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TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
TCIA Winter Conf - Strategic Thinking / Planning
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TCIA Winter Conf - Strategic Thinking / Planning

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TCIA Winter Management Conference opening Keynote by John Spence on Strategic Thinking / Strategic Planning

TCIA Winter Management Conference opening Keynote by John Spence on Strategic Thinking / Strategic Planning

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  • 1. Achieving Business Excellence While at a beautiful Caribbean resort… in the middle of winter… at 9 am… the morning after the Super Bowl!!!
  • 2.
      • Most people are so busy working IN their business that they do not take any time to work ON their business.
  • 3. … chaos brings opportunity For those that are prepared…
  • 4. Learning Objectives:
    • Understand what it takes to be an effective “Strategic Thinker.”
    • Discuss common mistakes in writing strategic business plans.
    • Look at all of the major elements of creating a robust strategic business plan.
    • 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.
  • 5. 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:
    • www.SlideShare.net/johnspence
  • 6.  
  • 7. For the past 21 years…
  • 8. What does this mean to me? How can I use this idea? What can I do right away ? I am NOT a guru…
  • 9. 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
    2
  • 10. 2
  • 11. 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.
  • 12. “ Simplicity is the ultimate sophistication” Leonardo da Vinci
  • 13. Do you have a clearly focused and well-communicated strategy for success? Effective Strategy = Valued Differentiation x Execution
  • 14. Key Point: Strategy is INTERNAL as well as EXTERNAL
  • 15. Five Foundations of Effective Strategic Thinking
      • Business Acumen
      • Personal Experience
      • Pattern Recognition
      • Strategic Insight
      • Disciplined Execution
    2
  • 16. The Four – I’s
    • Ignorance
    • Inflexibility
    • Indifference
    • Inconsistency
    2
  • 17. 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.
    2
  • 18. From the CEO of a little 182 billion dollar company… “ L ook, 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
  • 19. To get the most from our session together… It is absolutely critical that you be brutally honest with yourself today . 3 So let's get started with a little self-test…
  • 20. 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.
  • 21. Microsoft
    • Total World Domination
    • The Top 5 %
    • Bet the Company
    • Require Failure
    • Managers are Qualified
    • Perform, Perform, Perform
    • Shrimps vs. Weenies
    • Stop the Insanity
    • Espirit De Corps
    4 From: The Twelve Simple Secrets of Microsoft Management by Thielen
  • 22. Charlie Trotter’s 4
  • 23. Lessons from seven top CEOs
    • Have an outside-in perspective
    • Be deeply passionate about your job
    • Understand the importance of culture
    • Create or adapt next generation products, processes and solutions
    • Implement the best ideas regardless of origin
    4 From: What the Best CEOs Know by Krames Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B 1-10
  • 24.  
  • 25. The Toyota Way
    • Challenging Vision
      • We form a long-term vision, meeting challenges with courage and creativity to realize our dreams.
    • Kaizen
      • We improve our business operations continuously, always driving for innovation and evolution.
    • Genchi Genbutsu
      • We go to the source to find the facts to make correct decisions, build consensus, and achieve our goals at our best speed.
    • Respect, Challenge and Help your People and Suppliers
      • We respect others, make every effort to understand each other, take responsibility and do our best to build mutual trust.
    • Teamwork
      • We stimulate personal and professional growth, share the opportunities of development, and maximize individual and team performance.
    5 1-10
  • 26. In-depth study of 25 top companies renowned for building winning corporate cultures…
    • GE
    • Dell
    • Wal-Mart
    • Toyota
    • Nordstrom
    • Starbucks
    • Southwest Airlines
    • IBM
    • P&G
    • Whole Foods
    • Ritz Carlton
    • Intel
    The pattern of six common traits for all of these firms… From Results Rule by Randy Pennington
  • 27. They understand that : Results Rule!
    • Tell themselves the truth and value candor and honesty.
    • Pursue the best over the easiest in every situation.
    • Leverage the power of partnerships both internally and externally.
    • Focus the energy to make the main things the main thing.
    • Show the courage of accountability.
    • Learn, grow and improve every single day.
    From Results Rule by Randy Pennington 5 1-10
  • 28. Is Your Company Up To Speed? Fast Company June 2003 Pages 6 - 7
  • 29. Good to Great : 1,483 to 11 400 – 700% 15+ years 8
  • 30. Twice weekly surveys for five years of 2,000+ senior managers and executives at:
    • IBM
    • GE
    • Morgan Stanley
    • Merck
    • 3M
    • Microsoft
    • CIGNA
    • Heineken
    • MasterCard
    • Fidelity
    • Motorola
    • Ikon
    • American Express
