Strategy &
The Agency Model
Adapt, evolve or else
Laura McFarlane, VP SapientNitro
We can no longer look at change
as a transition. Rather, we need to
permanently embrace it as a
catalyst for growth.
Agenc...
What’s Changed?
FROM

TO

Rethinking strategic planning
Fundamental Changes in
How We Go About our Business

“Your remit now includes being
a data jockey, a brand leader, and an ...
In fact the whole Shape of our work has changed
PLAN

EXPERIENCE

MEASURE

Rapid cycle testing and ongoing interpretation ...
We Make Strategies
Organize Around Three Principles:

Intelligence

Experience

Evolvability
Intelligence
Every two days now, we create as much information as
we did from the dawn of civilization up until 2003.
- Eric Schmidt
One billion pieces of content are shared
via Facebook’s Open Graph daily.
The volume of data created by US companies alone
is enough to fill 10,000 Libraries of Congress.
A retailer using big data to the fullest could increase its
operating margins by more than 60%.
-McKinsey
Data
Evolution of Data. Where we’re going and when.
More than just data:
Intelligence
Breadth of Inquiry, Skills, Methods
STRATEGIC
ANALYSIS
“What	
  do	
  you	
  want	
  
to	
  have	
  happen?”	
  

BUSINESS...
Deep Analysis
Type

Macro-trends
Research Activity & Insight Depth

longitudinal forces influencing societal
or platform s...
Consumer Intelligence Process
Mission Control
What it Means for Strategists
Evolve and organize around new notions of intelligence

Getting good with data
Designing exp...
Experience
Connected Consumers,
High Expectations
Challenge: Putting consumers into context

How consumers live their lives.

View
Product on
a PC

Connection with the cate...
Build Worlds not Ads
STORIES = VALUE + MEANING
SYSTEMS = CONTEXT + ACTION

“STORYSCAPING”
Building “Worlds”
that Don’t Need Marketing
Purpose, People and Product are all we need.

• 

Nike's spending on TV and pr...
Vail Epic Mix
What did Vail get?
Millions of USD Total Mountain Net Revenue	
  

$752	
  

$766	
  

$638	
  

Return on Media
& Channel...
•  The role of content in the story – social,
location, context

What’s
Different?

•  Allows hero in the story to craft t...
New tools for understanding
and measuring experience
•  Sensors and instruments

•  Always on, dynamic models of
behaviors...
New dimensions for assessing…
CONTROL

ACCESS

And new
models for
measuring
ROX

FIT

SENSE

CONTINUITY

BRAND &
MARKETING...
What it Means for Strategists
“Crowdsourcing” the Strategy

CREATIVITY
MEDIA

SOCIAL

UX

STRATEGY

CONTENT

ANALYTICS

TE...
Evolvability
1. the capacity of a system for adaptive evolution.
PLAN MORE LIKE A

HACKER
Driving Growth
Creating a system for incremental innovation
Agility to continually adapt to the changing landscape of
cons...
What it Means for Strategists
Speed & Agility

Rapid cycles between Intelligence, Marketing and Product.
Leverage data and...
To Sum Up…
The Un-Model; New Skills and New
Processes Required to Work in Concert
4 RULES:

Strategy is drawn from a wider range of d...
THANK	
  YOU	
  
Laura McFarlane - Strategy & the Agency Model - 4A's Strategy Festival 2013
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Laura McFarlane - Strategy & the Agency Model - 4A's Strategy Festival 2013

