Growth Strategy Workshop
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Growth Strategy Workshop

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This is a workshop I did for 2nd stage entrepreneurs at a workshop hosted by the National Black MBA & The Disney Entrepreneurship Center

This is a workshop I did for 2nd stage entrepreneurs at a workshop hosted by the National Black MBA & The Disney Entrepreneurship Center

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Growth Strategy Workshop Growth Strategy Workshop Presentation Transcript

  • 2010 ECONOMIC EMPOWERMENT SERIES MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL Part 1: Clear Strategies for Success Saturday, April 24, 2010
  • 2010 ECONOMIC EMPOWERMENT SERIES MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL Part 1: Clear Strategies for Success Dwight Calbert President Aphelion Consulting LLC
  • 2010 ECONOMIC EMPOWERMENT SERIES MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL Part 1: Clear Strategies for Success Workshop 1: Strategic Aspirations
  • Product/Market Life-Cycle Launch Growth Maturity Saturation Decline Sales Time
  • 1) Challenges of Growth
  • 75% of growth initiatives fail Less than 12% of publicly traded companies achieve double-digit growth over a 10 year period 29% of managers in major corporation feel confident that they can reach their organic growth target 90% of executives rate innovation as a strategic priority in relation to growth; over half are dissatisfied with their ROI on innovation
  • The Relative Value Growth
  • Organic Growth vs. Margin Improvements
  • Exploitation vs. Exploration
  • Creative Destruction
  • Cannibalism Dilute the Brand Inconsistent Strategic Intent
  • Proactive Exit Strategies Reinvigorates Growth
  • The #1 Strategic Problem for Companies GROWTH GROWTH GROWTH GROWTH
  • 2) Define Strategy
  • How do you strategically think about growth?
  • Strategy Defined Strategy is: 1) an overarching plan that defines how you will attain & evolve a unique, differentiated competitive position that provides a clear advantage 2) a guideline for the focused use of resources to exploit opportunity and profit
  • Components of Strategic Aspiration Differentiated Advantage Sustainable Greatness
  • “These ideas are not for those whose ambition in life is to get by or merely to survive” from Blue Ocean Strategy
  • Philosophical Tenet “An organization can outperform rivals only if it can establish a difference that it can preserve”
  • Successful Strategy requires Vision, Commitment, Focus, Bold Leadership & Decisive Action “Strategy is a Paradox” Commitment to an Unknown Future
  • 3) Strategic Thinking Tenets
  • Foundations of Strategic Thinking
  • Challenge Conventional Wisdom Nothing is True - Everything is Permitted
  • Framing Science
  • High Altitude Holistic View BIG PICTURE Long-Term Perspective
  • Signaling The strategic use of misdirection to confuse the competition Carefully manage signaling effort because it gives notice of innovation growth initiatives
  • 4) Example Growth Strategy
  • Innovation Spurred Path to Growth Model New Degree of Change & Innovation Create Develop New Capabilities Revolutionary Exploration Change Organizational Capabilities 3 1S 4 2 Exploit Improve Core Businesses Strategic Exploitation Advantages Existing Degree of Change & Innovation Adapted from “Incubating Innovation” Limited Strategic Scope Unlimited Journal of Business Strategy by Hickman & Raia (200)
  • Illustrative Growth Strategy Increased Capacity for Reinvestment 1 Capacity & Willingness to Change Identify & Shape New Markets 2 Innovation Reduce Missed Opportunity Cost 3 De-Risking Opportunities
  • Product/Market Life-Cycle Launch Growth Maturity Saturation Decline Sales Time
  • Growth Strategy Increased Capacity for Reinvestment 1 Capacity & Willingness to Change
  • COMPETE on Your Ability to Generate Excess Cash
  • Innovation is a core strain in the DNA of Growth
  • 1) Change the ratio to optimize cost savings & productivity gains Cost Assumptions Knowledge Cost 2) Create organizational knowledge & capabilities that are valuable intangible assets
  • 10% Savings = $1 Million in Growth
  • A Key Source of Differentiation: What are the capabilities that drive competitive advantage given our strategic focus? Within those capabilities what are the positions that really make a difference? Who are the people in those positions & what are their skill-sets? Are the best people & skills in the most important strategic roles?
  • Growth Strategy 1a Building the Organizational Capability Capacity & Willingness to Change
  • Compete on Speed & Agility & Time
  • Organizational Growth Phase Model Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Creativity Direction Delegation Co-ordination Collaboration Alliance Organization Size Growth Crisis Red Tape Crisis Control Crisis Autonomy Crisis Leadership Crisis Time
  • UPS Marketing Tag-line “Moving @ the Speed of Business”
  • UPS Marketing Tag-line “Moving @ the Speed of Business” Past Competitive Today’s Competitive Environment Environment High High Fundamental Risk Risk Market Changes Low Low Short Long Short Long Decision Decision Making Window Making Window
  • Product/Market Life-Cycle Launch Growth Maturity Saturation Decline Sales Time
  • Growth Strategy Identify & Shape New Markets 2 Innovation
  • COMPETE on Vision
  • “People who get on in this world get up and look for circumstances they want; if they don’t find them, they create them” ~ George Bernard Shaw
  • Low Hanging Fruit
  • Low Hanging Fruit Adjacencies Franchising Channel Expansion Geographic Expansion Growth with Partnerships & Alliances Growth through Mergers & Acquisitions
  • Money In Growth Requires Investment Money Out
  • Converting Ideas
  • Innovation Portfolio
  • Portfolio Dimensions Innovation Timeframe Portfolio Exploration vs. Exploitation Evolutionary vs. Revolutionary External & Globally Sourced Concept Diversification Strategic Diversification Unorthodox Experiments Master the Art of Creative Destruction
  • Growth Strategy 2a Building the Organizational Capability Innovation
  • COMPETE on Ideas “from possibility to profit”
  • Innovation Defined the art of converting new ideas, discoveries or a vision into societal progress or commercial success faster and more effectively than competitors who have equal access to knowledge and technology
  • Philosophical Tenet “Technological breakthroughs and new products are not enough to generate growth from innovation”
  • Areas of Innovation { Strategic Value Creating Potential Creativity Product Development Process / Capability Strategic ~ how to discover more ~ how to create an open- ~ how to create the core ~ how to create strategic innovations that drives Challenge and better ideas that lead sourced, collaborative capability of innovation in to innovation system of development all company activities adaptive competitive advantage ~ creating & coordinating ~ performance metrics, ~ exploiting environmental ~ creativity & innovation in Objective synergies across the processes, systems & change to shape and organizational teams global community human capabilities create new markets Opportunity Creation Engines Innovation Integrators Innovation Infrastructure Strategic Renewal
  • Growth Strategy Reduce Missed Opportunity Cost 3 De-Risking Opportunities
  • Always Compete for New Opportunities
  • Growth Strategy 3a Building the Organizational Capability De-Risking Opportunities
  • Compete on our Decision Making Ability
  • Risk is an Inherent Part of Innovation & Growth
  • Remove the perception of risk (career risk) from the innovation process
  • Different is not Deficient
  • 2010 ECONOMIC EMPOWERMENT SERIES MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL Part 1: Clear Strategies for Success Thank You
  • Dwight Calbert President Aphelion Consulting LLC (650) 641-2095 Office (866) 202-1086 Toll-Free (312) 498-7741 Cell www.Aphelion-Consulting.com Infinitely Innovative