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In a Context of
Discontinuity
Guiding Principles
FROM WHENCE …
You can cause a discontinuity …
CHANGE HAPPENS!
Competition
• Bon Aqua upset the
comfortable world of
Voltic and Nsu with
superior marketing
Technological
• CONSHIP has used
technology that
allows customers see
the progress of their
jobs in real-time to
build stronger
customer bonds
Business model
• Moving parcel post
went from the
confines of Ghana
Post to the bustle of
transport hubs
FROM WHENCE …
… or it can happen to you
THE ONLY CONSTANT IN LIFE …
What crisis has your business
faced in the last five years?
Have you encountered any
major shifts in how you do
business as a result?
Have you changed the
sectors/segments in which
you operate?
SUDDENLY …
STRATEGIC INFLECTION POINTS
The Fundamentals Change New Horizons OR The End
The impact of changing rules creates new opportunity to rise
and signals the beginning of the end
MACRO CHANGES IN THE
GLOBAL/LOCAL ECONOMIES
Nation-states To Networks As The Source Of
Economic Power
•Intra-ECOWAS trade stands at 31.5% (2011, ILO)
Traditions To Options As The Basis For
Individual Behaviour
• Mass-individualism
Export-led To Consumer Driven Economies
• Fuelled By An Emerging Middle Class With
New Expectations
Government-controlled To Market-driven
Economies
• A New Model Of Economic Co-operation
And Co-ordination
Rural/Farm To Urban/Service Economy
• The Locus Of New Opportunities
Labour-intensive To High-technology
• The Basis For Competition/Job Creation
From Male Dominance To The Emergence
Of Women
• Voters, Workers, And Consumers
From West To East
• As The Axis Of The Global Economy
IN THE SHORT-TERM:
REVIEW YOUR COMPANY STRATEGY
Have the factors that
informed the strategy
changed? If so what will be
the impact?
Have any new factors
emerged that did not exist
or were not known?
Does the current strategy
and key actions address the
issues of the current
operating environment and
what you see emerging?
Is the strategy robust
enough to accommodate
short term plans and
actions while building for
future growth?
What needs to change
immediately?
What should the new focus
be?
YOU ARE NOT ALONE!
Traditional business models are being shaken apart
by
Rapidly changing consumer habits
New business models and ideas
New competitive environment
YOUR RESPONSIBILITY IS TO …
“… [create] the conditions
for doing business in a
modern, competitive way in
a global economic system”
“… guide your business …
and place it in a position
where it can prosper in the
new order.”
CHANGE IN GHANA …
PARADIGM FORCES
Substitutes
Competitors
Potential
Competitors
Options
Consumers
Complimentary
Products
Habits
Suppliers
Supply
Chain
MASTERING PARADIGMS
SUBSTITUTES:
SUBSTITUTES:
KOKO KING
Strategic Partnerships
Complimentary Dispensing
technology
Dry Foods Technology School-feeding Programme
Dynamise Sales
Channel Marketing:
Vendors
Category Marketing:
Breakfast & More
i-Sales:
Order Online
Loyalty
Rewards Feedback Personalise Service
COMPETITION:
COMPETITION:
CHALLENGE BOOKSHOP
Redefine your business
founders [] journeyed to difficult places to share the Gospel [] to glorify God by planting, strengthening, and
partnering with churches around the world
Customised solutions
Mobile
Cinema
Mobile
Bookshops
Local
Follow up
Prison
Ministry
and
Chaplaincy
Young
Searchers
League
Mail Box
Club
Conference
s
Counselling
Services
Specialisation
For the past 50 plus years, … the leading name in the distribution of Christian literature in Ghana and offers the
best in Christian reading.
CONSUMERS:
(Non-interest earning) e-money
use is growing
Modern Trade share of retail
spending doubled 26% of consumer plan to save
More people using the web to
buy and sell
2050: Slightly more men; fewer
new children Job prospects flat to negative
CONSUMERS:
AQUAFRESH LTD
Align for Changing Attitudes
What better option […] to keep you at your best […]?
