Envisioning Strategy
Business Models Visualized
(created for and by students)
© Sunil Mehrotra

What you will learn in this course:
• Envisioning Strategy
– Definition
– Framework
– Visual Models
• External Analysis
– PEST
– PEST Impact Analysis
• Industry and Competitive Analysis
– Industry Structure
– Evolution of Industries
– Industry Supply Chain
– Potential Industry Earnings
– Porter’s 5 Forces Analysis
– Competitive Intensity
– Strategies for minimizing competitive forces
– Perceptual Map
– Barriers to Entry/Incumbency advantages
– DSIR effect
• Company Resources and Capabilities
– ARC Analysis/HR
– SWOT Analysis
– Value Creating Processes/Core Competencies
– Strategic Game Board
– Balanced Scorecard
– Change Management © Sunil Mehrotra

How you will do it
 Visualize
 Think Clearly
 Understand Deeply
 Communicate Effectively
 Share the Vision
 Act Coherently
www.idiagram.com

Envisioning Strategy: Visual Models
3
2
1
5
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www.idiagram.com

Visualize Think Clearly

Thinking clearly stretches your mind
\"A mind once stretched by new thoughts can never regain its original shape.\"
-Albert Einstein

Why Visualization works:
Factoid
Total Bandwidth Conscious Bandwidth
(bits/second) (bits/second)
Eyes 10,000,000 40
Ears 100,000 30
Skin 1,000,000 5
Taste 1,000 1
Smell 100,000 1
http://www.informaworld.com/smpp/section?content=a743900378&fulltext=7
13240928

Dan Roam on Visual Thinking
http://www.thebackofthenapkin.com
/

Visualization helps to think clearly and
communicate effectively: examples
http://awesome.goodmagazine.com/goodsheet/goodsheet004gas.html
Where does your money go when you buy a gallon of gas?
http://awesome.goodmagazine.com/goodsheet/goodsheet006economy.html
It's the Economy Stupid!
http://nytimes.com/interactive/2008/07/20/business/20debt-trap.html
Debt trap.
http://blogs.wsj.com/health/files/2008/04/waystogo.jpg
Odds of Dying
http://www.susannahertrich.com/img/RC_screen.jpg
Actual versus Perceived threats
http://awesome.goodmagazine.com/transparency/007/trans007studentdebt.html
Student debt
http://www.nytimes.com/interactive/2008/05/03/business/20080403_SPENDING_GRAPHIC.html
All of inflations little parts

Business Ecosystem
A Visual Model
The environment
Governments
Standards bodies
New entrants
Competitors
Supplier’
Supplier’s suppliers Suppliers Organisation Customers Customer’
Customer’s customers
Substitutes
Stakeholders
International law
New Paradigm Consulting

Business Ecosystem: A more granular view
Mbam619 framework models

Strategy: Whose responsibility is it?
• Ultimately the CEO/leader “owns” the company's strategy and
is responsible for executing against the strategy.
• Leadership styles vary
• Commanding
• Logical
• Inspirational
• supportive
• Nature of strategic initiative may require a particular style for
success

Leadership matters, why?
Make choices/
decisions
Leadership How?
role
Lead people to
implement
Leadership style
http://www.nytimes.com/2008/12/06/business/06motors.html?_r
=1&pagewanted=2&ref=business

Outcome Performance Transformational
Logical Imaginative
scope Uses reasoning
●
● Engenders trust
● Expects commitment Has charisma
B roa d a n d fu tu re
●
Systems-oriented Creates future visions
Leadership Style
●
●
● Looks for new directions ● Envisions new opportunities
● Incremental improvements ● Empowers others
o rien ted
● Structured problem solving ● Very creative
● Heuristic solutions
Commander Supportive
N a rrow a n d S h ort-
● Intuitive ● Is considerate
R a n g e S p ec if ic
● Demands loyalty ● Peer approbation
● Expects results ● Cooperative environment
● Takes charge ● Relates well with others
● Insists on compliance ● Tries for mutual agreement
● Finds workable solutions
http://gbr.pepperdine.edu/084/leadership.html

