Career Executive Strategic Officers

1. Career ExecutiveStrategic Officers Presentation to the National Convention of Career Executive Service Officers November 11, 2011 • Heritage Hotel, Manila

3. The Strategy Pyramid Goals Strategy: ‘The pursuit of long-term goals by applying valuable internal resources and capabilities to the most advantageous external opportunities’ Internal External Corporate Strategy

4. A Planning View of Strategy Objectives Options Choice Allocation Implementation Alfred Chandler (1962): “… the definition of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”

5. An Emergent View of Strategy-Formation Objectives Options Choice Allocation Implementation Henry Mintzberg (1984): ‘Strategy in general, and realized strategy in particular, will be defined as a pattern in a stream of decisions’

6. The Strategy Cycle

7. The Virtuous Circle of Complementarities Strategies Structures Systems Organisational Change Is Multi-Dimensional and Synergistic

8. Spelling Out Your Strategy • Objective (Ends) • Scope (Domain) • Advantage (Means) . . . in 35 words max News Corporation ‘To build a leading and profitable presence in both old and new media, drawing on competitive advantages in terms of the scale, diversity and international range of our businesses’ Edward Jones ‘To grow to 17,000 financial advisers by 2012 by offering trusted and convenient face-to-face financial advice to conservative individual investors through a national network of one-financial adviser offices’ Collis and Rukstad (2008), ‘Can You Say What your Strategy Is?’, Harvard Business Review

9. The Strategy Pyramid: Techniques Goals Three Horizons Strategy Statements Stakeholders Vision/Mission Strategizing Map External 5 Forces Profit pools Value net Scenarios Internal Core competence Serious SWOT Value Innovation Activity Systems Corporate Strategy

10. SWOT Analysis

11. From SWOT To Strategies

12. Start-Ups, Stars, Cows and Dogs

13. Shareholders and Stakeholders Return on Capital Community Customers Investors Managers Suppliers Employees Sales/ Capital Profit/ Sales Stakeholder view: The goal is to satisfy all those with legitimate stakes in the business Shareholder view: The goal of the business is to maximise return on investors’ capital

14. Stakeholder Mapping Interest Low High High Keep satisfied High attention Power Keep informed Low Minimal attention

15. Styles for Radical Change Programmatic/Technical Leadership Transformational/Adaptive Leadership Navigation Leadership Leadership Navigation • full-time programme management • critical path networks • operational andfinancial • micro-measures • planning andmonitoring • detailed hands on control • hierarchical commandstructure • change as part of normal responsibilities • co-ordination through communication • balanced scorecards • macro-measures • scenarios, intent and direction • values and purpose • encouragement and coaching • “need to know” involvement • following instructionsand procedures • top-down messages • extensive involvement • breakthrough cultures • self-initiated change and learning • ‘infrastructure’ redesign • facilitation and knowledge management Ownership Ownership Enablement Enablement Context Context • predictability • urgency for radical improvement • short-term targets • uncertainty and adaptive problems • fast-changing industry • long-term value and purpose

16. ‘Technical Challenge’ Set goal and task Tell why Explain what and how Give instruction Motivate Measure and monitor ‘Adaptive challenge’ Set the context ‘Get on the balcony’ Describe a view of the future ‘Give the work to the people’ Manage conflict Encourage, coach, challenge The challenge of engaging in change and the role of leadership

17. Three Horizons: Thinking Strategically Profit Horizon 3 > create viable options Horizon 2 > build emerging businesses Horizon 1 > extend and defend core business Time (years) Note: ‘profit’ on the vertical axis can be replaced by non-profit objectives; ‘ business’ can refer to any set of activities; ‘time’ can refer to a varying number of years. Source: M. Baghai, S. Coley and D. White, The Alchemy of Growth, 2000, Texere Publishers: Figure 1.1

