Download - The strategic planning dashboard

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THE BMI-BRSCU STRATEGIC FORUM

A place of assembly for strategic conversations

THE BMI-BRSCU STRATEGIC FORUMwww.strategicforum.co.za

THE STRATEGIC PLANNING DASHBOARDDr. Llewellyn B. Lewis

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STRATEGY DEFINED The seven principles of strategic thinking as defined by complexity science are:1. Look at whole systems, not just their parts;2. There is a relationship between order and disorder, and self-organising change occurs as a result of their interactions;3. A small event in one sector can cause tremendous turbulence in another;4. Maps, models, and visual images make it easier to see connections, relationships, and patterns of interaction;5. Scanning across disciplines and industries is the key to seeing emerging conditions, paradigm shifts, and opportunities for innovation;6. Non-linear thinking is critical to recognising clues about changes in the environment;7. Perspective is important when viewing chaotic events.

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STRATEGY DEFINED

Those choices relate to the scope of an oganisation’s products or

services, markets, key capabilities, growth, return and allocation of

resources.

Strategy is the framework which guides those choices that

determine the nature and direction of an organisation

(Tregoe and Zimmermann : 1980)

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UNDERSTANDING THEENVIRONMENT(SCENARIOS)

UNDERSTANDING THEORGANISATION

(BUSINESS IDEA)

IS THIS THE RIGHT COMPANY FORTHESE FUTURE ENVIRONMENTS ?

IF NO : ADDRESS STRATEGIC CAPABILITIES

(Resources and Competences)

STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT

IF YES : ADDRESS BUSINESS CHOICES

(Based on Kees vd Heijden : 1996)

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STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT

STRATEGY

THE INDUSTRYENVIRONMENT

gives rise toOpportunities and threats

THE FIRM

Resources andcapabilities

give rise to

strengths andweaknesses

(Grant : 1991)

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Regenerating Strategy : Strategic Leadership as a way of Business Life

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CREATIVE TENSION

SEEKS RESOLUTION

RESULTS IN ACTION

THE GLUE

THATHOLDS

STRATEGYTOGETHER

PARADIGMSand

PARADIGM SHIFT

LEADERSHIP STYLECULTURE, VALUES

SCENARIOS

CORPORATE CHALLENGES, COMPETITIVE INNOVATION, STRATEGIC ACTION PLANSSHARED UNDERSTANDING AND COMMITMENT

TAPPING THE COLLECTIVE WISDOM OF THE TOTAL ORGANISATION

PERFORMANCE MILESTONESMeasuring Success

STRUCTURERequired for the future

STRATEGIESCORE COMPETENCIES

FUTURE BUSINESS IDEA STRATEGIC ARCHITECTURE

RESOURCES, SKILLS, KEY CAPABILITIES

FUTURE DRIVING FORCE

SWOTCHANGING GAME RULES

REDEFINING BOUNDARIES

STRATEGIC INTENTVISION, MISSION, SLOGAN

VALUES, CONTEXT

CURRENT REALITYRULES OF THE GAME

BUSINESS IDEA

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STRENGTHSand

WEAKNESSES

OPPORTUNITIESand

THREATS

Organisational LearningSTRATEGIC LEADERSHIP

As a way of Business Life

ENVIRONMENTAL FORCES

ORGANISATIONALRESOURCES

CAPABILITIES

CURRENT REALITY

STRATEGIC INTENT, VISION, MISSION

DRIVING FORCEPERFORMANCE GUIDELINES

INDUSTRY FORESIGHTUNDERSTANDING THE INDUSTRYSCENARIOS

UNDERSTANDINGTHE ENVIRONMENT

BUSINESS IDEAUNDERSTANDINGTHE INSTITUTION

THE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an Organisation

(After Johnson : 1988)

STRATEGY AND PARADIGMSIf you want to understand the World, commonly held ideas are absolutely blinding.

The only way to spot threats and opportunities is to break out of a narrow way of thinking.

. . . If you’re trying to reach enlightenment, you must develop, in this order, “right view, right intention, right action.”

If you’re not seeing the world properly, you have no hope of any sort of breakthrough. (Ramo: 2009: 134)

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DO

ING

Content Context

Shortsight Longsight Foresight Vision ContextFar Hindsight Near Hindsight

Blind spots

Bright sparks

Data Facts, observations, data points

Information Data with meaning

Knowledge Information with insight

Wisdom Knowledge with context

(Source: Based on Dr. Kanes Rajah: 2005)

Partial knowledge

Incorrect knowledge

False knowledge

No knowledge

BEI

NG

ProcessSTRATEGY AND PARADIGMS

More than anything, what you want to know is when change is going to begin. This sense is known as mastery of incipience, and the skill is often praised as the highest form of wisdom. (Ramo: 2009: 161).

