Managing strategy execution in a disruptive environment

3. Our Roadmap
Introduction
Must-win
battles
Business
Environment
Killers of
strategy
Recap and
closing

4. Every company is concerned with
strategy. It determines which
organizations succeed and which
ones struggle. Strategic blunders can
hurt an organization.
Strategy

5. Definition
The determination of the long run
goals and objectives of an enterprise,
the adoption of courses of action and
the allocation of resources necessary
for carrying out these goals
Alfred Chandler, Strategy and Structure

6. Why Strategy?
No man ever steps into the
same river twice – Heraclitus
Strategy is the linkage
between a business and its
current and future
environment – Professor Stanley Han

7. Exhibit 1.1
Strategic decisions
7

8. Explicit strategy is the plan of action
Competitive advantage is the organization’s distinctive edge for meeting customer needs
Strategies should:
 Exploit Core Competencies
 Build Synergy
 Deliver Value
Purpose of Strategy

9. Business Environment Types
• Stable
• Changing
• Turbulent

10. Features of Business Environment
• Turbulence brings
problems and
opportunities
• Stronger Competition
• Frequent Decision
making
• More scope for decision
• Need for more
Information and
Knowledge

11. Have you noticed?
New technology
✓ online impacts everything - rapid paradigm changes
✓ global online services industry
✓ technology enabled new work modalities
✓ democratisation of media
✓ rapid innovation and obsolescence
New economics
✓ more regulation
✓ lower growth
✓ savvy consumers
✓ zeroing transaction costs
✓ low cost competitors
✓ BRIC taking lead
New environment
✓ climate change
✓ emissions legislation
✓ degradation of soil, air, water
✓ cost of energy
✓ new forms of energy
New social
✓ fluid families
✓ ageing population
✓ suspicion of politics
✓ suspicion of big biz
✓ more conservatism
✓ anti-globalisation
✓ social justice
✓ protectionism

12. Assumptions
are key
...but the environment
keeps changing

13. The new normal
Wednesday, 2 March 2011

14. Disruption is “the norm”?

15. Business Strategy in turbulent environment
 Now and Future
 Cannot see the horizon
 Foggy & volatile environment
 Various independent factors
 Fog of the future
 Defy predictability

16. PESTEL

17. Strategy Formulation
versus Execution
Formulation:
Assessing the external
environment and internal
problems to create goals and
strategy
Execution:
the use of managerial and
organizational
tools to direct
resources toward accomplishing
strategic results

18. “Execution is a specific set of behaviors and techniques
that companies need to master in order to have
competitive advantage. It’s a discipline of its own” —
Ram Charan and Larry Bossidy, Execution
“Strategy Execution is the responsibility that makes or
breaks executives” —Alan Branche and Sam Bodley-
Scott, Implementation
Strategy Execution

19. MUST-WIN BATTLES FOR STRATEGY
EXECUTION IN A DISRUPTIVE ENVIRONMENT
Levers of
Control
Resilient
Leadership
Change
Management
Success

20. Why resilience?
“Rapid, disruptive change is today’s normal. It
comes in bubbles, waves and sometimes
tsunamis. To cope, leaders need to be agile
and resilient. For years, the focus has been on
speed and agility. But globalisation, technology
and social-political changes are disruptive.
They require resilient leaders, emotionally
intelligent people able to absorb complex
change and help others to move forward to
achieve success” (Reid)
In the face of change and uncertainty, the
resource we need most is our resilience.

21. “As existing companies struggle to find ways to cope
with unprecedented change, leaders must learn to
proactively self-disrupt in a controlled fashion before
they are disrupted against their will”
― Calvin L. Williams, FIT: The Simple Science of
Achieving Strategic Goals
Leaders for these times

22. Situation Awareness
Mental Agility
Commander’s Calm
Learned instinct
Leadership Capabilities for disruptive
environments

24. Commander’s Calm

26. Belief Systems
 To communicate and re-communicate
over and over again the vision,
mission and values of the business.
 Great in establishing internal rules of
conduct and portraits of external
image.
 Communicates people proposition
and is very powerful in directing
people and giving them purpose.

27. Boundary Systems (1)

28. Boundary Systems (2)
 A statement of what the company is
not going to do.
 A mechanism for focusing the
organization and ensuring people
don't spend time investigating and
developing new opportunities that the
company is never going to pursue.
 Example – Bill Gates and Microsoft

29. Interactive control systems
• Formal consultations with the aim to
come up with new ideas and
strategies.
• The focus is on innovation to
potentially address strategic
uncertainties and to change the
strategy.
• The organisation can respond
successfully to changes by being
alert to the environment.

30. Diagnostic Control
 This lever is used to check whether the
organization complies with the strategic
plan and whether adjustments are
needed.
 Controls are in place to ensure that
everything runs smoothly,
including KPIs, ROIs and quarterly
figures.
 Formal information-based routines and
procedures are in place to maintain
and/or change organisational activities.

31. CHANGE MANAGEMENT
• Change is Permanent
• Adaptation is a Must
• Clarify change initiatives
• Flexibility is key
• Never stop listening

32. Six Silent Killers of Strategy

33. “A leader must focus on critical
decisions that drive disproportionate
value. Proportionate value needs no
leader or strategy.”― Krishna Sagar Rao
End Note (1)

34. “Without strategy, execution is
aimless. Without execution,
strategy is useless” – Morris Chang
End Note (2)

35. 35
Introduction
1
Business
Environment
2
Strategy
Execution
3
Must-win
battles
4
Six Killers of
Strategy
5
Five
themes
RECAP •Strategy
•Strategic decisions
•Purpose of strategy
•Types
•Features
•Business Strategy
•PESTEL
•Definitions
•Strategy formulation
•Strategy Execution
•Resilient
Leadership
•Controls and
systems
•Change
Management
•Drivers of value
•Insight
•Efficiency
•Control

36. Albert
Einstein’s
Theory
A = X + Y +
Z
A = Success
X = Work
Y = Play
Z = Keeping your mouth

37. APPRECIATION
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