• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content

Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

Like this presentation? Why not share!

Strategy as Transformation

on

  • 1,059 views

True strategy always changes things - this presentation talks about the nature of strategic change and how that change might be led more effectively.

True strategy always changes things - this presentation talks about the nature of strategic change and how that change might be led more effectively.

Statistics

Views

Total Views
1,059
Views on SlideShare
1,059
Embed Views
0

Actions

Likes
1
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Strategy as Transformation Strategy as Transformation Presentation Transcript

    • “Strategy is the means for making changes that result in sustainable competitive advantage resulting in superior value added for customers and superior returns to shareholders.”
      11/09/2010
      1
      Successful Transforming Strategy
    • Strategy as Transformation
    • Discussion Outline
      What we are transforming (a 7-C model)
      Transformation of ends and means
      Transformation of gaps and risks
      Targets for strategic transformation
      Financial performance
      Structure
      Interaction
      Industry
      Generic strategies
      Resources and competencies
      11/09/2010
      3
    • Discussion Outline
      Targets for strategic transformation
      Competitors
      Diversification
      Management
      Business model
      Creative tensions
      46 realities of strategic transformation
      Essential outcomes
      Structural realities
      External forces
      Internal forces
      11/09/2010
      4
    • What we are Transforming – a 7C Model
      The Seven Dimensions of Every Organization:
      Core
      Culture
      Context
      Capability
      Capacity
      Competency
      Customer
      11/09/2010
      5
    • What we are Transforming – a 7C Model
      CORE: the central reason-for-being of the organization:
      Its PURPOSE – why the company exists in terms of excellence, discovery, and/or service
      Its IDENTITY – how the organization wants to be thought of by other stakeholders – its brand
      Its INTENTIONS – what values drive the long run sustainability of the organization and the legacy it will leave
      11/09/2010
    • What we are Transforming – a 7C Model
      CONTEXT: the fundamental operational framework for the organization
      Strategy – the comprehensive vision that defines the desired direction and impact of the organization’s operations
      Goals – desired/expected organizational end results
      Measures – metrics by which successful goal achievement is to be judged in-process and end-of-process
      Systems – mechanisms by which decisions are made and actions are carried out
      Structure – position descriptions and assignments and interactions between positions
      Technology – facilitation of decisions and actions through decision, production, and delivery tools or mechanisms
      11/09/2010
    • What we are Transforming – a 7C Model
      CAPABILITY: underlying strengths and limitations of the organization
      Portfolio management – the range and diversity of products and services to be offered
      Process management – the ability to produce desired products and services
      Program management – the ability to develop and deliver strategic initiatives
      Project management – the ability to develop and deliver tactical initiatives
      11/09/2010
    • What we are Transforming – a 7C Model
      COMPETENCY: competitively superior expertise in the organization
      Distribution of competency: individual, interpersonal and institutional
      Drivers of competency: observation, understanding, decision, action
      Disciplines of competency – marketing, management, finance, information systems
      11/09/2010
    • What we are Transforming – a 7C Model
      CAPACITY: the scalability of the organization or its ability to grow w/o damaging the other “C” factors
      Value-chain growth capabilities
      Strategic arena growth capabilities
      11/09/2010
    • 11/09/2010
    • What we are Transforming – a 7C Model
      CULTURE: the way people work together:
      Their ASPIRATIONS – what people want for and from themselves
      Their EXPECTATIONS – what people want from and for others
      The ANATOMY of the culture– structural characteristics including reporting and accountability paths, power and control sources and distribution [may be formal AND informal)
      The PHYSIOLOGY of the culture – relational characteristics including communication flows, decision flows, influence flows
      11/09/2010
    • What we are Transforming – a 7C Model
      CUSTOMER: the nature and nurturing-desires of those who purchase and/or use our products and services
      Product, place, price and promotion preferences
      Resource capacities (money, time information)
      Alternative or substitute sources of satisfaction
      Demographic trends
      11/09/2010
    • What we are Transforming – a 7C Model
      Observation 1: Much of what we “know” about an organization reflects informed judgments based on incomplete information. Transformation, therefore, is both:
      Art and science
      Fact and judgment
      Analytical and intuitive
