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Primer on Strategy

Primer on Strategy. Q - What is strategy? A - It’s as easy as “ABC...”. Vision – Mission - Goals. Where you A re. Where do you want to B e. Strategy development. Strategy implementation. Desired future. Scenarios.

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Primer on Strategy

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  1. Primer on Strategy Q - What is strategy? A - It’s as easy as “ABC...”

  2. Vision – Mission - Goals Where you Are Where do you want to Be Strategy development Strategy implementation Desired future Scenarios Strategy: Creating “shareholder value” through effective strategy is as easy as A-B-C... Monitor & Evaluate (Strategic control) SWOT “PEST” Resource plans Financial plans Infrastructure plans How to get there (Course to follow) © Strategy Institute, after Bryson & Alston Not the only “model” – but the easiest to understand!

  3. Testing understanding • In your groups, select any organisation (Be creative!) • Using the ABC model of strategy formulation, how would you apply the three stages to this organisation

  4. What is “Management?” A quick refresher The “4 functions” model • Planning • Organising • Leading • Controlling

  5. Strategy Management Easy as “ABC” • Where Are you • Where do you want to Be • The Course to follow • The “4 functions” model • Planning • Organising • Leading • Controlling Henceforth you shall be known as “Strategic Management” The perfect marriage?

  6. What is the difference between strategic planning and strategy management?

  7. Strategic Management is… • Formulating a long-term view (vision and mission) • Focused towards (setting objectives) and implementing programmes and projects that get you there • Using objectives as measurement to establish if the result attained the desired outcome; • An iterative process; • Continuous evaluation

  8. Definition… • The planning (formulation) • implementation • and evaluation • of specific actions • that will enable an organisation to achieve its set • goals and objectives.

  9. Testing understanding Imagine you are required to conduct an in-house training session in your unit group. Discuss how you would explain to others what “Strategic Management” is. The objective is to be able to relate to others in simple terms what is involved in the process

  10. STRATEGIC MANAGEMENTFood for Thought Every organisation requires 4 basic ingredients for it to be successful : Leadership A strategic plan A management team capable of implementing the strategy, and An action plan (Peter Flack turnaround specialist Leisurenet)

  11. THE STRATEGIC PLANNING PROCESS FEEDBACK EXTERNAL AUDIT DEVELOP Vision Mission Values LONG-TERM OBJECTIVES GENERATE, EVALUATE, SELECT STRATEGIES IMPLEMENT STATEGIES – MGT ISSUES IMPLEMENT STRATEGIES – MRK, FIN, HR, OPS, ETC MEASURE, EVALUATE PERFORM INTERNAL AUDIT STRATEGY EVALUATION STRATEGY IMPLEMENTATION STRATEGY FORMULATION

  12. STRATEGIC PLANNING PHASES VISION MISSION GOALS OBJECTIVES SWOT & PESTE STRATEGIES ACTION PLANS

  13. VISION Vision without action is just a dream Action without vision just passes the time VISION WITH ACTION CAN CHANGE YOUR STATION!

  14. Dreams & Visions Dreams are nice but not always practical A vision is realistic and achievable Dreams are positive (unless they are nightmares) Vision allows for the inevitabilities of real life Dreams are not fulfilled--you wake up Vision is fulfilled through a strategic plan

  15. MISSION What Why For whom How

  16. GOALS AND OBJECTIVES Provide guidelines for taking action on the organisation’s purpose

  17. GOALS A relatively enduring intention to act A target for accomplishment! A guide for decision-making Link purpose (vision) to action!

  18. OBJECTIVES An objective is a … SPECIFIC, MEASUREABLE RESULT TO BE ACHIEVED BY A SPECIFIC POINT IN TIME Objectives stem directly from goals! One goal may have many objectives!

  19. EXAMPLE…?? GOAL To decrease crime OBJECTIVE To decrease gang related crime by 25% in the next quarter

  20. Environmental trend assessment P - Political E – Economic S – Social T – Technological E - Environment ... and any other relevant trends that may impact on your organisation (eg legislation?)

  21. Organisational assessment S – Strengths W – Weaknesses O – Opportunities T - Threats

  22. STRENGTHS …is a competitive advantage! It is something that the organisation does better than other organisations

  23. WEAKNESS ….is a competitive DISadvantage It is something the organisation does NOT do as well as other organisations!

  24. OPPORTUNITY Is a possible change in the world outside an organisation which improves its ability to compete and meet the needs of its community

  25. THREAT Is a possible change in the world outside the organisation which threatens its ability to compete or meet the needs of its community

  26. Testing understanding In groups develop prepare a SWOT and PESTE review for The Fender Bender School of Advanced Driving

  27. The SWOT/Gap Analysis The “GAP” Situation Audit Vision 3-5 years Where you are today? Where you want to go? What you have to do to get there?

