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Similar to Standard Bank Presentation - PLi 2010
Standard Bank Presentation - PLi 2010
- 1. Thinking Strategically in aGlobal Context PETE LABURN
- 2. Thinking Strategically in aGlobal Context PETE LABURN
- 3. “The trouble withour times is that the future is not what it used to be” Paul Valery Strategy © Peter Laburn
- 4. Things are notwhat they used to be !! Strategy © Peter Laburn
- 5. !"#$%&'()*&+)$,)-&+.) /$"#0&)12)345&()6789):;6;) Strategy © Peter Laburn
- 6. “It is difficultto get a man to understand something, when his salary depends on him not understanding it” Upton Sinclair 1860’s Strategy © Peter Laburn
- 7. What % ofintended strategy actually gets implemented?
- 8. What % ofintended strategy actually gets implemented?
- 9. What % ofintended strategy actually gets implemented? Less than ….. 10 %
- 10. What % ofintended strategy actually gets implemented? Less than ….. 10 % So 2 questions - why is it so low ? - why bother with a Strategic Process ?
- 11. “Logical Incrementalism” ‘In realityorganizations proceeded by trial and error, constantly revising strategy in the light of experience’ James Quinn
- 12. “Logical Incrementalism” ‘In realityorganizations proceeded by trial and error, constantly revising strategy in the light of experience’ James Quinn
- 13. Is strategy created…. or does it evolve ????? Strategy © Peter Laburn
- 14. Strategy – would loveto do it, but we are too busy with today’s challenges
- 15. Strategy – would loveto do it, but we are too busy with today’s challenges
- 16. Strategy is notOperation Tactics Strategy © Peter Laburn
- 17. Strategy is notOperation Tactics • Strategy - are we really doing the right things? Are we effectively going in the right direction bearing in mind all the things that are changing? Strategy © Peter Laburn
- 18. Strategy is notOperation Tactics • Strategy - are we really doing the right things? Are we effectively going in the right direction bearing in mind all the things that are changing? • Operational Tactics - the things that we choose to do, do we do them right / really well, with maximum efficiency? Strategy © Peter Laburn
- 19. Strategy vs Tactics HIGH EFFICIENCY TACTICS Doing things right LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESS Source : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn
- 20. Strategy vs Tactics HIGH EFFICIENCY TACTICS Doing things right DIE SLOWLY LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESS Source : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn
- 21. Strategy vs Tactics HIGH EFFICIENCY DIE QUICKLY TACTICS Doing things right DIE SLOWLY LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESS Source : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn
- 22. Strategy vs Tactics HIGH EFFICIENCY DIE QUICKLY TACTICS Doing things right DIE SLOWLY SURVIVE LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESS Source : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn
- 23. Strategy vs Tactics HIGH EFFICIENCY DIE QUICKLY THRIVE TACTICS Doing things right DIE SLOWLY SURVIVE LOW EFFICIENCY LOW HIGH EFFECTIVENESS EFFECTIVENESS Source : Prof M McDonald STRATEGY Doing the right things Strategy © Peter Laburn
- 24. Strategy – things aregoing well .. don’t rock the boat!
- 25. Strategy – things aregoing well .. don’t rock the boat!
- 26. Hidden realities ofchange Change comes at us … without asking permission without making a sound without giving us a template of how to cope Strategy © Peter Laburn
- 27. Strategy – is aboutchange
- 28. Strategy – is aboutchange
- 29. Strategy – is aboutchange And we are ‘creatures of habit’
- 30. “ If wewant things to stay as they are, things will have to change” di Lampedusa - The Leopard Strategy © Peter Laburn
- 31. Change Imperative Rate ofchange Time 90’s 2000’s 2010’s Strategy © Peter Laburn
- 32. Change Imperative Rate ofchange 2 years Time 90’s 2000’s 2010’s Strategy © Peter Laburn
- 33. Change Imperative Rate ofchange } catch up 2 years Time 90’s 2000’s 2010’s Strategy © Peter Laburn
- 34. Change Imperative Rate ofchange 2 years } catch up 2 years Time 90’s 2000’s 2010’s Strategy © Peter Laburn
- 35. Change Imperative catch up? Rate of change 2 years } catch up 2 years Time 90’s 2000’s 2010’s Strategy © Peter Laburn
- 36. Strategies need tobe changed – not because the historical strategies may have been wrong , but because past strategies (however good they were) may be obsolete and no longer appropriate … the rules have changed Strategy © Peter Laburn
- 37. Times of Turbulence “The greatest danger in times of turbulence is not the turbulence, it is to act with yesterdays logic” Peter Drucker Strategy © Peter Laburn
- 38. Strategic Readiness Beyond necessary = Imperative Do you know with certainty where your industry is going over the next 5 years? YES NO YES 1 2 Can Standard Bank cope ? NO 3 4 Strategy © Peter Laburn
- 39. Strategic Readiness Beyond necessary = Imperative Do you know with certainty where your industry is going over the next 5 years? YES NO YES 1 2 Can Standard Bank cope ? NO 3 4 Strategy © Peter Laburn
- 40. DOING WHAT YOUHAVE ALWAYS BEEN DOING AND EXPECTING DIFFERENT RESULTS Peter Laburn International
- 41. INSANITY DOING WHAT YOUHAVE ALWAYS BEEN DOING AND EXPECTING DIFFERENT RESULTS Peter Laburn International
- 42. Strategy as Revolution “Ibelieve that only those companies that are capable of reinventing themselves and their industry in a profound way, will be around in a decade hence” Gary Hamel Strategy © Peter Laburn
- 43. Strategy is aholistic process 10.15am