Sync with Changing Habits and Behaviour
“offering high value for money”
“meet your expectations for great taste, convenience,
nutrition and refreshment - every time”
Strategy Relevance
Healthy drink All occasions Convenient, take-along package
SUPPLIERS:
Strategic Relationships
Common
Vision For
The
Relationship
Disclosure
Of Business
Drivers
Continuous
Improvement
Clearly
Defined
Roles &
Responsibilit
ies
Real Metrics
To Drive
Behaviour
Anticipating
Business
Needs
Strategic Importance
Volatile Markets Merger & Acquisition
Expansion Of Supplier
Value-added Services
ON THE CUSP AND
UNAWARE
BUILDING GREATNESS AND AVOIDING THE DESCENT INTO
IRRELEVANCE
THE NATURE OF CHANGE
FIRST,
HARDER TO DETECT BUT EASIER TO CONTROL …
THE HORIZONS THAT INFORM CHANGE
TIME
SOME EMERGING OPPORTUNITIES
 Exploring the “Uncertain” opportunities
CREATING THE OPPORTUNITIES
 GLOBAL TRENDS, FUTURE EXPECTATIONS
AND THE IMPACT OF TECHNOLOGY
THE NATURE OF CHANGE
THEN,
EASIER TO OBSERVE BUT HARDER TO EXPLOIT
THE HORIZONS THAT INFORM CHANGE
TIME
THE OPPORTUNITIES WE HAVE NOW
 Using Core Capabilities
SOME EMERGING OPPORTUNITIES
 Exploring the “Uncertain” opportunities
CREATING THE OPPORTUNITIES
 Global trends, future expectations and the
impact of technology
BUILDING GREATNESS AND
AVOIDING THE DESCENT
INTO IRRELEVANCE
THE FIVE STAGES
Stage 1
Constructive
Destruction
Proactively
reconstruct
the
competitive
context
Hubris born
out of success
Stage 2
Barbarian
Effects
Making the
competition
irrelevant
Undisciplined
pursuit of more
Stage 3
Strategic
Inflection
Failure to see
the perils of a
dynamic
Environment
Denial of risks
& Peril
Stage 4
Grasping for
Salvation
Stage 5
Capitulation to
Irrelevance or
death
There Comes A Time ...
Source: How the Mighty Fall – Jim Collins
CONSTRUCTIVE DESTRUCTION
• What can help your organisation/sector/country
create success in the first place?
• RISK:
“Great enterprises can become insulated by success …
and lose sight of the true underlying factors that created
success in the first place.”
• OPPORTUNITY:
A healthy tension between current commitments and
the fear of what is to come
Proactively reconstruct the competitive context
BARBARIAN EFFECTS
• How does your organisation/sector/Government
avoid the dilution of purpose-driven growth?
• RISK:
“Companies may overreach by making undisciplined
leaps into areas where they cannot be great or growing
faster than their ability to fill key spots with capable
people.”
• OPPORTUNITY:
Focus on making the competition irrelevant
Rigorous succession planning
STRATEGIC INFLECTION
• What does your organisation/sector/Government do to
avoid a failure to see the perils of a dynamic
environment?
• RISK:
“Companies in stage 3 begin to discount or explain away
disturbing data, blame outside forces, and take outsized risks
without giving enough weight to the consequences.”
• OPPORTUNITY:
Reasonable proof as input for risk-taking on the ‘next big
thing’
Look inside for the cause of stagnation/decline; don’t just
reorganise
Stage 1
Constructive
Destruction
Proactively
reconstruct
the
competitive
context
Hubris born
out of success
Stage 2
Barbarian
Effects
Making the
competition
irrelevant
Undisciplined
pursuit of more
Stage 3
Strategic
Inflection
Failure to see
the perils of a
dynamic
Environment
Denial of risks
& Peril
Stage 4
Grasping for
Salvation
Stage 5
Capitulation to
Irrelevance or
death
There Comes A Time ...
Source: How the Mighty Fall – Jim Collins
WELL-FOUNDED HOPE
"The path to recovery lies first and foremost in
returning to sound management practices and
rigorous strategic thinking."
GRASPING FOR SALVATION
• How would your organisation/sector/Government
address its turnaround?
• RISK:
“Instead of getting back to the disciplines that made
them great, companies take dramatic action, seeking a
silver bullet solution.”
• OPPORTUNITY:
Avoid the temptation of silver bullets
Focus on progression with consistency
CAPITULATION TO IRRELEVANCE
OR DEATH
• What does your organisation/sector/Government
do
• RISK:
The company surrenders or runs out of options and
cash. Hope alone is not enough; you need resources.
• OPPORTUNITY:
Reasonable proof as input for risk-taking on the ‘next big
thing’
Look inside for the cause of stagnation/decline; don’t
just reorganise
NEVER GIVE IN …
• Never give up your core purpose.
• Be willing to change tactics
• Never give up on the idea of building a great company.
• Be willing to kill failed business ideas, even those operations you've been in for
a long time
• Never give up on the principles that define your culture
• Be willing to evolve into an entirely different portfolio of activities, even to the
point of zero overlap with what you do today
• Never give up on the discipline to create your own future.
