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Summary lecture on Strategic Management CBS MBA
 

Summary lecture on Strategic Management CBS MBA

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A summary lecture on Strategic Management. Given at Copenhagen Business School's MBA program spring 2010, while in the program. ...

A summary lecture on Strategic Management. Given at Copenhagen Business School's MBA program spring 2010, while in the program.
The presentation gives an overview of the field of strategy. Extra attention is given to strategic innovation as a core discipline.
The presentation is rounded out by a Goldman Sachs strategy case.

Please contact Christian@engage-innovate.com for further information.

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  • and felt above the knee, "What this most wondrous beast is like is very plain" said he, "'Tis clear enough the elephant is very like a tree." The fifth who chanced to touch the ear said, "E'en the blindest man Can tell what this resembles most; deny the fact who can; This marvel of an elephant is very like a fan." The sixth no sooner had begun about the beast to grope, Than seizing on the swinging tail that fell within his scope; "I see," said he, "the elephant is very like a rope." So six blind men of Hindustan disputed loud and long, Each in his own opinion exceeding stiff and strong; Though each was partly in the right, they all were in the wrong!
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • Bartlett, Ghoshal (2002)
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • “ The secrets of successful strategies; Winning People’s Emotional Commitment” Prof. Costas Markides, London Business School
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.
  • It’s a dirty little secret: Most executives can’t articulate their business strategy in a simple statement. And if they cannot, of course, then neither can anyone else.

Summary lecture on Strategic Management CBS MBA Summary lecture on Strategic Management CBS MBA Presentation Transcript