- 44. Strategy is aholistic process 10.15am
- 45. Strategic Drive Chain EXTERNAL INTERNAL G G ING AL IP RS GIN GIN NG ET GY ION S SH LDE AN LD AN TRY A ICS T ISA IE ER HO CH OR CH UN CH ARK ATE CT AN BILIT LEA D KE W CO M STR TA G OR APA STA C FORMULATION IMPLEMENTATION Source: Peter Laburn Strategy © Peter Laburn
- 46. Disney’s Purpose andValues Purpose – “ To make people happy” Values – – Safety – Courtesy – The Show – Efficiency These are ranked in order of priority Strategy © Peter Laburn
- 47. Strategic Drive Chain EXTERNAL INTERNAL G G ING AL IP RS GIN GIN NG ET GY ION S SH LDE AN LD AN TRY A ICS T ISA IE ER HO CH OR CH UN CH ARK ATE CT AN BILIT LEA D KE W CO M STR TA G OR APA STA C FORMULATION IMPLEMENTATION Source: Peter Laburn Strategy © Peter Laburn
- 48. Strategic Drive Chain EXTERNAL INTERNAL G G ING AL IP RS GIN GIN NG ET GY ION S SH LDE AN LD AN TRY A ICS T ISA IE ER HO CH OR CH UN CH ARK ATE CT AN BILIT LEA D KE W CO M STR TA G OR APA STA C FORMULATION IMPLEMENTATION Source: Peter Laburn Strategy © Peter Laburn
- 49. WHAT SHAPES OURFUTURE ? Past thinking of Futurist’s 80 % continuation 15 % cycles 5 % novelty Strategy © Peter Laburn
- 50. WHAT SHAPES OURFUTURE ? Past thinking of Futurist’s Current thinking of Futurist’s 80 % continuation 5 % continuation 15 % cycles 15 % cycles 5 % novelty 80 % novelty Strategy © Peter Laburn
- 51. A Move toQuantum Thinking Newtonian Quantum • Simplicity • Complexity • Control • Influence • Separation • Integration • Uniformity • Diversity • Enquiry • Certainty • Multi causes • Cause and effect • Systems thinking • Linear logic • Synthetic thinking • Binary logic • Intuition • Empiricism Strategy © Peter Laburn
- 52. CURRENT VS IDEALFUTURES CURRENT REALITY 2010 Strategy © Peter Laburn
- 53. CURRENT VS IDEALFUTURES CURRENT REALITY 2010 Strategy © Peter Laburn
- 54. CURRENT VS IDEALFUTURES CURRENT CURRENT FUTURE REALITY 2015 2010 Strategy © Peter Laburn
- 55. CURRENT VS IDEALFUTURES CURRENT CURRENT FUTURE REALITY 2015 2010 CONTINUATION Strategy © Peter Laburn
- 56. CURRENT VS IDEALFUTURES IDEAL FUTURE 2015 CURRENT CURRENT FUTURE REALITY 2015 2010 CONTINUATION Strategy © Peter Laburn
- 57. CURRENT VS IDEALFUTURES IDEAL FUTURE 2015 CURRENT CURRENT FUTURE REALITY 2015 2010 CONTINUATION Strategy © Peter Laburn
- 58. CURRENT VS IDEALFUTURES IDEAL FUTURE 2015 NOVELTY CURRENT CURRENT FUTURE REALITY 2015 2010 CONTINUATION Strategy © Peter Laburn
- 59. CURRENT VS IDEALFUTURES IDEAL FUTURE 2015 NOVELTY CURRENT CURRENT FUTURE REALITY 2015 2010 CONTINUATION Strategy © Peter Laburn
- 60. CURRENT VS IDEALFUTURES IDEAL FUTURE 2015 NOVELTY CURRENT CURRENT FUTURE REALITY 2015 2010 CONTINUATION Strategy © Peter Laburn
- 61. CURRENT VS IDEALFUTURES IDEAL FUTURE 2015 NOVELTY CURRENT CURRENT FUTURE REALITY 2015 2010 CONTINUATION Strategy © Peter Laburn
- 62. The Missing Dimension The Prevailing Approach: What Is Missing: Strategy as Strategy as a a Set Solution Dynamic Process A long-term sustainable Creation of value competitive advantage Goal CEO as chief strategist; the The CEO and strategy consultants Leadership job cannot be outsourced Unchanging plan that derives from an analytical, left-brain Form Organic process that is adaptive, exercise holistic, and open-ended Intense period of formulation followed by prolonged period Time Everyday, continuous, unending of implementation Frame Defending an established Ongoing Fostering competitive advantages and strategy through time Activity developing the company through time Montgomery: Putting Leadership back into Strategy Strategy © Peter Laburn
- 63. Strategy by RouteMap. Source: Peter Laburn Strategy © Peter Laburn
- 64. Strategy by RouteMap. Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 65. Strategy by RouteMap. Where we want to be Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 66. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 67. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 68. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 69. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 70. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 71. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 72. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 73. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 74. Strategy by RouteMap. Where we want to be What you will do Where we are today Source: Peter Laburn Strategy © Peter Laburn
- 75. Strategy by RouteMap. Where we want to be What you will do Where we are today After: Henry Mintzberg Source: Peter Laburn Strategy © Peter Laburn
- 76. Strategy by RouteMap. Where we 3 Strategic Fallacies want to be Predic1on Detachment Formaliza1on What you will do Where we are today After: Henry Mintzberg Source: Peter Laburn Strategy © Peter Laburn
- 77. Strategy by RouteMap. Where we 3 Strategic Fallacies want to be Predic1on Detachment Formaliza1on What you will do Where we are today After: Henry Mintzberg Source: Peter Laburn Strategy © Peter Laburn
- 78. Strategy by RouteMap. Where we 3 Strategic Fallacies want to be Predic1on Detachment Formaliza1on What you will do Where we are today After: Henry Mintzberg Source: Peter Laburn Strategy © Peter Laburn
- 79. Strategy by RouteMap. Where we 3 Strategic Fallacies want to be Predic1on Detachment Formaliza1on What you will do Where we are today After: Henry Mintzberg Source: Peter Laburn Strategy © Peter Laburn
- 80. Strategy by RouteMap. Where we 3 Strategic Fallacies want to be Predic1on CEO Detachment Chief Extraction Officer Formaliza1on What you will do Where we are today After: Henry Mintzberg Source: Peter Laburn Strategy © Peter Laburn
