There were three key points made in the document: 1. Strategic management has evolved over time, with different frameworks and tools emerging since the 1950s to help define and analyze strategy. 2. Early frameworks like the BCG matrix in the 1960s and Porter's five forces in the 1980s took an analytical approach to defining industry structure and competitive positioning. 3. More recent approaches emphasize the creative aspect of strategy and view industries as open to reinvention, not predefined by their current state. This includes Blue Ocean Strategy and the idea that imagination can reshape industry boundaries.

1. What is Strategy?
Handelshøyskolen BI Stavanger
STR3600
September 4th 2012

2. My intention:
Help you get an overview of
‘Strategic Management’

4. What is Strategy?

6. There were six men of Hindustan, The fourth reached out an eager hand,
to learning much inclined, and felt above the knee,
Who went to see an elephant, "What this most wondrous beast
though all of them were blind, is like is very plain" said he,
That each by observation "'Tis clear enough the elephant
might satisfy his mind. is very like a tree."
The first approached the elephant, The fifth who chanced to touch the ear
and happening to fall said, "E'en the blindest man
Against his broad and sturdy side, Can tell what this resembles most;
at once began to bawl, deny the fact who can;
"This mystery of an elephant
This marvel of an elephant
is very like a fan."
is very like a wall."
The sixth no sooner had begun
The second, feeling of the tusk,
about the beast to grope,
cried, "Ho, what have we here,
Than seizing on the swinging tail
So very round and smooth and sharp? that fell within his scope;
To me 'tis mighty clear, "I see," said he, "the elephant
This wonder of an elephant is very like a rope."
is very like a spear."
So six blind men of Hindustan
The third approached the elephant, disputed loud and long,
and happening to take Each in his own opinion
The squirming trunk within his hands, exceeding stiff and strong;
thus boldly up and spake, Though each was partly in the right,
"I see," quoth he, they all were in the wrong!
"the elephant is very like a snake."
Mintzberg, et.al. (1998) Strategy Safari

7. “Nobody really knows what strategy is”
The Economist, in Markides, 2004

8. The 10 Schools of Strategic Management
Mintzberg, et.al. (1998) Strategy Safari

10. A different animal altogether:
Strategy Execution

11. “13”

12. Strategic Management
+
Change Management
=

13. ”It doesn’t matter where you want to go,
if the organization doesn’t go with you”

16. Let us go back in time

17. Boston Consulting Group 1965

18. "Bruce called a staff meeting for a Saturday morning in the
fall of 1965. He explained that to survive, much less grow, in a
competitive landscape occupied by hundreds of larger and
better-known consulting firms, we needed a distinctive
identity. He had concluded that we shouldn’t fight the
competitive battle as generalists, but should instead stake out
a special area of expertise. "He asked what we thought that
specialty should be. Many suggestions were offered, but in
each case we were able to identify several other firms that
already had strong credentials in that particular area. The
discussion began to stall.
Then Bruce asked a momentous question: ‘What about
business strategy?’ I objected: ‘That’s too vague. Most
executives won’t know what we’re talking about.’ Bruce
replied, ‘That’s the beauty of it. We’ll define it.“
http://www.bcg.com/this_is_bcg/bcg_history/bcg_history_1963.html

19. A Timeline on Strategic Management*

20. SWOT
Positioning
BCG Matrix
PLC
Concept of
PESTEL
strategy
Corporate Scenarios Porter’s 5 F
TQM
Strategy
1950 1960 1970 1980
Knowledge Transformational
BCG Strategy leadership
workers

21. Lean
Value Crafting
Chain strategy
Balanced
7S VRIO Scorecard
Resource- Knowledge Strategic
Six Sigma company intent
based view
1980 1985
”In search of
TQM (2)
Excellence”

22. Strategy as
revolution
Mass Strategy
Employee custimization safari
engagement Rise and fall of
strategic
Learning planning
HR-
organizations Competitive champion
advantage
Core through people
Disruptive Ongoing dynamic
prosess
Competences innovation
Disruptive Intellectucal Strategymaking
BPR Networks as serious play
technologies capital
1990 1995
Positive
BSC (2) psychology
Sears case

23. Human
Sigma
Office of
Strategy
Management
Execution
BusinessEQ Blue Ocean Crowd-
Strategy sourcing
Knowledge-
based theory of
The Long Management
the firm Tail Innovation(2)
Strategy Stratey Deep Say your
NPS
maps Index Discount str. strategy?
2000 2005
Gallup Strategy Strategic Three-boxes Business
path Canvas Imagination Approach Models
Business Model
Canvas

