaan Empat Kategori Perusahaan Dalam Melihat Masa Depan • Perusahaan yang sukses dimasa lalu dan mengagung-agungkan masa lalu. • Perusahaan yang hidup di masa kini dan cukup sukses. • Perusahaan yang mempersiapkan diri untuk masa depan dan mempromosikan diri mereka menghadapi waktu berbeda. • Perusahaan yang menciptakan masa depan dengan merubah segala kemungkinan, peluang hasil yang bisa diproses, bahkan kondisi lingkungan (alam). (Harper C. Stephen) Forward-Focused Organization.

9. Theory of Strategy and Change Dynamics • Co-Existing • Co-Operating • Co-Learning • Co-Producing Opened System Competitor is the Enemy Competitor is my friend Strategy is Concensus (Dissatisfaction – Search – Envision – Implementation) Strategy is Competition Strategy is Exchange Strategy is Cycles of Age Closed System Passive Active We shape the environment / industry

10. Enterprise-wide Strategic Management (ESM- Rainey, 2010) • Business is not about winning the battles in the short term at the expenseof destroying relationships in the long term or failing to sustain success. • ESMfocuses on finding unique opportunities and creating innovative solutionsthat are more attractive and enduring from business and market perspectivesas well as economic, social, technological, and environmental ones • It is about leading, creating, developing, integrating, building, deploying,and succeeding. It also involves the search, discovery, and cure of weaknesses,defects, problems, burdens, and negative impacts across the extendedenterprise.

13. How we see the Man –Made wolrd How we see the Nature-world

16. Why ESM

17. Why ESM

18. Why ESM

19. Why ESM

20. Paradigm Shift of Value-Added (1)Investment vs Development

21. Paradigm Shift of Value-Added (2) Transformations / Transitions

22. Paradigm Shift of Value Added (3) Operational

23. Secondary Value-Added

24. Value Equation ESM

25. ESM dan Strategic Planning By ESM, more Emergent and Descriptive variables get in the business designs

27. Chiquita Lesson Learnt • Mission: solution for healthiness • Resources: Natural Material (Farming) • Production Facilities: Environmental Friendliness • Working Climate: transformational, ethical, Values-Based Leadership

28. Kulit Benang Lem • Gengsi • Wibawa • Sehat Kelengkapan berdandan MesindanSDM Sepatu Organizational Element Model (OEM) Value-Added system Analysis Input Processes Product Output Outcome Dipakai untuk keperluan apa oleh konsumen / masyarakat? Bermanfaat untuk apa untuk konsumen / masyarakat

29. Benefit inti Produk generik Produkekspektasi Produk Augmentasi ProdukPotensial Value Added Product Analysis

37. End of First Session

38. Strategic Management • Above Average Return • Strategic Competitive Advantage • Sustainable Competitiveness

39. The External Environment Resources An Attractive Industry Capability Strategy Formulation Competitive Advantage Assets and Skills An Attractive Industry Strategy Implementation Strategy Implementation Superior Returns Superior Returns Alternative Models of Superior Returns Strategic Fit Strategic Stretch Industrial Organization Model Resource-BasedModel

40. Industrial Organization Model (Market Focus) The External Environment An Attractive Industry Strategy Formulation Assets and Skills Strategy Implementation Superior Returns Alternative Models of Superior Returns 1

41. Competing is Boxing

42. Bigfoot

43. Successful Differentiation Cost Leadership Stuck in the Middle Generic Strategy Average Price in Industry Average Cost in Industry

44. Blue Ocean Strategy Fit dan Stretch

45. Blue Ocean vs. Red Ocean Strategy Blue Ocean Strategy Red Ocean Strategy • Create uncontested market space • Make the competition irrelevant • Create and capture new demand • Compete in existing market space • Beat the competition • Exploit existing demand

46. Blue Ocean vs. Red Ocean Strategy Blue Ocean Strategy Red Ocean Strategy • Break the value- cost trade off • Align the whole system of a firm’s activities with its strategic choice of differentiation andlow cost • Make the value-cost trade off • Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost

47. Industry Assumptions: Industry’s conditions are given Strategic Focus: A company should build competitive advantages. The aim is to beat the competition. Customers: A company should retain and expand its customer base through further segmentation and customization. It should focus on the differences in what customers value. Assets and Capabilities: A company should leverage its existing assets and capabilities. An Industry’s traditional boundaries determine the products and services a company offers. The goal is to maximize the value of those offerings. Industry’s conditions can be shape. Competition is not the benchmark. A company should pursue a quantum leap in value to dominate the market. A value innovator targets the mass of buyers and willingly lets some existing customer go. It focuses on the key commonalities in what customers value. A company must not be constrained by what it already has. It must ask, what would we do if we were starting anew? A value innovator thinks in terms of the total solution customer seek, even if that takes the company beyond its industry’s traditional offerings. Two Strategic Logic Conventional Logic Value Innovation Logic

48. Blue Ocean Strategy Tools • A diagnostic tool for building a compelling blue ocean strategy • It captures the current state of play in the known market space • Allow you to understand : • where the competition is currently investing • the factors the industry currently competes on in product, service and delivery • what customers receive from existing competitive offerings on the market Strategy Canvas

49. Four Action Framework Raise Eliminate Reduce Create

50. Four Action Framework The Case of Cirque du Soleil (A Circus Company) Reduce Eliminate • Star performers • Animal shows • Aisle concession sales • Multiple show arenas • Fun and humor • Thrill and danger Raise Create • Theme • Refined environment • Multiple productions • Artistic music and dance • Unique venue