. . . truth emerges through debate, study, reflection, meditation, and, at long last, insight delivered like lightning. (paraphrase of Ramo, 2009: 212).

. . . The environment is far more powerful than any individual. It is never stable and in its sudden changes from one state to another, more important than the desires of any of us . . . Context is everything . . . (Ramo: 2009: 160).

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THE UNIVERSAL HUMAN PARADIGM

(Goss : 1996)

… in order to ...Listening for ...

… so as to act by ...

… CONTROL LIFE, have it turn out the way it “SHOULD” and AVOID having life turn out the way it “SHOULDN’T”

Every human being

… compensating for what is NOT POSSIBLE …or not possible at this time - - -

“What could go wrong ? What is, or isn’t the way it should be?”“What’s right ? ““What’s wrong?”Who is to blame?”

The name of the Game is . . . Pursue life so that it turns out the way it “should”, and if it doesn’t someone is to blame …..

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GENERIC CONTRACTOR PARADIGM

(Based on Goss : 1996)

… in order to ...Listening for ...

… so as to act by ...

“Are there any projects out on tender, being planned ?”

“Being first in the queue, tendering, negotiating,de-speccing and getting Contracts - - -”

“Manage and build,make a profit, keep the core workforce busy, and avoid not having enough work - - - ”

The Name of the Game is - - - OPPORTUNISTIC, ADVERSARIAL, TOUGH IN ALL DEALINGS, WIN-LOSE AND SHORTTERM ORIENTATION

THE FILTER, OR FEASIBILITY

SIEVE

WAY OF ACTING IN ORDER TO

SUCCEED

+SOURCE OF POWER

INHERITED FROM THE PAST

DESIRED OUTCOME

FOR CONTRACTOR

CONTENT OF

DECISIONSPAST

PROCESS OF DECISION

MAKINGPAST

CONTEXT IN WHICH

DECISIONSOCCURSPAST

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BMI THE PROPERTY MARKET AND COMPLEXITY

“There’s always work to be done. A second curve waiting to be invented” (Charles Handy)

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Paradigm Re-invention

Scop

e of

cha

nge

and

tran

sfor

mat

ion

Critical mass of Investors(Whole community)

Single Investor (Part of community)

Paradigm

Pioneer

Early adopter

Paradigm shift

LateAdopter

Bandwagon Flocking

Herd behaviourImpact of Change and

transformation

All Countries(Whole World)

SingleCountry(Part of World)

THE LOCAL PROPERTY MARKET

LIMITS TO GROWTH

PARADIGMS CHALLENGEDALTERNATIVE INVESTMENTS

REINVENTION A Structural

Change? Self Organisation

Order for Free!Property a

preferred Investment!

THE GLOBAL PROPERTY

ENVIRONMENT

DEMISE THE PROPERT

Y BUBBLE?

THEEDGE OF CHAOS

CREATIVITYINNOVATION

The current and known world The future, unknown

THE PROPERTY MARKET AND COMPLEXITY

Individual

BanksPublic

opinion

MinistryTreasury

IMFWorld Bank

Contagion

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CREATING THE FUTURETHE QUEST FOR COMPETITIVENESS

RESTRUCTURINGTHE PORTFOLIO

AND DOWNSIZING HEADCOUNT

REENGINEERING PROCESSES AND

CONTINUOUSIMPROVEMENT

REGENERATING STRATEGIES

SMALLER BETTER DIFFERENT

REINVENTING THE LEADERSHIP,

THE ORGANISATION,THE INDUSTRY

TRANSFORMEDPOSSIBLE RESULTS IMPOSSIBLE RESULTS

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Current reality

Designated impossible

Future !


Future !

THE VALLEY OF DEATHPARADIGMSCHALLENGED

PARADIGMSREINVENTED

Current future

Security in smallsteps - let’s just

incrementallyimprove whatwe’re doing ?

You don’t get to impossible

through improvement !Let’s work back from the future !

MOVING OUT OF THE COMFORT ZONE

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Current reality


Future !


Future !

THE VALLEY OF DEATHPARADIGMSCHALLENGED

The Universal Human Paradigm is about the past, whereas inflection points

are about the future.

The leap from the Universal Human Paradigm to the

Reinvention Master Paradigm at these

inflection points is like going through

THE VALLEY OF DEATH.

PARADIGMSREINVENTED

Current future

Security in smallsteps - let’s just

incrementallyimprove whatwe’re doing ?

