Cell C

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Cell C

• LDP
• 24th June 2008

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Thinking Strategicallyin a Global Context

• Pete Laburn

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• Business is now so complex and difficult, the
  survival of firmsso hazardous in an environment
  increasingly unpredictable,competitive and
  fraught with danger, that their continued
  existencedepends on the day-to-day mobilization
  of every ounce of intelligence.
• Kanosuke Matsushita, founder, Matsushita
  Electric

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Strategic Readiness Beyond necessary
Imperative
Do you know with certainty where your industry is
going over the next 5 years?
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Change Imperative
catch up?
Rate of change
2 years
catch up
Time
2 years
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• Strategies need to be 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

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Hidden realities of change

• Comes at us
• without asking permission
• without making a sound
• without giving us a template of how to cope

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• The illiterate of the 21st Centurywill not be
  those who cannot read and write, but those who
  cannot learn, unlearn, and relearn.
• Future
  Shock
• 
  by Alvin Toffler (p4)

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Strategy is not Operation 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?

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Strategy vs Tactics
HIGHEFFICIENCY
THRIVE
DIE QUICKLY
TACTICS
Doing thingsright
SURVIVE
DIE SLOWLY
LOWEFFICIENCY
LOW EFFECTIVENESS
HIGHEFFECTIVENESS
STRATEGY
Source Prof M McDonald
Doing the right things
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Strategic Drive Chain
EXTERNAL
INTERNAL
CHANGINGWORLD
CHANGINGCOUNTRY
CHANGING MARKET
ORGANISATIONALCAPABILITIES
LEADERSHIP
STAKEHOLDERS
STRATEGY
TACTICS
IMPLEMENTATION
FORMULATION
Source Peter Laburn
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Strategic reality

• If the only strategy you will implement
• is what you are capable of
• Therefore Strategy is largely determining what
  you should, want to be capable of delivering in
  your future markets
• or
• Creating a capability to respond
• to future market dynamics

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Strategic Drive Chain NB!

• Get in touch with the world/country anticipate
  market changes
• Strategy and tactics are totally dependant on
  Organisational Capabilities
• It doesnt matter what you strategize you will
  only implement what you are capable of
• Take your stakeholders with you dont let them
  shape your agenda
• Organisational Capabilities are the hardest to
  change
• Leadership drives everything

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MICHAEL PORTER Analysing Environmental Issues
ECONOMIC ISSUES GDP and Consumer
spending Government spending Interest
rates Exchange rates Investment factors
POLITICAL/LEGAL ISSUES Parties and power New
legislation Government relations with employers
and unions
The Organization
INFRASTRUCTURAL Road,Water,Elec,Municiple INSTITUT
IONAL Industry, competition,
RESOURCE Environment Climatic
TECHNO ISSUES Potential new product
development Cell phone / Web development IT / MIS
SOCIAL ISSUES Demographic changes Values and
attitudes Generation and new economy
theories Life styles
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But doesnt this all seems so Red Ocean ?

• Red ocean represents
• The known market space
• Current boundaries
• Existing competitive rules
• World of scarcity
• Grab bigger slice of existing pie.
• Structuralist view
• or Environmental determinism
• at the mercy of market forces

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Blue Ocean Strategy

• Represents
• Industries not in existence
• Unknown market space
• Untainted by competition
• Created rather that fought over

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Red Ocean vs Blue Ocean Strategy
Blue ocean strategy Create uncontested market
space Make the competition irrelevant Create
and capture new demand Break the value / cost
trade off Align the whole system of a companys
activities in pursuit of differentiation
and low cost
Red ocean strategy Compete in existing market
space Beat the competition Exploit existing
demand Make the value/cost trade off Align the
whole system to a companys activities with its
strategic choice or or differentiation or low
cost
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The Fallacies ofStrategic Planning

• Prediction
• Detachment
• Formalisation

Source Mintzberg
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Old Concept of Strategic Planning
Desired vision
Current position
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Old Concept of Strategic Planning
Desired vision
Current position
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Old Concept of Strategic Planning
Three fallacies - Prediction, Formalization,
Detachment
Desired vision
X
Why bother?!
X
X
Tow the line
Its not my plan!
Do what Im told
Current position
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Laburns Law

• If there is any person in your organisation that
  you believe not important enough to be part of
  the strategic process
• please outsource that role or exit the
  employee

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Old Concept of Strategic Planning
Three fallacies - Prediction, Formalization,
Detachment
Extraction
CEO
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Some Newer Thoughts on Strategic Thinking
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• WELCOME .
• to a World of Quantum Paradox
• and Systems Thinking

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A Move to Quantum Thinking

• Newtonian
• Simplicity
• Control
• Separation
• Uniformity
• Certainty
• Cause and effect
• Linear logic
• Binary logic
• Empiricism

• Quantum
• Complexity
• Influence
• Integration
• Diversity
• Enquiry
• Multi causes
• Systems thinking
• Synthetic thinking
• Intuition

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Old Concept of Strategic Planning
Three fallacies - Prediction, Formalization,
Detachment
Desired vision
X
X
X
Current position
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Leadership and the New Science

• Order can emerge out of chaos
• Accept chaos as an essential process by which
  natural systems including organizations, renew
  and revitalize themselves
• Information informs us and forms us
• Share information as the primary organizing force
  in any organization
• Relationships are all there is
• Develop the rich diversity of relationships that
  are all around us to energize our teams
• Vision is an invisible field
• Embrace vision as an invisible field that can
  enable us to recreate our workplaces, and our
  world