- 81. Strategy by G.P.S. Source: Peter Laburn Strategy © Peter Laburn
- 82. Strategy by G.P.S. After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 83. Strategy by G.P.S. Lessons from Nature Field Theory Molecular Biology Quantum Physics Chaos Theory After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 84. Strategy by G.P.S. Lessons from Nature Field Theory Molecular Biology Quantum Physics Chaos Theory After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 85. Strategy by G.P.S. Lessons from Nature Field Theory Molecular Biology Quantum Physics Chaos Theory After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 86. Strategy by G.P.S. Lessons from Nature Field Theory Molecular Biology Quantum Physics Chaos Theory After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 87. Strategy by G.P.S. Lessons from Nature Field Theory Molecular Biology Quantum Physics Chaos Theory After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 88. Strategy by G.P.S. Lessons from Nature Where we Field Theory want to be Molecular Biology Quantum Physics Chaos Theory Where we are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 89. Strategy by G.P.S. Lessons from Nature Where we Field Theory want to be Molecular Biology Quantum Physics Chaos Theory Where we are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 90. Strategy by G.P.S. Lessons from Nature Where we Field Theory want to be Molecular Biology Quantum Physics Chaos Theory What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 91. Strategy by G.P.S. Lessons from Nature Where we Field Theory want to be Molecular Biology Quantum Physics Chaos Theory What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 92. Strategy by G.P.S. Lessons from Nature Where we Field Theory want to be Molecular Biology Quantum Physics Chaos Theory What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 93. Strategy by G.P.S. Lessons from Nature Where we Field Theory Create a strategic field want to be Molecular Biology Open source info flow Quantum Physics Maximize rela1onships Chaos Theory Let mild chaos flow What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 94. Strategy by G.P.S. Lessons from Nature Where we Field Theory Create a strategic field want to be Molecular Biology Open source info flow Quantum Physics Maximize rela1onships Chaos Theory Let mild chaos flow What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 95. Strategy by G.P.S. Lessons from Nature Where we Field Theory Create a strategic field want to be Molecular Biology Open source info flow Quantum Physics Maximize rela1onships Chaos Theory Let mild chaos flow What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 96. Strategy by G.P.S. Lessons from Nature Where we Field Theory Create a strategic field want to be Molecular Biology Open source info flow Quantum Physics Maximize rela1onships Chaos Theory Let mild chaos flow What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 97. Strategy by G.P.S. Lessons from Nature Where we Field Theory Create a strategic field want to be Molecular Biology Open source info flow Quantum Physics Maximize rela1onships Chaos Theory Let mild chaos flow What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 98. Strategy by G.P.S. Lessons from Nature Where we Field Theory Create a strategic field want to be Molecular Biology Quantum Physics Open source info flow Maximize rela1onships CEO Chaos Theory Let mild chaos flow Chief Enabling Officer What you will NOT do Philosophically Strategically Opera1onally Where we Behaviourally are today After: Margaret Wheatley Source: Peter Laburn Strategy © Peter Laburn
- 100. Some Newer Thoughts on Strategic Thinking
- 101. Strategic Intuition Ref : William Duggan Intuition = flashes of insight 1.Ordinary intuition – a feeling, gut feel, instinct 2.Expert intuition – snap judgements instantly recognizable, something familiar, knowing where the ball will go if you hit it. Known, existing spaces – seeing patterns Strategy © Peter Laburn
- 102. Strategic Intuition -cont Ref : William Duggan 3. Strategic Intuition – – Doesn’t start with a ‘big idea’ – Begins by being open to possibilities – Builds off other (very different) ideas – It’s a clear thought, it slowly evolves – Not fast or impulsive – It is edified by a multiplicity of factors – Takes you into unknown, new spaces – Once ‘flash of insight’ occurs - strike fast, pursue relentlessly Strategy © Peter Laburn
- 103. A Brief perspective…von Clausewitz Strategy Source: Strategic Intuition by William Duggan © Peter Laburn
- 104. A Brief perspective…von Clausewitz Examples from History - strategic intuition draws on the knowledge and experience of all of history far and wide, all stored in the shelves of the mind Presence of mind - refers to a clear mind, clear of all expectations and previous ideas of what you might do or even what your goal is. Flash of insight - In a free mind selected elements from various examples come together in a new combination. Resolution i.e. Resolve / determination - you not only need to see what to do but also be ready to do it. The flash of insight carries with it the force of action that propels you forward, but you need the resolve to push on and make your strategy happen Strategy Source: Strategic Intuition by William Duggan © Peter Laburn
- 105. Obliquity Why !!Our goals are best achieved indirectly eg !! The Happiest people don’t pursue happiness !! The Wealthiest people don’t puruse materialism !! The most profitable companies are not the most profit orientated Think “Snakes and Ladders” Strategy © Peter Laburn
