Responsive Strategy Tech Start-up School 2011 David Maher Roberts, CEO, The Filter @davidpmr / dmr@theﬁlter.com
HEALTH WARNING The content of this presentation does not constitute a definitive guide to business strategy and strategic planning. I am not an expert in strategy orstrategic planning. I am not an academic.You have been warned. :)
The aim tonight‣ Purpose of business strategy‣ Ideas on how to develop one‣ When to change / stick
“What’s the use of running if you are not on the right road.” German proverb
Answers key questions ‣ What do we do? ‣ For whom do we do it? ‣ How do we excel?
A strategic planCombines end goals, roadmap & what you need to deliver
Planning methods‣ See - what is todays situation?‣ Think - deﬁne goals/objectives‣ Draw - map a route to achieving the goals/objectives
Deﬁning & Communicating1. Name & tagline 6. Competition2. Vision & Mission 7. SWOT Analysis3. Market & Problem 8. Business objectives4. Product / Solution 9. Marketing Strategy5. Value proposition 10. Review milestones
“In strategy it is important to seedistant things as if they were close and to take a distanced view of close things” Miyamoto Musashi
A strategy must be...• Sharply deﬁned and built around a clear value proposition• Clearly communicated• Well understood by all: Customers, Employees, Partners, Investors• Frequently reviewed• Easy to ﬁne tune based on external factors e.g. new technology, social trend, regulation, competition, etc...
So, once that’s done,everything is great, right?
Hidden ﬂaws to watch out for• Over conﬁdence• Mental accounting• Status quo bias• Anchoring• The sunk cost effect• Herding instinct• Incorrect estimate of future hedonic states• False consensus
“However beautiful the strategy,you should occasionally look at the results.” Sir Winston Churchill
Strategy mistakes areharder to admit than execution mistakes
The average of twostrategies is usually not a strategy
Reviewing strategy• Deep knowledge of market and trends• Review results & external factors• Question and test your strategy• Seek regular advice (Advisory Board / Non Execs / Experts)• Develop plays to further test strategy• Be prepared to change strategy fast
Reasons to change Does your product/service better suit an adjacent industry/sector?1. Is your product more of a feature?2. The market opportunity is not that big3. Competition has matched your product/service and got better traction4. A killer new trend that propels your product/service5. Core mission can be same, but go to market may need to be changed
Example 5: The Filter “ The Filter is a life jockey, offering people freedom from thetyranny of choice. It is a smart online companion that transforms the user experience because it understands and caters to the user’s tastes and moods” Peter Gabriel
Thank you for listeningAny questions or comments?