You don’t get to impossible

through improvement !Let’s work back from the future !

MOVING OUT OF THE COMFORT ZONE

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THE PARADIGM SHIFT QUESTION

What is impossible to do in your business

(field, discipline, department, division, technology, etc)

but if it could be done, would fundamentally change it ?

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CONTEXT IN WHICH

DECISIONSOCCURS

FUTURE

CONTENT OF

DECISIONSPAST

PROCESS OF DECISION

MAKINGPRESENT

(Based on Pettigrew, 1988)

WHAT?HAVINGI HAVE

HOW?DOING

I DO

THE REINVENTION PROCESS(Based on Pettigrew)

WHY? BEINGI AM

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CONTEXT IN WHICH

DECISIONSOCCURS

FUTURE

CONTENT OF

DECISIONSPAST

PROCESS OF DECISION

MAKINGPRESENT

(Based on Pettigrew, 1988)

WHAT?HAVINGI HAVE

HOW?DOING

I DOUNTIL

WITHOUTUNLESS

MISSING?ESSENTIAL?

NEXT?

CONVERSATIONS?REQUESTS?PROMISES?

WHO? BEINGI AM

OUGHTSHOULDBLAME

LIBERATION FROM THE UNIVERSAL HUMAN PARADIGM

IN ORDER TO . . . CONTROL

SELF CONTROL

SELF CONTROL

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Strategicanalysis

Strategicchoice

Strategyimplementation

Environmentalanalysis

Identifyingoptions

Evaluatingoptions

Stakeholderexpectations

Selecting a strategy

Resources and strategic capability

Planning andallocating resources

structure

Managing strategicchange and culture

(Based on Johnson and Scholes)

Process

ContextCo

nten

t

THE REINVENTION PROCESS(Derived from the Strategic Planning Process)

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STRENGTHSand

WEAKNESSES

OPPORTUNITIESand

THREATS

Continuous ReinventionTRANSFORMATIONAL LEADERSHIP

As a way of Life

ENVIRONMENTAL FORCES

POTENTIALRESOURCESCAPABILITIES

CURRENT REALITY

TAKING A STAND, DECLARATIONS OF POSSIBILITY

CONVERSATIONS, REQUESTS AND PROMISES

CREATING THE FUTURE

DEVELOPING PRESENCEALERT TO POSSIBILITIES

THE REINVENTION PROCESS

SCENARIOSDEVELOPING A

WORLDVIEW

AWARENESSUNDERSTANDING

THE SELF

PARADIGMS OR MENTAL MODELSBeliefs and assumptions held in common and taken for granted

(Based on Johnson and Scholes)

Process

Content

Cont

ext

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Specific steps and timetables to implement the strategies

Plans converted into forecasts financial projections and budgets

A sensible and appealing picture of the future. A place to get to.

A logic, and first level of detail, for how the vision can be achieved

FORECASTSBUDGETS

TRANSACTIONALLEADERSHIP,MANAGEMENT DOES

VISIONARYLEADERSHIP DEVELOPS

PLANS

STRATEGIES

VISION

VISION, STRATEGIES, PLANS AND BUDGETS : A TRADITIONAL VIEW

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Specific steps and timetables to implement the strategies

Plans converted into forecasts financial projections and budgets

A sensible and appealing picture of the future. A place to get to.

A logic, and first level of detail, for how the vision can be achieved

FORECASTSBUDGETS

TRANSACTIONALLEADERSHIP,MANAGEMENT DOES

VISIONARYLEADERSHIP DEVELOPS

PLANS

STRATEGIES

VISION

BEYOND VISION, STRATEGIES, PLANS AND BUDGETS: A NON-TRADITIONAL VIEW

TRANS-FORMATIONALLEADERSHIP CREATES

Way of being. Inventing an impossible game. Reinventing, transforming the organisation, the industry

CONTEXT

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The name of the Game is . . . being alert, deliberately waiting, in a world of possibility and abundance…..

so that when the cubic centimetre of chance pops out, the necessary speed, and the prowess to pick it up, is available.

THE REINVENTION MASTER PARADIGM

(After Goss : 1996; Zander: 2000)

… Staying in conversation ...

Being present for ...

… taking a stand, making declarations

. . . Making unreasonable requests, bold promises

Reinvented human being

. . . rapidly declaring impossibilities possible and changing the reality of self and others . . .

Possibilities, opportunities, the cubic centimetre of chance . . .

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REINVENTED CONTRACTOR PARADIGM

(Based on Goss : 1996)

“Is there an opportunity out there ?”