- 106. The need forObliquity Muddling through – why obliquity succeeds Pluralism – why there is usually more than one answer to any problem Interaction – why the outcome of what we do depends on why we do it Complexity – how the world is too complex for directness to be direct Incompleteness – how we rarely know enough about the nature of our problems Abstraction – why models are imperfect descriptions of reality Strategy © Peter Laburn
- 107. Some current realities !! We mistakingly infer design from outcome !! We have less freedom of choice than we think !! Decision makers don’t recognise the limits of their knowledge !! Adaptation is smarter than we are !! We know more than we can tell !! Complex outcomes are achieved without knowledge of an overall purpose !! It is more important to be right that to be consistent !! Spurious rationality is often confused with good decision making Strategy © Peter Laburn
- 108. ACTIONS THE STRATEGIC FRAMEWORK © Peter Laburn International STRATEGIC MUST WIN BATTLES MEASUREMENT CAPACITY DEVELOPMENT ACTIONS Key initiatives that must CRITERIA Structure, systems and Both minimum be achieved, but results How business growth and Resource implications – what requirements and not entirely strategic implementation is needed to deliver future core competency in own hands will be measured / strategies development governed PROPOSITION ANTICIPATED RESULTS STRATEGIES 3 – 5 yr VISION PLAYING FIELD What results the strategy What we will do What our business will look What we will not should deliver Key strategic like do thrust that will Conceptual outputs, Philosophically ensure vision is Target market focus Strategically KEY TRIGGER POINTS achieved Geographic domain, Operationally When strategy would need to be Strategic differentiation Behaviourally re-assessed CULTURE MARKET INSIGHTS KEY UNCERTAINTIES How we do things Unique understanding What are the unknowns CONTEXT VALUES MARKET REALITIES RULES OF THE GAME How we behave Corporate performance How the market operates B.U.market share / growth 12 month performance PURPOSE Competitor review KEY DRIVERS Our reason for being Research undertaken What really influences our thinking Our anticipated legacy Value chain analysis Strategy CHANGING WORLD - What is changing in our world © Peter Laburn
- 109. How the environmentis changing Ref Porter’s PESTIR Analysis POLITICAL/LEGAL ISSUES ECONOMIC ISSUES Global leadership changing Emerging markets – BRIC New legislation Global recession ,GDP ,Consumer confidence Government / Union / Business relations Government bailouts, Investment factors Global trading blocks Oil price / alternative currencies Political instability Interest and exchange rates Access to capital SOCIAL ISSUES TECHNOLOGY ISSUES Demographic changes ICT convergence Urbanization The competitive Open source world Consumerism / affluenza Clash of Values / cultures environment Social networking Bio technology advances Life expectancy Genetic modification Fundamentalism Intellectual property INSTITUTIONAL RESOURCE ISSUES Connection economy Environmental issues Changing world of work Global ‘Weirding’ Fragmentation of organizations Sustainable energy Blurring of boundaries - Value chains Global food, energy shortage Distribution rules Global skills shortage Strategy Shifting balance of stakeholder power Exploitation of resources © Peter Laburn
- 110. POLITICAL ECONOMIC •Global leadership change – SA, USA, other •Emerging economies & their strength – China, India, Brazil, •Increasing & changing compliance & legislation – global, SA, Greater Central Asia, Asian Tigers, SA consumer protection, common / universal •Potential global recession & financial bail outs •BBBEE – nuances in each country •Costs of living rising – interest rates, power, inflation, food •SA Government delivery or lack thereof prices, oil … •Global trading blocks – commitment to SADC union by 2014 •Growing poverty gap & pressure for global poverty relief •Underfunded pension industry SOCIAL •2010 World Cup •Growth of middle class globally •Estimated strong SA economic growth through 2014 •“Americums” – the pursuit of materialism (western influence) •Infrastructure investment of R410 billion •Clash of multiple cultures, religions, value systems (West v •Angolan growth – straight line extrapolation is Africa’s East) strongest economy by 2025 (driven by international investment, •Life expectancy increasing (developed nations) and decreasing oil) (developing nations) •“Affluenza” - •Impact of diseases & AIDS •Alternative currencies – e.g. carbon credits •Access to medicines •Rampant consumerism (“vigilante consumers”) TECHNOLOGICAL •Tribalisation – the association / identification with a group •ICT (Information, Communication, Technology) convergence •Fundamentalism •Virtual, highly mobile world •Globalisation vs cocooning (xenophobia) •Cellular •Crime •Telematics (auto & mobile technology information & •Terrorism interaction) •White collar crime •Open source world – access to information – anyone, where, •Urbanisation & de-urbanisation time, how •Declining levels of education •Social networking (blogs, wiki’s, facebook, twitter, mixit, •Confused legislation webinar’s ) •Role of teachers as moral guides •Bio-technology – •Environmental responsibility – green revolution •Genetic modification – people, food •Changing the face of agriculture & forestry INSTITUTIONAL •Connection economy •Changing world of work RESOURCES •Generations (Boomer, Gen X, Gen Y) •Global weirding – climate change •Rising role of women •Increasing natural catastrophes •Retirement becoming obsolete •New diseases & epidemics •Skill shortage & talent mobility •Energy from heaven and hell •Growth in outsourcing – work flows to where it’s best suited •Sustainability (especially commodity skills) •Increasing demand •Ownership of customer – distribution ‘rules’ •Future wars over water •Blurring of boundaries - consolidation of industries •Global food shortages •Services revolution (manufacturing to service… experience) •SA infrastructure – failure & development Strategy •Stakeholder responsibility & balance of power shifting •Fragmentationism – move away from ‘big organisation’ •Rail regeneration & Gautrain •Exploitation of Africa for natural resources (particularly from China) © Peter Laburn
