THE

COMPREHENSIVE
STRATEGIC
MANAGEMENT

[email protected]
 1 2 3 4 5
What is Strategic Strategic Strategic Your strategy
strategy Planning Execution Measurement need strategy

CONTENT

[email protected] 2
 Strategy
Strategic Planning
Strategic Plan
[email protected] 3
 WHAT’S STRATEGIC PLAN

Everyone has a plan ’till they

get punched in the mouth. —
Mike Tyson

[email protected] 4
 WHAT’S STRATEGIC PLANNING
A coordinated and systematic way to develop a course and direction for your
organization (vision, value, focus area, objective & goal, KPI).

[email protected] 5
 WHAT IS STRATEGY

Exists at
A plan to
multiple
achieve our
levels – all
goals.
linked.

Helps us As
make wise conditions
choices as change, the
conditions plan itself
change. evolves.

[email protected]
 WHAT IS STRATEGY

 What unique Advantage can we get and sustain over  The set of goal-directed actions a firm takes to gain
time. - Michael Porter. and sustain superior performance relative to
 A framework within which decisions are made which competitors – Frank T Rothaermel.
establish the nature and direction of the business. -  Can be claimed to be: analysis, choice, positioning,
Tregoe and Zimmerman. design, storytelling and commitment. Then pull these
 A systematic process for achieving long term goals. - elements together to synthesize a more coherent
Osama El-Kadi view – Mike Baxter.
 The direction and scope of an organization over the  The central rule of a framework, designed to unify all
long-term: which achieves advantage… through its decisions& actions around busting the bottleneck to
configuration of resources… to meet the needs of
achieving aspirations – Peter Compo.
markets and to fulfill stakeholder expectations. -
Johnson and Scholes.

[email protected] 7
 WHAT IS STRATEGY

Good strategy Enables a firm to achieve

superior performance and sustainable
competitive advantage relative to its
competitors. It is based on a strategic
management process that consists of
three elements: (1) a diagnosis of the
competitive challenge; (2) a guiding policy
to address the competitive challenge; and
(3) a set of coherent actions to implement
a firm’s guiding policy.

[email protected] 8
 WHAT IS STRATEGY

There is no agreed-upon definition of strategy that describes the

field and limits its boundaries. One common contemporary
definition describes it as being about maintaining a balance
between ends, ways, and means; about identifying objectives; and
about the resources and methods available for meeting such
objectives.

[email protected]
 MANY LEADERS THINK THAT STRATEGY AS

1. They define strategy as a vision. Mission and vision statements are elements of strategy, but they aren’t enough. They offer no guide to productive action and
no explicit road map to the desired future. They don’t include choices about what businesses to be in and not to be in. There’s no focus on sustainable
competitive advantage or the building blocks of value creation.
2. They define strategy as a plan. Plans and tactics are also elements of strategy, but they aren’t enough either. A detailed plan that specifies what the firm will
do (and when) does not imply that the things it will do add up to sustainable competitive advantage.
3. They deny that long-term (or even medium-term) strategy is possible. The world is changing so quickly, some leaders argue, that it’s impossible to think
about strategy in advance and that, instead, a firm should respond to new threats and opportunities as they emerge. Emergent strategy has become the battle
cry of many technology firms and start-ups, which do indeed face a rapidly changing marketplace. Unfortunately, such an approach places a company in a
reactive mode, making it easy prey for more-strategic rivals. Not only is strategy possible in times of tumultuous change, but it can be a competitive advantage
and a source of significant value creation.
4. They define strategy as the optimization of the status quo. Many leaders try to optimize what they are already doing in their current business. This can
create efficiency and drive some value. But it isn’t strategy. The optimization of current practices does not address the very real possibility that the firm could
be exhausting its assets and resources by optimizing the wrong activities, while more-strategic competitors pass it by.
5. They define strategy as following best practices. Every industry has tools and practices that become widespread and generic. Some organizations define
strategy as benchmarking against competition and then doing the same set of activities but more effectively. Sameness isn’t strategy. It is a recipe for mediocrity.

[email protected] 10
 STRATEGY AND STRATEGIC PLANNING

[email protected] 11
 HISTORY OF STRATEGY

Sun Tzu (6th century BCE) • Speed

Chanakya (350-283 BCE) • Globalization
Niccoló Machiavelli (1469-
1527) • Internet & Virtual
Karl von Clausewitz (1780-
Organization
1831)
• New technology
Max Weber (1864-
1920) The new
landscape

• Democratization
Frederick Taylor (1856-1915)
• Empowerment
• Complexity
Alfred P. Sloan (1875-1966)

[email protected] 12
STRATEGY
CONTEXT
 Stakeholders
Aspiration [ESG;
Zero Net; Circular
Economy]

 The Future of
Competition

[email protected] 13
 STRATEGIC
PLANNING

Strategic Thinking

Strategic Decision
Making

[email protected] 14
 APPROACH

Many Few

Future ADAPTATION POSITION

Present EXECUTION CONCENTRATION

[email protected] 15
 THINKING BEFORE YOU PLAN

 Strategy is about out-thinking your competition. It’s about vision first and planning second. That’s why
it’s so important that you think before you plan. And that the thinking part of what you do is given
priority. Strategists who don’t take time to think are just planners.
 Make sure that imaginative, open, playful, passionate thinking happens before the serious work of
planning begins.That’s what strategy is about – thinking strategically.
 ‘A gifted strategist’ will keep moving between ends and means. The smart strategist will cycle between
present opportunities and future possibilities - Sir Lawrence Freedman, author book of Strategy: A
History.
 Managers tend to focus too much on beating (or copying) competitors. The open mind of the strategic
thinker can choose to look for ambitious, new ways of creating wealth that focus on the (unmet)
needs of customers and the strengths of their own organizations - Kenichi Ohmae, author book The
Mind of the Strategist.

