Vishal Lall at Brightline's Strategy@Work Conference - Oct 2018 / New York Chief Strategy Officer, Hewlett Packard Enterprise

1. Strategy + Execution = Value Creation
Practical Lessons from the Trenches
Brightline Strategy @ Work Conference
New York, NY
October 25, 2018

2. Crafting strategies – an established discipline
2
BOOKS
FRAMEWORKS
BUSINESS
SCHOOLS
CONSULTANTS
ACADEMIC
RESEARCH
Strategy is a
mechanism to make
choices & tradeoffs

3. 30-50% success rate
4
Source: Strategy implementation: What is the failure rate? Journal of Management & Organization, Cândido & Santos, 2015
McKinsey study, Kitching and Roy, 2013
Strategy Implementation Survey of 144 leaders, 2016, Bridges Business Consultancy
“70% of transformation
programs fall short of
desired results”
— M C K I N S E Y & C O .
“61% acknowledge that their
firms often struggle to
bridge the gap between
strategy formulation and its
day-to-day implementation”
— P M I , E C O N O M I S T
“Only 10% of organizations
surveyed achieve at least
two-thirds of their strategy
objectives”
— B R I D G E S C O N S U L T AN C Y
1985 2015
60%
1980 1990
80%
0%
20051995 20102000
20%
40%
100%
Doyle et al.
Gray; Judson
Charan & Colvin
Nutt
Kiechel
Prospectus
Mankins & Steele
Nutt
cited by Sirkin et al.
McKinsey
Jorg. et al.
PMI
EIU
Franken et al.
McKinsey
Business Strategy Implementation Failure Rates

4. Why strategies don’t always work
4
Design &
Prioritization
Alignment &
Understanding
Execution
Enablers
Not a true “strategy”
Not enough detail
Real choices not made
Top team alignment
High-level statements, Financial plan, Gantt chart, OGSM
Concreteness, Goals, Metrics
Long list of initiatives, Resource allocation
Clarity to middle layers
Operating model
Incentives
Management System
Winners and losers, More talk than action, Politics
Context and partial picture, Follow the leaders
Processes, Governance, Org design, Technologies
Not in support of objectives, Misaligned
PMO, Scorecard

5. Strategy + Execution
5
Have a dynamic
strategy
Prioritize and
set goals
Be brutal about
resource
allocation
Shift the talent
and culture
Drive alignment
Measure and
adjust
• Outside-in
• Flexible as market /
competition
changes
• Tradeoffs
• Manageable list of
initiatives
• Clear goals and
timelines (~3 yrs)
• Shift resources ($,
people)
• M&A as an
acceleration tool
• Right job, right time, right
people
• Execution culture
• Help employees execute
• Operating model changes
• Incentives aligned to
drive behavior
• External & internal
stakeholders comms
• Clear metrics
• Transparency of progress
• Adjustments as execution
unfolds

6. Strategy + Execution at HPE
• Evergreen strategy – evolves with
market and competition
• Prioritization and goals
• Allocation of resources to areas
where customers value
differentiation (organic, M&A)
• Top strategic initiatives directly
driven by CEO
• Senior leaders alignment
• Cascading communication to the
entire organization, and ecosystem
• Dedicated structure to enable large
transformation programs
Source: CapitalIQ, company public filings and press releases.
Note: Market data as of Oct 21, 2018. All share price data is adjusted to show splits as per the following ratio and dates: HPQ:HPE 1:1 on 1 Nov 2015,
HPE : DXC split as 1 : 0.0859 on 1 Apr 2017, HPE : MFGP split as 1 : 0.13732611 on 1 Sep 2017, DXC : PRSP split 2 : 1 on 24 May 2018.
0%
100%
200%
300%
400%
Oct-2012 Oct-2013 Oct-2014 Oct-2015 Oct-2016 Oct-2017 Oct-2018
HPE + DXC + PRSP + MFGP + HPQ S&P 500
May 24, 2016:
ES spin-merge
announced
Sep. 7, 2016:
SW spin-merge
announced
Oct. 6, 2014:
HPI split
announced
Oct. 3, 2012:
Transformation
journey announced
Apr. 1, 2017:
ES spin-merge
closed
Nov. 1, 2015:
HPI split complete
Stock price equivalent
Indexed to Oct 3, 2012
Sep. 1, 2017:
SW spin-merge
closed

7. Thank you!