101206 strategic planning

MARTIJNMOERBEEK

STRATEGIC PLANNINGLOOKING OVER THE HORIZON

Strategic Planning / © Martijn Moerbeek (2010)2 /

DISCONTINUOUS CHANGEFAILING TO ADAPT TO CHANGE...

HIGH CLOCK SPEED Faster diffusion of innovation

(Leet et al, 2003)

Shorter product-life cycles(Kessler & Charkabarti, 1996)

Higher innovation speed(Chen et al, 2010)

High rate of change(Sood & tellis, 2005)

INERTIA Barriers against cannabilisation

(Chandy & Tellis, 1998)

Complex external structures(Gunasakaran, 2008)

Complex internal structures(Godet et al, 2004)

IGNORANCE Filtering by middle management

(Lucas & Goh, 2009)

Short-term orientation(Ansoff, 1980)

Information overload(Lesca & Caron, 1995)

Internal focus(Day & Schoemaker, 2004)


STRATEGIC PLANNINGFAILING TO PLAN AHEAD...

rate of flux in the strategy

PHASE 1: ENQUIRE

Lack of information; Too much navel gazing; Weakness focused; Top-down approach.

PHASE 2: IMAGINE

Lack of clear purpose; Lack of aspirations; Lack of values; Not possibility focused.

PHASE 3: INNOVATE

Lack of goals; Stuck in the past; Lack of ambition; No strategy into action;

PHASE 4: INSPIRE

Lack of leadership; Lack of engagement; Not energy creating; No results driven approach.


LEVERAGING THE POSITIVETHE “SOAR” FRAMEWORK...

InternalAnalysis:Strengths

ExternalAnalysis:

Opportunities

Co-createValues, Visionand Mission

Innovations& DesiredOutcomes

StrategicInitiatives /

Strategy

Tactical /Functional Plansand Integrated

Programs

Results,Outcomes &Benchmarks

Implementation& ContinuousImprovement

(based on Stavros, 2009)


INQUIRE INTO STRENGTHSSTRATEGIC FORESIGHT...

STRATEGIC FORESIGHT

STRATEGIC MANAGEMENT

CORPORATEDEVELOPMENT

STRATEGICCONTROLLING

INNOVATIONMANAGEMENT

Create and maintain a high quality, coherent and

functional forward view

GUIDE POLICY ANDSHAPE STRATEGY

EXPLORE AND ENTERNEW MARKETS

DETECTADVERSE CONDITIONS

EXPLORE NEWPRODUCTS & SERVICES

Leverage the internal corporate strengths

(based on Rohrbeck, 2010)


INQUIRE INTO STRENGTHSINTERNAL STRENGTHS...

6 / (based on Johnson & Scholes, 1984)


INQUIRE INTO STRENGTHSENVIRONMENTAL SCANNING...

CURRENT BUSINESS

SPACE

POLITICALFORESIGHT

TECHNOLOGICALINTELLIGENCE

CONSUMERFORESIGHT

COMPETITORINTELLIGENCE

FACTORS INFLUENCINGTHE CORE BUSINESS

FACTORS FROMNEIGHBOURING INDUSTRIES

AREAS WITH AS OF YET NOCONNECTION TO THE BUSINESS

HORIZON SCANNINGhorizon 3 horizon 1horizon 2


INQUIRE INTO STRENGTHSEXTERNAL OPPORTUNITIES...

technology 1

technology 2

technology 3

product 1

product 2

product 3

service 4

service 3

service 2

service 1

competitor 2

competitor 3

competitor 4

competitor 1

high medium low

CORPORATE RELEVANCE


IMAGINE THE OPPORTUNITIESCO-CREATE THE VALUES, VISION AND MISSION...

input from across the organisation

VISION

Defines the desired or intended future state of an organisation in terms of its strategic direction.

MISSION

Defines the fundamental purpose of an organization or an enterprise and how it aims to achieve its vision.

