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AMD Commercial Strategy and the Prometheus Process
March, 2006
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Table of Contents
• AMD Commercial Strategy• Prometheus process• AMD Commercial Future Picture• Systems’ characteristics• Centers of Gravity• Desired effects• Impact plans• Action plans
Building the future of
AMD Commercial
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The Essence Of Strategy
Where do you want to be in the future?
What do you need to change to make that Future Picture a reality?
How are you going to apply your resources?
Strategy involves answering key questions
Where
What
How
ExitHow do you decide it’s time to exit a
business or strategy?
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AMD Commercial and the Prometheus Process• The Prometheus Process is a
systematic approach to strategy development
• The process is also designed to translate strategy into actionable steps with measurable results
• The AMD Commercial Leadership team used the Prometheus Process to develop concrete action steps enabling us to execute on the strategy
• Glossary of Prometheus terminology
Winning in FastTime: Harness the Competitive Advantage of Prometheus in Business and Life
by John A., III Warden, Leland Russell
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AMD Commercial strategy processbased on Prometheus Process from Venturist
The Prometheus process enables AMD Commercial to translatelong term strategy into action by followingthesesteps
Good
str
ate
gy p
rocess
lead
s t
o g
reat
ou
tcom
e
Step 4: Assemble campaign teams, develop action plans, execute in parallel
Execute
Step 3: Create an impact plan that includes a desired effect, timeframe and measure for each selected COG
How
Step 2: Identify External and Internal Centers of Gravity (COGs) & select target COGs for each phase
What
Step 1: Create a Future Picture for end of period (5 years); define phases of milestones to achieve Future Picture
Where
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AMD Commercial Future Picture
•Preeminent in market 1•#1 in market 2•A player in market 3• >XX% revenue & unit share • Expanded technology 1 capabilities• Significantly expanded ability 2• XXXXXXXXX• Expanded XXXXX capabilities• Fast, innovative commercial culture
2009-2010: AMD XXXXXXXX
Step
1
Step 1: Create a Future Picture for end of period (5 years); define phases of milestones to achieve Future PictureWhere
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AMD Commercial Future Plan Phase milestones“Work back from the future – not forward from the present”
Future Picture: • XXXXXX based on merit
and momentum• XXXX expands without
XXXXXXX• XXXXX expands
profitably• XXXXX launched with
partners and embraced by customers
• XXXXXXX accepted by XXXXX XXXXX
• Technology 1 appear
• Commercial organization focuses on XXXXXXXXXXX
Plan: • XXXXXXX• XXXXXXXX• XXXXXXX• Define new XXXXX &
XXXXXXX• Define new XXXXXXX
XXXXXX• Invest in XXXXXXXXX
XXXXXXX• Create acceptance for
XXXXXXXX• Take control of XXXXXXX
• Commercial organization aligned to opportunity
Future Picture: • Preeminent in the
market 1• #1 in market 2• A player in market 3• >XX% revenue & unit share• Expanded technology 1
capabilities• Significantly expanded ability 2• XXXXXXX• Expanded XXXXX capabilities
• Fast, innovative commercial culture
2009-2010Phase 3 name
2007-2008Phase 2 name
2006Phase 1 name
Step
1E
xte
rnal
Inte
rnal
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Best Use of Resources
Future Picture Defines Strategy:
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Future Picture Defines Strategy:
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Future Picture Defines Strategy:
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In order to decide what you need to change to achieve your stated Future Picture it is important to first understand some characteristics of a system
• All actions take place within a system
• There are internal systems and external systems
• Organizations are systems, as are the environments in which they operate
• The system is greater than the sum of its parts
• The performance of the whole and the parts are interdependent
• Systems vigorously resist change, strive for equilibrium, and quickly return to status quo if change efforts do not stretch a system beyond its limits
Systems’ CharacteristicsStep
2
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COGs: Centers of Gravity
• COGS are leverage points within the system
• Hubs of power and influence
• Example: In a city, potential COGs are the government, electrical grid, highway infrastructure, citizens, or schools
• Every system (internal and external) has multiple COGs
• Success requires movement of many COGs in the desired direction, the more that are moved in the shortest amount of time, the higher the likelihood of success
• Attacking multiple COGs in parallel results in faster change and prevents single point failures from becoming showstoppers
Step
2
Step 2: Identify Internal and External Centers of Gravity (COGs) & select target COGs for each phase
What
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Once a system is viewed using the 5 Rings model, it becomes relatively easy to
prioritize and categorize COGs within each ring
Leadership
Processes
Infrastructure
Population
Action Units
The Five Rings model of systems
All systems have similar components that can be classified according to the 5 Rings model
Step
2
Step 2: Identify Internal and External Centers of Gravity (COGs) & select target COGs for each phase
What
COGs closer to the center of the rings usually have greater systemic impact
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Leadership Processes Infrastructure Population Action Units
Example: Internal and External Centers of Gravity
What Step 2: Identify External and Internal Centers of Gravity (COGs) & select target COGs for each phase
Step
2Exte
rnal
Inte
rnal
Note that not all COGs are directly under the control of the Commercial group, however they are critical in making the Commercial strategy a success. People from all parts of AMD will be asked to help the Commercial team shift COGs in desired directions.