Source Margaret Wheatley
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Some Newer Thoughts
Desired vision
Current position
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Some Newer Thoughts
Its more important to clear what NOTto do / or
what NOT to be, than to try and determine exactly
what to do.
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Some Newer Thoughts
Field Theory, Molecular Biology, Quantum Physics,
Chaos Theory

• Create a strategic field
• Open source information flow
• Maximize relationships
• Keep organization in mild form of chaos

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Some Newer Thoughts
Field Theory, Molecular Biology,Quantum Physics,
Chaos Theory
Enabling
CEO
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Introduction to Systems Thinking
Global market/industry/environmental change
Business Organisational Development - Equal
importance and not mutually exclusive
Business development
Organisation development
Business development
Organisation development
Inner environment - human resource capacity
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The world of systems thinking

• Strategic Context
• Think system or the whole
• Emergence
• Co Production
• Mutual Impacts
• Levels of Hierarchy
• Synergy or dis-Synergy
• Paradox
• Iteration problem dissolution
• Momentum
• Future Ideal

Source Elisabeth Dostal - Biomatrix
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PLi Strategic Framework
STRATEGIC AGENDA 3 YEAR VISION STRATEGIC
FIELD KEY INITIATIVES
MARKET REALITIES CHANGING ENVIRONMENT.
COMPETITIVE DYNAMICS
LIVING THE STRATEGY COHERENT TEAMS
/ ORGANIZATION
ORGANIZATIONAL PHILOSOPHIES PURPOSE / VALUES
ENABLING CULTURE / LEADERSHIP CAPABILITIES
FOR EMPOWERED, FLEXIBILITY TO DELIVER
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Global Trend Analysis and Creating Competitive
Advantage
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Learning from the Future
Strategic Actions
Today
Future
1. Our Business
6. Our Business
2. Our Customers
5. Our Customers
3. The Environment
4. The Environment
Strategic Inputs
Sources Future Perfect, Stan Davis
Lessons in Radical Innovation, Wolfgang Grulke
Source 2020 Vision, by Stan Davis
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Strategic Context is 2012

• Relative size of strategy and strategic response
  Relative coping with 2012 demands operationally
  and strategically

X
Direction of thinking
2004
2008
2012
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Strategic Context is 2012

• Relative size of strategy and strategic response
  Relative coping with 2012 demands operationally
  and strategically

Direction of thinking
2004
2008
2012
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Whats changing NOW ?

• World
• South Africa
• Telecoms industry
• Cell industry
• ICT convergence
• Globally
• Locally
• 30 40 major factors

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Where are these trends going to ???

• What do you think are the key drivers / trends /
  forces that are shaping your market ?
• Extrapolate them out 2 years
• Postulate what they may have developed into

What do they co produce ? What emerges ? How will
they impact on each other ? What counter trends
might develop ?
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Remember Maslow ?
Self Actualization
Self Esteem
Love and Friendship
Safety Needs Shelter , security
Physiological Needs Hunger , Thirst
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Along came Hertzberg
Self Actualization
Self Esteem
Motivating factors
Motivating factors
Love and Friendship
Safety Needs Shelter , security
Hygiene factors
Hygiene factors
Physiological Needs Hunger , Thirst
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Building Market Strategy
Competitive Advantage what will differentiate you
from competitors
Entry to the Game If you dont offer this ..
you are not an option
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Core Competence
Competitive Advantage
Sustained Advantage is difficult for anyone to
copy
Tactical Advantage use it while you have it
Entry to the game
Core Competence What you are really good at What
you focus on
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Core Competence
No advantage anymore !!
Competitive Advantage
Sustained Advantage is difficult for anyone to
copy
Tactical Advantage use it while you have it
Entry to the game
Core Competence What you are really good at What
you focus on
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Strategic Positioning
2012
1.
4.
What is the game you are playing in?
WANT TO CREATE not easily copied
3.
GOT to have,but what you want to be good at ..
others might have it may or may not be their
focus
2.
GOT to have to be an option but everyone has it
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Key elements of the Business Logic Set
I
E
Entrepreneurial
Integration
Who
Why
Creative, Change, Flexibility,
Innovation Individuality, New
Cooperation, Harmony, Teamwork,
Group, Participation
Systems, Measures, Control, Plan,
Order, Stability, Analysis
Output, Results, Action, Goals
How
What
Administration
Production
A
P
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I
E

• Differentiated Customer Service

Understand me
Surprise me
Empathy, Caring, Interaction, Spend time with
their problems, Comfort, Teamwork, Participation,
Harmony, Sensitivity, Quality, Loyal, JVs,
Partners, Low price sensitivity
Innovative, Flexible, Creative, Whats new /
different, Unstructured, Ideas, Bend rules, New
technology, No forms / procedures,
Individualistic, Low price sensitivity
Demanding, Sense of urgency, Time sensitive,
Problem solved quickly / first time, Prompt
attention, Want best deal, Price sensitive part
of package, Competitive, Shop around, Not loyal,
Fickle
Accuracy, No frills, Reliable, Consistent,
Predictable, Routine, Regular, Planned,
Discounts, Reduce costs, Very price sensitive,
Efficiency, Savings, Attention, Standards, After
sales service, No surprises, Very good account
administration
A
Respond to me
P
Be consistent
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• Pete Laburn
• web http//www.petelaburn.com
• email petelaburn_at_iafrica.com
• cell 27 82 553 3198

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