Leadership Patterns
• Pattern 1: Ideation. Ideation is a combination of the logical and imaginative basic styles. This pattern hinges on
visualizing or imagining a future that is both achievable and practical and is helpful in planning an organization’s
strategic future. Ideation is the hallmark of successful CEOs, top executives, and those who are determined to achieve
a new vision for their organization. Leaders in this category use logic and detailed analysis as well as vision and
imagery to direct the organization.
• Pattern 2: Stewardship: A combination of the logical and the commander basic styles, it is necessary in areas of
financial or risk management within organizations. Leaders who utilize this style focus on resources—conserving
them, allocating them wisely, and acquiring sufficient amounts to carry out the mission of the organization. Effective
executives with this pattern are financial planners, managerial accounting analysts, and managers of detail and
logistics.
• Pattern 3: Coordination. A combination of the logical, commander, and imaginative basic styles, this triangular
pattern is more common in smaller firms and in the second- and third-tier levels of larger organizations. The
logical/commander components of this style tend to be almost equal, with an imaginative backup. In small
entrepreneurial firms, the imaginative style may be the most dominant, with the commander style a strong second and
the logical style a weak backup. This coordination leadership pattern represents the popular, \"traditional\" upper-
management pattern from the study of 294 male managers that established the \"norm\" for Decision Systems Analysis
(DSI) and has held constant for the LSI as well.
http://gbr.pepperdine.edu/084/leadership.html

Leadership Patterns
• Pattern 4: Exploration. This combination of imaginative and commander styles is typical of leaders in entrepreneurial
start-ups, especially female entrepreneurs. The imaginative style tends to dominate and the \"follow-the-star\" method of
reaching a desired goal trumps everything.
• Pattern 5: Customer-Centric. This pattern represents a combination of the supportive and commander basic styles and
is dominant in strong marketing- and sales-oriented organizations. Supportive behavior comes first because empathy
for customer needs is more important than the drive to convince or persuade. Empathy means understanding and
wanting what is best for the customer because satisfying the customer is also in the best interests of the firm.
Nonetheless, leaders must also utilize the commander style to drive results.
• Pattern 6: Employee-Centric: A combination of the supportive and imaginative basic styles, this pattern is necessary
for understanding and supporting the needs of employees, associates, and customers, as well as having the imagination
to inspire through external and internal public relations, advertising, promotion, and employee empowerment programs.
It is essential for human resource leaders.
http://gbr.pepperdine.edu/084/leadership.htm
l

Leadership traits

Pay for performance?
http://www.nytimes.com/imagepages/2006/04/09/business/09value.graphic.html
Pay for Performance of CEOs? Sometimes!

Nappies—Key Concepts
The power of visual thinking?
What is Strategic Management?
-strategic planning framework
What is the role of the CEO/Leader?
-Leadership styles

Mnemonic 1

Strategic Management
• Deals with
– How to grow the business
– How to satisfy customers
– How to compete with rivals
– How to respond to changing environment
– How to manage each functional piece of the business
– How to build organizational capabilities and align organization to
achieve desired goals
– How to achieve strategic and financial objectives

Strategic Planning
• Planning is not about predicting the future
• Planning is not about writing a detailed road map
into the future
• Planning is not about a few people writing a vision
statement & then getting ‘buy-in’ from everyone else
Mbam619 framework models

Strategic Planning
• Planning is about learning
• Planning is about increasing the possibilities for the
organisation
• Planning is about discovering how fit the
organisation is for its environment
• Planning is about discovering and telling compelling
stories about the future

Strategic Management in a nutshell !
What is
the
vision?

Strategic Management
• Is the process by which an organization
–Establishes its goals and objectives both short and long-
term
–Formulates plans and charts a course of action for meeting
these goals and objectives in the desired time-frame.
–Implements the actions
–And analyzes progress and result
 Behind every strategy should be solid financial
reasoning

Mission, Vision and Values
• Vision articulates a view of a realistic, credible,
attractive future for the organization…it is the all-
important bridge from the present to the future of the
organization.
• Mission describes the purpose of the organization. It
represents the present.
• Values reflect the organization’s culture and norms of
corporate behavior.

Goal, Scope and Objectives
• Goal articulates a desired outcome for the business
over a specific time period
• Scope describes the focus of the business– geography,
product lines and customer segments.
• Objectives are the measurable and tangible results to
be achieved over a specified time period

Source: \"Thinking Strategically\", McKinsey Quarterly, 2000

Understanding Strategic Management is
like pealing an onion

Strategic Planning Framework
External Factors Internal Factors
Analyzing
Analyzing the firm’s
Analyzing Analyzing Analyzing the firm’s Architecture,
the the the Strengths & Routines &
Environment Industry Competition Weaknesses Culture
Firm’s Resources &
Market Opportunities
Capabilities
Aligning Market Opportunities
to firm’s resources and capabilities
•What strategic options does the
firm realistically have?
•What is the best strategy for
maximizing Shareholder value? Shareholder
Returns

The right of any corporation to exist is not
perpetual but has to be continuously earned.
—Robert Simons