Presenting F1 Strategy:
Charting Your Business DNA




Tuesday, November 17, 2009
Content Of This Document




   Content
   Executive Summary
                                                             ...
Executive Summary


Business Advisory Boutique With Unique Hands-On
Approach Enabling Fast Quantifiable Results
F1 Strateg...
Understanding Strategy’s Weak Points


Business Ideas Fail Not Because Of A Lack Of Good
Strategies But Due To Poor Execut...
Our Approach


F1 Strategy’s Approach Breaks The Status Quo And
Moves Beyond Mere Advice
Proprietary Process And Implement...
Top-Down Approach


Partner With Clients To Identify Competencies And
Capabilities
Competency Pyramid




   Customer     ...
Top-Down Approach


 Help Clients Translate Their Mission Into Desired
 Outcomes Using A Proven Methodology
 Converting In...
Top-Down Approach


Implementing Strategies Depend On Understanding
The Cause-Effect Between Strategic Objectives
Sample B...
Rendering Strategies Actionable


A Business DNA Map Is Translated Into Objectives,
Key Performance Indicators And Action ...
Bottom-Up Approach


Business DNA Metrics Are Quickly Built Using Available
Client Systems To Standardize The Use Of Data
...
Bottom-Up Approach


Data Is Mined Without Introducing Complex And
Expensive Systems Or Disrupting Business Flow
Bottom-Up...
F1 Strategy - Charting Business DNA
F1 Strategy - Charting Business DNA
F1 Strategy - Charting Business DNA
F1 Strategy - Charting Business DNA
F1 Strategy - Charting Business DNA
F1 Strategy - Charting Business DNA
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F1 Strategy - Charting Business DNA

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To introduce F1 Strategy, a business advisory boutique focused on helping companies successfully execute on their strategies.

The practice leverages cause-effect metrics and in-depth analytics to chart the DNA of a business.

Additiona inforamtion at www.F1Strategy.com

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F1 Strategy - Charting Business DNA