“What is possible is what I say is possible;Conceptualising, dreaming, creating,developing solutions,negotiating deals, putting togetherteams - - -”

“Take and share risks, with commensuraterewards, Create own future,avoid being dependent - - - ”

The Name of the Game is - - - OPEN TO OPPORTUNITY, TEAMWORK, RISK AND REWARD SHARING, AND LONGTERM RELATIONSHIPS

Being present for

Taking a stand, making declarations

Staying in conversation ...

THE CUBIC CENTIMETRE

OF POSSIBILITY

DECLARE THE IMPOSSIBLE POSSIBLE

+A NEW SOURCE OF POWER A NEW WAY OF

BEING To CREATE the future envisioned

SPEAK THE FUTURE INTO EXISTENCE

SELF CONTROL

CONTENT OF

DECISIONSFUTURE

PROCESS OF DECISION

MAKINGFUTURE

CONTEXT IN WHICH

DECISIONSOCCURS

FUTURE

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Pennypinchers

MISSIONThe elimination of social backlogs and inequities is achieved through the provision of sustainable integrated developments, and providing skills, employment and entrepreneurial opportunities for growth.

VISIONThe Building Industry is an engine for growth and wealth creation through redistribution, property development,

ownership and investment.

SLOGANBuilding: An engine of growth & wealth

creation

VISION, MISSION, SLOGAN, VALUES

VALUESThe Industry has an igniting vision, a culture, or

mind set of co-operation, collaboration and cross-boundary networking; and the productive

capability to deliver SUSTAINABLE Environmental, Social and Economic solutions and based on the unashamedly ethical values

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Models, Presentations,

Videos,Plans, Ideas,

Promotional materialsNon-linear, organic and

complex adaptive systemsDemocratic

DecentralisedDistributed power

Mutual respectProfessional

Expert knowledgeIntellectual Capital

Informality

Emergent teams, self selected and self organised,Non hierarchical,

Flat StructureNetworking

Teamwork , AlliancesJoint Ventures, Partnerships

Planning meetingsBrain storming

LobbyingNetworkingThe Launch

Site meetings

Success storiesUnique Selling Propositions

Installed baseProblem solvingUnique Solutions

An entrepreneurial and creative industry with high confidence and passion. Oriented towards visionary thinking, possibility and abundance, risk taking and reward sharing. Emphasis on

continuous learning, competitive foresight, teamwork, dealmaking, networking and long-term partnerships, win-win relationships.

Uncertainty,Limited ability to predict,

Simple RulesInfluence rather than control,

Mutual TrustRisk and Reward

Relationships emphasisedProject management

REINVENTED CONTRACTOR CULTURAL WEB

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BMI THE GENERIC VALUE CHAIN

INFRASTRUCTURE ACTIVIES: PLANNING, FINANCE, MIS, LEGAL SERVICES

TECHNOLOGY RESEARCH, DEVELOPEMENT, DESIGN

HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT

PURCHASING,INVENTORYHOLDING,MATERIALSHANDLING,(“Inboundlogistics”)

PRODUCTION WAREHOUSING&

DISTRIBUTION(“Outboundlogistics”)

SALES &

MARKETING

DEALERSUPPORT

&CUSTOMER

SERVICE

SUPP

OR

T A

CTI

VITI

ESPR

IMA

RY A

CTI

VITI

ES

MARGIN

(Porter, 1985)

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INTERIOR FINISHESDECORATION

CHOICE OF MATERIALS

ADVICE ONHOUSEDESIGN

ONGOING ADVICE AND SUPPORT ANDRELATIONSHIPBUILDING

TRIGGEREVENTS

QUANTITIESCOSTING

REDEFINED COMPETITIVE ARENA FOR ORGANISATION

MIDDLE INCOME DWELLINGS

(> R250 000 < R2,2 Mio)

LUXURY DWELLINGS(> R2,2 Mio)

AFFORDABLE DWELLINGS(< R250 000)M

arke

t Sp

ectr

um

Value chain

Home Improvement and redecoration takes place across the entire spectrum

HOTELS

LOW/HIGHRISEFLATS

TOWNHOUSESCLUSTERS

CREDIT

CURRENT COMPETITIVE ARENA OF ORGANISATION

DELIVERY

How does each activity influence the customer’s willingness to pay?