    • What is Strategy?
    Presentation Copenhagen Business School MBA program February 22 nd – 23 rd 2010 Christian Rangen
    • Engage // Innovate
    • Strategy . Innovation . Sales . Leadership .
    • Christian Rangen
    • Partner
    • Mobil: +47 92 41 59 49
    • E-post: Christian@engage-innovate.com
    • www.engage-innovate.com
    • My intention:
    • Help you get an overview of
    • ‘ Strategic Management’
    • What is Strategy?
  •  
    • There were six men of Hindustan,
    • to learning much inclined,
    • Who went to see an elephant,
    • though all of them were blind,
    • That each by observation
    • might satisfy his mind.
    • The first approached the elephant,
    • and happening to fall
    • Against his broad and sturdy side,
    • at once began to bawl,
    • "This mystery of an elephant
    • is very like a wall."
    • The second, feeling of the tusk,
    • cried, "Ho, what have we here,
    • So very round and smooth and sharp?
    • To me 'tis mighty clear,
    • This wonder of an elephant
    • is very like a spear."
    • The third approached the elephant,
    • and happening to take
    • The squirming trunk within his hands,
    • thus boldly up and spake,
    • "I see," quoth he,
    • "the elephant is very like a snake."
    The fourth reached out an eager hand, and felt above the knee, "What this most wondrous beast is like is very plain" said he, "'Tis clear enough the elephant is very like a tree." The fifth who chanced to touch the ear said, "E'en the blindest man Can tell what this resembles most; deny the fact who can; This marvel of an elephant is very like a fan." The sixth no sooner had begun about the beast to grope, Than seizing on the swinging tail that fell within his scope; "I see," said he, "the elephant is very like a rope." So six blind men of Hindustan disputed loud and long, Each in his own opinion exceeding stiff and strong; Though each was partly in the right, they all were in the wrong! Mintzberg, et.al. (1998) Strategy Safari
    • “ Nobody really knows what strategy is”
    The Economist, in Markides, 2004
    • The 10 Schools of Strategic Management
    Mintzberg, et.al. (1998) Strategy Safari
  •  
    • A different animal altogether:
    • Strategy Execution
    • “ 13”
    • Strategic Management
    • +
    • Change Management
    • =
    • ” It doesn’t matter where you want to go, if the organization doesn’t go with you”
  •  
  •  
    • Let us go back in time
    • Boston Consulting Group 1965
    • "Bruce called a staff meeting for a Saturday morning in the fall of 1965. He explained that to survive, much less grow, in a competitive landscape occupied by hundreds of larger and better-known consulting firms, we needed a distinctive identity. He had concluded that we shouldn’t fight the competitive battle as generalists, but should instead stake out a special area of expertise. "He asked what we thought that specialty should be. Many suggestions were offered, but in each case we were able to identify several other firms that already had strong credentials in that particular area. The discussion began to stall.
    • Then Bruce asked a momentous question: ‘What about business strategy?’ I objected: ‘That’s too vague. Most executives won’t know what we’re talking about.’ Bruce replied, ‘That’s the beauty of it. We’ll define it.“
    • http://www.bcg.com/this_is_bcg/bcg_history/bcg_history_1963.html
    • A Timeline on Strategic Management*
  • 1950 1960 1970 1980 TQM BCG Strategy Knowledge workers Positioning Transformational leadership Concept of strategy Porter’s 5 F Corporate Strategy BCG Matrix PESTEL PLC Scenarios SWOT
  • 1980 1985 Six Sigma ” In search of Excellence” 7 S Value Chain Resource-based view VRIO TQM (2) Lean Balanced Scorecard Strategic intent Knowledge company Crafting strategy
  • 1990 1995 BPR Networks Disruptive innovation Core Competences BSC (2) Learning organizations Mass custimization Positive psychology Strategymaking as serious play Disruptive technologies Intellectuca l capital Employee engagement Strategy safari HR-champion Competitive advantage through people Sears case Strategy as revolution Ongoing dynamic prosess Rise and fall of strategic planning
  • 2000 2005 Strategy maps BusinessEQ NPS Blue Ocean Strategy The Long Tail Stratey Index Human Sigma Management Innovation( 2) Office of Strategy Management Deep Discount str. Gallup path Knowledge-based theory of the firm Execution Danish strategy barometer Crowd-sourcing Say your strategy?
  • 2010 2015 Innovators dream of what might be…. Innovation
    • Why wait for the future? Innovators dream of what can be…..
    • “ The strategist's goal is not to find a niche within the existing industry space but to create new space that is uniquely suited to the company's own strengths - space that is off the map.”
    1989; “Strategic Intent”; Gary Hamel & C.K. Prahalad
    • Blank
    • Some of the key assumptions in traditional
    • strategy analysis can be outlined as follows:
    • Strategy is about positioning a business in a given industry structure (Porter, 1980, 1985)
    • 2. The focus of strategy tools and analysis is existing industries(SCP in Microeconomics)
    • 3. The primary focus of strategic analysis is the business unit
    • 4. Strategic outcomes can be explained on the basis of economic analysis
    • 5. Strategy is the result of an analytical process; execution of strategy is an organizational process
    Prahalad & Hamel, 1994
  • Bartlett & Ghoshal (2002)
  • Adapted from Lybecker, 2007 Strategic Planning Strategic Innovation Analytical Creative Logical and linear Disruptive Expect the future to be much like the present Expect the future to be dynamic and different Developing existing business model Developing alternativ (new) business model Focus on improving performance Focus on new realities Technology & product-driven Customer-driven Following traditions, rules and mental models Breaking traditions, rules and mental models