    • Progressive
    • Bank of America
    • AT&T
    • SAP
    • Borders
    8
  • 31. Keys to effective management…
    • Communicate clearly
    • Force the hard decisions
    • Focus on results
    • Remain flexible to change
    • Prove your value to the customer
    • Force collaboration
    • Rigorous but not ruthless
    8 1 - 10 From: Think Big – Act Small by Jennings
  • 32. The Evergreen Project
    • 10 year study of 160 top companies
    • 40 distinct industries
    • 200 management practices
    • Winners, climbers, tumblers, losers
    • Winners had an average Total Return to Shareholders of 945%... The Losers only averaged a TRS of 62%
    From: What (really) Works by Joyce, Nohria, Roberson 9
  • 33. The Four Primary Practices:
    • A sharply focused, clearly communicated and well-understood strategy for growth.
    • Flawless operational execution that consistently delivers the value proposition.
    • A performance-oriented culture that does not tolerate mediocrity.
    • A fast, flexible, flat organization that reduces bureaucracy and simplifies work.
    From: What (really) Works by Joyce, Nohria, Roberson 9
  • 34. The Secondary Management Practices:
    • Talent = find and keep the best people.
    • Key leaders show commitment and enthusiasm for the business.
    • Embrace strategic innovation.
    • Master the power of partnerships.
    From: What (really) Works by Joyce, Nohria, Roberson Score yourself on the 1–10 scale for all eight practices on page 9
  • 35. Individual Workshop
    • Go back and look at all of your audits.
    • Where were your low scores, where were your high scores – what is the pattern?
    • Look over your notes – what were the key themes? What are the most important ideas?
    • Answers all the questions on pages 10 – 12.
    • Put in as much detail as possible.
    • Be very honest with yourself.
    • Think in terms of Actions and Outcomes .
  • 36. Thinking to Planning
  • 37.  
  • 38. 15
  • 39. 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.
    17
  • 40. 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.
    18
  • 41. NITB
  • 42. The Key: a VERY honest and thorough SWOT analysis Workshop 24 - 27
  • 43. 83 %
  • 44. What makes a winning strategy? Unique Coherent Deliverable Evolving 32
  • 45. Common Problems
    • Putting It Off
    • Idea inflation
    • Diluted priorities
    • Vague goals
    • No execution plan!!!
  • 46. The Organizational Framework for Effective Execution WHO WHAT HOW Cross-Functional Teams Senior Leadership Departments Adapted from: Six Disciplines Execution Revolution Individuals Planning Retreat Quarterly Workshops Goals Tracking Dashboard Status Reports Status Meetings Workshops Status Reports Regular Meetings Coaching Individuals Tactical Plans Action Items To-do Lists NITB
  • 47. 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
  • 48. Assessing the Strategic Situation Simplicity Complexity Certainty Uncertainty Knowing Forecasting Proactive Adaptive Strategic Planning Scenario Planning
  • 49. 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 .
    34
  • 50. The Harvard Scenario Planning Model:
    • Key Focal Issue
    • Driving Forces
    • Critical Uncertainties
    • Scenario Framework
    • Scenarios
    • Narratives
    35
  • 51. Critical Uncertainties
    • BEGIN with the top two most relevant uncertainties that impact your scenario.
    36
  • 52. Example: Boat Company Critical Uncertainties: Gas Prices / Recession 36
  • 53. Scenario Framework: 2 Critical Uncertainties / 4 Scenarios Short Short Long Long How long will gas prices stay high in US? How long will the US recession last? Hold on - stay domestic - slow production Invest in electric engine R&D Close factories Focus on international business-move production offshore 36
  • 54. Possible Scenarios
    • Short / Short = Hold on
    • Short / Long = New engines
    • Long / Short = Close factories
    • Long / Long = Go international
    • Now for each you would create a Narrative Story … and remember, there may be multiple critical uncertainties that generate multiple scenarios!
  • 55.
    • Probability
    • Impact
    • Trigger Points
    Then for each scenario…
  • 56. 10 – 15 %
  • 57. 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%)
  • 58. Where are we going + how will we behave on the way? Focus Differentiation “ No” Stakeholders + guiding collation Vision + Values Strategy Plans Goals Objectives Tactics / Actions Procedures / Protocols Repeatable Process Clear / consistent / relentless All available channels Training + time / money / supplies / people Measure / Track Communicate Transparency Renewal Praise + Celebration and Eliminate Mediocrity 40
  • 59. Disciplined Execution
    • Clear Vision
    • Detailed Strategy
    • Guiding Coalition
    • Alignment
    • Systems
    • Communication
    • Support
    • Adjust
    • Reward / Punish
    41 1 - 10
  • 60. 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
  • 61. If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com My twitter address is: @awesomelysimple Also, you might find value in the ideas I share in my blog. You can sign up for it at: www.blog.johnspence.com Lastly, these slides have already been uploaded to: www.slideshare.net/johnspence

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