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Strategic - Decisions & Tradeoffs - Aditya Yadav


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Strategic - Decisions & Tradeoffs - Aditya Yadav

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Strategic - Decisions & Tradeoffs - Aditya Yadav

  1. 1. * “Running an Agile Fortune 500 Company” Aditya Yadav,
  2. 2. * A Typical Global Company * Fortune 500/1000 * 200 Divisions * 40 Countries * 25000 Employees *
  3. 3. * @ Acme Inc.
  4. 4. * Original Question “How do we take decisions? It is virtually impossible to decide between tradeoffs. What do we do?”* The Correct Question - “Decisions seem impossible to make only when you are not clear about your purpose and reasons. Once that it is clear and a consensus is achieved the decisions themselves are rather trivial.” *
  5. 5. * And The Philosophy Behind The Answer
  6. 6. * Porter says – Strategy is about decisions* Porter says – the best choices give better strategic advantage* There are a lot of decision making frameworks* There is one called Even Swaps from John S. Hammond, Ralph L. Keeney, and Howard Raiffa* We say Strategy is about the Reason behind the Choices.* We say once the Reasons are clearly articulated and consensus achieved, decision making is trivial and consistent across the Organization across the Globe* We say if you want to succeed w/ Strategy Making you have to be absolutely clear about your 1. Values 2. Principles 3. Practices 4. Purpose 5. Philosophy 6. Direction, and 7. Ground Rules* If you are going to counter argue saying – how do you optimize multi-objective functions. I will say once the reasons are clear we don’t rule out using mathematics or any other decision making frameworks (even Even Swaps) But our focus in decision making is on the 7 pointes mentioned above. For us the act of taking the decision is Trivial and Consistent ;-)* Lets be clear – we are focusing on Reasons and not mathematical constructs or frameworks per se. Those are secondary to us. *
  7. 7. 1. Theory vs Practice2. Normative vs Pragmatic3. Benfit vs Cost4. Revenues vs Profits5. Market Share vs Margins6. Stability vs Change7. Present vs Future8. Time vs Money9. Build vs Buy10.Inhouse vs Outsource *
  8. 8. 1. Acquisition vs Organic Growth2. Diversify vs Focus3. Capex vs Opex4. Global vs Local5. Copy vs Innovate6. Early Adopter vs Laggard7. Risk Friendly vs Averse8. Management vs Leadership9. Doing something vs Opportunity Cost10.Suck Costs vs Marginal Costs *
  9. 9. 1. Transparency vs Privacy2. Control vs Self Organizing3. Bottom Up vs Top Down4. Centralized vs Decentralized5. Mass Standardization vs Independence/Creativity6. Follow Demand/Market vs Lead Demand/Market7. Proven Business’s/Model’s vs New Business’s/Model’s8. Training vs Education9. Acquire Talent vs Build Talent10. Experience vs Facts11. Generalists vs Specialists *
  10. 10. * Which of these decisions/tradeoff’s can you make if your Reasons are not clear?* Conclusion: Strategy is not about Choices its about the Reasons behind those Choices* Ref: My Deck on - The Pyramid Of Maturity* Figure out the Why’s! and the What’s become pretty Easy!!!* Figure out the What’s! and the How’s are probably already known by your ground staff. Or it can be standardized easily too.* MTV Enjoy! *
  11. 11. Aditya!!! *