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083 An Engineering Approach to Strategic Planning -- by Dr James A Robertson PrEng
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083 An Engineering Approach to Strategic Planning -- by Dr James A Robertson PrEng

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A rigorous (engineering approach) to strategic planning using critical issues based analysis techniques and structured gap analysis techniques to develop a comprehensive and rigorous multi-year plan …

A rigorous (engineering approach) to strategic planning using critical issues based analysis techniques and structured gap analysis techniques to develop a comprehensive and rigorous multi-year plan that is measurable and actionable and traceable back to the original analysis in order to produced high value outcomes, requires effective strategic facilitation

See also http://www.james-a-robertson-and-associates.com/Strategy.aspx

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  • 1. 1 Dr James Robertson PrEng Copyright 2004 through 2010 James A Robertson and Associates James A Robertson and Associates Effective Strategic Business Solutions Strategic Analysis and Design An Engineering Approach to Strategic Planning Strategic Management Conference Tehran, Iran 28 September 2010
  • 2. 2 The harsh reality of strategic planning 90% of strategic planning initiatives FAIL to deliver any material change in performance of the organization
  • 3. 3 What is an engineering approach?
  • 4. 4 Engineers do NOT design bridges to stand up
  • 5. 5 They design them NOT to fall down Engineer strategic plans against failure
  • 6. 6 Imagining the impossible: What is NOT an engineering approach?
  • 7. 7 What is strategy? REALLY? ?
  • 8. 8 Strategy Doing the right things Professor Malcolm McDonald
  • 9. 9 Tactics Doing things right Professor Malcolm McDonald
  • 10. 10 Strategy -- doing the right things Tactics--thingsright Professor Malcolm McDonald The relationship between strategy and tactics
  • 11. 11 Strategy -- doing the right things Tactics--thingsright Thrive Professor Malcolm McDonald The relationship between strategy and tactics
  • 12. 12 Survive Strategy -- doing the right things Tactics--thingsright Professor Malcolm McDonald The relationship between strategy and tactics
  • 13. 13 Die Strategy -- doing the right things Tactics--thingsright Professor Malcolm McDonald The relationship between strategy and tactics
  • 14. 14 Die slowly Die fast Strategy -- doing the right things Tactics--thingsright Professor Malcolm McDonald The relationship between strategy and tactics
  • 15. 15 The relationship between strategy and tactics SurviveDie slowly Die fast Thrive Strategy -- doing the right things Tactics--thingsright Professor Malcolm McDonald
  • 16. 16 The time dependency of strategy Not a forecast Forecast Today + n Years ? ? ? Professor Malcolm McDonald
  • 17. 17 Not an objective Objective Today + n Years The time dependency of strategy Professor Malcolm McDonald
  • 18. 18 Strategic plan -- the path to competitive advantage Today A realistic trajectory of continuous improvement within business constraints + n Years The time dependency of strategy Professor Malcolm McDonald
  • 19. 19 The trajectory from good to great -- Gilette case study “From Good to Great” by Jim Collins page 24 1986 Hostile takeover thwarted 1991 Mockler retires 1996 End Study 1975 Colman Mockler Appointed CEO
  • 20. 20 The essence of strategy is integration - the ability to see in a complex holistic way The essence of strategy Michael E Porter: Global Competitive Strategy : 9 June 2003
  • 21. 21 What is strategy? The ESSENCE of why an organization exists and how it thrives
  • 22. 22 Core economic driver Core human resource driver Core market differentiator Core market Core product Core technology / capability Core values 1. 2. 3. 4. 5. 6. 7. Essential components of strategy
  • 23. 23 The Critical Factors for Success
  • 24. 24 Mythology (wishful thinking) (30%) Lack of executive custody and inappropriate policies (20%) Lack of alignment of operations with strategy (15%) Lack of a rigorous (engineering) approach (12%) Poor decision support information (10%) Poor change facilitation (8%) Technology (5%) 1. 2. 3. 4. 5. 6. 7. Causes of strategy implementation failure
  • 25. 25 The critical factors for strategy implementation = THRIVE success Executive custody (25%) Strategic solution architecture (18%) Clear strategic definition and alignment (16%) Business integration and optimization -- facilitation of change (14%) Effective project planning and execution management (12%) Reliable information to support THRIVE decision making (10%) Technology (5%) 1. 2. 3. 4. 5. 6. 7.
