How to Kill a Company Troubleshooting Strategy Execution Failures - webinar by Antonio Nieto-Rodriguez, Professor at Duke Corporate Education

1. How
to
Kill
a
Company:
Troubleshoo7ng
Strategy
Execu7on
Failures
Webinar
will
start
shortly
Antonio
Nieto-­‐Rodriguez
Professor
at
Duke
Corporate
Educa7on

2.
Strategy
Leaders
Forum
26-­‐30
April,
The
Address
Dubai
Mall
THREE
global
gurus
*
SIX
hands-­‐on
workshops
*
THIRTY-­‐TWO
strategy
leaders
Register
today
at
www.strategyleadersforum.com
Presenting For the First Time
Rita McGrath
Globally Recognised Expert on Innovation and
Strategic Management
Back by Popular Demand
Jeroen De Flander
One of the World’s Most Influential Thinkers on
Strategy Execution

3.
-­‐
Tonight’s
webinar
will
be
recorded
–
an
email
will
be
sent
tomorrow
with
a
link
to
the
audio
and
slides
-­‐
Ques7ons
can
be
posed
throughout
using
the
‘ques7ons’
box
they
will
be
answered
at
the
end
of
the
webinar
-­‐
Unanswered
ques7ons
will
be
answered
later
and
posted
to
our
website
-­‐
Please
provide
us
with
your
feedback
at
the
end
by
following
the
link
Housekeeping

4. Antonio
Nieto-­‐Rodriguez,
Professor
at
Duke
Corporate
Educa7on
Antonio
is
author
of
the
acclaimed
book
on
strategy
execu7on,
The
Focused
Organiza7on.
He
has
been
featured
in
several
magazines,
including
The
Economist,
Singapore
Management
Ins7tute
and
Strategy
Business
Review.
He
is
the
founder
of
one
of
the
largest
LinkedIn
groups
for
Strategy
Execu7on,
StrateXecu7on,
which
has
more
than
5,000
members
worldwide.
Today’s
Presenter

5. ….RESEARCHED
STRATEGIES
OF
100
TOP
CORPORATIONS…..
……
most
of
their
strategies….
….are
very
similar
!!
Growth
Expansion
Market
Share
Sustainability
Shareholder
value
…….

6. 6
…..YET
….
….MANY
WELL
KNOWN
AND
ONCE
SUCCESSFUL
COMPANIES
DISAPPEARED….

7. Blockbuster,
the
former
king
of
video
rentals,
filed
for
Bankruptcy
on
Sep
2010
AYer
being
squeezed
by
Internet
retailers
and
weighed
down
by
too
much
debt,
Borders
Group
Inc.
filed
for
Bankruptcy
in
Feb
2011
with
plans
to
close
about
30%
of
its
642
stores
and
focus
on
e-­‐books
and
non-­‐book
products.

8. Biggest
Bankruptcy
case
ever.
Enron
was
established
in
1985,
and
soon
became
the
7th
largest
company
of
in
terms
of
revenue.
It
bought
electricity
from
generators
and
sold
it
to
customers
for
earning
the
humungous
profits
it
did.
In
order
to
keep
gecng
credit,
it
kept
away
$500
million
in
debt,
which
was
kept
off
the
book,
but
once
the
amount
exceeded
$638
million.
WorldCom
Inc,
once
the
largest
US
based
Telecommunica7ons
Company,
went
bankrupt
aYer
its
revela7on
of
$4
billion
expenses,
wrongly.
It
had
more
than
20
million
customers,
and
80,000
employees.
At
the
7me
of
bankruptcy,
it
was
considered
as
one
of
the
largest
and
very
famous
companies
in
USA,
with
a
value
of
$100
billion

9. Lehman
Brothers,
the
company
with
a
value
of
$600
billion
and
one
of
the
world’s
largest
financial
corpora7ons,
filed
for
bankruptcy
in
2008.
The
news
sent
shock
waves
around
the
world,
and
within
no
7me,
the
company
shares
dropped
by
a
whopping
94
percent
which
headlined
the
2008
global
financial
crisis.
It
was
sold
for
$1.
May
29,
2008
marked
the
end
for
the
85-­‐year-­‐old
financial
powerhouse
Bear
Stearns.
Problems
started
appearing
in
July
2007,
aYer
two
of
the
companies
hedge
funds
imploded.
AYer
months
of
heavy
write-­‐downs,
things
came
to
a
head
in
March
when
rumors
began
to
swirl
about
Bear
Stearns
financial
health.
In
late
May
the
fiYh-­‐largest
investment
bank
in
the
U.S.
was
no
more