- 111. Business Philosophies /Purpose • Excellence / Premium quality – ………….. delivers the highest quality products / service / support in ………. market • Discovery – …………. offers most innovative / refreshing approach to products / service in the ……….. market • Altruism – …………. is caring and supportive in its product design and service delivery – always there for valued clients • Heroism – …………. has set itself the goal of leading change by leading a cause for ……….. in the market • Exploitation – Just get the bottom line budget – meet financial Strategy Source: Mourkogiannis - Guide to Moral Purpose © Peter Laburn
- 112. How it allfits together… Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 113. How it allfits together… Purpose /Mission Why we exist Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 114. How it allfits together… Purpose /Mission Why we exist Values What we believe in & how we will behave Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 115. How it allfits together… Purpose /Mission Why we exist Values What we believe in & how we will behave Vision What we want to be Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 116. How it allfits together… Purpose /Mission Why we exist Values What we believe in & how we will behave Vision What we want to be Strategy What our competitive game plan will be Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 117. How it allfits together… Purpose /Mission Why we exist Values What we believe in & how we will behave Vision What we want to be Strategy The Basic Elements of What our competitive A Strategy Statement game plan will be Objective = Ends Scope = Domain Advantage = Means Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 118. How it allfits together… Purpose /Mission Why we exist The single precise objective that Values will drive the business over the What we believe in & next 5 years or so. Specific, how we will behave measurable, and time bound. It should be a single goal Vision What we want to be Strategy The Basic Elements of What our competitive A Strategy Statement game plan will be Objective = Ends Scope = Domain Advantage = Means Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 119. How it allfits together… Purpose /Mission Why we exist Values What we believe in & The customer or offering; geographic how we will behave location & integration. Should also include where the business will not go. Vision What we want to be Strategy The Basic Elements of What our competitive A Strategy Statement game plan will be Objective = Ends Scope = Domain Advantage = Means Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 120. How it allfits together… Purpose /Mission Why we exist Values The most critical. What makes the What we believe in & business distinctive. Incorporates the how we will behave value proposition as well as the unique activities that allows the business to deliver on the value proposition Vision What we want to be Strategy The Basic Elements of What our competitive A Strategy Statement game plan will be Objective = Ends Scope = Domain Advantage = Means Strategy HBR April 2008: Can You Say What Your Strategy Is? p82 © Peter Laburn
- 121. An alternative perspective • The ideal strategy should include:- • Truth - describes the world as it is • Assertions - describes how you are going to change things • Alternatives - describes the options you have when you original assertions don’t work • People - describes who is on your team / who will join team and why they will be • Money - describes how much you need to make plan happen , cash flows P+L’s etc Seth Godin - blog May 2010 Strategy © Peter Laburn
- 122. Vision – whatour business will look like •What game are we in ? •How do we add value ? •What competencies needed ? •What differentiation ? •What is sustainable ? Strategy © Peter Laburn
- 123. Strategy Statement “We aspire to be a leading emerging markets financial services organisa1on” Strategy © Peter Laburn
- 124. – Group strategicstatement “We aim to build a leading emerging markets financial services organiza=on using all our compe==ve advantages to the full. We focus on delivering superior sustainable shareholder value by cost effec=vely serving the needs of our customers and where appropriate, connec=ng them globally. The key to achieving our strategy is our people” Strategy © Peter Laburn
- 125. 9 Key StrategicDeliverables • 1. Grow, develop and recognize our people • 2. Ensure our values live and grow within the organisa1on 3. Promote a nimble and proac1ve approach to our customers 4. Deliver superior returns and sustainable growth for shareholders 5. Ensure that the three core business units work together and maximize on the synergies. 6. We've got to build a strong and unified brand 7. Deploy our scarce capital appropriately 8. Constantly balance risk and return and also ensure appropriate corporate governance 9. Create a world class infrastructure, with the emphasis on cost efficiency Strategy © Peter Laburn
