Upload
derick-copeland
View
230
Download
4
Tags:
Embed Size (px)
Citation preview
Market-ing & Sales
Service
TECHNOLOGY DEVELOPMENT
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
PROCUREMENT
Inbound Logistics
Oper-ations
Out-bound Logistics
Porter’s Generic Value Chain
Adapted from Michael Porter, Competitive Advantage, Free Press, New York, 1985, p. 46
22
MARG
INM
ARGIN
RawMaterials
Transport Processing
GENERAL VALUE CHAIN
Forming
Assembly
Distribution
SalesService
What’s your value chain?What are the margins in each link?Where are your competitive strengths?Where is your strategic intent?
33
Creating Core Capabilities• The building blocks of corporate strategy are not products
and markets but business processes.• Competitive success depends upon transforming a
company’s key processes into strategic capabilities that consistently provide superior value to customers
• Companies create these capabilities by making strategic investments in a support infrastructure that links together and transcends traditional functions.
• Capability-based strategies, because they cross functions, must be championed by senior leadership.
Stalk, Evans, and Shulmand (1992)
44
Success• Performance• Satisfaction• Growth
Situation and Stakeholders
• Economic and Socio-Political Environment
• Customers and Suppliers• Industry Structure• Competitive Dynamics• Employee Groups and
Communities• Shareholders and Other
Stakeholders
Super-ordinate Goals
Structure
A Leader’s Guide to Understanding Organizations: An Expanded “7-S” Perspective
Systems
Shared ValuesAdapted from McKinsey & Co. and other sources
© James G. Clawson
SELF (Leader)
Skills
Strategy
Staff
Style
55
Economic DevelopmentWhere are the margins?
(Pine and Gilmore, The Experience Economy)
5. Transformations (pay for how time with you transforms me)
4. Experiences (pay for time with you)
3. Services supplant goods (what I do for you, and margins are … declining, becoming commoditized)
2. Goods out of commodities (margins?)
1. Commodities out of the earth (margins?)
66
MARGINS
© James G. Clawson
STRATEGY is the art of creating value. It provides the intellectual frameworks, conceptual models, and governing ideas that allow a company’s managers to identify opportunities for bringing value to customers and for delivering that value at a profit. In this respect, strategy is the way a company defines its business and links together the only resources that really matter in today’s economy: knowledge and relationships or an organization’s competencies and customers.Normann, R. and Ramirez, R., “From Value Chain to Value Constellation: Designing Interactive Strategy,” Harvard Business Review, July-August 1993, p.65.
88© James G. Clawson
STRATEGIC FIT MODEL
Strategic MindsetsSTRATEGIC INTENT
MODEL
Source, Hamel and Prahalad, Strategic Intent, HBR
Strategic thinking is driven by the match between current capabilities and existing opportunities
Searching for sustainable advantages
Finding protected niches
Strategic thinking is driven by bridging gap between today’s reality and tomorrow’s vision
Finding ways to leverage resources
Outpacing competitors in building new advantages
Making new industry rules
99© James G. Clawson
Realized Strategy
1010
IntendedStrategy
ActualStrategy
EmergentStrategy
RealizedStrategy
OpportunisticStrategy
© James G. Clawson
Realized Strategy
1111
Realized strategy is the result of the collision between dreams and economic realities….
© James G. Clawson
STRATEGIC CYCLES
1212
CURRENTREALITY
VISIONINTENT
DESIGN, COGNITIVE
ACTION, IMPLEMENTATION
CoreCompetencies
© James G. Clawson
Christensen’s Innovator’s Dilemma
1313
Utilization of Features
Overshoot
Not good enough, cheap disruptive
technology attracts non users
Learning high margin
culture
© James G. Clawson
Motivator’s Dilemma
1414
Utilization of Energy
Goal Overshoot
Not for profit disruptive substitutes
attract employees’ energy
Learning goal oriented
culture
EnergyDecline
© James G. Clawson
The Balanced Scorecard Framework
1515
FINANCIAL PERSPECTIVE
CUSTOMER PERSPECTIVE
INTERNAL PROCESS PERSPECTIVE
Productivity Revenue Growth
Long TermShareholder
Value
Price Quality Time Function Partnership Brand
ImageRelationshipProduct/Service Attributes
ManageOperations
ManageCustomers
Manage Regulatory &
Social Processes
Manage Innovation
LEARNING AND GROWTH PERSPECTIVEHuman Capital
InformationCapital
Organization Capital+ +
Strategy Maps, Kaplan & Norton, HBSP, 2004