10. TOP 7 REASONS FOR FAILURE
① Market needs change faster than the organization
② Competition comes with a better strategy
③ Cost base increase faster than the growth
④ Too much focus on the short-term
⑤ Wrong investment decisions
⑥ Poor leadership
⑦ Unethical behaviour
External
Environment
Internal
Organization
People
Individuals
A robust Strategy Execution Framework
should cover all these elements

11. 11
…..BUT
WHY
MANY
EXECUTIVES….
….IGNORE
THE
IMPORTANCE
OF
STRATEGY
EXECUTION

12. WHAT DO THESE PEOPLE HAVE IN COMMON?

13. 13
THE
EXECUTION
DILEMMA
To
successfully
implement
your
organiza7ons
strategy
you
need
to
Run
your
Business
while
Changing
it
at
the
same
7me

14. THE EXECUTION DILEMMA
Business Operations
Running-the-business
q Core and support processes
q Generates most of the revenues
q It is about surviving - keeps the company alive
q Objectives are short-term
q Benefits are rather predictable
q Commercial, financial and performance targets
q Efficient, productive and fast – traditional “silo”
q Standardization, automation, outsourcing
q Technical Experts
Strategic Initiatives
Changing-the-business
q It is the future of the organization
q Strategic Initiatives and projects
q It is about changing/transforming the business
q Objectives are medium and long-term
q Benefits less tangible&quantifiable – uncertainty
q Targets are strategic and closer to the vision
q Flexible, agile, and multi experts – transversal
q Processes are unique, non-repetitive, evolving
q Generalist

15. Strategy
Formula7on
Vision
and
Envisioned
Goal
Priori7za7on
and
Organiza7onal
Alignment
Long
Term
Objec7ves
Transforma7on,
Strategic
Strategic
Planning
Strategy
into
Objec7ves
Short
Term
Objec7ves
Commercial,
Financial,
Performance
Run
the
Business
Exploi7ng
current
capabili7es
and
exis7ng
assets
Departmental
Targets
Individual
Goals
Short
Term
Value
Long
Term
Value
Change
the
Business
Exploring
future
capabili7es
and
new
assets
Project
Goals
STRATEGY EXECUTION FRAMEWORK
Top
Management
Middle
Management
Staff
1
2
5
3
4
çCommunication/Reporting/Feedback/DecisionMakingè
6

16. Strategy
Formula7on
Vision
and
Envisioned
Goal
Priori7za7on
and
Organiza7onal
Alignment
Long
Term
Objec7ves
Transforma7on,
Strategic
Strategic
Planning
Strategy
into
Objec7ves
Short
Term
Objec7ves
Commercial,
Financial,
Performance
Run
the
Business
Exploi7ng
current
capabili7es
and
exis7ng
assets
Departmental
Targets
Individual
Goals
Short
Term
Value
Long
Term
Value
Change
the
Business
Exploring
future
capabili7es
and
new
assets
Project
Goals
STRATEGY EXECUTION FRAMEWORK
Top
Management
Middle
Management
Staff
1
2
5
3
4
çCommunication/Reporting/Feedback/DecisionMakingè
6
Balanced
Scored
Card
Strategic
Ini7a7ve
Mgmt

17.
Ques7ons?

18.
Strategy
Leaders
Forum
26-­‐30
April,
The
Address
Dubai
Mall
THREE
global
gurus
*
SIX
hands-­‐on
workshops
*
THIRTY-­‐TWO
strategy
leaders
Register
today
at
www.strategyleadersforum.com
Presenting For the First Time
Rita McGrath
Globally Recognised Expert on Innovation and
Strategic Management
Back by Popular Demand
Jeroen De Flander
One of the World’s Most Influential Thinkers on
Strategy Execution