Growth Strategy Workshop

2,256 views

Published on

This is a workshop I did for 2nd stage entrepreneurs at a workshop hosted by the National Black MBA & The Disney Entrepreneurship Center

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,256
On SlideShare
0
From Embeds
0
Number of Embeds
20
Actions
Shares
0
Downloads
144
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Growth Strategy Workshop

  1. 1. 2010 ECONOMIC EMPOWERMENT SERIES MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL Part 1: Clear Strategies for Success Saturday, April 24, 2010
  2. 2. 2010 ECONOMIC EMPOWERMENT SERIES MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL Part 1: Clear Strategies for Success Dwight Calbert President Aphelion Consulting LLC
  3. 3. 2010 ECONOMIC EMPOWERMENT SERIES MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL Part 1: Clear Strategies for Success Workshop 1: Strategic Aspirations
  4. 4. Product/Market Life-Cycle Launch Growth Maturity Saturation Decline Sales Time
  5. 5. 1) Challenges of Growth
  6. 6. 75% of growth initiatives fail Less than 12% of publicly traded companies achieve double-digit growth over a 10 year period 29% of managers in major corporation feel confident that they can reach their organic growth target 90% of executives rate innovation as a strategic priority in relation to growth; over half are dissatisfied with their ROI on innovation
  7. 7. The Relative Value Growth
  8. 8. Organic Growth vs. Margin Improvements
  9. 9. Exploitation vs. Exploration
  10. 10. Creative Destruction
  11. 11. Cannibalism Dilute the Brand Inconsistent Strategic Intent
  12. 12. Proactive Exit Strategies Reinvigorates Growth
  13. 13. The #1 Strategic Problem for Companies GROWTH GROWTH GROWTH GROWTH
  14. 14. 2) Define Strategy
  15. 15. How do you strategically think about growth?
  16. 16. Strategy Defined Strategy is: 1) an overarching plan that defines how you will attain & evolve a unique, differentiated competitive position that provides a clear advantage 2) a guideline for the focused use of resources to exploit opportunity and profit
  17. 17. Components of Strategic Aspiration Differentiated Advantage Sustainable Greatness
  18. 18. “These ideas are not for those whose ambition in life is to get by or merely to survive” from Blue Ocean Strategy
  19. 19. Philosophical Tenet “An organization can outperform rivals only if it can establish a difference that it can preserve”
  20. 20. Successful Strategy requires Vision, Commitment, Focus, Bold Leadership & Decisive Action “Strategy is a Paradox” Commitment to an Unknown Future
  21. 21. 3) Strategic Thinking Tenets
  22. 22. Foundations of Strategic Thinking
  23. 23. Challenge Conventional Wisdom Nothing is True - Everything is Permitted
  24. 24. Framing Science
  25. 25. High Altitude Holistic View BIG PICTURE Long-Term Perspective
  26. 26. Signaling The strategic use of misdirection to confuse the competition Carefully manage signaling effort because it gives notice of innovation growth initiatives
  27. 27. 4) Example Growth Strategy
  28. 28. Innovation Spurred Path to Growth Model New Degree of Change & Innovation Create Develop New Capabilities Revolutionary Exploration Change Organizational Capabilities 3 1S 4 2 Exploit Improve Core Businesses Strategic Exploitation Advantages Existing Degree of Change & Innovation Adapted from “Incubating Innovation” Limited Strategic Scope Unlimited Journal of Business Strategy by Hickman & Raia (200)
  29. 29. Illustrative Growth Strategy Increased Capacity for Reinvestment 1 Capacity & Willingness to Change Identify & Shape New Markets 2 Innovation Reduce Missed Opportunity Cost 3 De-Risking Opportunities
  30. 30. Product/Market Life-Cycle Launch Growth Maturity Saturation Decline Sales Time
  31. 31. Growth Strategy Increased Capacity for Reinvestment 1 Capacity & Willingness to Change
  32. 32. COMPETE on Your Ability to Generate Excess Cash
  33. 33. Innovation is a core strain in the DNA of Growth
  34. 34. 1) Change the ratio to optimize cost savings & productivity gains Cost Assumptions Knowledge Cost 2) Create organizational knowledge & capabilities that are valuable intangible assets
