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Strategy comprises…
• A diagnosis – that defines the nature of the challenge• i.e., Framing
• A guiding policy– for dealing with the challenge• Vision, mission and strategic priorities
• A set of coherent actions– Designed to carry out the guiding policy• Tasks and actions From “Good Strategy, Bad Strategy”, R.P.Rumelt,2011
Roku-dan meta-framework
Strategic Thinking
(Differentiation, value proposition)
Operation-alization (Translate to
execute,Align actions)
Strategic Analysis(validation, selection)
Strategic Management & Execution
• Domain knowledge• Intuition• Framing• Context switching• Sense making
• RBV• TCE• Porter• M&A theory• Game Theory• Diversification• Generic strategies• Network externalities
• Communicate• Budgets• Pre-mortems• Process design
• Deliberate• Emergent• Measurement• Adapting• Learning
The Four Components
• Strategic Thinking• Strategic Analysis• Operationalization
(Where the rubber hits the road)
• Execution & Management
Strategic Thinking
• Framing the problem—What really matters, what doesn’t?
• Context switching—What other problems have similar features?
• What do different frames / contexts imply —Projecting out
• Translating (fitting) the new frame or context to the situation at hand
Defining the problem / opportunity
Framing
On the Labor Party's defeat in the 2015 general election:
“The party took a huge bet that this was an economic change election; in fact it was an economic security election.”
Ed Miliband on Fareed Zakaria GPS, May 24 2015
Different context switches
• Industry
• Country
• Time
From one…
… to another
British Airways / Hertz
IBM / American Express
Starbucks: US / Italian cafes
IBM RCS / the cloud
Terminal PCs Thin clients
Asking the right questions
• Questions should ultimately be:—Tractable
• “How can we grow revenues”? is too big – break down into smaller questions
• It’s also imprecise
—Directly actionable• “Why is the competition gaining ground”? isn’t• But these are:
– “What do customers want”? (market research)– “What do we offer”?– “What are they offering” (competitive intelligence)
Asking the right questions
• Look at Small as well as Large issues – Small items compound
• Use many different perspectives – Team Diversity• Leverage team heterogeneity to challenge
assumptions and avoid group-think • Focus on Day-to-Day – Where is the action?• Do not over simplify interpretations – nothing is
that simple• You do not have all the answers – Learn• Develop domain specific knowledge – the devil is
in the detail
Framing
• Mental models (or ‘schemas’)
—We all use mental models to represent a complex world
—Models must include how things work (cause and effect)
—Must be challenged and updated with new information or changes
• How you frame a situation shapes the solution
—Activates different schemas
—Logic of appropriateness
—E.g. Opportunity (offense) or Threat (defense)
• Adopt multiple frames – multiple perspectives
• Leaders must be careful not to impose personal frames
Intuition
• Look for Cues or Clues
—Focus on Higher Impact
• Pattern recognition & matching
• Pattern matching produces scripts to follow
• Strategic Imagination
—project into the future
Sensemaking
• Most things are not Linear —Sensemaking is an iterative process
• Trial and small errors—Sensemaking = understanding cause &
effect
• Sensemaking relies on intuition
Strategic Thinking
• Gain insight…
Strategic Thinking
Asking the Right Questions
Framing the Information
Sense Making
Intuitionand
StrategicImagination
External InsightInternal Insight
1.
Strategic Thinking
(Differentiation, value proposition)
Strategic Analysis(validation, selection)
External AnalysisInternal Analysis
CustomerAnalysis
CompetitorAnalysis
MarketAnalysis
Capability Analysis
Financial Metrics
Customer Metrics
Financial Metrics
Financial MetricsOperating
Metrics
Miller / Okumoto, Inc.
Financial Metrics
Development Metrics
Strategic Analysis
EnvironmentalAnalysis
Operationalization
• Creating AlignmentFinancial
MetricsStrategicThemes / Priorities
Financial Metrics
Strategic Programs
Financial Metrics
Strategic Projects
Financial MetricsStrategy
Mapping
Internal AlignmentMiller / Okumoto, Inc.
Operation-alization (Translate to
execute,Align actions)
McKinsey 7S
Management & Execution
• Execute
• Measure
• Compare / assess
• Correct…
– Actions (SLL)
– Goals (DLL)
• Repeat
Strategic Management & Execution
Continuous Learning…
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