Creative Thinking in Strategy Development

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Strategy Development is creative process. However, creativity is not a natural process and, therefore, it isn't easy for an organization to incorporate creative thinking into its Strategy Development process. This document details various ways to foster creative thinking within Strategy Development.


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  • 93 09/15/98 11 25
  • Turn over the card with a vowel And the card with the odd number on it It is irrelevant to pick the card with the consonant (no rule stated on that) or the card with the even number because it will not demonstrate anything.
  • Creative Thinking in Strategy Development

    1. 1. learnppt.comPowerPoint Diagram PackCreative Thinking in Idea Idea Idea Breakthrough SolutionStrategy Development Idea Idea Idea Idea IdeaStrategy Development is creative process. However, Productive thinking Problemcreativity is not a natural process and, therefore, it Reproductive thinkingisn’t easy for an organization to incorporate creative Idea A Idea B Idea Cthinking into its Strategy Development process. Thisdocument details various ways to foster creative Weak Solutionthinking within Strategy Development. Check out our site for all your PowerPoint needs! • http://learnppt.com – Find our ebook on creating effective and professional presentations. Covers basic to advanced concepts, including storyboarding, diagramming, and the Consulting Presentation Framework. • http://learnppt.com/powerpoint -- Shop our catalog of Diagram Packs. We try to add more Packs monthly. All of our diagrams are professionally designed by ex-management consultants from top firms.
    2. 2. Contents • Introduction 4 - Strategy Development - Creativity • Creative Thinking 10 - Obstructions to Creative Thinking - Opportunities for Creative Thinking • Opportunity 1: Conditions 13 • Opportunity 2: Pushing Conventional Thinking 20 • Opportunity 3: Collaborative Thinking 33 • Summary 39learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 2
    3. 3. Strategy Development is a creative process Insights generation Alternative options evaluation Response development Attractiveness/Strength Shape/Adapt What/How • Market • Cost • Degree dynamics of status quo of change • Relative • Level of • Timing performance uncertainty • Level of • Core • Resource readiness capabilities availability • Making sense of incomplete • Identifying alternative options • Visioning compelling future facts states • Inventing new solutions • Seeing beyond the facts, • Connecting un-connected trends, etc. • Optimizing solutions dots • Generating unconventional THIS IS A PARTIAL PREVIEW • Problem solving insights You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ If a spreadsheet could do the trick, there would not be much opportunities for differentiating and winning in the market place.learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 3
    4. 4. Creativity is about thinking productively—not reproductively Idea Breakthrough Solution Idea Idea • Looking at a problem from multiple angles. Idea • Generating as many alternative approaches as one can. Idea Idea • Exploring all approaches Idea even after a solution Idea is found. Productive thinking Problem Reproductive thinking Idea A Idea B Idea C Productive thinking aims THIS IS A PARTIAL PREVIEWat deviating from procedures. experiences and past You can preview the full PowerPoint document and Weak download it at http://learnppt.com/powerpoint/ SolutionSource: Adapted from ‘Cracking Creativity’ learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 4
    5. 5. Creative thinking is not a natural process Each card has a letter on one side and a number on the other. How would you verify the following rule: “if a card as a vowel on one side, then it has an even number on the other side”. You are allowed to turn over a maximum of two cards in order to determine whether the rule is correct as stated. E K 4 7 THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/Source: William Poundstone, ‘How would you move Mount Fuji’, Little Brown Ed. learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 5
    6. 6. There is no silver bullet for creativity, but at least three areas ofopportunities Enabling Creative Thinking Ensuring the right Pushing the limits of Leveraging the power ‘conditions’ are in place ‘conventional’ thinking of ‘collaborative thinking’ THIS IS A PARTIAL PREVIEW 1 2 3 You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 6
    7. 7. Timing is important—frequency, duration, and calendar all influencethe outcome of Strategy Development efforts Constraints Implications  Developing a new strategy every year is rather unproductive – conduct a full ground-up strategy development every 3-5 years Creative processes do not depending on environment volatility FREQUENCY respond well to routine (routine processes produce  Alternate with strategic conversations on specific themes or routine results). related to new events (including scenario planning) as part of strategic review process Strategy development is aided by good conversations.  Ensure sufficient time allocated by senior executive team throughout the process TIME ALLOCATION Quality of conversations improve when people have  Spread senior executive level conversations out over time to prepare in advance a period of months and incubate afterwards. Financial planning and THIS IS A PARTIAL PREVIEW budgeting process tend to  Disconnect strategy development effort from financial planning CALENDAR dominate conversations and and planning activities in general increase focus on short term You can preview the full PowerPoint document and priorities download it at http://learnppt.com/powerpoint/learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 7