      Proactive and reactive
      Trial and error
    • What we are Transforming – a 7C Model
      Observation 2: All organizations are undergoing both planned and unplanned transformation continuously in one or more parts of the organization. The decision to be made is whether that transformation will be systematically observed, understood, decisioned and acted upon purposefully and progressively.
    • What we are Transforming – a 7C Model
      Observation 3: Managers of the transformation process are neither
      Omniscient – they know things incompletely
      Omnipotent – they influence things incompletely
      So, effective transformational management requires imagination, risk taking, humility, dependence on others, learning the right lessons from failure and success, persistence and resilience.
    • What we are Transforming – a 7C Model
      Observation 4: While change may BEGIN in any of the 7C arenas, it ultimately must work its way through all the arenas in order for the organization to act in a coordinated way that is sustainable. All arenas exist in a mutually interdependent relationship.
    • Strategic Transformation of Ends and Means
      By its very nature, effective strategy is about deep and wide change – change that seeks to transform an entire organization.
      These transformations can be in what, where, how, for whom, and/or when an organization acts.
    • Strategic Transformation of Ends and Means
      • Tuning = incremental improvements in current markets and methods
      • Turning = seeking significant changes in what we market and who we market to
      • Tempering = seeking significant changes in how we operate, manage, market, finance, ...
      • Transforming = seeking significant changes in both markets and methods at the same time
    • Strategic Transformation of Gaps and Risks
      Strategy manages the risks that occur because of the gaps.
      We cannot (and would not choose to) eliminate the risks
      There is a clear and positive relationship between risks and return
      There is a real difference, however, between taking a risk, and taking a chance.
      Risks can, and strategically should be, managed.
    • Strategic Transformation of Gaps and Risks
    • Strategic Transformation of Gaps and Risks
    • Targets for Strategic Transformation - Financial
      Transforming strategy generates superior financial performance
      It allows an organization to obtain financial returns greater than its cost of capital
      It allows financial returns ( and reinvestment potential) greater than those of competitors
      It allows a company to achieve superior financial returns that are sustainable in the long run
      $
      S
    • Targets for Strategic Transformation - Structure
      F
      Transforming strategy fosters a Six-F Firm
      FAST: designed and operated to reduce process times and optimize reaction and pro-action speeds
      FOCUSED: built round core activities to which all other business units are truly related
      FLEXIBLE: willing and able to change whenever change is called for, and whatever needs changing
      FLAT: less hierarchic structure, with a broad span of control, and with authority given to expertise
      FRIENDLY: collaborative, trusting and relaxed both inside and outside the organization
      FUTURED: because it is well equipped for the best method of prediction: making the future happen the way you want.
      F
      F
      S
      F
      F
      F
    • Targets for Strategic Transformation - Interaction
      Transforming strategy fosters an organization-wide strategic planning interaction and communication
      The process encourages thinking about tomorrow in proactive and creative ways throughout the organization
      The process encourages establishing objectives throughout the organization
      The process encourages participation and collaboration throughout the organization
      The process encourages questioning and reflection throughout the organization
      The process encourages complexity and flexibility in thinking throughout the organization
    • Targets for Strategic Transformation - Industry
      Transforming strategy focuses on choosing an attractive industry
      Competition comes primarily from rival firms in the same industry
      Industries exhibit life-style stages (that can be challenged, but with difficulty)
      Every industry has attractive and unattractive segments, niches that can be reached through an effective business model
      S
      I
    • Targets for Strategic Transformation – Generic Strategies
      Transforming strategy examines generic strategies thoughtfully
      Cost control is essential for any strategy – but a simple lower price strategy is unsustainable over time
      Differentiation works when the difference is visible and valuable to buyers, financially attractive for both the company and the customer, and sustainable against competitors
      It is possible to balance value and costs in a unique business model – but this requires expertise in both conceiving and executing strategy.
      S
      G
    • Targets for Strategic Transformation – Resources and Competencies
      Transforming strategy recognizes the importance of resources and competencies
      Resource uniqueness, durability and competency in deployment are a crucial part of every strategy