  1. 1. Strategy & The Agency Model Adapt, evolve or else Laura McFarlane, VP SapientNitro
  2. 2. We can no longer look at change as a transition. Rather, we need to permanently embrace it as a catalyst for growth. Agencies need an “un-model”
  3. 3. What’s Changed? FROM TO Rethinking strategic planning
  4. 4. Fundamental Changes in How We Go About our Business “Your remit now includes being a data jockey, a brand leader, and an innovator.” - David Cooperstein, Forrester
  5. 5. In fact the whole Shape of our work has changed PLAN EXPERIENCE MEASURE Rapid cycle testing and ongoing interpretation – analysis fuels optimization and adaptation
  6. 6. We Make Strategies Organize Around Three Principles: Intelligence Experience Evolvability
  7. 7. Intelligence
  8. 8. Every two days now, we create as much information as we did from the dawn of civilization up until 2003. - Eric Schmidt
  9. 9. One billion pieces of content are shared via Facebook’s Open Graph daily.
  10. 10. The volume of data created by US companies alone is enough to fill 10,000 Libraries of Congress.
  11. 11. A retailer using big data to the fullest could increase its operating margins by more than 60%. -McKinsey
  12. 12. Data Evolution of Data. Where we’re going and when.
  13. 13. More than just data: Intelligence
  14. 14. Breadth of Inquiry, Skills, Methods STRATEGIC ANALYSIS “What  do  you  want   to  have  happen?”   BUSINESS VALUE TACTICAL ANALYSIS “Why  has  it  happened?”   “What  has   happened”   Standard  Metrics   ‘Historical’  analyCcs   (sales  data,  etc)   User  profiles     AJtudinal  segmentaCons   Behavioral  segmentaCons   Life  stage  segmentaCons   Process  descripCons  &   models   Modes  of  behavior   Modes  of  use   Agent-­‐based   modeling   Strategic  planning   acCviCes   Inventory  planning   MarkeCng  mix     COMPLEXITY OF ANALYSIS DATA   INFORMATION   INSIGHT   RECOMMENDED   ACTIONS  
  15. 15. Deep Analysis Type Macro-trends Research Activity & Insight Depth longitudinal forces influencing societal or platform shifts Human-intelligence blended qualitative and quantitative understanding of why trends and behavior are what they are Micro-behavioral the actual behavior of people captured through analytics across digital touch points Machine-driven real-time responsiveness driven by both immediate behavior and regressed behavioral frames Purpose Time scale Strategy Monthly – quarterly Strategy / Operations Weekly – quarterly Operations / Optimization Daily – monthly Touch-point Optimization Real-time
  16. 16. Consumer Intelligence Process
  17. 17. Mission Control
  18. 18. What it Means for Strategists Evolve and organize around new notions of intelligence Getting good with data Designing experiences that not only generate data but can continuously be improved by it.
  19. 19. Experience
  20. 20. Connected Consumers, High Expectations
  21. 21. Challenge: Putting consumers into context How consumers live their lives. View Product on a PC Connection with the category and marketplace. Identify and model the opportunities. BUY Website Check Twitter Text Picture to a Friend Identify connections and nature of the experience. Assign role and function and metrics to each connection. Determine Return on Experience. Watch Video on Tablet Download An App View Banner Ad Connection (if at all) with the brand. Out of Home Poster “Like” a Product on Facebook TV Ad Join Loyalty Program Read Blogs Interact With A Kiosk Go to Retail Store Interaction With A Sales Associate Seek Opinions on Social Read Ratings and Reviews Add to Cart Share Link on Facebook
  22. 22. Build Worlds not Ads STORIES = VALUE + MEANING SYSTEMS = CONTEXT + ACTION “STORYSCAPING”
  23. 23. Building “Worlds” that Don’t Need Marketing Purpose, People and Product are all we need. •  Nike's spending on TV and print advertising in the US has dropped by 40% in just three years, even as its total marketing budget has steadily climbed upward to hit a record $2.4 billion last year •  Where is the money moving? To connected product development, digital and social service platforms where communities can engage more deeply with the brand.
  24. 24. Vail Epic Mix
  25. 25. What did Vail get? Millions of USD Total Mountain Net Revenue   $752   $766   $638   Return on Media & Channels: 300,000+ members, and counting 38,000+ using the app. growing Over 300M social impressions, growing Traditional ROI Benefits: 2013 revenue up 13.1% sequentially 2010   2011   2012   Overall, 30% growth in revenue from 2009 Skier visits up 5.5% in 2013
  26. 26. •  The role of content in the story – social, location, context What’s Different? •  Allows hero in the story to craft the narrative •  Enables connection between people, places & brands •  Always-on, joined at any time or place •  Has an underlying connections platform •  Real-time data and analytics •  Aggregating data over time yields massive advantages
  27. 27. New tools for understanding and measuring experience •  Sensors and instruments •  Always on, dynamic models of behaviors •  Qualitative as well as quantitative data sources •  Analytic tools PEOPLE Interactions Perceptions PLACES THINGS
  28. 28. New dimensions for assessing… CONTROL ACCESS And new models for measuring ROX FIT SENSE CONTINUITY BRAND & MARKETING ROI RETURN ON MEDIA & CHANNELS EXPERIENCE OPTIMIZATION
  29. 29. What it Means for Strategists “Crowdsourcing” the Strategy CREATIVITY MEDIA SOCIAL UX STRATEGY CONTENT ANALYTICS TECHNOLOGY INSIGHTS
  30. 30. Evolvability
  31. 31. 1. the capacity of a system for adaptive evolution.
  32. 32. PLAN MORE LIKE A HACKER
  33. 33. Driving Growth Creating a system for incremental innovation Agility to continually adapt to the changing landscape of consumer and technology Designing growth into service and product Having a “Growth Hacking” department
  34. 34. What it Means for Strategists Speed & Agility Rapid cycles between Intelligence, Marketing and Product. Leverage data and insights to generate hypotheses, put in market and test on an ongoing basis. Refine, course correct.
  35. 35. To Sum Up…
  36. 36. The Un-Model; New Skills and New Processes Required to Work in Concert 4 RULES: Strategy is drawn from a wider range of disciplines; Intelligence, Experience and “Growth Hacking”. Technology is now table-stakes. Deep and continuous investment in consumer intelligence and data will define us. Massively distributed skills and deep, constant, agile collaboration. From disciplines to ‘pods’. From waterfall to agile or scrum. A nimbler approach: continuously iterate technology and experience based on findings.
  37. 37. THANK  YOU  
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