24. Strategy Tools
for the Next
Holistic
Innovation Generation
Model
Innovation
Pyramid
2010 2015
Future Back
Migration
Mapping
Innovator’s
DNA

25. Why wait for the future?
Innovators dream of what can be…..

26. “The strategist's goal is not to find a niche within
the existing industry space but to create new
space that is uniquely suited to the company's
own strengths - space that is off the map.”
1989; “Strategic Intent”;
Gary Hamel & C.K. Prahalad

27. “Competing in overcrowded industries
is no way to sustain high performance.
The real opportunity is to create blue oceans
of uncontested market space”.
2004 (+15) “Blue Ocean Strategy”
Kim & Mauborgne

28. “In strategic thinking, we have learned that
there is no such thing as a mature industry:
there is only an industry to which imagination
has yet to be applied”
- Steven Denning, 2010

29. Industry structure drives
competition and profitability;
….not whether an industry is emerging or
mature, high tech or low tech, regulated or
unregulated.
- Michael Porter, 2008

30. Blank

31. Some of the key assumptions in traditional
strategy analysis can be outlined as follows:

32. 1. Strategy is about positioning a business in a given industry
structure (Porter, 1980, 1985)
2. The focus of strategy tools and analysis is existing
industries(SCP in Microeconomics)
3. The primary focus of strategic analysis is the business unit
4. Strategic outcomes can be explained on the basis of economic
analysis
5. Strategy is the result of an analytical process; execution of
strategy is an organizational process
Prahalad & Hamel, 1994

33. Bartlett & Ghoshal (2002)

34. Strategic Planning Strategic Innovation
(Michael Porter) (Gary Hamel)
Analytical Creative
Logical and linear Disruptive
Expect the future to be much like the Expect the future to be dynamic and
present different
Developing existing business model Developing alternativ (new) business model
Focus on improving performance Focus on new realities
Technology & product-driven Customer-driven
Following traditions, rules and mental Breaking traditions, rules and mental models
models
Adapted from Lybecker, 2007

35. The Positiong The Resource-based Blue Ocean Discount strategy
perspective perspective Strategy- perspective
(external) (internal) perspective
Compete in existing Compete by Create uncontested Compete in
market space developing strong market space hypercompetitive
resources market space
Beat the Resources should be Make the Own value creation
competitors through Valuable, Rare, Non- competition while destroying
a strong position imirable and irrelevant value for others
exploited by the
organization (VRIO)
Exploit existing Utilize strenghts in Create and capture Both supply push
demand resource profile new demand and demand pull
Low cost OR Leverage resources Create uncontested Craft the strategy
Differentation value with disruptive
effect
The Four Strategic Perspectives;
Andersen, Froholdt & Poulfelt

36. Innovator
Red Ocean Blue Ocean
The Strategy system; Andersen,
Imitator Froholdt & Poulfelt

37. Three keys to succesfull strategy execution
Purpose
Commitment Execution Results
Action
Poulfelt & Holst-Mikkelsen

38. The Strategy Process
Idea Strategic Analysis
Strategic Planning
Strategic Choice
Strategy ExecutionFollow-up & Contro

39. Idea Strategic Analysis
Strategic Planning
Strategic Choice
Strategy ExecutionFollow-up & Contro
Business External Radical Be defined ”I know and Aligment
idea Porter 5F business by industry understand with the rest
PESTEL model or blow up our strategy” of the
Value BCG Matrix innovation the organization
proposition Market & industry’s ”I am
customer Imagine if… borders? enthusiastic Connect:
Strategic analysis Scenarios about our Strategy;
Intent ”faster Options Clear choice strategy” Metrics;
horses” of what we Training and
Vision Uniqe want to be ”Every day, I development
Mission Internal Industry and do make our
Financials Position strategy Performance
Values SWOT Clear choice happen” reviews
VRIO (CC) Business of what we
Unleash 7S plan: Long- don’t want BSC Rewards &
Human Value chain term goals to be and do Communi- bonuses
Imagination BEQ and plans cations
NPS Investments strategy
What’s our Human Sigma BSC Long-term World-class
Employee & Strategy maps Goals Execution alignment
dream?