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Moving from strategy to action
Step 1: Create a Future PictureWhere
Step 2: Identify COGsWhat
Step 4: Assemble campaign teams develop action plans, execute in parallel
Execute
Step 3: Create an impact planHow
Impact plans are developed for each identified COG. Impact
plans contain the specific desired effects you want to have on the
COG, a timeframe for success, and a
measurable outcome
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Leadership Processes Infrastructure Population Action UnitsLeadership Processes Infrastructure Population Action Units
Desired Effect Name
Desired Effect
Timeframe
Strategic Measurement
Step 2: Identify External (Market) and Internal (AMD) Centers of Gravity (COGs) & select target COGs for each phase
Step
2 Sample COG Impact Plan: dlxfjgdfl.jg.xkd
Step 3: Create a desired effect, timeframe and measure for each selected COG
How
COG Impact PlanDesired Effect Lzkgmr.g,ze.rgkmzag
Measures (example)
Jzsgn,rjgz,jgr.kgzZkrgjnrkgnzrk.gZ,sjg,sgjz,s.jg.,
Timeframe zergregtrez
Future Picture Assessment
zfgzdfgzergz
Step
3
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Moving from strategy to action
Step 1: Create a Future PictureWhere
Step 2: Identify COGsWhat
Step 4: Assemble campaign teams, develop action plans, execute in parallel
Execute
Step 3: Create an impact planHow
The creation of campaign teams and
action plans is where the
rubber meets the road –
where strategy is turned into
concrete steps and specific
tactics
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Campaign Teams and Action Plans
• Campaigns:– Are the vehicle for plan execution– Orchestrate resources for parallel action– Are strategically aligning– Change systems in the direction desired
• Campaign team activities– Develop and execute action plans– Escalate issues
Sample Action Plan• K,sjgzas,jkg• Azkrhrkgjerzg• Zskdhgsk,gjz,gr• Zskjghz,msrg• Zskdgj,sJG• szklghskrjg
Strategic Measurement
Action Plan
Timeframe
Desired Effect
Desired Effect Name
COG Impact Plan
Step
4 Sample COG: Key OS CompaniesSample Impact Plan: fdsgszrjhgtsre,kghzels
Step 4: Assemble campaign teams, develop action plans, execute in parallel
Execute
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Next steps and 2006 priorities
• Broadly communicate AMD Commercial strategy– VP Forum (April)– Division Communication Meetings– Go-To-Market Organization
• Execute Phase 1 COG impact plans • Begin identifying Phase 2 COGs and create impact plans
• Continue to expand participation in Campaign Teams
confidential
The Prometheus Process© Winning in FastTime: Harness the Competitive Advantage of Prometheus in Business and Life
by John A., III Warden, Leland Russell
If you are part of the commercial business and would like a copy of
Winning in FastTime, please contact gxhgfht.
Questions? Comments?fctyjytcduu6y