Six rings planning model PURPOSE CORE VALUES VISIONGOALSOBJECTIVESACTIONS STRATEGIC IDENTITY STRATEGIC PLAN.

Six rings planning model

PURPOSECORE VALUES

VISION GOALS OBJECTIVES ACTIONS

STRATEGIC IDENTITY STRATEGIC PLAN

VISION

MISSION

VALUES

STRATEGIES

What the world will look like once you are done

The change you are going to make in the world

The internal attributes that make you want to do this

The action plan (goals) to achieve your mission

TACTIC ONE TACTIC TWO TACTIC THREE TACTIC FOUR

The range of activities (objectives) taken to implement the strategy

Goal Setting• Aim for the Southern Cross / stars in the sky

• Purpose / mission

• To reach the South pole / a point on land• Goal

Use a compass, not a map.

• Compass – always gives you the direction, you still make decisions.

• “eastwards”

• Map – only shows you where you are - if you already know where you are.

• (If I don’t know where I am – what map do I use ? )

Strategy refresh

• A strategy is an idea for distinguishing a business from its competitors. (Montgomery &Porter, 1991)

• Strategy is the result of choices executives make, on where to play and how to win, to maximize long-term value.(Favaro, Rangin & Hirsch, 2012)

• Strategy is a frame of mind to be cultivated, rather than as a plan to be executed (Montgomery, 2013)

Strategy as a Frame of Mind

• Frame of mind as a sense of direction.• “I want to go east”

• All decisions taken to move further east.• Allows choices to be made ‘on the territory’ by asking ‘which way is

east?’

Navigation “to the east”

• It may be ‘more of the same’• “Steady as she goes” the ship is on course

• It may be ‘a shift in focus’• “Change the sails” the ship is expecting bad weather

• It may be ‘a change in course’• “45 degrees left” the ship is navigating a channel

• It may be ‘evasive action’• “Hard to starboard,” the ship is near a reef

But really . . Strategy is about doing some things and not doing others in relation to business goals.•Have/want•Have /not want•Not have /want•Not have /not want

So the strategy settings can be

• Preserve (steady as she goes) Have/want• Eliminate(change the sails) Have/not want• Achieve(45 degrees to left) Not Have/want• Avoid(Hard to starboard) Not have/not want

Summarising Strategy

Prospector◦ Seeks new markets, innovator, fast changer in response to pressures, first

mover. Defender

◦ Seeks security & stability of limited range of products. Analyser

◦ Between Prospector & Defender, ‘smart second’, picks winners Reactor

◦ Risk averse, no real strategy, changes only when necessary.

Strategies for declining markets

oHarvesto Maximize short-term cash flow

oMaintenanceo Maintain market share for the short-term

oProfitable survivoro Increase share of the declining market

oNicheo Strengthen share position in one or a few segments

More . .

• "An outstanding strategy weakly executed will always be trumped by a weak strategy with outstanding execution."

• Aggressive strategy- hit their sweet spot.

•BUT . . “Culture eats strategy for breakfast”