Think To Win “Unleashing the Power of Strategic Thinking ” October 15, 2015 Paul Butler, President, Globaledg LLC 1 All Rights Reserved GlobalEdg LLC
Feb 08, 2017
Think To Win
“Unleashing the Power of
Strategic Thinking ”
October 15, 2015Paul Butler, President, Globaledg LLC
1 All Rights Reserved GlobalEdg LLC
An Exercise
Introductions …
Paul Butler
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Session Outcomes
• Understand the need for high impact
HR contributions
• Identify a framework for Strategic
Thinking and Business Planning
• Learn to develop HR solutions that
are aligned with and support business
goals and strategy
• Build new HR connections
A Table Team Exercise
1. What business
challenges are we
facing in 2015 that are
dramatically different
from?
2. What are the implications
for HR – So What….?
3. What do you really care
about professionally?
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Executive Education
Session
The STAR
Methodology
Strategic Thinking Methodology
Then Focus on the
Questions!
First The Principles
Without them … you
might be heading in the
wrong direction!
Principle #1 Challenge Assumptions
Willingly challenge all existing
assumptions and question
accepted beliefs
Why is this important?
Determine the appropriate
scale of analysis:
– Company
– Business unit
– Team
Why is this important?
Principle #2: Scope the Issue
Principle #3: The Vital Few
Apply the 90-10 rule, i.e., focus
on the 10% of activities that will
deliver 90% of the results
Why is this important?
Principle #4 Facts Inform Decisions
Employ fact-based decision
making, not conjecture or
opinions.
Why is this important?
Principle #5 Linkage: Connect the
Dots
Think linkage to connect the
ideas – both upstream and
downstream
Why is this important?
Think To Win Approach
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Of the five – what do
you believe is the
most difficult?
First The Principles
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Framing the Issue
• Where does the process begin?
• Determines scope of analysis
• Answers the question: what is keeping leaders
awake at night?
• Must be significant and compelling
A Table Team Exercise
1. In your organization --- company and/or
your consulting practice what is really
keeping you awake at night?
2. What, from a professional development
standpoint is keeping you awake at night
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Strong Umbrella Statements/Questions --
Elements
• Do not have solutions / actions
• Includes External / Internal Elements
• Have big picture in mind – not sub issues
• Must be significant and compelling -- hooks the
audience!
• Captures tension
If I had one hour to save the world, I
would spend 55 minutes defining the
problem and only
five minutes
finding the solution.
– Albert Einstein
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The Approach
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Focus on the
Questions!
Converge
Diverge
Umbrella Statement
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Use Frameworks Effectively
Some Common frameworks Appropriate for:
• Functional Example“4Ps”: Product, Pricing, Promotion,
PlacementNew product marketing
• “7Ss”: Strategy, Structure, Systems, Staff, Skills,
Style/Culture, Shared Values (Source: McKinsey)
Internal company evaluation,
M&As
• Porter’s Five Forces: Suppliers, Customers, Barriers to
Entry, Substitutes, Competitive rivalryIndustry analysis
• “Kanter Change Wheel”: Shared Visions, Symbols/Signals,
Structure/Processes, Training, Champions / Sponsors, Quick
Wins, Communicating Useful Approaches, Policies,
Procedures, System Alignment, Measures, Rewards and
Recognition
Change, Innovation and
Execution
• “7Cs”: Company, Colleagues, Category, Customers,
Consumers, Competitors, Community (GlobalEdg)
External/Internal Situation
assessment
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Existing frameworks can be a useful starting point…
but recognize that they are a TOOL, not the solution
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From 7Cs to SWOT
• Company
• Colleagues
• Strengths: Areas that provide competitive
advantage and enable execution of strategy
• Weaknesses: Areas where we are lacking
relative to what is needed to execute strategyInte
rnal
7C’s SWOT
• Category
• Competitors
• Customers
• Consumers
• Community
Exte
rnal
• Opportunities: External factors that are or
could offer attractive financial or strategic
potential
• Threats: External factors that are or could be
damaging to our interests
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Value of SWOT
Use the list of Strengths in the context of Opportunities
to identify Potential Strategies
Internal External
Positiv
es
• Strong household brand
associated with high
quality
• Loyal consumer base
• Best-in-class
manufacturing facilities
• Growing consumer trend
of health & wellness
• Consolidation of smaller
customers which simplifies
sales & distribution
OpportunitiesStrengths
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Strategic Competitive Advantage
Strengths
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Source(s) of Competitive Advantage:
What truly separates you from the pack;
this is the key(s) to your leverage and
margin in the marketplace
Sustainable Competitive Advantage?
• Temporary or built into the
organization
• Can be sustained for 3 or more years
• Increasingly difficult to create
SCA Questions
1. What must we do that no one else can do?
2. What do we want to be best in the world at?
3. What is the single best reason for our success?
4. Is our SCA anything that a competitor could say about
their organization?
