Your SlideShare is downloading. ×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Strategic Principle Framework

225
views

Published on

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go …

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/Strategic-Principle-Framework-166

Strategic principles allow organizations to make decentralized decisions while maintaining cohesive strategic action. This document explains the strategic principle framework, including examples, defining attributes, relevant crucial situations, and an approach to strategic principle development.

This document is based on the HBR article, "Transforming Corner-Office Strategy into Frontline Action," co-authored by Orit Gadiesh and James Gilbert. This article is on the list of "HBR's Must-Reads on Strategy."

Intro to the article:
Southwest Airlines keeps soaring. Its stock price rose a compounded 21,000% between 1972 and 1992 and leapt 300% between 1995 and 2000.

Why does Southwest succeed while so many other airlines fail? Because it sticks to its powerful strategic principle: "Meet customers' short-haul travel needs at fares competitive with the cost of automobile travel." This pithy, memorable, action-oriented phrase distills Southwest's unique strategy and communicates it throughout the company.

An effective strategic principle lets a company simultaneously:
*maintain strategic focus,
*empower workers to innovate and take risks,
*seize fleeting opportunities,
*create products and services that meet subtle shifts in customers' needs.

In today's rapidly changing world, companies must integrate decentralized decision making with coherent, strategic action. A well-crafted, skillfully implemented strategic principle lets them strike that delicate balance.

Published in: Business, Technology

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
225
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Crowdsourced Business Presentation Design Service Strategic Principle Transforming Corner-Office Strategy into Frontline Action February 25, 2014 Strategic principles allow organizations to make decentralized decisions while maintaining cohesive strategic action. This document explains the strategic principle framework, including examples, defining attributes, relevant crucial situations, and an approach to strategic principle development. ORIGINAL PROJECT DETAILS http://pptlab.com/ppt/HBR-Transforming-Corner-Office-Strategy-into-Frontline-Action-21
  • 2. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 4 Contents Constructing a Strategic Principle Closing Thoughts Crucial Situations for Strategic Principle Overview This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/strategic-principle-framework-166
  • 3. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7 The strategic principle abides by the 80-100 rule of business 80-100 Rule Source: HBR: Transforming Corner-Office Strategy into Frontline Action, Gadiesh, Gilbert (2001) The distillation of an organization’s strategy into a pithy and prescriptive phrase is important because a great business strategy is of little use unless people understand it well enough to apply it—both to anticipated decisions and unforeseen opportunities. The essence of why a strategic principle is useful can be explained by the 80-100 rule of business, which states: You are better with a strategy that is 80% right and 100% implemented than one that is 100% right, but doesn’t drive consistent action throughout the company. A strategic principle helps an organization balance the ratio between correct strategic decision and strategy implementation. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/strategic-principle-framework-166
  • 4. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 10 There are 4 primary situations where having a strategic principle is crucial to success Crucial Situations for Strategic Principle Source: HBR: Transforming Corner-Office Strategy into Frontline Action, Gadiesh, Gilbert (2001) Today, companies face 4 situations—oftentimes simultaneously—that make a strategic principle crucial to success: Rapid GrowthDecentralization Institutional TurmoilTechnological Change Strategic Principle This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/strategic-principle-framework-166
  • 5. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13 Technological change is becoming more and more pervasive in modern industries Crucial Situation: Technological Change Source: HBR: Transforming Corner-Office Strategy into Frontline Action, Gadiesh, Gilbert (2001) Rapid GrowthDecentralization Institutional Turmoil Technological Change Strategic Principle EXAMPLE(S) • For the case of Dell in the late 90s, its mandate to sell direct to end users helped ensure that the decisions made by frontline managers in such circumstances add up to a consistent corporate strategy Technological change is an impact that not only affects the company’s strategic direction, but can significantly impact its operations. The staggering pace of technological change over the past couple decades has been costly for companies that have not employed a strategic principle Never before in business has there been more uncertainty coupled with so great an emphasis on speed Oftentimes, the sum of the reactions across the organization ends up defining the company’s strategic course—whether or not its aligned with the company’s strategic plan In particular, in high-tech industries, managers must react immediately to sudden and unexpected developments OVERVIEW This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/strategic-principle-framework-166
  • 6. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 16 Many successive companies were originally founded upon strategic principles Constructing a Strategic Principle (1 of 3) Source: HBR: Transforming Corner-Office Strategy into Frontline Action, Gadiesh, Gilbert (2001) Many of the best and most conspicuous examples of strategic principles come from companies that found on them, such as: • eBay • Dell • Vanguard • Southwest Airlines • Wal-Mart The founders of these companies adopted a clear guiding principle that summarized the essence of what would later grow to a full-blown business strategy. However, in the case of established multinationals, these organizations often need to craft their strategic principles at a critical juncture. The question that arises is, how do you construct a strategic principle when one doesn’t exist? This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/strategic-principle-framework-166
  • 7. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19 Contents Constructing a Strategic Principle Closing Thoughts Crucial Situations for Strategic Principle Overview This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/strategic-principle-framework-166
  • 8. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 22 PPT Lab (www.pptlab.com) is the only crowdsourced presentation design service. Get consulting-quality presentations at a fraction of the cost! Each month, we will create well over 50 slides of for our members. As a member, you will drive what business slides we create by submitting your own presentation projects to our team. All presentations will be created by a team of management consultants and follow the Consulting Presentation Framework. www.PPTLab.com support@pptlab.com This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/strategic-principle-framework-166
  • 9. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com