      Competencies …
      … especially are embedded in the talents and attitudes of personnel
      … can also be embedded in organizational systems
      … can become liabilities if they lead to core rigidities leading to strategic momentum and/or inertia
      R
      S
      -
      C
    • Targets for Strategic Transformation - Competitors
      Transforming strategy seeks to outsmart, out perform and/or out maneuver competitors
      Competitive advantage is always temporary – so we must be prepared to adopt, act on and abandon strategies rapidly
      The advantage is found in fast thinking an innovative, agile action
      The key capabilities become speed, creativity and action-implementation
      S
      C
      C
      C
    • Targets for Strategic Transformation - Diversification
      Transforming strategy considers judicious diversification
      Competencies can be transferable
      There are limits to the expandability of a core business model
      Diversification leads to strategic complexity – different firms have different abilities to manage such complexity
      D
      S
      D
      D
    • Targets for Strategic Transformation - Management
      Transforming strategy encourages us to see strategic management is a dynamic process
      S
      M
      THE “E-ZONE:
      • Effectiveness
      • Efficiency
      • Efficacy
      • Elasticity
      • Energy
      • Emergence
    • Targets for Strategic Transformation – Business Model
      B
      Transforming strategy seeks to change the current business model
      A business model is comprised of:
      Financial returns to the business
      Value propositions to customers
      Character of inputs
      How inputs are transformed (including technology)
      Character of outputs
      Scope
      Vertical scope
      Horizontal scope
      Geographic scope
      Nature of customers
      How to organize
      S
    • Targets for Strategic Transformation – Creative Tensions
      Transforming strategy seeks to balance a variety of creative tensions inherent in successful organizations:
      Aiming vs Adapting
      Competition vs Cooperation
      Dreaming vs Doing
      Effectiveness vs Efficiency
      Fixed vs Flexible
      Incremental vs Innovative Change
      Individuality vs Integration
      Intuition vs Investigation
      Kapturing vs Keeping vs Killing
      S
    • Targets for Strategic Transformation – Creative Tensions
      Transforming strategy seeks to balance a variety of creative tensions inherent in successful organizations:
      Managing vs Marketing
      Navigating vs Negotiating
      Owning vs Outsourcing
      Opportunity vs Obstacle
      Performance vs Promise
      Past vs Present vs Possibilities
      Retrenchment vs Refinement vs Refocus vs Regeneration
      Systematic vs Serendipitous
      S
    • Targets for Strategic Transformation – Creative Tensions
      Transforming strategy seeks to balance a variety of creative tensions inherent in successful organizations:
      Today vs Tomorrow
      Usual vs Unusual
      Value Invested vs Value Added vs Value Returned
      Work vs Working vs Workers
      S
    • 46Realities of Strategic Transformation
    • 11/09/2010
      38
      46Realities of Strategic Transformation
    • 11/09/2010
      39
      46Realities of Strategic Transformation
    • 11/09/2010
      40
      46Realities of Strategic Transformation
      External Forces
      • Transience
      • Novelty
      • Diversity
      • Uncertainty
      • Complexity
      • Dependency
    • 11/09/2010
      41
      46Realities of Strategic Transformation
    • Transforming strategy honestly confronts 46 realities:
      11/09/2010
      42
      46Realities of Strategic Transformation
    • Organizational change interventions – creating meaning
      Strategy ALWAYS seeks to change things – those changes may be of different degrees:
      Change advocacy requires the leader to deal in meaning: what does the change mean, and how do we make it meaningful to each person?
      11/09/2010
      43
    • Organizational change interventions – transformation targets
      THINKING: Costs vs Benefits
      WILLING: Commitment vs Resistance
      FEELING: Pleasure vs Pain
      DOING: Familiar vs Foreign
      11/09/2010
      44
    • Organizational change interventions – transformation approaches
      Each approach carries its own unique
      Change perspectives
      Change problems
      Change points
      Change promoters
      Change perils
      Change promises
      11/09/2010
      45
    • Decision-focused change interventions
      Perspectives
      • Empirical
      • Rational
      Promises
      • Clear perceptions
      • Rational priorities and plans
      Problems
      • Ill-made decisions
      • Ill-informed decisions
      Points
      • Logic
      • Information
      Perils
      • Underestimating the people factor
      • Managing by the numbers
      Promotion
      • Robust information flows
      • Reasoned decisions
      11/09/2010
      46
    • Socially-focused change interventions
      Perspectives
      • Psychological
      • Sociological
      Promises
      • Emotional honesty and openness
      • Individual support
      • Interpersonal sensitivity
      Problems
      • Individual insecurity