• Be willing to embrace the inevitability of creative destruction
• Never give up faith in the ability to prevail
• Be willing to embrace loss, to endure pain, to temporarily lose freedoms
• Never--ever--give up on your core values.“
• Be willing to form alliances with former adversaries, to accept necessary
compromise

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In a Context of Discontinuity - Guiding Principles & Local Examples 20150525

  • 1. In a Context of Discontinuity Guiding Principles
  • 2. FROM WHENCE … You can cause a discontinuity …
  • 3. CHANGE HAPPENS! Competition • Bon Aqua upset the comfortable world of Voltic and Nsu with superior marketing Technological • CONSHIP has used technology that allows customers see the progress of their jobs in real-time to build stronger customer bonds Business model • Moving parcel post went from the confines of Ghana Post to the bustle of transport hubs
  • 4. FROM WHENCE … … or it can happen to you
  • 5. THE ONLY CONSTANT IN LIFE … What crisis has your business faced in the last five years? Have you encountered any major shifts in how you do business as a result? Have you changed the sectors/segments in which you operate?
  • 7. STRATEGIC INFLECTION POINTS The Fundamentals Change New Horizons OR The End The impact of changing rules creates new opportunity to rise and signals the beginning of the end
  • 8. MACRO CHANGES IN THE GLOBAL/LOCAL ECONOMIES Nation-states To Networks As The Source Of Economic Power •Intra-ECOWAS trade stands at 31.5% (2011, ILO) Traditions To Options As The Basis For Individual Behaviour • Mass-individualism Export-led To Consumer Driven Economies • Fuelled By An Emerging Middle Class With New Expectations Government-controlled To Market-driven Economies • A New Model Of Economic Co-operation And Co-ordination Rural/Farm To Urban/Service Economy • The Locus Of New Opportunities Labour-intensive To High-technology • The Basis For Competition/Job Creation From Male Dominance To The Emergence Of Women • Voters, Workers, And Consumers From West To East • As The Axis Of The Global Economy
  • 9. IN THE SHORT-TERM: REVIEW YOUR COMPANY STRATEGY Have the factors that informed the strategy changed? If so what will be the impact? Have any new factors emerged that did not exist or were not known? Does the current strategy and key actions address the issues of the current operating environment and what you see emerging? Is the strategy robust enough to accommodate short term plans and actions while building for future growth? What needs to change immediately? What should the new focus be?
  • 10. YOU ARE NOT ALONE! Traditional business models are being shaken apart by Rapidly changing consumer habits New business models and ideas New competitive environment
  • 11. YOUR RESPONSIBILITY IS TO … “… [create] the conditions for doing business in a modern, competitive way in a global economic system” “… guide your business … and place it in a position where it can prosper in the new order.”
  • 16. SUBSTITUTES: KOKO KING Strategic Partnerships Complimentary Dispensing technology Dry Foods Technology School-feeding Programme Dynamise Sales Channel Marketing: Vendors Category Marketing: Breakfast & More i-Sales: Order Online Loyalty Rewards Feedback Personalise Service
  • 18. COMPETITION: CHALLENGE BOOKSHOP Redefine your business founders [] journeyed to difficult places to share the Gospel [] to glorify God by planting, strengthening, and partnering with churches around the world Customised solutions Mobile Cinema Mobile Bookshops Local Follow up Prison Ministry and Chaplaincy Young Searchers League Mail Box Club Conference s Counselling Services Specialisation For the past 50 plus years, … the leading name in the distribution of Christian literature in Ghana and offers the best in Christian reading.
