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    Managing Strategy Indonesia Forbes

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    Hoanabc123
    The document summarizes the strategy used by an Indonesian pharmaceutical company to achieve nearly eight-fold revenue growth over five years. The strategy had two key elements: formulation of a clear strategy focused on leveraging distribution networks, customer service, new capacity and product categories; and rigorous execution of the strategy through clear priorities, performance measurement, reporting, and continuous adjustments. A key to sustaining results was investing in leadership development to ensure continued strong execution over time as competition increased. Managing strategy well is important for companies in Indonesia to maintain competitive advantages as the market evolves.

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    Managing Strategy Indonesia Forbes

    Uploaded by

    Hoanabc123
    32 views1 page
    The document summarizes the strategy used by an Indonesian pharmaceutical company to achieve nearly eight-fold revenue growth over five years. The strategy had two key elements: formulation of a clear strategy focused on leveraging distribution networks, customer service, new capacity and product categories; and rigorous execution of the strategy through clear priorities, performance measurement, reporting, and continuous adjustments. A key to sustaining results was investing in leadership development to ensure continued strong execution over time as competition increased. Managing strategy well is important for companies in Indonesia to maintain competitive advantages as the market evolves.

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    The document summarizes the strategy used by an Indonesian pharmaceutical company to achieve nearly eight-fold revenue growth over five years. The strategy had two key elements: formulation of a clear strategy focused on leveraging distribution networks, customer service, new capacity and product categories; and rigorous execution of the strategy through clear priorities, performance measurement, reporting, and continuous adjustments. A key to sustaining results was investing in leadership development to ensure continued strong execution over time as competition increased. Managing strategy well is important for companies in Indonesia to maintain competitive advantages as the market evolves.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views1 page

    Managing Strategy Indonesia Forbes

    Uploaded by

    Hoanabc123
    The document summarizes the strategy used by an Indonesian pharmaceutical company to achieve nearly eight-fold revenue growth over five years. The strategy had two key elements: formulation of a clear strategy focused on leveraging distribution networks, customer service, new capacity and product categories; and rigorous execution of the strategy through clear priorities, performance measurement, reporting, and continuous adjustments. A key to sustaining results was investing in leadership development to ensure continued strong execution over time as competition increased. Managing strategy well is important for companies in Indonesia to maintain competitive advantages as the market evolves.

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    of 1

    GUEST COLUMN

    MATTHEW TICE

    MANAGING STRATEGY
    IN INDONESIA

    it, it would be impossible to maintain


    the growth. To achieve this, the strategy itself was focused down to a few
    major priorities that everyone could
    understand and contribute to. Each
    priority was measured to ensure that
    the organization would do the right
    things right and discussions about
    performance against the strategy were
    held at every level assisted by simple,
    but powerful reporting. The plan itself
    was flexible and dynamic, and adjustments were made continuously
    to ensure that the company was
    focused on the right set of initiaIT IS RELATIVELY EASY TO
    tives to drive results.
    COPY STRATEGY, SYSTEMS
    Without this focus the
    AND PROCESSES. HOWEVER, results would not have been
    GOOD LEADERSHIP, WITH A
    possible. To sustain the results
    PASSION FOR EXECUTION, IS year after year, the company
    NOT EASY TO REPLICATE.
    also invested in leadership,
    helping leaders at multiple
    levels to improve their ability
    to execute, enhance core leadership
    The first step in the process was
    skills and at the same time to build
    to formulate a winning strategy
    the next generation of leaders. As the
    based on a deep understanding of
    competition started to catch up, this
    the market and the strengths of the
    leadership investment was understood
    company relative to the competition.
    to be the key source of long-term
    By leveraging its vast distribution
    competitive advantage. It is relatively
    network, focusing on great customer
    easy to copy strategy, systems and
    service, investing in new capacity and
    processes. However, good leadership,
    introducing new product categories
    with a passion for execution, is not
    in underserved niches, the company
    easy to replicate.
    was able to significantly outperform
    As Indonesian companies evolve
    the market growing at more up to
    three times the market growth rate for into regional and global competitors
    (and as more global competitors come
    several years.
    to Indonesia), the discipline of managHaving the strategy was only part
    of the story. The company realized that ing strategy will become more important. Todays entrepreneurs will need
    unless every employee from the top
    to build these capabilities into their
    to the bottom understood the stratbusiness models to ensure sustained
    egy and their role in implementing
    performance, maintain their competiMATTHEW TICE IS MANAGING DIRECTOR AND FOUNDING PARTNER FOR ASIA-PACIFIC AT THE PALLADIUM GROUP.
    tive edge and long-term survival. F
    reat strategies are
    the ones that work.
    In hindsight we can
    always look back and
    judge the successful
    strategies against the ones that failed.
    What can we learn from both the
    successes and the failures? It is useful
    to first draw a distinction between two
    essential elements of strategy, strategy
    formulation and strategy execution.
    Strategy formulation is about knowing
    where to compete and how to win in
    the marketplace. Strategy execution is
    about making it happen once the key
    choices are made concerning where to
    play and how to win.
    Most organizational strategies fail
    on at least one of these dimensions.
    Twenty years ago, the consensus was
    that strategy formulation is far more
    important than execution, which was
    considered by many to be a trivial afterthought. Today the consensus has
    shifted and strategy execution is recognized to be the far more challenging
    and important part of the equation.
    The simple fact is that you need both.
    The results can be impressive when
    these two elements come together.
    Consider one Indonesian pharmaceutical company that was able to
    deliver nearly eight-fold growth in just
    over five years from approximately Rp
    500 billion to Rp 3.6 trillion in revenue
    growth, whilst doubling market share.
    To achieve these results, this organization implemented a disciplined
    approach to formulating and managing strategy, based on the Balanced
    Scorecard as developed by Drs. Robert
    Kaplan and David Norton.

    MAY 2013 FORBES INDONESIA | 63

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