      • Relational instability
      Points
      • Emotions
      • Relations
      Perils
      • Satisfaction>productivity
      • Managers ill-fitted to be counselors
      Promotions
      • Psychological affirmation
      • Social support
      11/09/2010
      47
    • Learning-focused change interventions
      Perspectives
      • Developmental
      • Instructional
      Promises
      • Enhanced abilities
      • Energized and expanded self confidence
      Problems
      • Undeveloped capacities
      • Weak self concept
      Points
      • Skills
      • Self concept
      Perils
      • Unlearning/learning resistance
      • Individual learning ceilings
      Promotions
      • Equipping
      • Encouragement
      11/09/2010
      48
    • Economics-focused change interventions
      Perspectives
      • Developmental
      • Instructional
      Promise
      • Strategic resource acquisition
      • Strategic resource allocation
      Problems
      • Inadequate resources
      • Unavailable resources
      Point
      • Resources
      • Distribution systems
      Perils
      • Things >People
      • Measuring short/long term costs/benefits
      Promotion
      • Resource development
      • Resource distribution
      11/09/2010
      49
    • Politically-focused change interventions
      Perspectives
      • Political
      • Alliances
      Promises
      • Power is acquired
      • Power is appreciated
      • Power is applied with principle
      Problems
      • Low power
      • Poor negotiation skills
      Points
      • Power
      • Networking
      Perils
      • Unprincipled manipulation
      • People treated as means rather than ends
      Promotions
      • Power development
      • Political maneuvering
      11/09/2010
      50
    • Entrepreneurially-focused change interventions
      Perspectives
      • Innovation
      • Alliances
      Promises
      • Quick on the OUDA Loop
      • Aggressive opportunism
      • Lean organizations
      • Appetite for risk taking
      Problems
      • Organizational timidity (risk aversion)
      • Organization bureaucracy
      Perils
      • Inadequate discussion and debate about options
      • Action prized over thinking
      Points
      • Opportunity recognition
      • Opportunity analysis
      • Risk management
      Promotions
      • Courage and creativity
      • Removing organizational structural and procedural impediments
      11/09/2010
      51
    • Bureaucratically-focused change interventions
      Perspectives
      • Incremental
      • Experimental
      Promises
      • Identifying small, high-success probability targets of opportunity
      • Achievable change expectations
      • Slow, steady progress up the learning curve
      Problems
      • Lack of experience with change
      • All-or-nothing mentality
      • Rush to judgment
      Perils
      • Too little change, too late
      • Assumes evolution will triumph over revolution
      Points
      • Phased, limited change
      • Feedback
      Promotion
      • A variety of small adaptations
      • Growing accumulation of small successes
      11/09/2010
      52
    • Value-focused change interventions
      Perspectives
      • Inspirational
      • Emotional
      Promises
      • Articulation of deeply held values
      • Alignment of personal values with group causes
      Problems
      • Lack of passion for change
      • Lack of sustained commitment for change
      Perils
      • Mere cheerleading
      • Triumph of emotion over substantive development
      Points
      • Ideals and values
      • Motivation
      Promotion
      • Charismatic leadership rooted in passionate vision
      • Compelling devotion to change
      11/09/2010
      53
    • Environmentally-focused change interventions
      Perspectives
      • Environmental
      • Catalytic
      Promises
      • Environmental opportunity perspective
      • Alignment of personal values with group causes
      Problems
      • Ignorance of environmental realities
      • Intransigence in the face of environmental pressures
      Perils
      • Inaction because of the desire for more certainty
      • Reactive rather than proactive responses
      Points
      • Environmental sensitivity
      • Environmental adaptability
      Promotion
      • Environmental awareness and analysis
      • Early and sustained adaptability
      11/09/2010
      54
    • Organizational change interventions: some observations
      Change is occurring somewhere, somehow, in every organization.
      Changes occur in different degrees and stages in various places throughout the organization
      11/09/2010
      55
    • Organizational change interventions: some observations
      However, change is also resisted – there are individual, interpersonal and institutional reasons for this resistance
      Not all resistance is bad – organizations are designed to bring stability and predictability
      11/09/2010
      56
    • Organizational change interventions: some observations
      Effective change management requires managing the meaning of the change
      What the existing state is and what the desired state is
      What elements need to be changed to reach the desired state
      How and when the changes needed can best be achieved
      11/09/2010
      57