strategy and planning in a fast changing world
TRANSCRIPT
STRATEGY & PLANNINGIN A FAST-CHANGING WORLDCarlos Henao
MEET JOHN:
THE SUCCESSFULCEO OF A MANUFACTURING
COMPANY
AT LEAST, UNTIL THE PAST FEW
MONTHS…
PROFITS DETERIORATED
PRICES DECLINEDREVENUE CAME EXCLUSIVELYFROM OLD MARKETS AND PRODUCTS
MEANWHILE, COMPETITORS HAD BETTER PRODUCTS,
PRICES, AND MARGINS
THE BOARDAPPROACHED JOHN,CONCERNED WITH HISABILITY TO HANDLE THISSITUATION
DURING A SLEEPLESS NIGHT, JOHN REALIZED WHAT WAS WRONG
WITH THE COMPANY’S STRATEGY
THEY GOT FIXATED IN COMPETITORS AND IN MAKING MONEY,
AND FORGOT WHO THEY WERE AND HOW THEY CREATED UNIQUE, SIGNIFICANT VALUE TO THEIR
CUSTOMERS
IT COULD BE SUMMARIZED AS
“EVERYTHING TO EVERYBODY”WITHOUT TRADE-OFFS, TO KEEP OPTIONS OPEN
THE COMPANY WOULD
RUN AFTER EVERY OPORTUNITY,
EVEN IF DISJOINTED,DILUTING ITS CAPABILITIES AND
LIMITING LEARNING
RESOURCES & BUDGET WERE
DISTRIBUTED EVENLY, BASED SOLELY IN FINANCIAL METRICS,
NOT STRATEGICALLY, ACROSS TOO MANY INITIATIVES
THE FOCUS WAS ON DOING THINGS
RIGHT IN THE SHORT TERM,NOT ON DOING THE RIGHT THING,
ALSO FOR THE LONG RUN
JOHN ALSO REALIZED THAT THERE
WAS A DISCONNECT BETWEENFORMULATION & EXECUTION
HE NEEDED TO RETHINKTHE COMPANY’S STRATEGY& PLANNING, AND THE WAY TO DO IT, BUT HE DID NOT LIKE IT, BECAUSE IT’S A FAST-CHANGING WORLD
Bad strategy and planning Good strategy and planning
Strategy & no plan OR plan & no strategy Strategy, with a plan to make it true
Existing value, short term Focused on the present and the future, short and long term
Without clear choices or trade-offs Hard choices and trade-offs
Inward focused Inward and outward focused
Slow and inflexible Agile and dynamic
Full of data, with little direction Data to support direction
One-time project, closed-door Continuous process, participative (though not democratic)
ASPIRATIONS
COMPETITIVEARENAS
DIFFERENTIATORS
CAPABILITIES
THE COMPANY’S ASPIRATIONS:KEY MOTIVATIONS & OBJECTIVES
THE COMPETITIVE ARENASINCLUDING CUSTOMER SEGMENTS, GEOGRAPHIES,
PRODUCT CATEGORIES, CHANNELS & VERTICAL PRODUCTION STAGES
DIFFERENTIATORSTHE COMPANY’SUNIQUE VALUEPROPOSITION
AND CAPABILITIES3-6 INDEPENDENT & REINFORCING
CAPABILITIES IN ORDER TO CREATE UNIQUE VALUE
AFTER BRAINSTORMINGOVER THE COURSE OFTHE NIGHT, JOHN WASREADY TO ACT AND DEFINED HOW TO DO IT
HE INVOLVED THE BOARDFROM THE BEGINNING, AS WELL AS A GROUP
OF PEOPLE AT DIFFERENT LEVELS WHO
COULD CONTRIBUTE
HE MADE EVERYTHING ABOUT STRATEGY
PEOPLE
PROCESSES &TECHNOLOGY
GOVERNANCE
ORGANIZATIONALSTRUCTURE
CONTEXT STRATEGY PLAN
IMPLEMENTING THE PLAN IN 3 STEPS
IT WAS HARD WORK & REQUIRED
DIFFICULT DECISIONS:
ESPECIALLY TRADE-OFFS
BUT IT WAS WORTH IT:ALL ARE FOCUSED IN
CREATING UNIQUE VALUE TO
THEIR CUSTOMERS
HOW CAN YOUSTART TO EFFECTIVELYFORMULATE & PLANSTRATEGY?Carlos Henao: Managing Partner
E-mail: [email protected]
Phone: 574-386-0999 - Mobile: 310-359-5905