  • 26. 26 How to achieve sustainable and viable strategic designs
  • 27. 27 Precise determination of the essence of the business and how it thrives -- core strategic definition Precise determination of the strategic drivers -- finances, people, assets, etc Robust analysis of the strategic environment Structured critical issue models of each of these components Numeric measures of historic, current, forecast and objective performance gives prioritized numeric gaps Structured, prioritized solution action plans, alignment measures, KPI measures, critical competence measures, etc 1. 2. 3. 4. 5. 6. How to achieve sustainable and viable strategic designs
  • 28. 28 Support one or more of these: Maximize value creation minimize value destruction 7. CORPORATE STRATEGIC GOVERNANCE CORE STRATEGIC OBJECTIVES 4. EXTERNAL STRATEGIC ENV Horizon, medium term, short term, immediate incl threats, opp's, etc 2. MARKET AND PRODUCT FACT MAF, CSF, product fact, Market portfolio, etc Countered by alienators (The Solution Map) 6. STRAT CAPABILITY Ess Q's, realisation (value), StratProc, Crit Fct Success Mgmt of failure factors, etc 5. INTERNAL STRATEGIC ENV Strengths, weaknesses Operation, Systems, Managers, Staff, Workers 1. OWNER CSF'S 3. SUPPLIER FACTORS Supplier relationship and other supplier factors CORE STRATEGIC PARAMETERS Strategy and strategic drivers, also what NOT done Analysis of the Strategic Environment
  • 29. 29 Critical issues analysis -- at ANY level -- what is REALLY important Gap analysis Design / mapping -- how the solution fits together -- weights Governance framework Action plan Project plan Outcome tracking, performance measurement and incentives -- journey management Continuous Improvement 1. 2. 3. 4. 5. 6. 7. 8. Developing a Robust Strategic Design Forecast Today + n Years Projects and activities to close the gap MAY include I.T. Objective Plan and Solution = outcome of analysis and design process
  • 30. 30 The problem of different perspectives Everyone sees the problem and the solution differently Executive Production Operations Marketing Finance etc Strategic clarity provides focus Different perspectives remain valid and vital 1. ) ) ) ) ) ) 2. ) Impossible!! Easy!! Hard but we will make it! A few challenges but nothing insurmountable! x Objective What a deep gorge!
  • 31. 31 What will be done? How well are we doing it already? Accountability Timeline 1. 2. 3. 4. Gap Analysis
  • 32. 32 Resources (costs and constraints) Risks Customer impact What value and how -- economics 5. 6. 7. 8. Executive management is often the most serious constraint -- ask the RIGHT questions -- what is REALLY required? Gap Analysis
  • 33. 33 Strategic action plan Strategic project plan Strategic governance framework Key performance indicators -- “tell me how you want me to behave and I will tell you how to measure me” -- what must I do in order for the organization to thrive? Strategic competencies -- knowledge PLUS experience required to achieve strategic objectives -- cause the organization to thrive Measurement of alignment or lack of alignment Other -- diverse opportunities once there are robust measurements 1. 2. 3. 4. 5. 6. 7. Further analysis and outputs
  • 34. 34 Strategy is the essence of why the organization exists and how it THRIVES Focus on THRIVE activities and decisions Rigorous definition of the strategy and strategic drivers of the organization Rigorous analysis of the strategic environment Structured strategic gap analysis leading to structured, prioritized action plans, projects and continuous THRIVE improvement Formal plan execution including governance, performance measures, required knowledge and experience, measurement of alignment, etc High value THRIVE outcomes 1. 2. 3. 4. 5. 6. 7. Summing up
  • 35. 35 What is the most important insight you gained from this presentation? What is the most important action you propose arising from this presentation? What is your single most significant long term goal arising from this presentation? 1. 2. 3. Call to action If you gain an insight into something new and do not take action within 48 hours the chances are you never will Justin Cohen citing Bill Gates Write it down
  • 36. 36 Questions? Dr James Robertson PrEng James A Robertson & Associates Telephone: +27-83-251-6644 Care of Dorsa Padideh Company in Tehran www.JamesARobertson.com email: James@JamesARobertson.com Finding the missing pieces of your I.T. and strategy puzzles "To Him who by wisdom made the heavens, for His mercy endures forever;"