  • The Four Strategic Perspectives; Andersen, Froholdt & Poulfelt The Positiong perspective (external) The Resource-based perspective (internal) Blue Ocean Strategy- perspective Discount strategy perspective Compete in existing market space Compete by developing strong resources Create uncontested market space Compete in hypercompetitive market space Beat the competitors through a strong position Resources should be Valuable, Rare, Non-imirable and exploited by the organization (VRIO) Make the competition irrelevant Own value creation while destroying value for others Exploit existing demand Utilize strenghts in resource profile Create and capture new demand Both supply push and demand pull Low cost OR Differentation Leverage resources Create uncontested value Craft the strategy with disruptive effect
    • The Strategy Process
    Strategic Analysis Idea Follow-up & Control Strategic Choice Strategy Execution Strategic Planning
  • Strategic Analysis Idea Follow-up & Control Strategic Choice Strategy Execution Strategic Planning Business idea Value proposition Strategic Intent Vision Mission Values Unleash Human Imagination What’s our dream? Aligment with the rest of the organization Connect: Strategy; Metrics; Training and development Performance reviews Rewards & bonuses World-class alignment ” I know and understand our strategy” ” I am enthusiastic about our strategy” ” Every day, I make our strategy happen” BSC Communi-cations strategy Execution Be defined by industry or blow up the industry’s borders? Clear choice of what we want to be and do Clear choice of what we don’t want to be and do Investments Long-term Goals Align: Organization Culture Rewards People Radical business model innovation Imagine if… Scenarios Options Uniqe Industry Position Business plan: Long-term goals and plans BSC Strategy maps External Porter 5F PESTEL BCG Matrix Market & customer analysis ” faster horses” Internal Financials SWOT VRIO (CC) 7 S Value chain BEQ NPS Human Sigma Employee & Customer Engagement Innovation rate Culture GPTW
    • Different ways of running the strategy process
    • High involvment
    Internal External Low Involvement
    • High involvment
    Internal External Low Involvement I: CEO & McKinsey team II: CEO, Strategy director & McKinsey team III: Management & McKinsey team VI: Several project teams VII: Everybody involved VIII: Project teams; with customers & Partners IV: CEO Alone V: One project team
    • ” Is there a correlation between involvement and effect of execution?”
    • ” Yes, absolutely”
    • - Holst-Mikkelsen & Poulfelt
    • Can Strategy Be Made Easy?
    • Where Do We Want to Be in 3 Years ?
    • How Are We Going to Get There ?
    • How do we achieve competitive advantage?
    • Low-cost
    • VS.
    • Differentiation
    • Vs.
    • Focus
    • … or…
    • Deep Discount Strategy
    • Vs.
    • Radical Business Model Innovation
    • External Perspective
    • Vs.
    • Internal Perspective
    • Incremental
    • Vs.
    • Innovative
    • Vs.
    • Radical
    • Analysis
    • Vs.
    • Action
    • Analysis
    • Vs.
    • Paralysis
    • What Industry Position Should We Take?
    • ” Succesfull attackers do not try to be better than their bigger rivals. Rather, they actively adopt a different business model (or strategy) aim to compete by changing the rules of the game in the industry”
    C.C. Markides, 2008
    • How do we want our customers to experience us differently?
    • Who?
    • What?
    • How?
    • “ The secrets of successful strategies;
    • Winning People’s Emotional Commitment”
    Markides, London Business School
    • The 10 Schools of Strategic Management
    Mintzberg, et.al. (1998) Strategy Safari
    • Prescriptive Schools
    • The design school (process of conception)
    • The planning school (formal process
    • The positioning school (analytical process)
    • Descriptive Schools
    • 4. The environmental school (reactive process)
    • 5. The cognitive school (mental process)
    • 6. The entrepreneurial school (vision process)
    • 7. The power school (process of negotiation)
    • 8. The cultural school (collective process)
    • The learning school (emerging process)
    • Configuration School
    • 10. The configuration school (transformation process)
    • “ Like many organization's, our written strategies quickly became dead documents.”
    Art Schneiderman, 1987, "The First Balanced Scorecard“
    • Can You Say What Your Strategy Is?
    Collins & Ruckstad, 2008
    • Three keys to succesfull strategy execution
    Poulfelt & Holst-Mikkelsen Commitment Action Purpose Results Execution
    • Balanced Scorecard drives Strategy Execution
    • 3 rd Generation BSC:
    • Focus, Metrics, Alignment, Action
  •  
    • The Strategic Sweet Spot
    Collins & Ruckstad, 2008
    • The strategic sweet spot of a company is where it meets customers’ needs in a way that rivals can’t, given the context in which it competes.
    • The Strategic Sweet Spot
    Context (technology, industry demographics, regulation, and so on)
    • Goldman Sachs
    • Group one
    • # 1: Using your material, identify the concepts that could be used/are used in the case
    • # 2: Select a few and conduct a breif strategy analysis of Goldman Sachs’ market entry
    • # 3: What’s your view on their strategy
    • Group two
    • # 1: Using your material, conduct a brief strategic analysis of Goldman Sachs’ market entry
    • # 2: What’s your view on their strategy
    • Thank you
    • Engage // Innovate
    • Strategy . Innovation . Sales . Leadership .
    • Christian Rangen
    • Partner
    • Mobil: +47 92 41 59 49
    • E-post: Christian@engage-innovate.com
    • www.engage-innovate.com