Introduction to the BMI BRSCU strategy regeneration process

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Introduction to the BMI BRSCU strategy regeneration process

  1. 1. <ul><li>BMI-BRSCU </li></ul>SR The BMI-BRSCU STRATEGY REGENERATION PROCESS Dr. Llewellyn B. Lewis May 2011 <ul><li>THE STRATEGIC FORUM </li></ul><ul><li>A place of assembly </li></ul><ul><li>for strategic conversations </li></ul>THE STRATEGIC FORUM www.strategicforum.co.za
  2. 2. COMPETING FOR THE FUTURE THE QUEST FOR COMPETITIVENESS <ul><li>BMI-BRSCU </li></ul>SR RESTRUCTURING THE PORTFOLIO AND DOWNSIZING HEADCOUNT REENGINEERING PROCESSES AND CONTINUOUS IMPROVEMENT REGENERATING STRATEGIES SMALLER BETTER DIFFERENT POSSIBLE RESULTS
  3. 3. STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT <ul><li>BMI-BRSCU </li></ul>SR STRATEGY THE INDUSTRY ENVIRONMENT THE FIRM (Grant : 1991)
  4. 4. STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT <ul><li>BMI-BRSCU </li></ul>SR STRATEGY THE INDUSTRY ENVIRONMENT THE FIRM Resources and capabilities give rise to strengths and weaknesses (Grant : 1991)
  5. 5. STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT <ul><li>BMI-BRSCU </li></ul>SR STRATEGY THE INDUSTRY ENVIRONMENT Conditions and trends give rise to opportunities and threats THE FIRM Resources and capabilities give rise to strengths and weaknesses (Grant : 1991)
  6. 6. <ul><li>BMI-BRSCU </li></ul>SR UNDERSTANDING THE ENVIRONMENT (SCENARIOS) UNDERSTANDING THE ORGANISATION (BUSINESS IDEA) IS THIS THE RIGHT COMPANY FOR THESE FUTURE ENVIRONMENTS ? IF NOT : ADDRESS COMPETENCIES STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT IF SO : ADDRESS BUSINESS CHOICES
  7. 7. STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Organisational Learning STRATEGIC LEADERSHIP As a way of Business Life ENVIRONMENTAL FORCES ORGANISATIONAL RESOURCES CAPABILITIES CURRENT REALITY STRATEGIC INTENT, VISION, MISSION DRIVING FORCE PERFORMANCE GUIDELINES INDUSTRY FORESIGHT UNDERSTANDING THE INDUSTRY SCENARIOS UNDERSTANDING THE ENVIRONMENT BUSINESS IDEA UNDERSTANDING THE INSTITUTION THE PARADIGM OR MENTAL MODEL Beliefs and assumptions held in common and taken for granted in an Organisation (After Johnson : 1988) STRATEGY AND PARADIGMS
  8. 8. STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Organisational Learning STRATEGIC LEADERSHIP As a way of Business Life ENVIRONMENTAL FORCES ORGANISATIONAL RESOURCES CAPABILITIES CURRENT REALITY STRATEGIC INTENT, VISION, MISSION DRIVING FORCE PERFORMANCE GUIDELINES INDUSTRY FORESIGHT UNDERSTANDING THE INDUSTRY SCENARIOS UNDERSTANDING THE ENVIRONMENT BUSINESS IDEA UNDERSTANDING THE INSTITUTION THE PARADIGM OR MENTAL MODEL Beliefs and assumptions held in common and taken for granted in an Organisation (After Johnson : 1988) STRATEGY AND PARADIGMS If you want to understand the World, commonly held ideas are absolutely blinding.
  9. 9. STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Organisational Learning STRATEGIC LEADERSHIP As a way of Business Life ENVIRONMENTAL FORCES ORGANISATIONAL RESOURCES CAPABILITIES CURRENT REALITY STRATEGIC INTENT, VISION, MISSION DRIVING FORCE PERFORMANCE GUIDELINES INDUSTRY FORESIGHT UNDERSTANDING THE INDUSTRY SCENARIOS UNDERSTANDING THE ENVIRONMENT BUSINESS IDEA UNDERSTANDING THE INSTITUTION THE PARADIGM OR MENTAL MODEL Beliefs and assumptions held in common and taken for granted in an Organisation (After Johnson : 1988) STRATEGY AND PARADIGMS The only way to spot threats and opportunities is to break out of a narrow way of thinking.
  10. 10. STRENGTHS and WEAKNESSES OPPORTUNITIES and THREATS Organisational Learning STRATEGIC LEADERSHIP As a way of Business Life ENVIRONMENTAL FORCES ORGANISATIONAL RESOURCES CAPABILITIES CURRENT REALITY STRATEGIC INTENT, VISION, MISSION DRIVING FORCE PERFORMANCE GUIDELINES INDUSTRY FORESIGHT UNDERSTANDING THE INDUSTRY SCENARIOS UNDERSTANDING THE ENVIRONMENT BUSINESS IDEA UNDERSTANDING THE INSTITUTION THE PARADIGM OR MENTAL MODEL Beliefs and assumptions held in common and taken for granted in an Organisation (After Johnson : 1988) STRATEGY AND PARADIGMS . . . If you’re trying to reach enlightenment, you must develop, in this order, “right view, right intention, right action.” If you’re not seeing the world properly, you have no hope of any sort of breakthrough. (Ramo: 2009: 134)
  11. 11. DOING Content Context Shortsight Longsight Foresight Vision Context Far Hindsight Near Hindsight Blind spots Bright sparks Data Facts, observations, data points Information Data with meaning Knowledge Information with insight Wisdom Knowledge with context (Source: Based on Dr. Kanes Rajah: 2005) Partial knowledge Incorrect knowledge False knowledge No knowledge BEING Process STRATEGY AND PARADIGMS
  12. 12. DOING Content Context Shortsight Longsight Foresight Vision Context Far Hindsight Near Hindsight Blind spots Bright sparks Data Facts, observations, data points Information Data with meaning Knowledge Information with insight Wisdom Knowledge with context (Source: Based on Dr. Kanes Rajah: 2005) Partial knowledge Incorrect knowledge False knowledge No knowledge BEING Process More than anything, what you want to know is when change is going to begin. This sense is known as mastery of incipience, and the skill is often praised as the highest form of wisdom . (Ramo: 2009: 161). STRATEGY AND PARADIGMS
  13. 13. DOING Content Context Shortsight Longsight Foresight Vision Context Far Hindsight Near Hindsight Blind spots Bright sparks Data Facts, observations, data points Information Data with meaning Knowledge Information with insight Wisdom Knowledge with context (Source: Based on Dr. Kanes Rajah: 2005) Partial knowledge Incorrect knowledge False knowledge No knowledge BEING Process . . . truth emerges through debate, study, reflection, meditation, and, at long last, insight delivered like lightning. (paraphrase of Ramo, 2009: 212). STRATEGY AND PARADIGMS
  14. 14. DOING Content Context Shortsight Longsight Foresight Vision Context Far Hindsight Near Hindsight Blind spots Bright sparks Data Facts, observations, data points Information Data with meaning Knowledge Information with insight Wisdom Knowledge with context (Source: Based on Dr. Kanes Rajah: 2005) Partial knowledge Incorrect knowledge False knowledge No knowledge BEING Process . . . The environment is far more powerful than any individual. It is never stable and in its sudden changes from one state to another, more important than the desires of any of us . . . Context is everything . . . (Ramo: 2009: 160). STRATEGY AND PARADIGMS
  15. 15. <ul><li>BMI-BRSCU </li></ul>SR THE STRATEGIC PLANNING PROCESS
  16. 16. <ul><li>BMI-BRSCU </li></ul>SR CREATIVE TENSION SEEKS RESOLUTION RESULTS IN ACTION THE GLUE THAT HOLDS STRATEGY TOGETHER Regenerating Strategy : Strategic Leadership as a way of Business Life PARADIGMS and PARADIGM SHIFT LEADERSHIP STYLE CULTURE, VALUES SCENARIOS CORPORATE CHALLENGES, COMPETITIVE INNOVATION, STRATEGIC ACTION PLANS SHARED UNDERSTANDING AND COMMITMENT TAPPING THE COLLECTIVE WISDOM OF THE TOTAL ORGANISATION PERFORMANCE MILESTONES Measuring Success STRUCTURE Required for the future STRATEGIES CORE COMPETENCIES FUTURE BUSINESS IDEA STRATEGIC ARCHITECTURE RESOURCES, SKILLS, KEY CAPABILITIES FUTURE DRIVING FORCE SWOT CHANGING GAME RULES REDEFINING BOUNDARIES STRATEGIC INTENT VISION, MISSION, SLOGAN VALUES, CONTEXT CURRENT REALITY RULES OF THE GAME BUSINESS IDEA
  17. 17. <ul><li>BMI-BRSCU </li></ul>SR THE RELATIONSHIP OF VISION, STRATEGIES, PLANS AND BUDGETS : A TRADITIONAL VIEW Specific action steps and timetables to implement the strategies Plans converted into financial projections and goals A sensible and appealing picture of the future A logic, and first level of detail, for how the vision can be achieved BUDGETS MANAGEMENT DOES LEADERSHIP DEVELOPS STRATEGIC ACTION PLANS STRATEGIES VISION
  18. 18. ENVIRONMENTAL CHANGE <ul><li>BMI-BRSCU </li></ul>SR WHAT RESPONSES RESULT ? DENOMINATOR (NET ASSETS) NUMERATOR (NET INCOME) <ul><li>RESTRUCTURING </li></ul><ul><li>B P RE-ENGINEERING </li></ul><ul><li>COST CUTTING </li></ul><ul><li>BENCHMARKING </li></ul><ul><li>TOTAL QUALITY MANAGEMENT </li></ul><ul><li>INTELLECTUAL CAPITAL FOCUS </li></ul><ul><li>REGENERATING STRATEGY </li></ul><ul><li>REINVENTING THE LEADERSHIP </li></ul><ul><li>REINVENTING THE ORGANISATION </li></ul><ul><li>REINVENTING THE INDUSTRY </li></ul>AS : * Competition hots up * Growth slows, stagnates * Margins decline * Market share falls * Substitution occurs (Based on Hamel and Prahalad : 1994)
  19. 19. ENVIRONMENTAL CHANGE <ul><li>BMI-BRSCU </li></ul>SR WHAT RESPONSES RESULT ? DENOMINATOR (NET ASSETS) NUMERATOR (NET INCOME) <ul><li>RESTRUCTURING </li></ul><ul><li>B P RE-ENGINEERING </li></ul><ul><li>COST CUTTING </li></ul><ul><li>BENCHMARKING </li></ul><ul><li>TOTAL QUALITY MANAGEMENT </li></ul><ul><li>INTELLECTUAL CAPITAL FOCUS </li></ul><ul><li>REGENERATING STRATEGY </li></ul><ul><li>REINVENTING THE LEADERSHIP </li></ul><ul><li>REINVENTING THE ORGANISATION </li></ul><ul><li>REINVENTING THE INDUSTRY </li></ul>AS : * Competition hots up * Growth slows, stagnates * Margins decline * Market share falls * Substitution occurs (Based on Hamel and Prahalad : 1994) It is not enough for a company to get SMALLER and BETTER and FASTER. A company must also be capable of fundamentally RECONCEIVING itself, of REGENERATING core strategies, and of REINVENTING ITS INDUSTRY
  20. 20. CREATING THE FUTURE THE QUEST FOR COMPETITIVENESS <ul><li>BMI-BRSCU </li></ul>SR RESTRUCTURING THE PORTFOLIO AND DOWNSIZING HEADCOUNT REENGINEERING PROCESSES AND CONTINUOUS IMPROVEMENT REGENERATING STRATEGIES SMALLER BETTER DIFFERENT REINVENTING THE LEADERSHIP, THE ORGANISATION, THE INDUSTRY TRANSFORMED POSSIBLE RESULTS IMPOSSIBLE RESULTS
  21. 21. <ul><li>BMI-BRSCU </li></ul>SR CREATING THE FUTURE CREATIVE TENSION <ul><li>SEEKS RESOLUTION : RESULTS IN ACTION </li></ul><ul><li>STRATEGIC ACTION PLANS </li></ul><ul><li>PERFORMANCE GUIDELINES </li></ul><ul><li>BUDGETS </li></ul><ul><li>DONE BY MANAGEMENT </li></ul>STRATEGIES A LOGIC AND FIRST LEVEL OF DETAIL, FOR HOW THE VISION CAN BE ACHIEVED DEVELOPED BY LEADERSHIP CONTEMPORARY ANALYST 2020 2011 CURRENT REALITY INFORMED BY MEMORIES OF THE PAST (HISTORY) HISTORIAN VISION INFORMED BY MEMORIES OF THE FUTURE (SCENARIOS) PROPHET CONTEXT : A COMPELLING PICTURE OF THE FUTURE WE WANT TO CREATE. CREATED BY LEADERSHIP
  22. 22. <ul><li>BMI-BRSCU </li></ul>SR BEYOND VISION, STRATEGIES, PLANS AND BUDGETS : A NON-TRADITIONAL VIEW Specific steps and timetables to implement the strategies Plans converted into financial projections and goals A sensible and appealing picture of the future A logic, and first level of detail, for how the vision can be achieved BUDGETS MANAGEMENT DOES VISIONARY LEADERSHIP DEVELOPS PLANS STRATEGIES VISION CONTEXT TRANS- FORMATIONAL LEADERSHIP CREATES Way of being. Inventing an impossible game. Reinventing, transforming the organisation, the industry
  23. 23. <ul><li>BMI-BRSCU </li></ul>SR STRATEGY REGENERATION PROCESS Proprietor and Principal Consultant Dr. Llewellyn B. Lewis Developing competitive industry foresight and strategic leadership as a way of business life. www.strategicforum.co.za [email_address] [email_address] CENTRE FOR STRATEGY, LEADERSHIP AND ORGANISATIONAL REINVENTION

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