Strategy 491 Strategy Implementation Session 1: Introduction to Implementation
Agenda • Intro • Mark Hurd @ Hewlett Packard • Strategy & Implementation • Course Introduction • Class Introduction Course Website: http://faculty.fuqua.duke.edu/~charlesw/s491/
You’re trained in strategic and financial analysis. 5 Forces Balance Sheet Capabilities $DCF$
After the MBA you’ll need to do more than analyze. • Image not licensed for web distribution. • Link here.
You want to deliver strategic results for companies. Photo from Sea Turtle’s photostream, creative commons license: http://www.flickr.com/photos/sea-turtle/3048817422/
What were Hurd’s biggest challenges at HP? & what do you think of Fiorina’s tenure?
Break 15 minutes
Where do capabilities come from? • People • Processes • Learning => Implementation & Execution
New strategies are doomed without new organization. Chaos New Strategy + Old Organization Old Strategy
And missteps can be brutal. Photo from Denis Gustavo’s photostream, Creative commons license: http://www.flickr.com/photos/denisgustavo/184941640/
In your next job you’ll need to deliver results… Facing performance gaps… … or opportunity gaps.
This class covers the basic elements of strategy implementation. Strategic Renewal International Applications Session 10 Session 11 Formal Organization Integration Knowledge Informal Organization Session 8 Session 9 Building Blocks Session 7 Planning Partners Projects People Processes Session 6 Session 2 Session 3 Session 5 Session 4
But it’s still analysis! • Issue awareness • Common missteps • Deep dive
The work of implementation. • Lets talk about the syllabus.
Final Project examples • Changing Strategy with internal groups • ATT, Alcoa Technology Management Review Boards • Overcoming Inertia • GE, Westinghouse, Siemens, Alcatel, Tyco • Knowledge Transfer • Rank Xerox, Intel’s Semiconductor Fabrication (“Copy Exactly”) • Internal Change • Nokia, Ericsson, Lucent, 3M, Intel, xBox (Microsoft) • Structuring for Change & Innovation • P&G, ABB, Shell Oil • Structuring for New Markets • many e.g.’s of retailers and publishers struggling w/online sales – USA Today, Borders (online bookselling), Walmart, etc.; Xerox (& spinoffs Palm, Adobe, etc.), • Alliances • Ford (Bridgestone), Astra (Merck), Corning (Samsung) • Managing Radical Change • IBM, HP, Monsanto, Vivendi • A few examples from the fall class: • Walgreens • J&J • Google • Singapore Airlines • Apple • Microsoft
Wrap Up • Strategy doesn’t add much value to companies without implementation. • New strategies without new organization are doomed. • We’ll explore the basic issues of strategy implementation/execution. • Common missteps • Research/analysis vs. experience & art • I invite you to develop your own approach/philosophy.
I research the relationship between strategy & structure, largely in the telecom industry. Alfred Chandler, 1962 Strategy Structure My Current Research
Next up: Strategic Planning, Mon 11/3 • Questions • Compare UPS’s 1997 scenario planning exercise and its Horizon 2017 planning exercise. • How would you evaluate them? • What are the key elements of UPS’s approach to strategic planning? • What role was played by the scenarios? • The Charter? • The Centennial Plan? • The Strategy Road Map? • Why was John McDevitt put in charge of “strategic integration”? Should he remain in that role? • Teams • Please email me your teams by next class. • Volunteers for UPS Case Update Presentation? New Millenium Financial? • Talk to me now, or email me tomorrow (Friday). Course Website: http://faculty.fuqua.duke.edu/~charlesw/s491/
Notecard • Name • Reason for taking implementation • Summer job • Goal after MBA • Something memorable about you