    8. 8. A diverse team bringing complementary vantage points will deliver better results Key Roles within Innovation SWAT Team Activity Profile Role LEARNING Anthropologist Bring new learning and insights by observing human behavior and developing a deep understanding of how people interact physically and emotionally with products, services, and spaces. Experimenter Prototyping new ideas continuously, learning by a process of trial and error. Cross-pollinator Exploring other industries and cultures searching for cues. ORGANIZING Hurdler Overcoming and outsmarting roadblocks for • More is better. innovation. Collaborator Bringing eclectic groups together. • Diversity/mix Director Gathering cast and crew to spark creative talent. quality. BUILDING Experience Designing compelling experiences that go beyond Architect mere functionality to connect to a deeper level with • Intimacy with customer latent or expressed needs. issue at stake. Set Designer Creating a stage on which innovation team can do their best work. Caregiver Building on metaphor of healthcare profession to give customer care in manner that goes beyond mere THIS IS A PARTIAL PREVIEW customer service. Storyteller Building internal and external awareness through You can preview the full PowerPoint document and compelling narratives that communicate human value or reinforce specific cultural trait. download it at http://learnppt.com/powerpoint/ Each specific situation will require a different mix of skills.Source: Thomas Kelley et al., ‘The Ten Faces of Innovation : IDEOs Strategies for Defeating the Devils Advocate and Driving Creativity Throughout Your Organization’, Reed Business Information learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 8
    9. 9. Appropriately formulating problems can make or break opportunitiesfor creative thinking If a comet was to hit and destroy Earth in the next hour, I would spend 55 min. formulating the problem and the remaining 5 min. solving it. – Albert Einstein Reformulating Problems Productivity of sales force is not high enough In what ways might we increase the Invitation • Invitational stem (in what ways might productivity of the sales force? stem, positive we...?) statement Why – to generate more new sales Making it • Positive statement. more global Why – to reduce cost of sales Why – to grow the top line and improve profits • Making it more global (e.g., 5 whys). Why – to increase share price Sales rep. Customer Competitor Shifting • Making it more specific (e.g., what, where, • Increase • Make the • Be the first perspectives who, when, how, why). close rate decision in the door • Increase win easier • Avoid THIS IS A PARTIAL PREVIEW rate • Make the whole competitive bid • Separating the whole from the parts. • Reduce corrupted process You can preview the full PowerPoint document and sell time faster • Shifting perspectives (e.g., 6 thinking • Improve download it at http://learnppt.com/powerpoint/ hats, customers, competitors). lead qualitylearnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 9
    10. 10. Diversifying the mix of sources and analyses increases the odds for acreative outcome Sources/Analysis Mix Understand where client is at prior to designing analysis plan (e.g., Focus Interviews identifying situation and disconnects): Expanding Generating • What has been proven/how New brand new horizons insights • What is assumed • What is unknown Openly question assumed and unknown SOURCES OF areas:INFORMATION • Potential implications on current strategy if discovered/proven wrong Diversify sources of information: Area of low Casting • Alternate secondary sources Existing creative opportunity new light • Primary research (even qualitative, at least at the beginning) THIS IS A PARTIAL PREVIEW • Outside of the industry • Internal perspectives You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ mix. Existing New Target a 25-25-25-25 ANALYSISlearnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 10
    11. 11. Broadening the scope early, as well as after solutions start shapingincrease the odds of a creative outcome Broadening the scope early on Reopening it as solutions start shaping • Challenging status quo/’given’ assumptions - pushing scope boundaries. • Imposing design challenges (e.g., buy- • Injecting new sources of insights. up, buy-down, status quo). • Identifying areas of disconnect. • Taking different vantage points (e.g., what would company A do if they were facing this opportunity). Creative Process Issues Traditional Process Solution THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 11
    12. 12. Although a Reality, uncertainties are typically discounted—there are 3 “conventional” responses, which all discount critical uncertainties 14 13 Conventional Responses 18 High Critical Key trends uncertainties ‘Gut feel’ 2 ‘I know we cannot be sure 19 15 it is what to do but my 1 5 17 16 instinct tells me we should do it’ DEGREEOF IMPACT ‘Wait and see’ 3 6 ‘It is too unclear, let’s stick 10 to our knitting’ 11 Low Minor trends Minor ‘Do as everybody’ uncertainties ‘Everybody is doing it, we THIS IS A PARTIAL PREVIEW should do it too’ 4 20 12 You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ Low High LEVEL OF UNCERTAINTY learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 12
    13. 13. To drive shifts in mindset, we can use uncertainties to plan out various scenarios …Developing Scenarios Each axes of uncertainties are expressed in terms of Scenarios are developed, combining various possible its most extreme outcome. extreme outcomesa. Potential Outcomes Scenarios Base Global Gas US Case Instabili Blood Growth A (Favorable) B (Unfavorable) ty/Local Bath Protect. Good (>125% Limited (<100% US US opportunity reserves reserves opportunity A B B A potential replacement) replacement) potential Producing Producing country stability Stable Unstable country A B A B stability Global economic Slow Moderate-high Global Eco. A A B A growth growth Openness Regulated Unregulated Openness B A B B THIS IS A PARTIAL PREVIEW Political Political B B A B Free market Interventionist influence You can preview the full PowerPoint document and influence Environmental download Strong Green Weak Green it at http://learnppt.com/powerpoint/ Environ- mental A B B A aUsually starts by producing all possible scenarios and then select the 2-5 presenting the most: consistency (plausible), relevance (realistic), challenge (posing a challenge), distinctiveness (presenting different enough configurations).learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 13