VALUES

Beliefs that are shared among the stakeholders of the organisation, driving its culture, priorities and decision making.

STRATEGIC INTENT


IMAGINE THE OPPORTUNITIESBUSINESS MODEL...

CHANNELS How do customers wish to

be reached?

How do we reach them currently?

How are our channels integrated?

KEY PARTNERS Who are our key partners?

Who are our key suppliers?

Which key resources do we acquire from partners?

Which key activities do partners perform?

VALUE PROPOSITIONS What value do we deliver?

Which client issues do we resolve?

What bundles of products and services are we offering?

Which customer needs are we satisfying?

CUSTOMER RELATIONS Which relationships have we

established?

How costly are they?

What do customers expect?

CUSTOMER SEGMENTS For whom are we creating value?

Who are our most important customers?

KEY ACTITIVIES What key resources do our value

propositions require?

Our distribution channels?

Our customer relationships?

Our revenue streams?

KEY ACTIVITIES What key resources do our

value propositions require?

Our distribution channels?

Our customer relationships?

Our revenue streams?

COST STRUCTURE Which are the most important costs

inherent in our business model?

Which key resources are most expensive?

Which key activities are most expensive?

REVENUE STREAMS For what value are our customers really willing to pay?

For what do they currently pay?

How are they currently paying?

How would they prefer to pay?

How much does each revenue stream contribute to overall revenues?

(Osterwalder & Pigneur, 2009)


IMAGINE THE OPPORTUNITIESSCENARIO PLANNING...

X

X

X

BEST CASE

WORST CASE

X

X

decision point

disturbance

LEGEND

HORIZON 3Scenario A continues its

strong growth, whilst scenario B recovers and

returns to positive growth but with a larger

degree of uncertainty.HORIZON 1

Positive growth is projected with some degree of

certainty.

HORIZON 2A disturbance occurs which

creates an alternative scenario and potentially

a decision needs to be made to continue should

scenario B occur.


INNOVATE TO MEET ASPIRATIONSTHE STRATEGY MAP...

Price Quality Availability Selection Functionality Service Partnership Brand

Operations ManagementProduce and deliver

products and services

Customer ManagementEnhance customer value

InnovationCreate new products

and services

Regulatory & SocialImprove communities and

the environment

Human Capital

Skills Training Knowledge

Information Capital

Systems Database Networks

Organisation Capital

Culture Leadership Alignment Teamwork

Improve Cost Structure Increase Asset Utilisation Enhance Customer ValueExpand Revenue

Opportunities

PRODUCTIVITY STRATEGY REVENUE GROWTH STRATEGY

SUSTAINED SHAREHOLDER VALUE

CUSTOMER VALUE PROPOSITION

Product / Service Attributes Relationship Image

Strategic Job Families Strategic IT Portfolio Organisation Change Agenda

FINANCIAL PERSPECTIVE

CUSTOMERPERSPECTIVE

PROCESSPERSPECTIVE

LEARNING & GROWTHPERSPECTIVE

(Kaplan & Norton, 2004)


INNOVATE TO MEET ASPIRATIONSHUMAN CAPITAL READINESS...


CompetencyProfile

Six Sigma program

Problem management system

Customer interaction centre

Problem management centre

Team building

Number required 30 20

Strategic job readiness

StrategicJob Families

Call centre representative

Quality Manager

StrategicProcesses

Provide rapid response

Minimise problems

OPERATIONS MANAGEMENT

100% 90%

Solutions selling

Relationship management

Product-line knowledge

Professional certification

Phone selling

Product-line knowledge

Order management system

100 20

TelemarketerCertified financial planner

Shift to appropriate channel

Cross-sell the product line

CUSTOMER MANAGEMENT

40% 50%

Market research

Market communi-cation

Cross business processes

Relationship management

Negotiation

E-commerce know-how

10 30

Joint venture manager

Consumer marketer

Develop new products

Understand customer segments


20% 70%

Community roots

Public relations

Legal frameworks

10

Community recruiter

Diversify workforce

80%

REGULATORY& SOCIAL

65%

OVERALLHUMANCAPITAL

READINESS


INNOVATE TO MEET ASPIRATIONSINFORMATION CAPITAL READINESS...


