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”