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Key Issues / Goals Framework
Key issues and Goals should be
… … Balanced, i.e., considers implications and impact on:
• People
• Organization
• Marketplace
• Financial
2.
Organization
1.
People
4.
Financial
3.
Marketplace
Key Issues & Implications
Key Issues are: Implications are:
• The most important
“takeaways” from the
Situation Assessment
• A synthesis across
different components
• A shortlist of items the
business must address in
the near future
• The “so what” of the Key
Issues
• Combines potential/risk
and action language
• Not quantified at this stage
– leave that for the Goals
section
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Objectives
• A Governing / Objective Statement is:
A statement of purpose that helps the
organization focus and provides a point of
view and guardrails for the business. It sets
the context for addressing the most critical
strategic issues for the business.
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Key Issues / Goals Framework
Key issues and Goals should be
… … Balanced, i.e., considers implications and impact on:
• People
• Organization
• Marketplace
• Financial
2.
Organization
1.
People
4.
Financial
3.
Marketplace
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Examples of Goals
Financial
Goals
Marketplace
Goals
• Grow revenue by 10% a year to $500M by 2015
• Achieve 15% contribution margin by 2013
• Reduce costs by 5% a year
Organizational
Goals
• Increase market share from 25% to 30% in 2012
• Grow our international business by 2x by 2014
• Maintain zero overhead growth (ZOG) on SG&A on an
annual basis
• Build Away From Home sales organization to double our
distribution reach by July 2012
People
Goals
• Improve Gallup score by 10% by Dec 2012
• Reduce employee turnover rate to 2% by 2013
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Goals vs. Strategies
Goals Strategies
• Are the WHAT – measurable
ends that we want to achieve
• Are at the highest level of the
STAR hierarchy
• Are MECE (mutually exclusive
collectively exhaustive) – goals
generally should not overlap with
one another
• Are the HOW – description of the
actions that we will take in order
to achieve our goals
• Are at a lower level of the STAR
hierarchy
• Are usually not MECE – one goal
can have multiple supporting
strategies and some strategies
can support multiple goals
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Strategies
• This is the HOW
• Be Bold !
• Be Innovative!
• Include enough detail to assist understanding;
don’t create a plan of action
• It is about Choices
Strategies as choices – What needs to be true?
Identified
Duracell
Strengths
Screening Criteria
What needs to be true?
Screening Criteria
X
X
X
X
X
Strategic Options
1. xxxx
2. xxxx
3. xxxx
4. xxxx
5. xxxx
6. xxxx
7. xxxx
8. xxxx
9. xxxx
10. xxxx
Final Choices
1. xxxx
2. xxxx
3. xxxx
4. xxxx
5. xxxx
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Examples: Goals & Strategies
Goal Strategies
Grow revenue by 10%
a year in the Fresh
category over the next
3 years
Increase Marketing Spend to drive HH penetration
from 4% to 4.5%
Increase Investment in product innovation to increase
frequency of loyal users from 3x to 4x per year
Increase price on specialty SKUs by 3%
Maintain Zero
Overhead Growth over
next 3 years
Eliminate 50% of non-critical path activities
Introduce Strategic Sourcing Initiative to each
Business Unit
Expand Lean capability to SG&A areas
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Strategy & Execution
Fact-based
AnalysisObjectives / Goals Strategic Priorities Key Initiatives &
Programs/Projects
Financial Objectives
’09 ‘10 ‘11 ‘12
2.1
2.3
2.2
2
3.1
3.2
3.3
3
1.1
1.2
1
1.3
• Internal Scan
• External Scan
• SWOT Summary
• Competitive Advantage
• Key Issues
• Business Implications
Plan Execute
Non-financial, e.g.,
Organization
People
Business Process
Customer/Consumer
Source: PK Associates
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“Strategies most often
fail because they aren’t
executed well. Things
that are supposed to
happen don’t happen.”Larry Bossidy - Execution: The Discipline of Getting Things Done
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“Great! now, how do
we make this happen?” Dennis Von Ende - Planning Committee Member
Who we need
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Team
Support
Function
Results
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Working Group: Competitive Advantage Membership:
Sponsor: Names
• Leader:
• Facilitator:
• Team members:
Assumptions:
• Leveraging work underway – not beginning from scratch
• xxxx
• xxxxx
• Need to look broader at “competition” and define
Timing / Communication:
• Launch 12/1 and is completed by 10/1
• Update Leadership Team Monthly
• Progress presented at Q1 and Q3 Town Hall
• xxxxxxx
Interdependencies:
(Name the people)
• XXXX in Corporate
• XXX Leader of Competitive Advantage Team
• Functional Leaders2Significance / Objectives:
• Scope is XXXX
• Deliver xxxx while xxxx
• XXX in Place
• Volume up in market A by
• Cost savings of identified
SAMPLE CHARTER
Did We Win?
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Thank you!
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Paul ButlerPresident
GlobalEdg LLC
(203) 405-6810
www.GlobalEdg.com