Strategic job readiness

StrategicJob Families

Call centre representative

Quality Manager

StrategicProcesses

Provide rapid response

Minimise problems


70% 60%

TelemarketerCertified financial planner

Shift to appropriate channel

Cross-sell the product line

CUSTOMER MANAGEMENT

40% 30%

Joint venture manager

Consumer marketer

Develop new products

Understand customer segments


40% 90% 50%

OVERALLINFORMATION

CAPITALREADINESS

Technology Infrastructure

Web enabled Telephone integrated

Web enabled CRM software package

CRM software package

Transaction application

Incident tracking

Workforce scheduling

Integrated customer file

CRM software package

Customer Feedback

Analytical applications

Service quality analysis

Community management

Customer profitability


Customer profitability

Transformapplications

Customer self-help

Portfolio self-management

Project Management



INNOVATE TO MEET ASPIRATIONSORGANISATION CAPITAL READINESS...


Culture Foster awareness and internalisation of the mission, vision and core values needed to execute the strategy

STRATEGIC OBJECTIVE

Customer-focussed (customer survey, percentage who understand the mission)

STRATEGIC MEASURE TARGET ACTUAL

80% 68%

Other core values (employee change readiness survey)

80% 52%

Leadership Develop strategic leaders at all level of the organisation

Leadership gap (percentage of key competency attributes above threshold) 90% 92%

AlignmentAlign goals and incentives with the strategy at all levels of the organisation

Strategic awareness (% of staff who can identify strategic priorities)

80% 75%

Strategic alignment (% of staff whose objectives are linked to the score card)

100% 60%

TeamworkEnsure that knowledge and staff assets that have strategic potential are shared widely

Sharing best practices (number of knowledge management hits / employee)

5.0 6.1

Treating the customer well (customer satisfaction surveys)

95% 90% 75%

ORGANISATIONCAPITAL

READINESS


INSPIRE TO ACHIEVE RESULTSCHANGE MANAGEMENT...

CHANGE PROGRAMME ACTIVITIESCarry out those activities to plan, analyse, design and implement the change.

ORGANISATIONAL EMPATHYUnderstand and adapt the change programme to the cultural environment.

INDIVIDUAL EMPATHYUnderstand and help individuals to

deal with the emotional, rationaland political aspects of change.


INSPIRE TO ACHIEVE RESULTSORGANISATIONAL EMPATHY...

1

2

3

4 STAFFEFFECTIVENESS

Staff required for implementation and ongoing service delivery

have the necessary skills, knowledge and capacity.

ORGANISATIONALALIGNMENT

Policies, programs and other operating model components

are aligned to support and enable the change

CHANGE ACCEPTANCE& ADOPTIONImpacted groups and other stakeholders understand and operate according to the new model.

GOVERNANCEREADINESSThe governance model is in place with a shared understanding of how services are managed.

LEADERSHIP VISION& COMMITMENT

Leaders are clear about the future state and actively drive the

changes required to get there


INSPIRE TO ACHIEVE RESULTSINDIVIDUAL EMPATHY...

WHAT HAS BEEN DONE?

WHAT COULDWE DO?

WHAT WECAN DO!

WHAT WILLWE DO!

EMO

TIO

NA

L ST

ATE

po

siti

ven

ega

tive

It’s difficult It’s not the best news

Now I understand, but Not sure how to solve it

There is a solution We have some options

We have a plan to success We have the answer

Made the right decision We have some news

MOBILISE OBSERVE SHARPEN BUILD DELIVER

Contact

Martijn Moerbeek10 Hartington RoadBuxtonDerbyshireSK17 6JWUnited Kingdom

t: +44 (0)1298 747 22e: [email protected]

Business

101206 strategic planning