40. Different ways of running the strategy process

41. High involvment
External Internal
Low Involvement

42. High involvment
VII: Everybody
involved
VIII: VI: Several
Project project teams
teams; with
customers &
Partners
External Internal
V: One
III: project team
Management
II: CEO, & McKinsey
Strategy team
director &
I: CEO & McKinsey
team IV: CEO
McKinsey
Alone
team
Low Involvement

43. ”Is there a correlation between involvement
and effect of execution?”
”Yes, absolutely”
- Holst-Mikkelsen & Poulfelt

44. Can Strategy Be Made Easy?

45. Where Do We Want to Be in 3 Years ?
How Are We Going to Get There ?

46. How do we achieve competitive advantage?

47. Low-cost
VS.
Differentiation
Vs.
Focus

48. …or…
Deep Discount Strategy
Vs.
Radical Business Model Innovation

49. External Perspective
Vs.
Internal Perspective

50. Incremental
Vs.
Innovative
Vs.
Radical

51. Analysis
Vs.
Action

52. Analysis
Vs.
Paralysis

53. What Industry Position Should We Take?

54. ”Succesfull attackers do not try to be better
than their bigger rivals. Rather, they actively
adopt a different business model (or strategy)
aim to compete by changing the rules of the
game in the industry”
C.C. Markides, 2008

55. How do we want our customers
to experience us differently?

56. Who?
What?
How?
“The secrets of successful strategies;
Winning People’s Emotional Commitment”
Markides, London Business School

57. The 10 Schools of Strategic Management
Mintzberg, et.al. (1998) Strategy Safari

58. Prescriptive Schools
1. The design school (process of conception)
2. The planning school (formal process
3. The positioning school (analytical process)
Descriptive Schools
4. The environmental school (reactive process)
5. The cognitive school (mental process)
6. The entrepreneurial school (vision process)
7. The power school (process of negotiation)
8. The cultural school (collective process)
9. The learning school (emerging process)
Configuration School
10. The configuration school (transformation process)

59. “Like many organization's, our written strategies
quickly became dead documents.”
Art Schneiderman, 1987, "The First Balanced Scorecard“

60. Can You Say What Your Strategy Is?
Collins & Ruckstad, 2008

61. NO!!!
Ca. 95 %
Kaplan & Norton, 2004

62. Three keys to succesfull strategy execution
Purpose
Commitment Execution Results
Action
Poulfelt & Holst-Mikkelsen

63. Balanced Scorecard drives Strategy Execution

64. 3rd Generation BSC:
Focus, Metrics, Alignment, Action

66. The Strategic Sweet Spot
Collins & Ruckstad, 2008

67. The strategic sweet spot of a company is where
it meets customers’ needs in a way that rivals
can’t, given the context in which it competes.

68. Context
(technology, industry
demographics, regulation, and so on)
The Strategic Sweet Spot

69. Analyzing Strategic Management Cases

70. 3 steps:
Analyze
Recommend
Implement

71. Core Issue?

72. A unifying model for strategic management
Adapted from Holst-Mikkelsen & Poulfelt; Lægaard & Vest
Version 0.3

73. Customers Market place Vision
PESTEL F Purpose?
Present needs Competitor
and wants analysis
Mission
Future needs
and wants
Strategic Intent
P5F
NPS
Business idea
Strategic
External S O Goals initiatives Execution
& Internal Analysis W T (max six)
Strategic options
& choice
BEQ
Leadership
Owner’s Employee Great
engagement
Ambi- VRIO Place to
Culture Business model
tions Innovation Work
Strategy
Customer
Financials:
Shareprice Value
P/E Chain
Profit
(prod- Culture
Margin
Quick ratio ucers
Total debt only)
ratio
Cash flow
Innovation
Total cash Marketing
mix
(5 P’s) Leadership

74. External
& Internal Analysis

75. Key questions for recommendation
Financial:
Can we afford it?
How will it affect our shareprice?
People:
Will our people jump with joy?
Do we have the people we need?
Leadership:
Will our leaders love the challenge?
Do we have the leaders we need?
Processes:
How will we have to change our processes?
Marketing & sales:
How will we have to change our marketing and sales?
Will our sales force & partners be proud and excited?
Customers:
How will our customers love us for this?
Competition:
How will our competitiors respond?

76. …and finally…
- Is it realistic
- Does it give us energy?
- How do we make it a great success?

77. Happy strategyzing