Strategic Planning Tool Playing To Win

1. Rapid Cycle Strategic Learning
Jeff Hunter
January 22, 2017

2. 1996 - 2001

3. The Fundamental Logic

4. = Reputation

5. “Competitive strategy is about being
different. It means deliberately choosing
a different set of activities to deliver a
unique mix of value.”
- Michael Porter
“What Is Strategy?”

6. “If you don’t see what
you’re doing as a
process, you don’t know
what you’re doing.”
W. Edwards Deming

7. Strategy(Process)
Brand (Reputation)

8. “The only sustainable
competitive advantage
is an organization’s
ability to learn faster
than the competition.”
Peter M. Senge

9. Lean = Learning Organization
Serve
Purpose
Improve
Process
Develop
People

10. SD + OE + BR
Developing a new
standard (process,
method) to create
differentiation from
competitors that is
relevant to customers!
Strategy
Deployment
Improving a current
standard (process,
method)
Operational
Effectiveness
The big projects that
consume cross-
organizational resources,
but will not create
differentiation (like ICD10)
“Big Rocks”
True North Equation

11. Strategic Planning is
the process of making
choices under
conditions of
uncertainty and
competition.
Roger Martin

12. “The purpose of planning is not
to produce a plan, but, rather,
to engage in a process of learning and
development that affects the
organization’s present and future.”
- Sherry Bright
(On the Ackoff Model)

13. Preferred Brand
Process for
Managing:
SD + OE + BR
Leader Behaviors :
Using A3 Thinking
make choices, deploy
them and rapidly learn
Customer Value
Purpose, Values, Principles
Human
Development PDCA
Management
Systems
Leader
Behaviors
Operating
System

14. A Strategic Alignment System

15. Lessons from the School of Hard Knocks

16. The Challenge for CEOs
• The importance of autonomy in “professional
bureaucracies”
• Payment systems that support independent
business models
• Organizational inertia from years of growing
revenue
• Costly infrastructure built to serve volumes of
interventions
• Regulatory burden on the incumbents in an
industry
• Quasi-public organizations with many
stakeholders
• Lingering incentives to grow the old way

17. Defining Strategic Choices

18. Current Condition and Problem
Target/Goal
Root Causes
Possible Experiments
Choose and Plan
Study and Adjust
Strategic Planning is A3 Thinking

19. Be clear on our current business model.
Do the market position assessment.
What’s the problem/opportunity?
Use the cascade of strategic choices.
Reverse-engineer our assumptions.
Test our strategic assumptions through rapid experimentation.
A New Method of Strategic Thinking

20. All the Ways to Grow a Business
Market Share Growth
• Increased Usage
• New Users
• New Uses
New Product Development
Market Expansion
Horizontal Integration
Vertical Integration
Diversification
• Concentric
• Conglomerate
Current New
Products
New
Current
Markets

21. Be clear on our current business model.
Do the market position assessment.
What’s the problem/opportunity?
Use the cascade of strategic choices.
Reverse-engineer our assumptions.
Test our strategic assumptions through rapid experimentation.
A New Method of Strategic Thinking

22. What is our
winning
aspiration?
Where will
be play?
How will we
win?
What
capabilities
must be in
place?
What
management
systems are
required?
The unique right to win:
• Our value proposition
• Our competitive
advantage
The purpose
of the enterprise:
• Our guiding
aspirations
The right playing field:
• Where we will compete: our geographies, product categories,
consumer segments, channels, vertical stages of production
The set of capabilities required to win:
• Our reinforcing activities
• Our specific configuration
The support systems:
• Systems, structures, and
measures required to
support our choices
Source: A.G. Lafley and Roger L. Martin “Playing to Win”
An Integrated Cascade of Choices

23. “Everybody
has a plan
until they get
punched in
the face.”
Mike Tyson

24. Be clear on our current business model.
Do the market position assessment.
What’s the problem/opportunity?
Use the cascade of strategic choices.
Reverse-engineer our assumptions.
Test our strategic assumptions through rapid experimentation.
A New Method of Strategic Thinking

25. Where Does Innovation Fit?
When the solution requires more than incremental thinking; the
solution to the problem/opportunity is a “mystery”
Source: Matthew E. May

26. Connecting
Strategy
and
Design
Source: Matthew E. May

27. Deploying Strategic Choices

28. Strategic
Plan (A3)
Strategy Deployment

29. Strategic
Plan (A3)
BI 1
A3
BI 2
A3
BI 3
A3
Strategy Deployment

30. The Basic X-Matrix
Priorities
Initiatives
Resources
Metrics

31. Strategic
Plan (A3)
BI 1
A3
BI 2
A3
BI 3
A3
Priorities
Initiatives
Resources
Metrics
Level 1
Strategy Deployment

32. Strategic
Plan (A3)
BI 1
A3
BI 2
A3
BI 3
A3
Priorities
1 2 3 4 5 6
Resources
Metrics
Level 1
Strategy Deployment

33. Business Plan
Operating Unit
Priorities
Initiatives
Resources
Metrics
Strategy Deployment

34. Business Plan
Operating Unit
Priorities
Initiatives
Resources
Metrics
Strategy Deployment

35. Business Plan
Operating Unit
Strategy Deployment
Priorities
Initiatives
Resources
Metrics

36. Business Plan
Operating Unit
Dialogue
Strategy Deployment
Priorities
Initiatives
Resources
Metrics

37. this… not this…
TWO WAYS TO DEPLOY STRATEGY

38. “The free flow of meaning between two or
more people”
Paterson, Grenny, McMillan, Switzer:
Crucial Conversations, 2002
Catch-Ball
(Dialogue)

39. Frame
Mutual
Respect
Facilitator
Time
Diverge
Converge
Inquiry
Advocacy
Feedback
Catch-ball is
Dialogue

40. ©2008 The Bedside Project

41. Enablers of
Effective Catch-Ball
• A3 thinking as a communication tool.
• X-matrix as a visual way to see relationships.
• Project management thinking to estimate amount
and sequence of resources.
• Principles and practice of effective dialogue.

42. Questions for Strategy
Deployment Reviews
• What did we expect to happen?
• What actually happened?
• What did we learn?
• What will we try next?
• Are there barriers we can remove?

43. Managing the
“Big Rocks”
0
1
Idea
Board 0
2
Evaluat
ion
(Propos
al A3)
0
4
Work
in
Progres
s
0
3
Wait
Work

44. Early Successes!!!

45. Bringing It Home

46. “The trick is building a culture of
experimentation and then by definition, if
you’re not failing some of the time, you’re
not doing an experiment.”
David Kelley
IDEO Founder and Chairman

47. Questions

48. Key Points to
Remember

49. Focus on Target State

50. Target
State
becomes
New
is established.
Focus on Target State

51. Leaping
Fixation
Overthinking
Satisficing
Downgrading
Not Invented Here
Self-Censoring
Source: Matthew E. May,
Winning the Brain Game
7 Fatal Flaws of Thinking

52. Strategic Issue (Problem)
Our current process of strategic planning is leading to
overburden for our staff and a lack of meaningful
differentiation from our emerging competitors. We are not
focused on the critical few priorities that will move the
needle on essential new value creation. The consequences
will be a deterioration of market position and organizational
performance, leading to disengaged employees and
providers.

53. THANK
YOU
 jeffhunterstrategy@outlook.com