    14. 14. … and develop contingency plans, driving a more comprehensive thought processLeveraging Scenarios to Drive Mindset Shifts/Contingency Planning Working the scenarios • Engage into a disciplined approach of the future. Scenario 1 Scenario 2 Scenario 3 Scenario 4 • Align behind a common understanding of the driving forces shaping the future and provide a common framework to work on it moving forward. Portfolio shifts • Develop new and structured insights about potential future Capability outcomes. building • Identify possible required Preemptive changes in capabilities and competitive pressure test current moves organization’s adaptiveness. Sales and • Create a robust radar system marketing on the business environment tactics tracking the relevant market signposts. THIS IS A PARTIAL PREVIEW • At minimum, pressure test current approach with You canStrategic Strategic preview the full PowerPoint document and Strategic Strategic ‘contingency’ plan. options options options options download it at http://learnppt.com/powerpoint/ learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 14
    15. 15. Uncertainties can also be leveraged by evaluating the 4 levels of certainty and … Categorizing Uncertainty Majority of strategic decision making options falling in this range Level 1 Level 2 Level 3 Level 4 Clear enough future Alternative futures Range of futures True ambiguity Description Outcome predictable MECE set of possible Wide enough range of Limitless range of enough to identify a outcomes, one of which possible outcomes. possible outcomes. clear confident solution will occur 1 2 ? 3 Representative  Retailer store  Unpredictable move  Customer demand for  Major discontinuity. example of footprint expansion. of competitor (e.g., completely new  Markets just strategic  Marketing decision entering or not product or service. beginning to form. decision on well established entering into market).  Relative preference  Extended timeframe brands in stable  Regulatory change for new competitive required to evaluate markets. THIS IS A PARTIAL PREVIEW (e.g., happening or not). services. potential strategy.  Acquisition of  Unstable macro- competitor in stable,  Establishment of a economic conditions You can preview the full PowerPoint document and mature market new industry impacting underlying standard. demand. download it at http://learnppt.com/powerpoint/ Level of uncertainty reducing over timeSource: Adapted from Courtney, H. et al. (1997), Strategy Under Uncertainty learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 15
    16. 16. … invention new solutions to address each level Pushing Options Depending on Each Situation (1 of 2) Key Level of uncertainty/Possible actions Questions Level 1 Level 2 Level 3 Level 4 Adapting Can we optimize our Are we experimenting and readying ourselves for potential shifts? company fit with Should we start replicating some of the innovations introduced by some of the identified trends? industry shapers? Can we radically Can we increase the flexibility of our organization? improve our execution? Shaping Can we introduce How could we influence the creation of a standard and shape future outcomes discontinuity to our to our advantage? advantage? Can we introduce innovation and take a lead in the market? Can we restructure the industry? Can we replicate existing business model into new markets? How could we influence the conduct of our competitors to our best interest? Commitment Are we delaying Are we delaying ‘no regrets’ investments unnecessarily? commitment for no Are there growth, learning, or insurance real options available that would give us reason? an edge once uncertainty clears up? THIS IS A PARTIAL PREVIEW Focus Are we being too Can we hedge our bets Should we diversify our portfolio? distracted when we with cost effective You can preview the full PowerPoint document and should increase our solutions? Can we take insurance against worst case scenarios? focus? download it at http://learnppt.com/powerpoint/ Should we take some insurance to protect ourselves against worst case scenario?Source: Adapted from Courtney, H. et al. (1997), Strategy Under Uncertainty learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 16
    17. 17. Here is an example of using Decision Analysis to evaluate a level 2 uncertainty scenario Assessing Options – Level 2 Uncertainty Example MagicCo facing potential entry of competitor Globalco in home market which would introduce a new retail format competing with MagicCo’s traditional format – assessing relative attractiveness of preemptive move through launching full scale chain competing with GlobalCo’s position or hedging risks with launch of pilots. Pay-off to MagicCo Enter (p=90%) ($500M) Do nothing GlobalCo ($450M) Inv=$0 Do not enter (p=10%) $0 Enter (p=20%) ($275M) Full scale launch MagicCo Inv=$200M GlobalCo ($355M) Do not enter (p=80%) ($125M) Go full scale ($300M) Enter (p=30%) MagicCo THIS IS A PARTIAL PREVIEW Do not ($450M) Pilots launch GlobalCo ($155M) You can preview the full PowerPoint documentscale Inv=$65M Go full and ($150M) Do not enter (p=70%) download it at http://learnppt.com/powerpoint/ MagicCo Do not $0Source: Adapted from Courtney, H. et al. (1997), Strategy Under Uncertainty learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 17
    18. 18. END OF PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/learnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 18
    19. 19. Read our eBook – How to Become a PowerPoint Guruhttp://learnppt.com/Browse our catalog of PowerPoint Diagram Packshttp://learnppt.com/powerpointJoin our mailing list and receive the Basic Toolkit for free!http://learnppt.com/mailinglistlearnppt.com Questions & feedback? Email me – dave@learnppt.com The diagrams in this pack are to be used by the original buyer only. 19

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