THE RESIDENTIAL BUILDING MARKETVALUE CHAIN AND COMPETITIVE ARENA

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INTERIOR FINISHESDECORATION

CHOICE OF MATERIALS

ADVICE ONBUILDINGDESIGN

ONGOING ADVICE AND SUPPORT ANDRELATIONSHIPBUILDING

TRIGGEREVENTS

QUANTITIESCOSTING

REDEFINED COMPETITIVE ARENA FOR ORGANISATIONM

arke

t Sp

ectr

um

Value chain

Improvement and refurbishment takes place across the entire spectrum

CREDIT

CURRENT COMPETITIVE ARENA OF ORGANISATION

DELIVERY

SHOPPING10000-75000 M2

SHOPPING5000-10000 M2

SHOPPING> 75000 M2

OFFICESOFFICE PARKS

INDUSTRIALMANUFACTURING

GOVERNMENTBOT/MOT/APOP

How does each activity influence the customer’s willingness to pay?

THE NON RESIDENTIAL BUILDING MARKETVALUE CHAIN AND COMPETITIVE ARENA

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Value Chain analysis is one technique that provides a useful means of identifying the potential for “new game strategies.”

Understanding the sequence of activities currently being undertaken by the firm (and by competitors) may facilitate the search for reconfiguration of the sequence of activities in new strategic format.

Reconfiguring the Value Chain may for example involve establishment of new or novel systems for the distribution of products to the customer.

RECONFIGURING THE VALUE CHAINwww.strategicforum.co.za

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THE VALUE CHAIN OF DISTRIBUTION







SALES&

MARKETING

DEALERSUPPORT

&CUSTOMER

SERVICE

SUPP

OR

T AC

TIVI

TIES

PRIM

AR

Y A

CTI

VITI

ES

(Porter, 1985)

Well established;Financially strong;

Overseas (PRODUCT) connections;

MIS that supports fast response capabilities.

No technology component;Supports Manufacturers of local

products. Some importing of luxury products.

Experienced Core Management Team;Close relationships with key customers;

Training for Retailers (Product knowledge, merchandising, selling).

Committed and loyal to local

Manufacturers products;

Some importing of luxury products.

No production facilities;

Reliant on and loyal to locally manufactured

products;Order in bulk

and redistribute.

Warehouses in major centres;

Break bulk facility;Flexible own Transport;

Fast, efficient and cost effective

delivery of small, dispersed orders.

Limited building of “Brand”reputation;

Direct selling to Retailers;

Factory liaison;Selling to

Consumers left to Retailers;Some direct

selling to direct Accounts.

Retailer support limited to selling and product delivery;

Assistance with JIT delivery; Carousels, posters, samples,

brochures and catalogues from Manufacturer;

Warehousing and stocking advice and training;

Customer technical support;After Sales Service.

RECONFIGURING THE VALUE CHAIN OF ORGANISATION

Identify the potential for “new game strategies.” Focus on core competencies of PROCUREMENT,

LOGISTICS, MARKETING AND SELLING;Maintain and Develop Supplier Network and

RELATIONSHIPS WITH STAKEHOLDERS; Establish new or novel systems for the satisfaction of

needs of the customer; DIFFERENTIATE through powerful branding

through reputation and trust;Become focused on RETAILING.

THE VALUE CHAIN OF MANUFACTURERS







SALES&

MARKETING

DEALERSUPPORT

&CUSTOMER

SERVICE

SUPP

OR

T A

CTI

VITI

ESPR

IMA

RY

ACTI

VITI

ES

(Porter, 1985)


Overseas connections;MIS that supports fast response capabilities.

State of the Art Technology;Cost effective and efficient production;

Reliable supply;Continuous product development;

Quality products.

Unique product features;

Fast new product development.

Experienced Core Management Team;

Committed to Training and Development.

Strong overseas connections;

Bargaining power;Quality

components and materials;

Superior Production facilities;

Efficient Factory;Excellent product

availability;Defect free,

quality products;Wide variety;Wide colour

range.

Warehousing in-factory and

outsourced to Wholesalers.

Transport Outsourced;


delivery;Efficient order processing;

Rapid Turnaround

Building of “Brand”

reputation;Direct selling to Wholesalers, Retailers and

Direct Accounts;Primary demand created through

advertising;Selling to

Consumers left to Retailers.

Committed to Dealer support;Joint advertising;

Free posters, samples;Free brochures and catalogues;

Merchandising advice; Customer technical support;

After Sales Service.

THE VALUE CHAIN OF RETAILERS







SALES&

MARKETING

DEALERSUPPORT

&CUSTOMER

SERVICE

SUPP

OR

T AC

TIVI

TIES

PRIM

AR

Y A

CTI

VITI

ES

(Porter, 1985)

Large Chains are well established;Many Suppliers, Accounts and Credit lines;

JIT planning, no central warehouse, JIT inventory, rely on factory for overnight delivery;Sophisticated mechanical handling equipment.

