07 getting your strategy right

7/27/2019 07 Getting Your Strategy Right

1/28

Martyn MENSAH

What difference does it make?

Getting your Strategy Right


2/28

Martyn MENSAH

Model for ChangeC = D x V x F>R

in English,Change will only happen providedthe product of D, V & F is greater

than R

C = changeD = dissatisfaction with the status quoV = vision of a different (better) futureF = first steps towards changeR = resistance to change


3/28

Martyn MENSAH

We have a BIG problem

We Dont

use our most powerfulresource !

Status Quo cap Current reality overload

Neglect of our cognitive powers

Lazy solution development

Ideas deficitme toism


4/28

Martyn MENSAH

The World Today is Constantly changing

More difficult to predict Complexities of business models &

economies

Hyper-competition

The information & knowledge paradox

Affects us both outdoors and indoors Competition from everywhere

Government decisions & actions

Customer behaviour & market dynamics

Margin pressure, driving cost & efficiencyimperatives

The influence of Organizational culture &personal behaviour


5/28

Martyn MENSAH

The fact of the matter is.

There is no such thing as a permanently excellentcompany or permanent competitive advantage or a

permanently attractive industry

Each day the world we operate in changes; we also

change

Our response to change is what determines whether we

will survive, thrive or fade away

There are a million possible responses We are pre-conditioned to think in terms of existing

options


6/28

Martyn MENSAH

The orthodoxy.

The Economics of the Fixed Cakealso known as the trade-off mindset

You need to lose something to

gain something

Construct barriers to protect the

cake

We can only gain at someones

expense or

If they are gaining, I am losing!


7/28

Martyn MENSAH

The orthodoxy.

The only way to get betteris to squeeze more out of

the same

Do the same thing but withmore control of the system

Measure everything and try

and improve thosemeasurements

and often we try to do this

without changing anything


8/28

Martyn MENSAH

Strategy is simple.A response that is often employed in the quest for how to

create value, ensure growth, overcome a crisis and improve

or transform your organization


9/28

Martyn MENSAH

The Building Blocks

PURPOSE

BUSINESS

MODEL

ORGANISATIONAL

CHARACTER

GOALS/PRIORITIES/

ACTIONS

STRATEGIC CONVERSATION

How do we create value?

What kind of organization

should we be?

What must we do and how

will we make it happen?

How will we win the support

of our stakeholders?

Why do we exist


10/28

Martyn MENSAH

Managements job is not to see the organization as itis..but as it can become

An organization exhibits strategic intent when itrelentlesslypursues an ambitious strategic objective andconcentrates its competitive actions and energies onachieving that objective.

Effective Strategy requires an understanding of thedynamics of business especially a phenomenon knownas a STRATEGIC INFLECTION POINT


11/28

Martyn MENSAH

Business grows

Business

declines

Inflection point


12/28

Martyn MENSAH

Creating an Inflection Point

UT FINANCIAL SERVICES

IMAGINED financial services in a radically different

way

Changed the focus of the financial industry Placed REAL customer need at the centre its

operations

Banked the untouchables & did it in 48 hours

Actually collected their loans Customer need

Doing things differently

Possibility thinking


13/28

Martyn MENSAH

> market boundaries are

not given> they are reconstructedby the actions & beliefsof industry players

BUT

HOW?Ideas Imagination


14/28

Martyn MENSAH

The orthodoxy.

Imagine & believe that there is nolimit to the size of the Cake inother words develop a Trade-Onmindset

Look over the BARRIERBarriers are easy to dismantle/notas strong a defense as they appear

We can gain by making the

competition irrelevantIf they are gaining, I am gainingmore and faster and moresustainably than they are!

REVERSE


15/28

Martyn MENSAH

There are infinite number of ways to

do anything

Change the mindset

Open eyes of your people to see

things differently

Slaughter the sacred cows

Imagination is the only limiting factor


16/28

Martyn MENSAH

Traditional strategic thinking head-to-head competition in search of

sustained, profitable growth. Prevalent terminology = competitive

advantage, market share and differentiation.

RESULTa bloody red ocean of rivals fightingover a shrinking profit pool.

D

ontcom

petewithrivals,make

t

hemi

rre

levant


17/28

Martyn MENSAH

BLUE OCEAN STRATEGYhypothesizes that thisstrategy is increasingly unlikely to createprofitable growth in the future.