- 126. BUILDING A STRATEGIC PROPOSITION Strategy © Peter Laburn
- 127. Remember Maslow ? Self Actualization Self Esteem Love and Friendship Safety Needs Shelter , security Physiological Needs Hunger , Thirst Strategy © Peter Laburn
- 128. Along came Hertzberg… Self Actualization Self Esteem Motivating factors Love and Friendship Safety Needs Shelter , security Hygiene factors Physiological Needs Hunger , Thirst Strategy © Peter Laburn
- 129. Building Market Strategy Strategy © Peter Laburn
- 130. Building Market Strategy Entry to the Game If you don’t offer “this ..” you are not an option Strategy © Peter Laburn
- 131. Building Market Strategy Competitive Advantage what will differentiate you from competitors Entry to the Game If you don’t offer “this ..” you are not an option Strategy © Peter Laburn
- 132. Core Competence Competitive Advantage Entry to the game Strategy © Peter Laburn
- 133. Core Competence Competitive Advantage Entry to the Core Competence game Strategy © Peter Laburn
- 134. Core Competence Competitive Advantage Entry to the Core Competence game What you are really good at What you focus on Strategy © Peter Laburn
- 135. Core Competence Competitive Advantage Tactical Advantage use it while you have it Entry to the Core Competence game What you are really good at What you focus on Strategy © Peter Laburn
- 136. Core Competence Competitive Advantage Sustained Advantage Tactical Advantage is difficult for anyone to copy use it while you have it Entry to the Core Competence game What you are really good at What you focus on Strategy © Peter Laburn
- 137. Core Competence Competitive Advantage Sustained Advantage Tactical Advantage is difficult for anyone to copy use it while you have it Entry to the Core Competence game What you are really good at What you focus on Strategy © Peter Laburn
- 138. Core Competence Competitive Advantage Sustained Advantage Tactical Advantage is difficult for anyone to copy use it while you have it Entry to the Core Competence game What you are really good at What you focus on Strategy © Peter Laburn
- 139. Core Competence No advantage Competitive anymore !! Advantage Sustained Advantage Tactical Advantage is difficult for anyone to copy use it while you have it Entry to the Core Competence game What you are really good at What you focus on Strategy © Peter Laburn
- 140. Core Competence Sustained Advantage is difficultadvantage No for anyone Competitive anymore !! to copy Advantage Tactical Advantage use it while you have it Entry to the Core Competence game What you are really good at What you focus on Strategy © Peter Laburn
- 141. Strategic Positioning CORE COMPETENCE CORE COMPETENCE Strategy © Peter Laburn
- 142. Strategic Positioning Must doto be in game – but CORE COMPETENCE not core CORE COMPETENCE Strategy © Peter Laburn
- 143. Strategic Positioning Must doto be in game – but CORE COMPETENCE not core Must do and core. CORE COMPETENCE What you build your Strategy business on © Peter Laburn
- 144. Strategic Positioning Tactical Advantage capitalize while you can Must do to be in game – but CORE COMPETENCE not core Must do and core. CORE COMPETENCE What you build your Strategy business on © Peter Laburn
- 145. Strategic Positioning Tactical Advantage capitalize Sustained while you Advantage can build future Strategy on Must do to be in game – but CORE COMPETENCE not core Must do and core. CORE COMPETENCE What you build your Strategy business on © Peter Laburn
- 146. “The ‘surplus society’has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Funky Business Kjell Nordström and Jonas Ridderstråle Strategy © Peter Laburn
- 147. # Full ServiceFinancial Organisation… # With Emerging Market Focus… # Single view of client Strategic Positioning 2014 Competitive differentiation Entry to 2. the game 1. GOT to have, but what you want GOT to have to be good at .. to be an option… others might have it may but everyone has it or may not be their focus Strategy Core competencies © Peter Laburn
- 148. # Full ServiceFinancial Organisation… # With Emerging Market Focus… # Single view of client Strategic Positioning 2014 3. Competitive differentiation WANT TO CREATE, not easily copied Entry to 2. the game 1. GOT to have, but what you want GOT to have to be good at .. to be an option… others might have it may but everyone has it or may not be their focus Strategy Core competencies © Peter Laburn
- 149. The Change House Source: Ashridge Business School
- 150. The Change House Source: Ashridge Business School
- 151. Change House BusinessCycle •Movement always anti clockwise •Business can never skip a room or go back in a clockwise direction •Leadership determine time spent in a specific room • Challenge: To stay in constant Renewal Source: Ashridge Business School
- 152. Change House BusinessCycle •Movement always anti clockwise •Business can never skip a room or go back in a clockwise direction •Leadership determine time spent in a specific room • Challenge: To stay in constant Renewal Source: Ashridge Business School
- 153. The Change House The Contentment The Renewal Room Room The sun Lounge The Denial The Confusion Room Room Wrong direction Door Dungeon of Denial Paralysis Pit Strategy Source: Ashridge Business School © Peter Laburn