  1. 1. Presenting F1 Strategy: Charting Your Business DNA Tuesday, November 17, 2009
  2. 2. Content Of This Document Content Executive Summary Objective Understanding Strategy’s Weak Points To introduce F1 Strategy, a Our Approach business advisory boutique Top-Down Approach focused on helping companies successfully execute on their Rendering Strategies Actionable strategies. Bottom-Up Approach The practice leverages cause- Implementum effect metrics and in-depth analytics to chart the DNA of a In-Depth Analytics business. 80% Solutions © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 2
  3. 3. Executive Summary Business Advisory Boutique With Unique Hands-On Approach Enabling Fast Quantifiable Results F1 Strategy Overview Generates feasible Strategic solutions creating thinking strategic advantage combined and marketable with added value pragmatism Accelerates design of solutions through iterations and pilots Partnership with Leverage of Partnership with Leverage of clients to execute on FAST proprietary clients to execute on FAST proprietary a hypothesis-driven QUANTIFIABLE framework involving a hypothesis-driven QUANTIFIABLE framework involving and iterative RESULTS different levels of the and iterative RESULTS different levels of the approach organization approach organization Ensures successful transition from Sustainable strategy formulation Sustainable implementation to strategy execution Generates implementation through sustainable through proprietary momentum and proprietary software ensures client software implements implements ownership © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 3
  4. 4. Understanding Strategy’s Weak Points Business Ideas Fail Not Because Of A Lack Of Good Strategies But Due To Poor Execution Why Do Strategies Fail? Typical Questions: ― How do we intend to create value for the shareholder? Major reasons behind strategy failure*: ― How do we execute our strategy? ― How are we going to make money? ― Incorrect implementation of a correctly ― How are we going to help our clients (Value designed strategy Proposition)? ― Latent resistance by the organization’s ― Should we continue with all our offerings? employees and partners ― How do we hold people accountable (for ― Incorrect diagnosis of strategic success and failures)? requirements ― Do we have he right vendor partnerships? ― Incorrect strategy designed for a correct ― What is our exposure to market risks? set of strategic requirements Facts: — Culture eats strategy for lunch — You cannot manage what you do not measure — A Business DNA Map will provide the link between strategy formulation and strategy execution — You have more information about your business than ever before. But are you using it to outthink your rivals? If not, you’re failing to exploit a potent competitive tool** * Leo Hopf, Carlson School Of Management ** Competing on Analytics, Davenport-Harris, Harvard Business School Press 2007 © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 4
  5. 5. Our Approach F1 Strategy’s Approach Breaks The Status Quo And Moves Beyond Mere Advice Proprietary Process And Implements Top-Down Approach F1 Strategy Implements F1 Strategy partners with Proprietary software suite senior management to with historical as well as Strategic Objectives identify key pain-points F1 Strategy simulation views to help and opportunities cause-effect monitor and project framework links business performance DNA Map strategy using the following formulation to perspectives: Financial, strategy External, Internal and execution Resources Data Center Key Metrics Bottom-Up Approach In-Depth Analytics F1 Strategy coordinates Decision-making repertoire with subject matter leveraged by F1 Strategy’s experts (SME’s) to define problem solving process. and consolidate information © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 5
  6. 6. Top-Down Approach Partner With Clients To Identify Competencies And Capabilities Competency Pyramid Customer Shareholder Those critical core competencies that, in combination, deliver Platform(s) and sustain undisputed market leadership Core Capabilities and functions that have a direct and Competencies significant impact on competitiveness Capabilities and functions that are important to Enabling Capabilities competitive advantage in an indirect or enabling way Capabilities and functions that are basic and currently Supporting Capabilities necessary to the operation of a company © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 6
  7. 7. Top-Down Approach Help Clients Translate Their Mission Into Desired Outcomes Using A Proven Methodology Converting Intangible Assets Into Tangible Outcomes Partner with client, conduct Mission Partner with client, conduct Why we exist observations, perform initial observations, perform initial assessment (e.g., SWOT) Values assessment (e.g., SWOT) and develop hypotheses What’s Important to Us and develop hypotheses Vision What We Want to Be Strategy Our Game Plan Business DNA Map Translate the Strategy Business DNA Metrics Measure and Focus Targets and Initiatives What We Need To Do Personal Objectives What I Need To Do OUTCOMES Source: Robert Kaplan and David Norton © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 7
  8. 8. Top-Down Approach Implementing Strategies Depend On Understanding The Cause-Effect Between Strategic Objectives Sample Business DNA Map Financial -- 40% Optimize Market Increase Business Increase Profitability Presence Volume Client -- 25% Manage Price Provide exceptional Improve Client Competitiveness Customer Service Performance Internal -- 20% Reduce Cost to Manage Sales Implement critical Achieve superior Risk Produce Performance technology projects and Quality Rating Resources -- 15% Manage Vendor Reduce Turnover performance © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 8
  9. 9. Rendering Strategies Actionable A Business DNA Map Is Translated Into Objectives, Key Performance Indicators And Action Items From Business DNA Map To Actionable Metrics Financial -- 40% Optimize Market Increase Business Increase Profitability Presence Volume Well defined metrics are used to Client validate or readdress strategic -- 25% Manage Price Competitiveness Provide exceptional Customer Service Improve Client Performance objectives. They will help managers understand cause- Internal effect correlations. -- 20% Reduce Cost to Manage Sales Implement critical Achieve superior Risk Produce Performance technology projects and Quality Rating Resources -- 15% Manage Vendor Reduce Turnover performance BizCase Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% F3 Increase Business Volume Total Sale Volume 10% Client C1 Manage Price Competitiveness Competitive Score 10% -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score 5% C3 Improve Client Performance Client Average Score 10% Objectives and themes in a Business DNA Map are used to Internal -- 20% I1 I2 I3 Reduce Cost to Produce Manage Sales Performance Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% build an actionable codecard I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month cumulative "Good" rating 5% used to clearly communicate Resources R1 Reduce Turnover % Turnover 5% strategic expectations down to -- 15% R2 Manage Vendor performance Vendor Performance Score 10% the individual levels. © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 9
  10. 10. Bottom-Up Approach Business DNA Metrics Are Quickly Built Using Available Client Systems To Standardize The Use Of Data Building Blocks Of Business DNA Codes Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes BizCase Objective Measure Weight Target Metric Actuals Capacity Model Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% Information F3 Increase Business Volume Total Sale Volume 10% Client Performance Client -- 25% C1 Manage Price Competitiveness Competitive Score 10% Activity Based Costing C2 Provide exceptional Customer Service Client Satisfaction Score 5% C3 Improve Client Performance Client Average Score 10% Forecasting Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% Compensation I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5% -- 15% BizCase R2 Manage Vendor performance Vendor Performance Score 10% Single Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% Source F3 Increase Business Volume Total Sale Volume 10% Customer Client C1 Manage Price Competitiveness Competitive Score 10% Of -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score 5% Cost Complaints C3 Improve Client Performance Client Average Score 10% Truth Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5% Databases -- 15% R2 Manage Vendor performance BizCase Vendor Performance Score 10% Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% Daily download F2 Optimize Market Presence F3 Increase Business Volume BizCase Share of Market Total Sale Volume 10% 10% uses agreed upon Client -- 25% C1 Manage Price Competitiveness C2 Provide exceptional Customer Service Competitive Score Client Satisfaction Score 10% 5% definitions to C3 Improve Client Performance Client Average Score 10% compile data into a target Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating central data mart Resources -- 15% R1 Reduce Turnover R2 Manage Vendor performance % Turnover Vendor Performance Score 5% 10% current Turn Quality Time (# of issues) © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 10
  11. 11. Bottom-Up Approach Data Is Mined Without Introducing Complex And Expensive Systems Or Disrupting Business Flow Bottom-Up Approach To Single Source of Data Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes Single Resources Needed Source Of Truth Depending on final solution (e.g., SQL, Oracle), an assessment of technical resources will be needed Yes Can we get the data No consistently with Prototype 1 to 2 FTEs will be needed to prototype the minimum effort? single source of truth, using MS Access for example Yes No Test and recommend Is the data correct? data fixes 1 to 2 FTEs will be needed to test the data Yes No Work with IT to Start Does the data identify data needs needed exist? and build database Mini-projects to be launched depending on recommendations and data needs © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 11
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