New strategic thinking succeed notby battling competitors, but by creating

blue oceans of uncontested market space ripe forgrowth .

Focus on MARKET SPACE not market share thinking

This requires VALUE INNOVATION

D

ontcom

petewithrivals,make

t

hemi

rre

levant


18/28

Martyn MENSAH

1. reconstruct market boundaries

2. focus on the big picture

3. reach beyond existing demand

4. get the strategic sequence right

5. overcome organizational hurdles

6. build execution into strategy

D

ontcom

petewithrivals,make

t

hemi

rre

levant

VALUE INNOVATION creates a leap in Value for

customers as well as for the company


19/28

Martyn MENSAH

R

ed

vs.

Blue

RED OCEAN BLUE OCEAN

Compete in existing market

space

Create uncontested market

space

Beat the competition Make the competition

irrelevant

Exploit existing demand Create & capture new

demand

Make the value/cost trade-

off

Break the value/cost trade-

off

Align the whole system of a

firms activities with its

strategic choice of

differentiation OR low-cost

Align the whole system of a

firms activities in pursuit of

differentiation AND low cost


20/28

Martyn MENSAH

Identifyindustry

success factors

Compare withcompetitors (i)

Challenge theorthodoxy

THINK

IMAGINE

DESCRIBE EMPATHIZE

Compare with

competitors(ii)

EXECUTE


21/28

Martyn MENSAH

Four Action Framework

Eliminate

Reduce

Raise

Create

Which of the factors

that the industry takes

for granted should be

eliminated?

Which factors shouldbe reduced well below

the industry standard?

Which factors shouldbe created that the

industry has never

offered?

Which factors should

be raised well below

the industry standard?


22/28

Martyn MENSAH

0

1

2

3

4

5

6

7

8

9

10

Bank A Bank B fut Loan Shark Bank B b4


23/28

Martyn MENSAH

Sincere and purposeful thought

Understand your industry but

dont be afraid to IMAGINE it tobe different

Know that every great achievementbegan as a thoughtan idea

Be Customer Obsessive

Be true to yourself

THINK!


24/28

Martyn MENSAH

G A P

The Power of ExecutionThere are a million excellent strategic plans in the

corporate worldOnly a few succeed The difference is in execution

Developing the ideas does not automatically result intheir execution

Be Aware of the:

KNOWING DOING


25/28

Martyn MENSAH

Why Strategies Fail

The IDEA was wrong

The walk does not match the talk.

Irrelevance it is out of touch with reality.

A vision or strategy should never be viewed as a magiccure for organisational ineffectiveness and inefficiency.

It is not sharedFair process (3Es)

It lacks implementation focus/execution focus.

It lacks vertical & horizontal fit.

It lacks stretch Business as usual


26/28

Martyn MENSAH

The Secret to winning..1. Throw out the old perspective

2. Scrutinize the environment & customerworld for blue ocean opportunities

3. Learn to manage the most powerfulresource the mind (IDEAS &IMAGINATION)

4. Reach beyond existing demand

5. Think through execution as you develop

strategy6. Win by making the competition

irrelevant


27/28

Martyn MENSAH

We succeed only as we identifyin life, or in war, or in anythingelse, a single overridingobjective, and make all other

considerations bend to that oneobjective.

Dwight Eisenhower


28/28

Martyn MENSAH

The Art of WarSun Tzu

Knowledge of the problem is key to

its solution

Plan for what is difficult while it iseasy, do what is great while it is

small. The most difficult things in

the world must be done while they

are still easy, the greatest things in

the world must be done while theyare still small. For this reason sages

never do what is great, and this is

why they can achieve that

greatness.

Do something before it exists, sensesomething before it becomes

active, see something before it

sprouts.

Luke 14:26-33

26If anyone comes to me & does not hate

his father & mother, wife & children,

brothers & sisters, yes, and his own life

also he cannot be my disciple

27 And whoever does not bear his cross

and come after me cannot be my disciple

28 For which of you intending to build a

tower does not sit first & count the cost

whether he has enough to finish it. 31 or what king going to make war against

anther king does not sit down first &

consider whether he is able with 10,000

men to meet him who comes against him

with 20,000?

32 or else whilst the other is still a great

way off he sends a delegation and asks

conditions of peace

07 getting your strategy right

Documents