- 154. Signs of Contentment What we say……… How we act……… • We’re the market leaders • Ignore the outside world • If it isn't broken, don’t fix it • Bureaucratic • Not invented here • Arrogant • Management has decided • Uninformed about competitors • We know our customers • Don’t listen to staff • It’s a stable industry • Head Office focus • Publish the company history • We have a great track record • No sense of urgency • We’re the most profitable • Focus on day- to- day details • I’ll decide later • Automatic salary increases • We achieve our budgets • I’m the best Strategy Source: Ashridge Business School © Peter Laburn
- 155. Signs of Denial What we say……… How we act……… • It’s an industry trend • Defend the past • What problem? • Defend the present • Not my problem • Aggressive • Head Office doesn't • Protect the guilty understand • Maintain taboos • My staff are no good • Kill the messenger….. • ……but miss the message • Competitors are worse • Blame everybody else • I've always done it this way • Don’t listen to staff • My area is different • Tell stories about past glories • If adjusted for.. It’s OK • Massage the figures • It’s our customers fault • It’s a short term problem Strategy Source: Ashridge Business School © Peter Laburn
- 156. Signs of Confusion What we say……… How we act……… • How did I get into this mess? • Frustration • Let’s hire some consultant • Depression • Anger • What’s happening • Withdrawal • What have I done wrong? • Blaming management • I’ve been saying that for years • Loss of self-esteem • We did that years ago • Insecurity • It's all my fault • No sense of direction • Irrational behavior • Help!! • Set up committees • Slow • Never finish things Strategy Source: Ashridge Business School © Peter Laburn
- 157. Signs of Renewal What we say……… How we act……… • Let’s make it happen • Accept responsibility • Let’s do it together • Renewed energy • Let’s tell everybody about it • Communicate • Now I understand it • Listen • Learn • It’s been tough but I did it • Trust • I’m/We’re stronger now • Delegate • I don’t really miss it now • Independent • Its better than I expected • Accept risk • We have to trust each other • Flexible, creative • I/ We could be better • Continuously improve • Lets beat the challenge • Set new targets Strategy Source: Ashridge Business School © Peter Laburn
- 158. Moving out ofContentment What you might achieve People start to think about change What you should not expect yet People accept that things need to change Possible actions • Shock people out of complacency • Benchmark with best practice • Break up teams, move people • Define performance indicators • Give feedback about performance • Customer satisfaction surveys • Challenge assumptions Strategy • Get people to visit other organizations Source: Ashridge Business School © Peter Laburn
- 159. Moving out ofDenial What you might achieve people accept that something needs to be done What you should not except yet • They will see the way forward as clearly as you • They will understand what has to be done, and their role in it Possible actions • Continue to benchmark • Communicate the results to everybody • Explain the big picture( purpose, benefits of change) • Show respect for the past: avoid blame • Don’t offer detailed solutions yet • Look for small early successes • Give people time and space • Encourage positive health habits Strategy Source: Ashridge Business School © Peter Laburn
- 160. Moving out ofConfusion What you might achieve People understand what needs to be done Accept their roles and responsibilities in it What you should not expect yet People stop talking about “the good old days” They don’t slip back sometimes Possible actions • Provide vision and overall direction • … but allow people to influence how to get there • Give a sense of ownership by allowing contributions • Encourage open expression of feelings Strategy Source: Ashridge Business School © Peter Laburn
- 161. The Strategic ChangeProcess: Strategy © Peter Laburn
- 162. The Strategic ChangeProcess: 4 Key Elements Pressure Clear Capability Actionable for Shared to Steps Change vision Change = Change Strategy © Peter Laburn
- 163. The Strategic ChangeProcess: What happens when 1 element is missing? Strategy © Peter Laburn
- 164. The Strategic ChangeProcess: What happens when 1 element is missing? Clear Capability Actionable Bottom of Shared to = steps the In Tray Vision Change Strategy © Peter Laburn
- 165. The Strategic ChangeProcess: What happens when 1 element is missing? Clear Capability Actionable Bottom of Shared to = steps the In Tray Vision Change Pressure Capability Fast start / Actionable for to = Conflicting steps Change Change Agenda’s Strategy © Peter Laburn
- 166. The Strategic ChangeProcess: What happens when 1 element is missing? Clear Capability Actionable Bottom of Shared to = steps the In Tray Vision Change Pressure Capability Fast start / Actionable for to = Conflicting steps Change Change Agenda’s Pressure Clear Actionable Frustration / for Shared = steps Anxiety Change Vision Strategy © Peter Laburn
- 167. The Strategic ChangeProcess: What happens when 1 element is missing? Clear Capability Actionable Bottom of Shared to = steps the In Tray Vision Change Pressure Capability Fast start / Actionable for to = Conflicting steps Change Change Agenda’s Pressure Clear Actionable Frustration / for Shared = steps Anxiety Change Vision Pressure Clear Capability False starts / for Shared to = haphazard Change Vision Change approaches Strategy © Peter Laburn
- 168. Strategic Thinking atStandard Bank Your responsibility!
- 169. Strategic Thinking atStandard Bank Your responsibility!