  35. 35. 10% Savings = $1 Million in Growth
  36. 36. A Key Source of Differentiation: What are the capabilities that drive competitive advantage given our strategic focus? Within those capabilities what are the positions that really make a difference? Who are the people in those positions & what are their skill-sets? Are the best people & skills in the most important strategic roles?
  37. 37. Growth Strategy 1a Building the Organizational Capability Capacity & Willingness to Change
  38. 38. Compete on Speed & Agility & Time
  39. 39. Organizational Growth Phase Model Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Creativity Direction Delegation Co-ordination Collaboration Alliance Organization Size Growth Crisis Red Tape Crisis Control Crisis Autonomy Crisis Leadership Crisis Time
  40. 40. UPS Marketing Tag-line “Moving @ the Speed of Business”
  41. 41. UPS Marketing Tag-line “Moving @ the Speed of Business” Past Competitive Today’s Competitive Environment Environment High High Fundamental Risk Risk Market Changes Low Low Short Long Short Long Decision Decision Making Window Making Window
  42. 42. Product/Market Life-Cycle Launch Growth Maturity Saturation Decline Sales Time
  43. 43. Growth Strategy Identify & Shape New Markets 2 Innovation
  44. 44. COMPETE on Vision
  45. 45. “People who get on in this world get up and look for circumstances they want; if they don’t find them, they create them” ~ George Bernard Shaw
  46. 46. Low Hanging Fruit
  47. 47. Low Hanging Fruit Adjacencies Franchising Channel Expansion Geographic Expansion Growth with Partnerships & Alliances Growth through Mergers & Acquisitions
  48. 48. Money In Growth Requires Investment Money Out
  49. 49. Converting Ideas
  50. 50. Innovation Portfolio
  51. 51. Portfolio Dimensions Innovation Timeframe Portfolio Exploration vs. Exploitation Evolutionary vs. Revolutionary External & Globally Sourced Concept Diversification Strategic Diversification Unorthodox Experiments Master the Art of Creative Destruction
  52. 52. Growth Strategy 2a Building the Organizational Capability Innovation
  53. 53. COMPETE on Ideas “from possibility to profit”
  54. 54. Innovation Defined the art of converting new ideas, discoveries or a vision into societal progress or commercial success faster and more effectively than competitors who have equal access to knowledge and technology
  55. 55. Philosophical Tenet “Technological breakthroughs and new products are not enough to generate growth from innovation”
  56. 56. Areas of Innovation { Strategic Value Creating Potential Creativity Product Development Process / Capability Strategic ~ how to discover more ~ how to create an open- ~ how to create the core ~ how to create strategic innovations that drives Challenge and better ideas that lead sourced, collaborative capability of innovation in to innovation system of development all company activities adaptive competitive advantage ~ creating & coordinating ~ performance metrics, ~ exploiting environmental ~ creativity & innovation in Objective synergies across the processes, systems & change to shape and organizational teams global community human capabilities create new markets Opportunity Creation Engines Innovation Integrators Innovation Infrastructure Strategic Renewal
  57. 57. Growth Strategy Reduce Missed Opportunity Cost 3 De-Risking Opportunities
  58. 58. Always Compete for New Opportunities
  59. 59. Growth Strategy 3a Building the Organizational Capability De-Risking Opportunities
  60. 60. Compete on our Decision Making Ability
  61. 61. Risk is an Inherent Part of Innovation & Growth
  62. 62. Remove the perception of risk (career risk) from the innovation process
  63. 63. Different is not Deficient
  64. 64. 2010 ECONOMIC EMPOWERMENT SERIES MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL Part 1: Clear Strategies for Success Thank You
  65. 65. Dwight Calbert President Aphelion Consulting LLC (650) 641-2095 Office (866) 202-1086 Toll-Free (312) 498-7741 Cell www.Aphelion-Consulting.com Infinitely Innovative

×