No technology component;Support locally manufactured products; some imports of aspirational products;

Majority interested in DIY/BIY.

In-store sales with some direct selling, measuring and quoting on plans;

Some retailers recommend subcontractors;Minority have core contracting team and

access to subcontractors for fixing;Informal training for Contractors.

Sophisticated mechanical

handling equipment;

Professional Display, storage

and merchandising.

No production facilities;

Committed and loyal to local

products;Some imports of aspirational

products

Limited Warehousing;

Reliant on Factories for Just-in-time supplies;

Delivery to customers by own

transport or Manufacturer

Strong focus on building of

“Brand”reputation via

signage, passing trade, in-store promotion and

advertising;Direct selling to Consumers via

in-store merchandising.

Measurement, quantities, costingand quotation service;

Product advice, choice of product solutions;

Customer technical support;After Sales Service;

Ongoing advice and support and Relationship Building

.

JIT inventory in stores; Fast, efficient and cost effective

inbound delivery by Manufacturers and Wholesalers.

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THE REINVENTED VALUE CHAIN OF CONTRACTORS







SALES &

MARKETING

DEALERSUPPORT

&CUSTOMER

SERVICE

SUPP

OR

T A

CTI

VITI

ESPR

IMA

RY A

CTI

VITI

ES

MARGIN

(Porter, 1985)

Strong focus on building of

“Brand” reputation via

signage, passing trade, in-store promotion and

advertising;Direct selling to

Consumers via in-store

merchandising.

Measurement, quantities, costingand quotation service;

Product advice, choice of product solutions;

Customer technical support;After Sales Service;

Ongoing advice and support and Relationship Building

.

JIT inventory in stores; Fast, efficient and cost effective

inbound delivery by Manufacturers and Wholesalers.


Overseas connections;MIS that supports fast response capabilities.

State of the Art Technology;Cost effective and efficient production;

Reliable supply;Continuous product development;

Quality products.

Unique product features; Fast new product sourcing

Factory Management;Production Planning;

Order taking;Stock management

Strong overseas connections;Bargaining

power;Aspirational and unique products.

Professional Storage, Display,

and Merchandising.

Superior Production facilities;

Efficient Factory;Excellent product

availability;Defect free,

quality products;Wide variety;Wide colour

range.

Warehouses in major centres; Break

bulk facility;Flexible own Transport;


delivery of small, dispersed orders.

Supply Chain Logistics;Marketing, Advertising & Sales;

Product knowledge;Forecasting;

Pricing;Merchandising;

Key Account Management;Subcontractor networking;

Informal training for Contractors.

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REDEFINING BOUNDARIESRECONFIGURING THE VALUE CHAIN

PARADIGM SHIFTCHANGING GAME RULES

PERFORMANCE MILESTONES

STRATEGIESSTRATEGY DEVELOPMENT DIRECTIONS

UNIQUE RESOURCES, CORE COMPETENCIESFUTURE BUSINESS IDEA

FUTURE PARADIGM, FUTURE CULTURE

CREATIVE TENSION

SEEKS RESOLUTION

RESULTS IN ACTION

THE CEMENT

THATHOLDS

STRATEGYTOGETHER

Regenerating Strategy : Strategic Leadership as a way of Business Life

FUTURE STRUCTURE

PARADIGMSRULES OF THE GAME

STAKEHOLDER POWER, CULTURE

CORPORATE CHALLENGES, COMPETITIVE INNOVATION, STRATEGIC ACTION PLANSSHARED UNDERSTANDING AND COMMITMENT

TAPPING THE COLLECTIVE WISDOM OF THE TOTAL ORGANISATION

STRATEGIC INTENTVISION, MISSION, SLOGAN

VALUES, CONTEXT

FUTURE DRIVING FORCE

CURRENT REALITYSWOT

VALUE CHAINBUSINESS IDEA

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COST FOCUS

COST LEADERSHIP

BROAD DIFFERENTIATION

DIFFERENTIATION FOCUS

COST DIFFERENTIATIONCOMPETITIVE ADVANTAGE

NA

RR

OW

TA

RG

ETB

RO

AD

TA

RG

ETC

OM

PETI

TIVE

SC

OPE

INTEGRATION

BASIC STRATEGY OF THE CONTRACTING INDUSTRYwww.strategicforum.co.za

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BASIC STRATEGY OF THE CONTRACTING INDUSTRYwww.strategicforum.co.za

Cost leadership, based on small, centralised head offices and national production units, leveraging of competencies and resources of all Stakeholders, leading edge manufacturing technology, high productivity, total quality management, cost effective procurement of materials, and powerful alliances with all Stakeholders; Differentiation, based on continuous reinvention, powerful alliances with all Stakeholders,distinctive branding, development of added value products and services, and a heroic service culture.