- 170. Pete Laburn – web: http://www.petelaburn.com – email: petelaburn@iafrica.com – cell: +27 82 553 3198 – Blog: petelaburn@wordpress.co.za – Twitter: petelaburn Synthesis of this presentation by: The TomorrowToday.biz frameworkers Multimedia courtesy of the naughty world of MP3 and MPG, as registered with SAMRO, and under international fair use regulations. Purchase the albums at our on-line store. Strategy © Peter Laburn
Editor's Notes
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- #17 \nstrat not op tactics\n - strat = journey - r we going in right dir?\n - analogy of car\n
- #18 \nstrat not op tactics\n - strat = journey - r we going in right dir?\n - analogy of car\n
- #19 \nstrat not op tactics\n - strat = journey - r we going in right dir?\n - analogy of car\n
- #20 \nStrat/Tactics\n - Top rt might not happen because of short term thinking\n
- #21 \nStrat/Tactics\n - Top rt might not happen because of short term thinking\n
- #22 \nStrat/Tactics\n - Top rt might not happen because of short term thinking\n
- #23 \nStrat/Tactics\n - Top rt might not happen because of short term thinking\n
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- #29 Rate of change graph - eg Gates 2 yr from oblivion\n- 2 yrs hypotheticol - foshion = 2 mnths, mining = 20 yrs, fin services = 2 yrs\n
- #30 Rate of change graph - eg Gates 2 yr from oblivion\n- 2 yrs hypotheticol - foshion = 2 mnths, mining = 20 yrs, fin services = 2 yrs\n
- #31 Rate of change graph - eg Gates 2 yr from oblivion\n- 2 yrs hypotheticol - foshion = 2 mnths, mining = 20 yrs, fin services = 2 yrs\n
- #32 Rate of change graph - eg Gates 2 yr from oblivion\n- 2 yrs hypotheticol - foshion = 2 mnths, mining = 20 yrs, fin services = 2 yrs\n
- #33 Rate of change graph - eg Gates 2 yr from oblivion\n- 2 yrs hypotheticol - foshion = 2 mnths, mining = 20 yrs, fin services = 2 yrs\n
- #34 Rate of change graph - eg Gates 2 yr from oblivion\n- 2 yrs hypotheticol - foshion = 2 mnths, mining = 20 yrs, fin services = 2 yrs\n
- #35 Rate of change graph - eg Gates 2 yr from oblivion\n- 2 yrs hypotheticol - foshion = 2 mnths, mining = 20 yrs, fin services = 2 yrs\n
- #36 Rate of change graph - eg Gates 2 yr from oblivion\n- 2 yrs hypotheticol - foshion = 2 mnths, mining = 20 yrs, fin services = 2 yrs\n
- #37 Change does not equal failure\n
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- #44 Drive Change\n - accel on left\n - brakes on right\n -- world/country = dealt to us\n - strat ask market 2 yrs - 'don't know' - up to us to see trends - pm of course = 1st 2 wheels\n - convergence of scenarios\n - competitors are allies - secure current paradigm\n-- Then flip to stakeholders (cry not here)\n - Only strat u'll implement is the ones u r capable of (less than 10%)\n- std bank = people, R 250 m\n- If stakeholders brake then org cap stopped\n - where does axle snap?\n - Tactics then become crisis\n - Leadership critical\n - Constant? Axle = Purpose & Values\n
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- #46 Drive Change\n - accel on left\n - brakes on right\n -- world/country = dealt to us\n - strat ask market 2 yrs - 'don't know' - up to us to see trends - pm of course = 1st 2 wheels\n - convergence of scenarios\n - competitors are allies - secure current paradigm\n-- Then flip to stakeholders (cry not here)\n - Only strat u'll implement is the ones u r capable of (less than 10%)\n- std bank = people, R 250 m\n- If stakeholders brake then org cap stopped\n - where does axle snap?\n - Tactics then become crisis\n - Leadership critical\n - Constant? Axle = Purpose & Values\n
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- #114 Purpose\n- Altru - Starbucks\n- Heroism - Branson\n- Exploit - default\nConfidential - vote, where now & future\n
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- #151 Green = things you do well, that you have a lucky break in – but not basic core comepetencies\nNOTE: Std bank uses “core competence” \n
- #152 Green = things you do well, that you have a lucky break in – but not basic core comepetencies\nNOTE: Std bank uses “core competence” \n
- #153 Green = things you do well, that you have a lucky break in – but not basic core comepetencies\nNOTE: Std bank uses “core competence” \n
- #154 Green = things you do well, that you have a lucky break in – but not basic core comepetencies\nNOTE: Std bank uses “core competence” \n
- #155 Green = things you do well, that you have a lucky break in – but not basic core comepetencies\nNOTE: Std bank uses “core competence” \n
- #156 Green = things you do well, that you have a lucky break in – but not basic core comepetencies\nNOTE: Std bank uses “core competence” \n
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- #173 The BOHICA syndrome – bend over, here it comes again…\n
- #174 e.g. Going on holiday, and not telling the family where you’re going. Get to first stop street – how do we know where to turn? What did everyone pack?\n5,000 piece jigsaw puzzle – to two teams, but only one team has the box\nIf you don’t know where you’re going how do you know you got there?\n
- #175 HOW\n - can kick into anxiety\n - “what’s in it for me?” test\n - how many of you are change happy? If YES, did you get out of bed the same side this morning?\n
- #176 e.g. Bafana…\n
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