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SII 2010 Strategic Thinking in Business


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Slide deck from the 2010 Securities Industry Institute at Wharton.

Slide deck from the 2010 Securities Industry Institute at Wharton.

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  • 1. SII 2010 Strategic Thinking & Planning
  • 2. SII 2010 For those that are prepared… …chaos brings opportunity
  • 3. SII 2010 Learning Objectives: • Address key elements of a business plan that align your firm’s critical objectives with those of your individual’s business unit’s objectives. • Discuss common mistakes in writing strategic business plans. • Identify guidelines on how often to review your strategy, adjust and change or be flexible. • Provide each participant with numerous tools, ideas and skills to apply when creating a detailed and realistic strategic business plan.
  • 4. SII 2010 Do NOT freak out! • I have a ton to cover and I will go pretty fast. • Please take notes and ask questions. • I am happy to answer any of your questions, offer advice and recommend books at any time. The slides and a full strategic planning workbook are already posted at:
  • 5. SII 2010
  • 6. SII 2010 Most people think of: S.W.O.T. Competitive Positioning Customer Intimacy / CRM Industry trends Global trends Regulatory / Political Issues M.E.C.E. KRA’s Strategic Thrusts Corporate Objectives SMART Goals MBO
  • 7. SII 2010
  • 8. SII 2010 What strategy is not… • More, better, faster is not a strategy. • Effectiveness and efficiency are necessary… but not sufficient. • Superb execution of fundamental business processes… is expected. • Being extremely good at what you are supposed to be good at… gets you no extra credit at all.
  • 9. SII 2010 Effective Strategy = Valued Differentiation x Execution
  • 10. SII 2010 Key Point: Strategy is INTERNAL as well as EXTERNAL
  • 11. SII 2010 Five Foundations of Effective Strategic Thinking Business Acumen Personal Experience Pattern Recognition Strategic Insight Disciplined Execution
  • 12. SII 2010 The Four – I’s • Ignorance • Inflexibility • Indifference • Inconsistency
  • 13. SII 2010 How to avoid the Four I’s • Aggressive external market focus. • Aggressive customer focus. • Keep the “Main Things” the main things. • Bullish on knowledge sharing and learning. • Passion and commitment at all levels. • Foster a healthy paranoia. • Revel in change.
  • 14. SII 2010 From the CEO of a little 182 billion dollar company… “Look, what is strategy but resource allocation? When you strip away all the noise, that’s what it comes down to. Strategy means making clear-cut choices about how to compete. You cannot be everything to everybody, no matter what the size your business or how deep its pockets. You have to figure out what to say “NO” to.” Jeffrey Immelt
  • 15. SII 2010 A short diatribe before we get to the business models… • I don’t like benchmarking. • I think copying other businesses is stupid! • Typically, by the time people start benchmarking a company five years has past since they initiated their strategies. • There is no way to guarantee that what worked for them will work for you… • But what I absolutely can guarantee is… you will not come up with any innovative, effective or remarkable strategies completely on your own. You must look around you to find good ideas… then take those ideas and make them better as you apply them to your specific challenges and opportunities.
  • 16. SII 2010
  • 17. SII 2010 Breakthrough Strategies • GE: 1- 2 or F.S.C. • Intel: memory to processors • Microsoft: installed base • Apple: chaos to elegance • Saturn: no haggling
  • 18. SII 2010 Southwest 1 type of plane Point-to-point Fast turns Low fares / no frills Friendly staff
  • 19. SII 2010 BTO JIT Inventory turns Logistics vs. Technology VOC Dell
  • 20. SII 2010 100,00 ELP No Frills Logistics
  • 21. SII 2010 Educated Guess Focus Resource Allocation Bold not Risky What NOT to do
  • 22. SII 2010 Thinking to Planning
  • 23. SII 2010
  • 24. SII 2010
  • 25. SII 2010 What Business Planning is Not ! • Business planning does not attempt to make future decisions. • Business planning is not forecasting. • Business planning is not an attempt to blueprint the future. • Business planning is not necessarily the preparation of massive plans and reports. • Business planning is not an effort to replace good management judgment.
  • 26. SII 2010 Why Planning Pays Off Asks & answers questions of importance. Simulates the future. Forces the setting of objectives. Gives a framework for decisions. Develops performance measurements. Improves communications.
  • 27. SII 2010
  • 28. SII 2010 Common Problems • Putting It Off • Idea inflation • Diluted priorities • Vague goals • No execution plan!!!
  • 29. SII 2010 10 – 15 %
  • 30. SII 2010 What Inhibits Execution? National Survey of 4,000 Senior Executives 4. Inability to work together (21%) 3. Company culture (23%) 2. Economic climate (29%) 1. Holding onto the past / unwillingness to CHANGE (35%)
  • 31. SII 2010 Where are we going + how will we behave on the way? Praise + Celebration Focus and Differentiation Eliminate Mediocrity “No” Measure / Track 9 Steps for Communicate Stakeholders + Transparency Ensuring guiding collation Renewal Effective Execution Vision + Values Training + Strategy time / money / Plans supplies / Goals / people Objectives Tactics / Actions Procedures / Protocols Clear / consistent / Repeatable Process relentless
  • 32. SII 2010 Some thoughts on measurement • Less is more • Results not activity • Easy / Hard • Post and review • Help not punishment
  • 33. SII 2010 Assessing the Strategic Situation Simplicity Complexity Certainty Uncertainty Knowing Forecasting Proactive Adaptive Strategic Scenario Planning Planning
  • 34. SII 2010 Scenario Planning… Is a process that stimulates imaginative and creative thinking to better prepare an organization by rehearsing for the future to avoid surprises and break through the illusion of certainty. Probability / Impact ---- Trigger Points
  • 35. SII 2010 Review of the plan? • Twice yearly Strategic Planning Retreat – 1 to 2 days • Monthly “quick check” meetings 2 – 3 hours • Weekly Senior team alignment review – 1 hour or less • Carry plan to every strategic meeting
  • 36. SII 2010 Summary of Key Ideas • Major elements: thinking, planning, execution, review • Strategic thinking = study + experience + pattern recognition • Strategy = bold bets on resource allocation. • What you say “No” to is a big part of strategy. • Planning is a process. • Analysis is critical – but it is not strategy. • More, better, faster is not a strategy. • This is not blueprinting the future. • Keep it simple, focused and extremely well communicated. • A plan for execution MUST be part of the Strategic Plan. • Alignment + support + measurement + tracking + reward / punishment • Contingency planning = probability & impact / trigger points
  • 37. SII 2010 THANK YOU If you have any questions at all please do not hesitate to send a note or call. My email address is: Also, you might find value in the ideas I share in my blog. You can sign up for it at: These slides and the workbook have already been uploaded to: