Standard Bank Presentation - PLi 2010

Thinking Strategicallyin a Global Context PETE LABURN

“The trouble with our times is that the future is not what it used to be” Paul ValeryStrategy © Peter Laburn

Things are not what they used to be !!Strategy © Peter Laburn

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“It is difficult to get a man to understand something, when his salary depends on him not understanding it” Upton Sinclair 1860’sStrategy © Peter Laburn

What % of intended strategyactually gets implemented?

What % of intended strategyactually gets implemented? Less than ….. 10 %

What % of intended strategyactually gets implemented? Less than ….. 10 %So 2 questions - why is it so low ? - why bother with a Strategic Process ?

“Logical Incrementalism”‘In reality organizations proceededby trial and error, constantly revisingstrategy in the light of experience’ James Quinn

Is strategy created …. or does it evolve ?????Strategy © Peter Laburn

Strategy –would love to do it, but we aretoo busy with today’schallenges

Strategy is not Operation TacticsStrategy © Peter Laburn

Strategy is not Operation Tactics• Strategy - are we really doing the right things? Are we effectively going in the right direction bearing in mind all the things that are changing?Strategy © Peter Laburn

Strategy is not Operation Tactics• Strategy - are we really doing the right things? Are we effectively going in the right direction bearing in mind all the things that are changing?• Operational Tactics - the things that we choose to do, do we do them right / really well, with maximum efficiency?Strategy © Peter Laburn

Strategy vs Tactics HIGH EFFICIENCYTACTICSDoing things right LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESSSource : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn

Strategy vs Tactics HIGH EFFICIENCYTACTICSDoing things right DIE SLOWLY LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESSSource : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn

Strategy vs Tactics HIGH EFFICIENCY DIE QUICKLYTACTICSDoing things right DIE SLOWLY LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESSSource : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn

Strategy vs Tactics HIGH EFFICIENCY DIE QUICKLYTACTICSDoing things right DIE SLOWLY SURVIVE LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESSSource : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn

Strategy vs Tactics HIGH EFFICIENCY DIE QUICKLY THRIVETACTICSDoing things right DIE SLOWLY SURVIVE LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESSSource : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn

Strategy –things are going well .. don’t rock the boat!

Hidden realities of change Change comes at us … without asking permission without making a sound without giving us a template of how to copeStrategy © Peter Laburn

Strategy –is about change

Strategy –is about changeAnd we are ‘creatures of habit’

“ If we want things to stay as they are,things will have to change” di Lampedusa - The LeopardStrategy © Peter Laburn

Change ImperativeRate of change Time 90’s 2000’s 2010’sStrategy © Peter Laburn

Change ImperativeRate of change 2 years Time 90’s 2000’s 2010’sStrategy © Peter Laburn

Change ImperativeRate of change } catch up 2 years Time 90’s 2000’s 2010’sStrategy © Peter Laburn

Change ImperativeRate of change 2 years } catch up 2 years Time 90’s 2000’s 2010’sStrategy © Peter Laburn

Change Imperative catch up?Rate of change 2 years } catch up 2 years Time 90’s 2000’s 2010’sStrategy © Peter Laburn

Strategies need to be changed – not because the historical strategies may have been wrong , but because past strategies (however good they were) may be obsolete and no longer appropriate … the rules have changedStrategy © Peter Laburn

Times of Turbulence “The greatest danger in times of turbulence is not the turbulence, it is to act with yesterdays logic” Peter DruckerStrategy © Peter Laburn

Strategic Readiness Beyond necessary = Imperative Do you know with certainty where your industry is going over the next 5 years? YES NO YES 1 2Can StandardBank cope ? NO 3 4 Strategy © Peter Laburn

DOING WHAT YOU HAVE ALWAYS BEEN DOING AND EXPECTING DIFFERENT RESULTS Peter Laburn International

INSANITYDOING WHAT YOU HAVE ALWAYS BEEN DOING AND EXPECTING DIFFERENT RESULTS Peter Laburn International

Strategy as Revolution“I believe that only those companies thatare capable of reinventing themselves and their industry in a profound way, will be around in a decade hence” Gary HamelStrategy © Peter Laburn

Strategy is a holistic process10.15am

Strategic Drive Chain EXTERNAL INTERNAL G G ING AL IP RS GIN GIN NG ET GY ION S SH LDE AN LD AN TRY A ICS T ISA IE ER HO CH OR CH UN CH ARK ATE CT AN BILIT LEA D KE W CO M STR TA G OR APA STA C FORMULATION IMPLEMENTATIONSource: Peter Laburn Strategy © Peter Laburn

Disney’s Purpose and ValuesPurpose – “ To make people happy”Values – – Safety – Courtesy – The Show – Efficiency These are ranked in order of priorityStrategy © Peter Laburn

Strategic Drive Chain EXTERNAL INTERNAL G G ING AL IP RS GIN GIN NG ET GY ION S SH LDE AN LD AN TRY A ICS T ISA IE ER HO CH OR CH UN CH ARK ATE CT AN BILIT LEA D KE W CO M STR TA G OR APA STA C FORMULATION IMPLEMENTATIONSource: Peter Laburn Strategy © Peter Laburn

WHAT SHAPES OUR FUTURE ? Past thinking of Futurist’s 80 % continuation 15 % cycles 5 % noveltyStrategy © Peter Laburn

WHAT SHAPES OUR FUTURE ? Past thinking of Futurist’s Current thinking of Futurist’s 80 % continuation 5 % continuation 15 % cycles 15 % cycles 5 % novelty 80 % noveltyStrategy © Peter Laburn

A Move to Quantum Thinking Newtonian Quantum • Simplicity • Complexity • Control • Influence • Separation • Integration • Uniformity • Diversity • Enquiry • Certainty • Multi causes • Cause and effect • Systems thinking • Linear logic • Synthetic thinking • Binary logic • Intuition • EmpiricismStrategy © Peter Laburn

CURRENT VS IDEAL FUTURESCURRENTREALITY 2010Strategy © Peter Laburn

CURRENT VS IDEAL FUTURES CURRENTCURRENT FUTUREREALITY 2015 2010Strategy © Peter Laburn

CURRENT VS IDEAL FUTURES CURRENTCURRENT FUTUREREALITY 2015 2010 CONTINUATIONStrategy © Peter Laburn

CURRENT VS IDEAL FUTURES IDEAL FUTURE 2015 CURRENTCURRENT FUTUREREALITY 2015 2010 CONTINUATIONStrategy © Peter Laburn

CURRENT VS IDEAL FUTURES IDEAL FUTURE 2015 NOVELTY CURRENTCURRENT FUTUREREALITY 2015 2010 CONTINUATIONStrategy © Peter Laburn

The Missing Dimension The Prevailing Approach: What Is Missing: Strategy as Strategy as a a Set Solution Dynamic Process A long-term sustainable Creation of value competitive advantage Goal CEO as chief strategist; the The CEO and strategy consultants Leadership job cannot be outsourced Unchanging plan that derives from an analytical, left-brain Form Organic process that is adaptive, exercise holistic, and open-ended Intense period of formulation followed by prolonged period Time Everyday, continuous, unending of implementation Frame Defending an established Ongoing Fostering competitive advantages and strategy through time Activity developing the company through time Montgomery: Putting Leadership back into StrategyStrategy © Peter Laburn

Strategy by Route Map. Source: Peter LaburnStrategy © Peter Laburn

Strategy by Route Map.Where we are today Source: Peter LaburnStrategy © Peter Laburn

Strategy by Route Map. Where we  want to beWhere we are today Source: Peter LaburnStrategy © Peter Laburn

Strategy by Route Map. Where we  want to be What you  will doWhere we are today Source: Peter LaburnStrategy © Peter Laburn

Strategy by Route Map. Where we  want to be What you  will doWhere we are today After: Henry Mintzberg Source: Peter LaburnStrategy © Peter Laburn

Strategy by Route Map. Where we  3 Strategic Fallacies  want to be Predic1on  Detachment Formaliza1on What you  will doWhere we are today After: Henry Mintzberg Source: Peter LaburnStrategy © Peter Laburn

Strategy by Route Map. Where we  3 Strategic Fallacies  want to be Predic1on  CEO Detachment Chief Extraction Officer Formaliza1on What you  will doWhere we are today After: Henry Mintzberg Source: Peter LaburnStrategy © Peter Laburn

Strategy by G.P.S. Source: Peter LaburnStrategy © Peter Laburn

Strategy by G.P.S. After: Margaret Wheatley Source: Peter LaburnStrategy © Peter Laburn

Strategy by G.P.S.Lessons from NatureField TheoryMolecular BiologyQuantum PhysicsChaos Theory After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn

Strategy by G.P.S.Lessons from Nature Where we Field Theory want to beMolecular BiologyQuantum PhysicsChaos Theory Where we  are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn

Strategy by G.P.S.Lessons from Nature Where we Field Theory want to beMolecular BiologyQuantum PhysicsChaos Theory What you  will NOT do Philosophically Strategically Opera1onally Where we  Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn

Strategy by G.P.S.Lessons from Nature Where we Field Theory Create a strategic field want to beMolecular Biology Open source info flowQuantum Physics Maximize rela1onshipsChaos Theory Let mild chaos flow What you  will NOT do Philosophically Strategically Opera1onally Where we  Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn

Strategy by G.P.S.Lessons from Nature Where we Field Theory Create a strategic field want to beMolecular BiologyQuantum Physics Open source info flow Maximize rela1onships CEOChaos Theory Let mild chaos flow Chief Enabling Officer What you  will NOT do Philosophically Strategically Opera1onally Where we  Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn

Some Newer Thoughts on Strategic Thinking

Strategic Intuition Ref : William Duggan Intuition = flashes of insight 1.Ordinary intuition – a feeling, gut feel, instinct 2.Expert intuition – snap judgements instantly recognizable, something familiar, knowing where the ball will go if you hit it. Known, existing spaces – seeing patternsStrategy © Peter Laburn

Strategic Intuition - cont Ref : William Duggan3. Strategic Intuition – – Doesn’t start with a ‘big idea’ – Begins by being open to possibilities – Builds off other (very different) ideas – It’s a clear thought, it slowly evolves – Not fast or impulsive – It is edified by a multiplicity of factors – Takes you into unknown, new spaces – Once ‘flash of insight’ occurs - strike fast, pursue relentlesslyStrategy © Peter Laburn

A Brief perspective… von ClausewitzStrategy Source: Strategic Intuition by William Duggan © Peter Laburn

A Brief perspective… von ClausewitzExamples from History - strategic intuition draws on the knowledgeand experience of all of history far and wide, all stored in the shelvesof the mindPresence of mind - refers to a clear mind, clear of all expectationsand previous ideas of what you might do or even what your goal is.Flash of insight - In a free mind selected elements from variousexamples come together in a new combination.Resolution i.e. Resolve / determination - you not only need to seewhat to do but also be ready to do it. The flash of insight carries withit the force of action that propels you forward, but you need theresolve to push on and make your strategy happenStrategy Source: Strategic Intuition by William Duggan © Peter Laburn

Obliquity Why !! Our goals are best achieved indirectly eg !! The Happiest people don’t pursue happiness !! The Wealthiest people don’t puruse materialism !! The most profitable companies are not the most profit orientated Think “Snakes and Ladders”Strategy © Peter Laburn

The need for ObliquityMuddling through – why obliquity succeedsPluralism – why there is usually more than one answer to any problemInteraction – why the outcome of what we do depends on why we do itComplexity – how the world is too complex for directness to be directIncompleteness – how we rarely know enough about the nature of our problemsAbstraction – why models are imperfect descriptions of realityStrategy © Peter Laburn

Some current realities !! We mistakingly infer design from outcome !! We have less freedom of choice than we think !! Decision makers don’t recognise the limits of their knowledge !! Adaptation is smarter than we are !! We know more than we can tell !! Complex outcomes are achieved without knowledge of an overall purpose !! It is more important to be right that to be consistent !! Spurious rationality is often confused with good decision makingStrategy © Peter Laburn

ACTIONS THE STRATEGIC FRAMEWORK © Peter Laburn International STRATEGIC MUST WIN BATTLES MEASUREMENT CAPACITY DEVELOPMENT ACTIONS Key initiatives that must CRITERIA Structure, systems and Both minimum be achieved, but results How business growth and Resource implications – what requirements and not entirely strategic implementation is needed to deliver future core competency in own hands will be measured / strategies development governedPROPOSITION ANTICIPATED RESULTS STRATEGIES 3 – 5 yr VISION PLAYING FIELD What results the strategy What we will do What our business will look What we will not should deliver Key strategic like do thrust that will Conceptual outputs, Philosophically ensure vision is Target market focus Strategically KEY TRIGGER POINTS achieved Geographic domain, Operationally When strategy would need to be Strategic differentiation Behaviourally re-assessed CULTURE MARKET INSIGHTS KEY UNCERTAINTIES How we do things Unique understanding What are the unknownsCONTEXT VALUES MARKET REALITIES RULES OF THE GAME How we behave Corporate performance How the market operates B.U.market share / growth 12 month performance PURPOSE Competitor review KEY DRIVERS Our reason for being Research undertaken What really influences our thinking Our anticipated legacy Value chain analysis Strategy CHANGING WORLD - What is changing in our world © Peter Laburn

How the environment is changing Ref Porter’s PESTIR AnalysisPOLITICAL/LEGAL ISSUES ECONOMIC ISSUESGlobal leadership changing Emerging markets – BRICNew legislation Global recession ,GDP ,Consumer confidenceGovernment / Union / Business relations Government bailouts, Investment factorsGlobal trading blocks Oil price / alternative currenciesPolitical instability Interest and exchange rates Access to capitalSOCIAL ISSUES TECHNOLOGY ISSUESDemographic changes ICT convergenceUrbanization The competitive Open source worldConsumerism / affluenzaClash of Values / cultures environment Social networking Bio technology advancesLife expectancy Genetic modificationFundamentalism Intellectual propertyINSTITUTIONAL RESOURCE ISSUESConnection economy Environmental issuesChanging world of work Global ‘Weirding’Fragmentation of organizations Sustainable energyBlurring of boundaries - Value chains Global food, energy shortageDistribution rules Global skills shortage StrategyShifting balance of stakeholder power Exploitation of resources © Peter Laburn

POLITICAL ECONOMIC•Global leadership change – SA, USA, other •Emerging economies & their strength – China, India, Brazil,•Increasing & changing compliance & legislation – global, SA, Greater Central Asia, Asian Tigers, SAconsumer protection, common / universal •Potential global recession & financial bail outs•BBBEE – nuances in each country •Costs of living rising – interest rates, power, inflation, food•SA Government delivery or lack thereof prices, oil …•Global trading blocks – commitment to SADC union by 2014 •Growing poverty gap & pressure for global poverty relief •Underfunded pension industrySOCIAL •2010 World Cup•Growth of middle class globally •Estimated strong SA economic growth through 2014•“Americums” – the pursuit of materialism (western influence) •Infrastructure investment of R410 billion•Clash of multiple cultures, religions, value systems (West v •Angolan growth – straight line extrapolation is Africa’sEast) strongest economy by 2025 (driven by international investment,•Life expectancy increasing (developed nations) and decreasing oil)(developing nations) •“Affluenza” - •Impact of diseases & AIDS •Alternative currencies – e.g. carbon credits •Access to medicines•Rampant consumerism (“vigilante consumers”) TECHNOLOGICAL•Tribalisation – the association / identification with a group •ICT (Information, Communication, Technology) convergence •Fundamentalism •Virtual, highly mobile world •Globalisation vs cocooning (xenophobia) •Cellular•Crime •Telematics (auto & mobile technology information & •Terrorism interaction) •White collar crime •Open source world – access to information – anyone, where,•Urbanisation & de-urbanisation time, how•Declining levels of education •Social networking (blogs, wiki’s, facebook, twitter, mixit, •Confused legislation webinar’s ) •Role of teachers as moral guides •Bio-technology –•Environmental responsibility – green revolution •Genetic modification – people, food •Changing the face of agriculture & forestryINSTITUTIONAL•Connection economy•Changing world of work RESOURCES •Generations (Boomer, Gen X, Gen Y) •Global weirding – climate change •Rising role of women •Increasing natural catastrophes •Retirement becoming obsolete •New diseases & epidemics •Skill shortage & talent mobility •Energy from heaven and hell•Growth in outsourcing – work flows to where it’s best suited •Sustainability(especially commodity skills) •Increasing demand•Ownership of customer – distribution ‘rules’ •Future wars over water•Blurring of boundaries - consolidation of industries •Global food shortages•Services revolution (manufacturing to service… experience) •SA infrastructure – failure & development Strategy•Stakeholder responsibility & balance of power shifting•Fragmentationism – move away from ‘big organisation’ •Rail regeneration & Gautrain •Exploitation of Africa for natural resources (particularly from China) © Peter Laburn

Business Philosophies / Purpose• Excellence / Premium quality – ………….. delivers the highest quality products / service / support in ………. market• Discovery – …………. offers most innovative / refreshing approach to products / service in the ……….. market• Altruism – …………. is caring and supportive in its product design and service delivery – always there for valued clients• Heroism – …………. has set itself the goal of leading change by leading a cause for ……….. in the market• Exploitation – Just get the bottom line budget – meet financialStrategy Source: Mourkogiannis - Guide to Moral Purpose © Peter Laburn

How it all fits together…Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

How it all fits together… Purpose /Mission Why we existStrategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

How it all fits together… Purpose /Mission Why we exist Values What we believe in & how we will behaveStrategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

How it all fits together… Purpose /Mission Why we exist Values What we believe in & how we will behave Vision What we want to beStrategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

How it all fits together… Purpose /Mission Why we exist Values What we believe in & how we will behave Vision What we want to be Strategy What our competitive game plan will beStrategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

How it all fits together… Purpose /Mission Why we exist Values What we believe in & how we will behave Vision What we want to be Strategy The Basic Elements of What our competitive A Strategy Statement game plan will be Objective = Ends Scope = Domain Advantage = MeansStrategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

How it all fits together… Purpose /Mission Why we exist The single precise objective that Values will drive the business over the What we believe in & next 5 years or so. Specific, how we will behave measurable, and time bound. It should be a single goal Vision What we want to be Strategy The Basic Elements of What our competitive A Strategy Statement game plan will be Objective = Ends Scope = Domain Advantage = MeansStrategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

How it all fits together… Purpose /Mission Why we exist Values What we believe in & The customer or offering; geographic how we will behave location & integration. Should also include where the business will not go. Vision What we want to be Strategy The Basic Elements of What our competitive A Strategy Statement game plan will be Objective = Ends Scope = Domain Advantage = MeansStrategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

How it all fits together… Purpose /Mission Why we exist Values The most critical. What makes the What we believe in & business distinctive. Incorporates the how we will behave value proposition as well as the unique activities that allows the business to deliver on the value proposition Vision What we want to be Strategy The Basic Elements of What our competitive A Strategy Statement game plan will be Objective = Ends Scope = Domain Advantage = MeansStrategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn

An alternative perspective• The ideal strategy should include:-• Truth - describes the world as it is• Assertions - describes how you are going to change things• Alternatives - describes the options you have when you original assertions don’t work• People - describes who is on your team / who will join team and why they will be• Money - describes how much you need to make plan happen , cash flows P+L’s etc Seth Godin - blog May 2010Strategy © Peter Laburn

Vision – what our business will look like •What game are we in ? •How do we add value ? •What competencies needed ? •What differentiation ? •What is sustainable ?Strategy © Peter Laburn

Strategy Statement “We aspire to be a leading  emerging markets ﬁnancial  services organisa1on”Strategy © Peter Laburn

– Group strategic statement“We  aim  to  build  a  leading  emerging  markets ﬁnancial  services  organiza=on  using  all  our compe==ve advantages to the full.We  focus  on  delivering  superior  sustainable shareholder  value  by  cost  eﬀec=vely  serving  the needs  of  our  customers  and  where  appropriate, connec=ng them globally.The key to achieving our strategy is our people”Strategy © Peter Laburn

9 Key Strategic Deliverables•       1. Grow, develop and recognize our people •       2. Ensure our values live and grow within the organisa1on      3. Promote a nimble and proac1ve approach to our customers 4. Deliver superior returns and sustainable growth for shareholders 5. Ensure that the three core business units work together and maximize on  the synergies. 6. Weve got to build a strong and uniﬁed brand 7. Deploy our scarce capital appropriately 8. Constantly balance risk and return and also ensure appropriate corporate  governance 9. Create a world class infrastructure, with the emphasis on cost eﬃciencyStrategy © Peter Laburn

BUILDING A STRATEGIC PROPOSITIONStrategy © Peter Laburn

Remember Maslow ? Self Actualization Self Esteem Love and Friendship Safety Needs Shelter , security Physiological Needs Hunger , ThirstStrategy © Peter Laburn

Along came Hertzberg … Self Actualization Self Esteem Motivating factors Love and Friendship Safety Needs Shelter , security Hygiene factors Physiological Needs Hunger , ThirstStrategy © Peter Laburn

Building Market Strategy Competitive Advantage what will differentiate you from competitors Entry to the Game If you don’t offer “this ..” you are not an optionStrategy © Peter Laburn

Core Competence Competitive Advantage Entry to the Core Competence game What you are really good at What you focus onStrategy © Peter Laburn

Core Competence Competitive Advantage Tactical Advantage use it while you have it Entry to the Core Competence game What you are really good at What you focus onStrategy © Peter Laburn

Core Competence Competitive Advantage Sustained Advantage Tactical Advantage is difficult for anyone to copy use it while you have it Entry to the Core Competence game What you are really good at What you focus onStrategy © Peter Laburn

Core Competence No advantage Competitive anymore !! Advantage Sustained Advantage Tactical Advantage is difficult for anyone to copy use it while you have it Entry to the Core Competence game What you are really good at What you focus onStrategy © Peter Laburn

Core Competence Sustained Advantage is difficultadvantage No for anyone Competitive anymore !! to copy Advantage Tactical Advantage use it while you have it Entry to the Core Competence game What you are really good at What you focus onStrategy © Peter Laburn

Strategic PositioningMust do to bein game – but CORE COMPETENCE not core Must do and core. CORE COMPETENCE What you build yourStrategy business on © Peter Laburn

Strategic Positioning Tactical Advantage capitalize while you canMust do to bein game – but CORE COMPETENCE not core Must do and core. CORE COMPETENCE What you build yourStrategy business on © Peter Laburn

Strategic Positioning Tactical Advantage capitalize Sustained while you Advantage can build future Strategy onMust do to bein game – but CORE COMPETENCE not core Must do and core. CORE COMPETENCE What you build yourStrategy business on © Peter Laburn

“The ‘surplus society’ has a surplus ofsimilar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Funky Business Kjell Nordström and Jonas RidderstråleStrategy © Peter Laburn

# Full Service Financial Organisation… # With Emerging Market Focus… # Single view of client Strategic Positioning 2014CompetitivedifferentiationEntry to 2.the game 1. GOT to have, but what you want GOT to have to be good at .. to be an option… others might have it maybut everyone has it or may not be their focus Strategy Core competencies © Peter Laburn

# Full Service Financial Organisation… # With Emerging Market Focus… # Single view of client Strategic Positioning 2014 3.Competitivedifferentiation WANT TO CREATE, not easily copiedEntry to 2.the game 1. GOT to have, but what you want GOT to have to be good at .. to be an option… others might have it maybut everyone has it or may not be their focus Strategy Core competencies © Peter Laburn

The Change House Source: Ashridge Business School

Change House Business Cycle •Movement always anti clockwise •Business can never skip a room or go back in a clockwise direction •Leadership determine time spent in a specific room • Challenge: To stay in constant Renewal Source: Ashridge Business School

The Change House The Contentment The Renewal Room RoomThe sunLounge The Denial The Confusion Room Room Wrong direction Door Dungeon of Denial Paralysis PitStrategy Source: Ashridge Business School © Peter Laburn

Signs of Contentment What we say……… How we act………• We’re the market leaders • Ignore the outside world• If it isnt broken, don’t fix it • Bureaucratic• Not invented here • Arrogant• Management has decided • Uninformed about competitors• We know our customers • Don’t listen to staff• It’s a stable industry • Head Office focus • Publish the company history• We have a great track record • No sense of urgency• We’re the most profitable • Focus on day- to- day details• I’ll decide later • Automatic salary increases• We achieve our budgets• I’m the bestStrategy Source: Ashridge Business School © Peter Laburn

Signs of Denial What we say……… How we act………• It’s an industry trend • Defend the past• What problem? • Defend the present• Not my problem • Aggressive• Head Office doesnt • Protect the guilty understand • Maintain taboos• My staff are no good • Kill the messenger….. • ……but miss the message• Competitors are worse • Blame everybody else• Ive always done it this way • Don’t listen to staff• My area is different • Tell stories about past glories• If adjusted for.. It’s OK • Massage the figures• It’s our customers fault• It’s a short term problemStrategy Source: Ashridge Business School © Peter Laburn

Signs of Confusion What we say……… How we act………• How did I get into this mess? • Frustration• Let’s hire some consultant • Depression • Anger• What’s happening • Withdrawal• What have I done wrong? • Blaming management• I’ve been saying that for years • Loss of self-esteem• We did that years ago • Insecurity• Its all my fault • No sense of direction • Irrational behavior• Help!! • Set up committees • Slow • Never finish thingsStrategy Source: Ashridge Business School © Peter Laburn

Signs of Renewal What we say……… How we act………• Let’s make it happen • Accept responsibility• Let’s do it together • Renewed energy• Let’s tell everybody about it • Communicate• Now I understand it • Listen • Learn• It’s been tough but I did it • Trust• I’m/We’re stronger now • Delegate• I don’t really miss it now • Independent• Its better than I expected • Accept risk• We have to trust each other • Flexible, creative• I/ We could be better • Continuously improve• Lets beat the challenge • Set new targetsStrategy Source: Ashridge Business School © Peter Laburn

Moving out of ContentmentWhat you might achievePeople start to think about changeWhat you should not expect yetPeople accept that things need to changePossible actions• Shock people out of complacency• Benchmark with best practice• Break up teams, move people• Define performance indicators• Give feedback about performance• Customer satisfaction surveys• Challenge assumptionsStrategy• Get people to visit other organizations Source: Ashridge Business School © Peter Laburn

Moving out of DenialWhat you might achievepeople accept that something needs to be doneWhat you should not except yet• They will see the way forward as clearly as you• They will understand what has to be done, and their role in itPossible actions• Continue to benchmark• Communicate the results to everybody• Explain the big picture( purpose, benefits of change)• Show respect for the past: avoid blame• Don’t offer detailed solutions yet• Look for small early successes• Give people time and space• Encourage positive health habitsStrategy Source: Ashridge Business School © Peter Laburn

Moving out of ConfusionWhat you might achievePeople understand what needs to be doneAccept their roles and responsibilities in itWhat you should not expect yetPeople stop talking about “the good old days”They don’t slip back sometimesPossible actions• Provide vision and overall direction• … but allow people to influence how to get there• Give a sense of ownership by allowing contributions• Encourage open expression of feelingsStrategy Source: Ashridge Business School © Peter Laburn

The Strategic Change Process: 4 Key Elements Pressure Clear Capability Actionable for Shared to Steps Change vision Change = ChangeStrategy © Peter Laburn

The Strategic Change Process: What happens when 1 element is missing? Clear Capability Actionable Bottom of Shared to = steps the In Tray Vision ChangeStrategy © Peter Laburn

The Strategic Change Process: What happens when 1 element is missing? Clear Capability Actionable Bottom of Shared to = steps the In Tray Vision ChangePressure Capability Fast start / Actionable for to = Conflicting steps Change Change Agenda’sStrategy © Peter Laburn

The Strategic Change Process: What happens when 1 element is missing? Clear Capability Actionable Bottom of Shared to = steps the In Tray Vision ChangePressure Capability Fast start / Actionable for to = Conflicting steps Change Change Agenda’sPressure Clear Actionable Frustration / for Shared = steps Anxiety Change VisionStrategy © Peter Laburn

The Strategic Change Process: What happens when 1 element is missing? Clear Capability Actionable Bottom of Shared to = steps the In Tray Vision ChangePressure Capability Fast start / Actionable for to = Conflicting steps Change Change Agenda’sPressure Clear Actionable Frustration / for Shared = steps Anxiety Change VisionPressure Clear Capability False starts / for Shared to = haphazard Change Vision Change approachesStrategy © Peter Laburn

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Pete Laburn – web: http://www.petelaburn.com – email: petelaburn@iafrica.com – cell: +27 82 553 3198 – Blog: petelaburn@wordpress.co.za – Twitter: petelaburn Synthesis of this presentation by: The TomorrowToday.biz frameworkers Multimedia courtesy of the naughty world of MP3 and MPG, as registered with SAMRO, and under international fair use regulations. Purchase the albums at our on-line store.Strategy © Peter Laburn

Standard Bank Presentation - PLi 2010

by petelaburn on Jan 26, 2011

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Standard Bank Presentation - PLi 2010 — Presentation Transcript