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…