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Protect/Build (Existing Products/Markets)• Capitalise on existing Distributors• Capitalise on Advertising• Capitalise on Lobbying and

networking• Key account management

(existing projects/products, and customers/markets)

• Regular newsletters of successful ventures

• Relationship development• Specifile advertising• CAD Software• AutoSpec: Browser and

Specification writing program • Specifying Techniques: Specifying

company that Specifies our products with professionals

Market Development (Existing Products And New Markets/Customers)• Capitalise on Distributors• Capitalise on Advertising• Capitalise on lobbying and

networking• Redefine the boundaries into

market segments with potential• Superior market intelligence• Sensitivity to market needs• Brand awareness through

Advertising• Pro-active marketing• Deal making• Expanded network (alliances or

partnerships)• Relationship development• Increase the geographic footprint• Deal making• Keep existing data base up to

date

STRATEGY DEVELOPMENT DIRECTIONSOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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Product Development (New Products/Existing Markets)• Market intelligence• Close relationships with customers for

new products• Visit local and overseas exhibitions• Experiment with new productcts• Contact potential clients for new

products• New product introductions• News letters• Develop internet (website)

communication

Diversification (New Products/New Markets)PRODUCT DIVERSIFICATION GAP • Products per Market Segment• Products per customer segment• Products per ProvinceACQUISITION GAP • Consider acquisitions

STRATEGY DEVELOPMENT DIRECTIONSOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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Each Customer Segment has its own PURCHASING CRITERIA based on what they value. The promotional strategy is based on this.

- Negotiating/Deal making - Product development (Lumber products) - Detailed understanding of markets - Marketing of Lumber Products - Relationship marketing (Key Accounts etc) - Work prospecting/creating - Strategic alliances with Suppliers and Customers - Cost leadership (productivity, procurement etc) - Differentiation

Discerning Buyers are ATTRACTED to THE COMPANY, provided with a selection of unique Building/Product solutions, advice, support (pricing and deliveries), outstanding service, fast delivery, JIT stock availability, provided with referrals and references and strategically located Distribution Centres where products can be displayed to BEST ADVANTAGE

• Professional Staff• Availability of Skilled Workers• Projects• Teamwork• Ability to forge successful

Partnerships with Specifiers, Merchants, Truss Manufacturers, Roofing and Building Contractors

• Products used/offered relevant to market needs

• Flexibility

CORE COMPETENCEOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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Each Customer Segment has its own PURCHASING CRITERIA based on what they value. The promotional strategy is based on this.

- Negotiating/Deal making - Product development (Lumber products) - Detailed understanding of markets - Marketing of Building Products - Relationship marketing (Key Accounts etc) - Work prospecting/creating - Strategic alliances with Suppliers and Customers - Cost leadership (productivity, procurement etc) - Differentiation

Discerning Buyers are ATTRACTED to THE COMPANY, provided with a selection of unique Building/Product solutions, advice, support (pricing and deliveries), outstanding service, fast delivery, JIT stock availability, provided with referrals and references and strategically located Distribution Centres where products can be VIEWED and displayed to BEST ADVANTAGE

• Professional Staff• Availability of Skilled Workers• Projects• Teamwork• Ability to forge successful

Partnerships with Specifiers, Merchants, Manufacturers, Roofing and Building Contractors

• Products used/offered relevant to market needs

• Flexibility

CORE COMPETENCEOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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Procurement;Logistics;

Market Development

Brand image;Outlets in prized

locations;Supplier relationships;Unique Product range;

Customer base.

RESOURCES, COMPETENCES AND COMPETITIVE ADVANTAGEOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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THE BOXED ITEMS REPRESENT DISTINCTIVE COMPETENCIES FROM WHICH COMPETITIVE ADVANTAGE CAN BE DEVELOPED