18. 2000 2002 2004 2006 2008 2010 2012 Some key outcomes • health & well-being • equity • joined up care • key illnesses • throughput • capacity • health priorities • waiting times • financial stability • quality, safety • patient experience • 18 weeks • credibility Self-sustaining Health Transforming care system Reconfiguring Service Delivery Financial Stabilisation Social Movements Co-creation Growth, Expansion & Delivering the ‘Basics’ Local Capability & Self-improvement Breakthrough & Innovation SHA/PCT/Trusts Choice & Providers Commissioning Connecting for Health ‘REFORM’ Journey Targets & Performance Management Adaptive Leadership Technical Leadership Centre’s ‘LEADERSHIP’ Journey Target setter + Performance manager + Delivery leader Regulator + National Standards + System leader The National Health Service Journey ‘SERVICE’ Journey

19. A journey for the country? Adaptive leadership Technical leadership Self-sustaining Unleashing and transforming Competitive advantage Export led growth Global partners Innovation Public service transformation Community & citizen-led change Government as enabler Visioning & connecting Engaging everyone Creating a vision Regional cooperation Reputation building Inward investment Importing skills & knowledge Building & reforming Good governance Economic reform Infrastructure Regulation & Trust Financial systems Fight disease and poverty etc Forming & awakening Independence & identity Control over conflict Stability Security Strong leadership 1960 1970 1980 1990 2000 2010 2011

20. Complexity and Uncertainty

21. Purposes Public scenarios Engagement Qualitative scenarios Decision scenarios Sense making, and/or norming Strategy formation Scenario tracking Continuous sense-makingof strategic environment

22. Scenario Planning

23. Chaos and Complexity Chaos: small causes can have large effects – unpredictability Complexity: complex causes can have simple effects – emergence of order

24. Conventional Strategy View Actions and resources are linear/curvilinear • a world of smooth, • single-peaked landscapes Performance in vertical axis Combinations of actions/ resources in the horizontal axes

25. Chaos Strategy View Actions and resources form complementary, interdependent systems, with non-linear effects - a world of rugged landscapes Performance in vertical axis Combinations of actions/ resources in the horizontal axes

26. Scenario Drivers ? Importance Low High Low Uncertainty High

27. WEF on Global Financial Systems High Demo- graphics Global growth Energy prices Info. security Extrem-ism Global trade • Importance Global savings Corruption Finance literacy Low High Low • Uncertainty NB: original has 30 factors

28. Change StrategiesYour teams are 5-6 strong, in a dense fog, with phones and altimeters, but no GPS, maps etc. Starting from a westerly position, design a strategy to find the highest peak first in:a smooth landscape world a rugged landscape world Think about: decision-rules, team organisation, objective setting, competitor reactions, decision rights, planning, expectations management, incentives…

31. Metaphors of Chaos and Complexity Chaos: small causes can have large effects – unpredictability Complexity: complex causes can have simple effects – emergence of order

32. Today’s Agenda • Creating a framework for strategic change • The what? • The how? • Understanding and navigating the journey • The challenge of complexity • Some personal reflections and conclusions

33. Technical Incremental productivity, efficiency, process streamlining, transactions Known knowledge Standardisation and consistency Teach solution and motivate Adaptive Radical service or business innovation, new propositions, transforming culture Unknown and many solutions Innovation, diversity and deviancy Set purpose, challenge and coach How high is the bar…or is it a different sport? Type of change Answers? Focus of change Leaders role

34. A Journey for the Country - UK past 100 years 1900s 2000s The view of the citizen I belong I need I want I can A changing role for Government ‘Privatiser & regulator’? Owner? ‘Provider’? ‘Moderniser & transformer’??

35. A Journey for the Country Fiefdoms Survival Health & wellbeing Independence Imperialism Leading the way Democracy Conflict Identity Economic growth Safe and secure Isolationism Global partner Financial stability A changing role for Government ‘Privatiser & regulator’? Owner? ‘Moderniser & transformer’?? ‘Provider’?

36. ‘Technical’ or ‘Programmatic’ Leadership Top down Traditional Tight programmes Task prescription Terrifying targets ‘Adaptive’ or ‘Transformational’ Leadership Enterprise or system wide Entrepreneurial Energising Engaging everyone Empowering Leading change – horses for courses

37. Where are you on your journey? Context and history? Clarity on the ‘strategic intent’ and outcome/customer proposition? Distinctive capabilities, culture, processes and infrastructure? Stages of the journey – technical and adaptive challenges? Approach and style of change – navigation, leadership, ownership, enablement? Your collective and personal role?