Successfully reported this slideshow.
Business Models Visualized
(created for and by students)
© Sunil Mehrotra
What you will learn in this course:
• Envisioning Strategy
– Visual Models
• External Analysis
– PEST Impact Analysis
• Industry and Competitive Analysis
– Industry Structure
– Evolution of Industries
– Industry Supply Chain
– Potential Industry Earnings
– Porter’s 5 Forces Analysis
– Competitive Intensity
– Strategies for minimizing competitive forces
– Perceptual Map
– Barriers to Entry/Incumbency advantages
– DSIR effect
• Company Resources and Capabilities
– ARC Analysis/HR
– SWOT Analysis
– Value Creating Processes/Core Competencies
– Strategic Game Board
– Balanced Scorecard
– Change Management © Sunil Mehrotra
How you will do it
Share the Vision
Envisioning Strategy: Visual Models
Visualize Think Clearly
Thinking clearly stretches your mind
quot;A mind once stretched by new thoughts can never regain its original shape.quot;
Why Visualization works:
Total Bandwidth Conscious Bandwidth
Eyes 10,000,000 40
Ears 100,000 30
Skin 1,000,000 5
Taste 1,000 1
Smell 100,000 1
Dan Roam on Visual Thinking
Visualization helps to think clearly and
communicate effectively: examples
Where does your money go when you buy a gallon of gas?
It's the Economy Stupid!
Odds of Dying
Actual versus Perceived threats
All of inflations little parts
A Visual Model
Supplier’s suppliers Suppliers Organisation Customers Customer’
New Paradigm Consulting
Business Ecosystem: A more granular view
Mbam619 framework models
Strategy: Whose responsibility is it?
• Ultimately the CEO/leader “owns” the company's strategy and
is responsible for executing against the strategy.
• Leadership styles vary
• Nature of strategic initiative may require a particular style for
Leadership matters, why?
Lead people to
Outcome Performance Transformational
scope Uses reasoning
● Engenders trust
● Expects commitment Has charisma
B roa d a n d fu tu re
Systems-oriented Creates future visions
● Looks for new directions ● Envisions new opportunities
● Incremental improvements ● Empowers others
o rien ted
● Structured problem solving ● Very creative
● Heuristic solutions
N a rrow a n d S h ort-
● Intuitive ● Is considerate
R a n g e S p ec if ic
● Demands loyalty ● Peer approbation
● Expects results ● Cooperative environment
● Takes charge ● Relates well with others
● Insists on compliance ● Tries for mutual agreement
● Finds workable solutions
• Pattern 1: Ideation. Ideation is a combination of the logical and imaginative basic styles. This pattern hinges on
visualizing or imagining a future that is both achievable and practical and is helpful in planning an organization’s
strategic future. Ideation is the hallmark of successful CEOs, top executives, and those who are determined to achieve
a new vision for their organization. Leaders in this category use logic and detailed analysis as well as vision and
imagery to direct the organization.
• Pattern 2: Stewardship: A combination of the logical and the commander basic styles, it is necessary in areas of
financial or risk management within organizations. Leaders who utilize this style focus on resources—conserving
them, allocating them wisely, and acquiring sufficient amounts to carry out the mission of the organization. Effective
executives with this pattern are financial planners, managerial accounting analysts, and managers of detail and
• Pattern 3: Coordination. A combination of the logical, commander, and imaginative basic styles, this triangular
pattern is more common in smaller firms and in the second- and third-tier levels of larger organizations. The
logical/commander components of this style tend to be almost equal, with an imaginative backup. In small
entrepreneurial firms, the imaginative style may be the most dominant, with the commander style a strong second and
the logical style a weak backup. This coordination leadership pattern represents the popular, quot;traditionalquot; upper-
management pattern from the study of 294 male managers that established the quot;normquot; for Decision Systems Analysis
(DSI) and has held constant for the LSI as well.
• Pattern 4: Exploration. This combination of imaginative and commander styles is typical of leaders in entrepreneurial
start-ups, especially female entrepreneurs. The imaginative style tends to dominate and the quot;follow-the-starquot; method of
reaching a desired goal trumps everything.
• Pattern 5: Customer-Centric. This pattern represents a combination of the supportive and commander basic styles and
is dominant in strong marketing- and sales-oriented organizations. Supportive behavior comes first because empathy
for customer needs is more important than the drive to convince or persuade. Empathy means understanding and
wanting what is best for the customer because satisfying the customer is also in the best interests of the firm.
Nonetheless, leaders must also utilize the commander style to drive results.
• Pattern 6: Employee-Centric: A combination of the supportive and imaginative basic styles, this pattern is necessary
for understanding and supporting the needs of employees, associates, and customers, as well as having the imagination
to inspire through external and internal public relations, advertising, promotion, and employee empowerment programs.
It is essential for human resource leaders.
Pay for performance?
Pay for Performance of CEOs? Sometimes!
The power of visual thinking?
What is Strategic Management?
-strategic planning framework
What is the role of the CEO/Leader?
• Deals with
– How to grow the business
– How to satisfy customers
– How to compete with rivals
– How to respond to changing environment
– How to manage each functional piece of the business
– How to build organizational capabilities and align organization to
achieve desired goals
– How to achieve strategic and financial objectives
• Planning is not about predicting the future
• Planning is not about writing a detailed road map
into the future
• Planning is not about a few people writing a vision
statement & then getting ‘buy-in’ from everyone else
Mbam619 framework models
• Planning is about learning
• Planning is about increasing the possibilities for the
• Planning is about discovering how fit the
organisation is for its environment
• Planning is about discovering and telling compelling
stories about the future
Strategic Management in a nutshell !
• Is the process by which an organization
–Establishes its goals and objectives both short and long-
–Formulates plans and charts a course of action for meeting
these goals and objectives in the desired time-frame.
–Implements the actions
–And analyzes progress and result
Behind every strategy should be solid financial
Mission, Vision and Values
• Vision articulates a view of a realistic, credible,
attractive future for the organization…it is the all-
important bridge from the present to the future of the
• Mission describes the purpose of the organization. It
represents the present.
• Values reflect the organization’s culture and norms of
Goal, Scope and Objectives
• Goal articulates a desired outcome for the business
over a specific time period
• Scope describes the focus of the business– geography,
product lines and customer segments.
• Objectives are the measurable and tangible results to
be achieved over a specified time period
Source: quot;Thinking Strategicallyquot;, McKinsey Quarterly, 2000
Understanding Strategic Management is
like pealing an onion
Strategic Planning Framework
External Factors Internal Factors
Analyzing the firm’s
Analyzing Analyzing Analyzing the firm’s Architecture,
the the the Strengths & Routines &
Environment Industry Competition Weaknesses Culture
Firm’s Resources &
Aligning Market Opportunities
to firm’s resources and capabilities
•What strategic options does the
firm realistically have?
•What is the best strategy for
maximizing Shareholder value? Shareholder
The right of any corporation to exist is not
perpetual but has to be continuously earned.