SUPPLIER RELATIONSHIPSPRODUCT SOURCING

COLLABORATIONNEGOTIATION

MARKETING/SELLINGEXPANDING CUSTOMER BASEKEY ACCOUNT MANAGEMENT

MIS SYSTEMSIN-BOUND LOGISTICS

JIT PURCHASING

BRANDINGSIGNAGE

REPUTATIONRELIABILITY

SOLUTION RANGESTAKEHOLDER SUPPORT

QUALITY SERVICERELATIONSHIPS

DIFFERENTIATION

PROFITABILITY

INVESTMENT

DISCOUNTSPRICING

PAYMENT TERMS

RELIABLE SERVICEETHICAL CULTURE

TRUST

MARKET DEVELOPMENTREPUTATION

LOGISTICS

PROCUREMENT

OUT-BOUND LOGISTICS PROJECT MANAGEMENT

RELIABLE DELIVERY

MOTIVATING BRANCHESTRAINING

INCENTIVESTEAM SPIRIT

LOW COST

REINVENTED BUSINESS IDEA OF CONTRACTINGOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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Business opportunities nationally

It is possible to satisfy the ASPIRATIONAL PRODUCT AND SERVICE requirements of DISCERNING CLIENTS;develop solutions, negotiate deals, put together and coordinate the teams that can deliver superior solutions. Keep number and velocity

of conversations going with identified stakeholders and network continuously making unreasonable requests and bold promises

The Name of the Game is - - - OPEN TO OPPORTUNITY, SOLUTION ORIENTATED, TEAMWORK, RISK AND REWARD SHARING, AND LONGTERM, WIN-WIN RELATIONSHIPS

Being present for

Taking a stand, making declarations

Staying in conversation ...

Potential clients for UPMARKET PRODUCTS AND SOLUTIONS and other complementary products and services.

Move into conversation rapidly and assemble the necessary solutions and teams, implement and coordinate the identified projects

REINVENTION CONTRACTOR PARADIGMOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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Added ValueWealth CreationHome ownershipNation building

Family LifeDecentralised

Distributed powerMutual respectProfessional

Expert knowledgeInformality

Emergent teams, self selected and self

organised;Non hierarchical;

Flat Structure;Networking, Teamwork; Alliances, Joint Ventures

Partnerships

Planning meetingsNetworking

Site meetings

ProjectsRelationshipsInstalled base

Problem solvingUnique Solutions

Commercial principlesSimple rules

Influence rather than controlRelationships emphasised

Budgeting and strict Financial DisciplineProject management

An entrepreneurial and creative company with high confidence and passion. Oriented towards visionary thinking, possibility and abundance,

risk taking and reward sharing. Emphasis on continuous learning, teamwork, networking and long-term, win-win relationships.

REINVENTED CONTRACTOR CULTURAL WEBOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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Market Management

FinancialManagement

Network PartnersProfessional Team of Researchers, Townplanners, Architects, Engineers, Quantity Surveyors, Urban

designers, Contractors and Project Managers

Investors

CORPORATE SUPPORT OFFICE TOGETHER WITH ALLIANCE PARTNERS PROVIDES THE POLICY DIRECTION, STRATEGY AND COORDINATION

Policy Direction,Strategy and Coordination

Project Management

REINVENTED STRUCTURE FOR CONTRACTORSOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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NATIONAL ISSUES

GROWTH WEALTHEMPLOYMENT PROPERTY

ORGANISATION’S ROLE

INVESTMENT SUSTAINABILTY

MARKETING LOGISTICS MANUFACTURING

SLOGANBuilding: An engine of growth & wealth creation

REINVENTIONDoing well while

doing good.

YESTERDAY’S ECONOMY

TOMORROW’SECONOMY

NARROW FOCUS ON COMPANY

BROAD FOCUS ON CONTRIBUTION TO NATIONAL ISSUES

BORROWBUY BURN

ENVIRONMENTALSUSTAINABILITY

SOCIALSUSTAINABILITY

ECONOMICSUSTAINABILITY

VISIONThe Building Industry is an engine for growth and wealth creation through redistribution, property development, ownership and investment.

MISSIONThe elimination of social backlogs and inequities is achieved through the provision of sustainable integrated developments, and providing skills, employment and entrepreneurial opportunities for growth.

VALUESThe Industry has an igniting vision, a culture, or mind set of co-operation, collaboration and cross-boundary networking; and the productive capability to deliver SUSTAINABLE Environmental, Social and Economic solutions and based on the unashamedly ethical values and code of conduct of:• Ubuntu• Integrity• Respect • Accountability• Law abiding

A GOOD STORY TO TELLBuilding is an Engine for growth and wealth creation and property is a preferred Investment.

CREATING THE FUTUREOF THE COMPANY IN THE CONTEXT OF THE BUILDING & CONSTRUCTION INDUSTRY

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TO REINVENT THE LEADERSHIP FIRST THEN THE ORGANISATION

THEN THE INDUSTRY

Leaders make the impossible happen

The challenge is

Download - The strategic planning dashboard

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