  28. STRATEGIES STRATEGIES OUTLINE THE ACTIONS WHICH ARE NEEDED TO CROSS THE GAP BETWEEN WEAKNESSES/THREATS AND STRENGTHS/OPPORTUNITIES A strategy links the Goals and Objectives to ACTION detail!!!!!

  29. STRATEGIES define and lead to Performance What counts gets measured What gets rewarded counts What gets measured gets done What gets done gets rewarded

  30. ACTION PLANS What (to achieve) Minimum standards (for success) Activities (step by step) Who (names) When (dates) Resources / budget Possible problems

  31. The tasks of Strategic Planning – a summary SWOT and gap analysis -setting objectives Defining the business and developing a vision Crafting a strategic action plan Evaluating performance reviewing – adjusting and correcting Implementing and executing strategy

  32. Failing to plan is planning to fail

  33. “Those who are saying it can not be done, should get out of the way of those who are already doing it!”

  34. And now, it’s up to you Strategic planning

  35. Scenario Planning Planning for the Future in an Uncertain World Scenarios as Building Blocks of Organizational Performance

  36. Scenario Thinking A discipline for encouraging creative and entrepreneurial thinking and action “in contexts of change, complexity, and uncertainty.” Pierre Wack, originator of scenario thinking

  37. Thinking About the Future “Futurism is an art of re-perception. It means recognizing that life will change, must change, and has changed, and it suggests how and why. It shows that old perceptions have lost their validity, while new ones are possible.” Bruce Sterling, science fiction writer

  38. Scenario Thinking/Planning A powerful process for organizations to plan for the future in an uncertain world Assumes that the future is unpred-ictable, that change will happen, and that organizations benefit by thinking about alternative futures and the strategic options to navigate through and take advantage of potential scenarios

  39. Scenarios Are stories about how the future might unfold for our organizations, issues, nations, and the world. Are not predictions, rather, they are provocative and plausible stores about the diverse ways in which relevant issues outside our organizations might evolve.

  40. Scenarios Are hypotheses, not predictions, created and used in sets of multiple stories, usually three or four, that capture a range of possibilities, good and bad, expected and surprising. Are designed to stretch our thinking about the opportunities and threats the future might hold, and to weigh those opportunities and threats when making both short- and long-term strategic decisions. Global Business Network

  41. Thinking About the Future “…forces will affect the world, in ways that most decision makers do not automatically expect….what scenario planners call predetermined elements: forces that we can anticipate with certainty because they have already begun to take place. They are going to surprise us because, while the basic events are virtually predetermined, the timing, results, and consequences are not…..but we can anticipate the range of possible results….” Peter Schwartz, futurist

  42. Scenario Thinking Both a process and a posture – it is the process which scenarios are developed and then used to inform strategy. After that process itself is internalized, scenario thinking becomes a posture toward the world – a way of thinking about and managing change, exploring the future to greet it better prepared.

  43. Scenario Thinking Begins by identifying forces of change in the world that may have impact on the people served by the organization as well as the strategic direction of the organization itself. These forces are combined in different ways to create a set of diverse stories about how the future could unfold. Global Business Network

  44. Benefits of Scenario Planning Stretch and develop the thinking of key players about possible future business conditions Encourage flexibility of thinking amongst key players Confront conventional wisdom Make assumptions explicit

  45. Benefits of Scenario Planning Stretch and develop the thinking of key players about possible future business conditions Encourage flexibility of thinking amongst key players Confront conventional wisdom Make assumptions explicit

  46. Guidelines Long View – day-to-day work is usually driven by near-term concerns and urgent needs – scenario thinking requir4es looking beyond immediate demands and peering far enough into the future to see new possibilities – asking “what if……”

  47. Guidelines Outside-In Thinking – most think from the inside, the things they control, out to the world they would like to shape. Conversely, thinkiing from the outside-in begins with pondering external changes that might, over time, profoundly affect your work.

  48. Guidelines Multiple Perspectives – the introduction of multiple perspectives -- different from managing multiple stakeholders – is based on diverse voices that shed new light on strategic challenges, helps to better understand one’s own assumptions, and exposes new ideas that inform perspective and help to see the big picture of an issue or idea. Global Business Network

  49. Scenario Building Scenarios are tools to help us take a long view in an environment of uncertainty They are stories about the way(s) the world might turn out in the future…. …..that help us adapt to changing aspects of our environment; …..about different pathways to tomorrow Scenarios are memories of the future.

  50. Scenario Process Determine the key question Identify major factors in the environment Identify driving forces Rank by importance & uncertainty Develop scenarios Determine implications Identify leading indicators

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