  • 19. CONSUMERS: (Non-interest earning) e-money use is growing Modern Trade share of retail spending doubled 26% of consumer plan to save More people using the web to buy and sell 2050: Slightly more men; fewer new children Job prospects flat to negative
  • 20. CONSUMERS: AQUAFRESH LTD Align for Changing Attitudes What better option […] to keep you at your best […]? Sync with Changing Habits and Behaviour “offering high value for money” “meet your expectations for great taste, convenience, nutrition and refreshment - every time” Strategy Relevance Healthy drink All occasions Convenient, take-along package
  • 21. SUPPLIERS: Strategic Relationships Common Vision For The Relationship Disclosure Of Business Drivers Continuous Improvement Clearly Defined Roles & Responsibilit ies Real Metrics To Drive Behaviour Anticipating Business Needs Strategic Importance Volatile Markets Merger & Acquisition Expansion Of Supplier Value-added Services
  • 22. ON THE CUSP AND UNAWARE BUILDING GREATNESS AND AVOIDING THE DESCENT INTO IRRELEVANCE
  • 23. THE NATURE OF CHANGE FIRST, HARDER TO DETECT BUT EASIER TO CONTROL …
  • 24. THE HORIZONS THAT INFORM CHANGE TIME SOME EMERGING OPPORTUNITIES  Exploring the “Uncertain” opportunities CREATING THE OPPORTUNITIES  GLOBAL TRENDS, FUTURE EXPECTATIONS AND THE IMPACT OF TECHNOLOGY
  • 25. THE NATURE OF CHANGE THEN, EASIER TO OBSERVE BUT HARDER TO EXPLOIT
  • 26. THE HORIZONS THAT INFORM CHANGE TIME THE OPPORTUNITIES WE HAVE NOW  Using Core Capabilities SOME EMERGING OPPORTUNITIES  Exploring the “Uncertain” opportunities CREATING THE OPPORTUNITIES  Global trends, future expectations and the impact of technology
  • 27. BUILDING GREATNESS AND AVOIDING THE DESCENT INTO IRRELEVANCE THE FIVE STAGES
  • 28. Stage 1 Constructive Destruction Proactively reconstruct the competitive context Hubris born out of success Stage 2 Barbarian Effects Making the competition irrelevant Undisciplined pursuit of more Stage 3 Strategic Inflection Failure to see the perils of a dynamic Environment Denial of risks & Peril Stage 4 Grasping for Salvation Stage 5 Capitulation to Irrelevance or death There Comes A Time ... Source: How the Mighty Fall – Jim Collins
  • 29. CONSTRUCTIVE DESTRUCTION • What can help your organisation/sector/country create success in the first place? • RISK: “Great enterprises can become insulated by success … and lose sight of the true underlying factors that created success in the first place.” • OPPORTUNITY: A healthy tension between current commitments and the fear of what is to come Proactively reconstruct the competitive context
  • 30. BARBARIAN EFFECTS • How does your organisation/sector/Government avoid the dilution of purpose-driven growth? • RISK: “Companies may overreach by making undisciplined leaps into areas where they cannot be great or growing faster than their ability to fill key spots with capable people.” • OPPORTUNITY: Focus on making the competition irrelevant Rigorous succession planning
  • 31. STRATEGIC INFLECTION • What does your organisation/sector/Government do to avoid a failure to see the perils of a dynamic environment? • RISK: “Companies in stage 3 begin to discount or explain away disturbing data, blame outside forces, and take outsized risks without giving enough weight to the consequences.” • OPPORTUNITY: Reasonable proof as input for risk-taking on the ‘next big thing’ Look inside for the cause of stagnation/decline; don’t just reorganise
  • 32. Stage 1 Constructive Destruction Proactively reconstruct the competitive context Hubris born out of success Stage 2 Barbarian Effects Making the competition irrelevant Undisciplined pursuit of more Stage 3 Strategic Inflection Failure to see the perils of a dynamic Environment Denial of risks & Peril Stage 4 Grasping for Salvation Stage 5 Capitulation to Irrelevance or death There Comes A Time ... Source: How the Mighty Fall – Jim Collins
  • 33. WELL-FOUNDED HOPE "The path to recovery lies first and foremost in returning to sound management practices and rigorous strategic thinking."
  • 34. GRASPING FOR SALVATION • How would your organisation/sector/Government address its turnaround? • RISK: “Instead of getting back to the disciplines that made them great, companies take dramatic action, seeking a silver bullet solution.” • OPPORTUNITY: Avoid the temptation of silver bullets Focus on progression with consistency
  • 35. CAPITULATION TO IRRELEVANCE OR DEATH • What does your organisation/sector/Government do • RISK: The company surrenders or runs out of options and cash. Hope alone is not enough; you need resources. • OPPORTUNITY: Reasonable proof as input for risk-taking on the ‘next big thing’ Look inside for the cause of stagnation/decline; don’t just reorganise
  • 36. NEVER GIVE IN … • Never give up your core purpose. • Be willing to change tactics • Never give up on the idea of building a great company. • Be willing to kill failed business ideas, even those operations you've been in for a long time • Never give up on the principles that define your culture • Be willing to evolve into an entirely different portfolio of activities, even to the point of zero overlap with what you do today • Never give up on the discipline to create your own future. • Be willing to embrace the inevitability of creative destruction • Never give up faith in the ability to prevail • Be willing to embrace loss, to endure pain, to temporarily lose freedoms • Never--ever--give up on your core values.“ • Be willing to form alliances with former adversaries, to accept necessary compromise