Managing Strategy Execution in a disruptive environment

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Our Roadmap
Introduction
Business Environment
Recap and closing
Strategy execution
Killers of strategy
Must-win battles
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Strategy

• Every company is concerned with strategy. It
  determines which organizations succeed and which
  ones struggle. Strategic blunders can hurt an
  organization.

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Definition

• The determination of the long run goals and
  objectives of an enterprise, the adoption of
  courses of action and the allocation of resources
  necessary for carrying out these goals
• Alfred Chandler, Strategy and Structure

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Why Strategy?

• No man ever steps into the same river twice
  Heraclitus
• Strategy is the linkage between a business and
  its current and future environment Professor
  Stanley Han

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Strategic decisions
Exhibit 1.1
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Purpose of Strategy

• Explicit strategy is the plan of action
• Competitive advantage is the organizations
  distinctive edge for meeting customer needs
• Strategies should
• Exploit Core Competencies
• Build Synergy
• Deliver Value

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Business Environment Types

• Stable
• Changing
• Turbulent

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Features of Business Environment

• Turbulence brings problems and opportunities
• Stronger Competition
• Frequent Decision making
• More scope for decision
• Need for more Information and Knowledge

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Have you noticed?
New technology
New economics
? online impacts everything - rapid paradigm
changes? global online services industry
? more regulation? lower growth
? technology enabled new work modalities?
democratisation of media
? savvy consumers
? zeroing transaction costs? low cost
competitors
? rapid innovation and obsolescence
? BRIC taking lead
New environment
New social
? climate change? emissions legislation
? fluid families
? ageing population? suspicion of politics?
suspicion of big biz? more conservatism?
anti-globalisation? social justice
? degradation of soil, air, water? cost of
energy
? new forms of energy
? protectionism
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Assumptionsare key
...but the environmentkeeps changing
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The new normal
Wednesday, 2 March 2011
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Disruption is the norm?
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Business Strategy in turbulent environment

• Now and Future
• ? Cannot see the horizon
• ? Foggy volatile environment
• ? Various independent factors
• ? Fog of the future
• ? Defy predictability

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PESTEL
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Strategy Formulation versus Execution
Formulation Assessing the external environment
and internal problems to create goals and
strategy
Execution the use of managerial and
organizational tools to direct resources toward
accomplishing strategic results
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Strategy Execution

• Execution is a specific set of behaviors and
  techniques that companies need to master in order
  to have competitive advantage. Its a discipline
  of its own  Ram Charan and Larry Bossidy,
  Execution
• Strategy Execution is the responsibility that
  makes or breaks executives Alan Branche and Sam
  Bodley-Scott, Implementation 

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MUST-WIN BATTLES FOR STRATEGY EXECUTION IN A
DISRUPTIVE ENVIRONMENT
Resilient Leadership
Success
Levers of Control
Change Management
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Why resilience?

• Rapid, disruptive change is todays normal. It
  comes in bubbles, waves and sometimes tsunamis.
  To cope, leaders need to be agile and resilient.
  For years, the focus has been on speed and
  agility. But globalisation, technology and
  social-political changes are disruptive. They
  require resilient leaders, emotionally
  intelligent people able to absorb complex change
  and help others to move forward to achieve
  success (Reid)
• In the face of change and uncertainty, the
  resource we need most is our resilience.

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Leaders for these times

• As existing companies struggle to find ways to
  cope with unprecedented change, leaders must
  learn to proactively self-disrupt in a controlled
  fashion before they are disrupted against their
  will- Calvin L. Williams, FIT The Simple
  Science of Achieving Strategic Goals

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Leadership Capabilities for disruptive
environments
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Commanders Calm
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Belief Systems 

• To communicate and re-communicate over and over
  again the vision, mission and values of the
  business.
• Great in establishing internal rules of conduct
  and portraits of external image.
• Communicates people proposition and is very
  powerful in directing people and giving them
  purpose.

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Boundary Systems (1)
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Boundary Systems (2) 

• A statement of what the company is not going to
  do.
• A mechanism for focusing the organization and
  ensuring people don't spend time investigating
  and developing new opportunities that the company
  is never going to pursue.
• Example Bill Gates and Microsoft

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Interactive control systems 

• Formal consultations with the aim to come up with
  new ideas and strategies.
• The focus is on innovation to potentially address
  strategic uncertainties and to change the
  strategy.
• The organisation can respond successfully to
  changes by being alert to the environment.

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Diagnostic Control  

• This lever is used to check whether the
  organization complies with the strategic plan and
  whether adjustments are needed.
• Controls are in place to ensure that everything
  runs smoothly, including KPIs, ROIs and quarterly
  figures.
• Formal information-based routines and procedures
  are in place to maintain and/or change
  organisational activities.

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CHANGE MANAGEMENT

• Change is Permanent
• Adaptation is a Must
• Clarify change initiatives
• Flexibility is key
• Never stop listening

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Six Silent Killers of Strategy
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End Note (1)

• A leader must focus on critical decisions that
  drive disproportionate value. Proportionate value
  needs no leader or strategy.- Krishna Sagar Rao

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End Note (2)

• Without strategy, execution is aimless. Without
  execution, strategy is useless Morris Chang

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RECAP
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Albert Einsteins Theory
A X Y Z
A Success X Work Y Play Z Keeping your
mouth shut
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APPRECIATION

• 08033181225
• kydadebiyi_at_yahoo.com