[email protected] 16
 WHAT IS STRATEGIC THINKING

“At this point, there is no generally accepted definition of the

term, no common agreement as to its role or importance, and
no standardized list of key competencies of strategic thinkers.”

Wikipedia

[email protected]
 WHAT IS STRATEGIC THINKING

Strategic thinking
Strategic thinking
is learned, not
cannot be taught.
innate.

[email protected]
 WHAT IS STRATEGIC THINKING?

Seeing
systems
Vision/Goals

Analysis

The ability to see what is - and what could be –

and make choices that lead to desired outcomes.
[email protected]
 COMPONENTS OF STRATEGIC THINKING

Analytical. (Makes Sees systems.

Vision/goal driven. sense of diverse input (causes, relationships,
and data.) leverage points)
• Focused on long • Weighs decisions • Thinks across past,
term forces, trends, against criteria. present and future.
impacts. • Allows for • Questions
• Anticipates “intelligent assumptions, habits
unwanted events opportunism” and conclusions.
and risk.

[email protected] 20
 LACK OF SHARED ANALYSIS CAN LIMIT STRATEGIC
THINKING
shared
vision/goals

opportunities historical
and threats analysis

Problems and
power analysis
causes
[email protected]
 POWER RELATIONSHIPS CAN LIMIT STRATEGIC THINKING
More Less
power Power

[email protected]
 OVER-EMPHASIS ON ONLY THE LONG-TERM OR
IMMEDIATE CHALLENGES

Immediate
only

Long term
only
[email protected]
 ANCHORING CAN
LIMIT STRATEGIC
THINKING
• When faced with a choice,
we may ANCHOR on a
certain good outcome we
think will occur.
• It can be hard to remain
open to other options or
implications.
• Anchoring is often the
result of over-the-top
urgency to “just do
something.”

[email protected] 24
 BIAS CAN LIMIT STRATEGIC THINKING

 We all have biases.

 We select for information that

supports our viewpoint and
experiences.

 We tend to disregard information that

doesn’t fit our beliefs/values.

[email protected]
 FRAMING AS A METHOD OF CREATIVE THINKING

[email protected] 26
 STRATEGIC DECISION MAKING

When individuals face decisions, their rationality is confined by cognitive

limitations and the time available to make a decision. Thus, individuals tend
to “satisfice” rather than to optimize – Herbert Simon, Theory of Bounded
Rationality.

Cognitive limitations, constraints such as time or the brain’s inability to

process large amounts of data that prevent us from appropriately
processing and evaluating each piece of information we encounter.

[email protected]
 2 SYSTEM

[email protected] 28
 TWO DISTINCT MODES OF DECISION MAKING

 Fast thinking (intuitive) – System I, operates automatically and quickly, with little
or no effort or no sense of voluntary control.
 Slow thinking (reasoning) – System 2, allocates attention to the effortful mental
activities that demand it, including complex computations. The operations of System 2
are often associated with the subjective experience of agency, choice, and
concentration.
 System 1 continuously generates suggestions for System 2: impressions, intuitions,
intentions and feelings. If endorsed by System 2, impressions and intuitions turn into
beliefs, and impulses turn into voluntary actions.

[email protected] 29
 EXAMPLES OF SYSTEM 1 & 2

System 1 System 2
 Detect if one object is more distant than another  Focus on the voice of one person in a noisy room
 Complete simple math equations, like 1 + 1 = ?  Look for a woman with red hair in a crowd

 Smile when shown an image of puppies  Focus your attention on only the elephants in a circus

 Complete the phrase, “salt and …”  Maintain a faster walking speed than is comfortable for
you
 Orient to the source of a sound  Fill out a tax form
 Swat a mosquito  Search your memory for a surprising sound
 Drive on an empty road  Brace for a punch
 Recognize stereotypes  Monitor how you act in a social situation

[email protected] 30
 JUMPING TO CONCLUSION FALLACY

Drawing a conclusion without

taking the needed time and
evaluating all the facts to reason
through the argument.

[email protected] 31
 COGNITIVE BIASES AND DECISION MAKING

Obstacles in thinking that lead to systematic errors in our decision making and
interfere with our rational thinking.
 Illusion of control
 Escalating commitment
 Confirmation bias
 Reason by analogy
 Representativeness
 Groupthink

[email protected] 32
 ILLUSION OF
CONTROL

a cognitive bias that

highlights people’s
tendency to
overestimate their
ability to control
events.

[email protected] 33
 ESCALATING
COMMITMENT

a cognitive bias in which

an individual or a group
faces increasingly negative
feedback regarding the
likely outcome from a
decision, but nevertheless
continues to invest
resources and time in
that decision, often
exceeding the earlier
commitments.

[email protected] 34
 CONFIRMATION BIAS

a cognitive bias in which

individuals tend to search
for and interpret
information in a way that
supports their prior
beliefs. Regardless of facts
and data presented,
individuals will stick with
their prior hypothesis.

[email protected] 35
 REASON BY ANALOGY

a cognitive bias in
which individuals use
simple analogies to
make sense out of
complex problems.

[email protected] 36
 REPRESENTATIVENESS

a cognitive bias in
which conclusions are
based on small
samples, or even from
one memorable case
or anecdote.

[email protected] 37
 GROUPTHINK

a situation in which
opinions coalesce
around a leader
without individuals
critically evaluating
and challenging that
leader’s opinions and
assumptions.

[email protected] 38
 ALL-TIME-FAVORITE BIASES THAT WE SEE IN STRATEGY
ROOMS

 Halo effect. “Our 6 percent profit growth last year reflected our decision to continue investing in digital, and, in the face of tough
trading conditions, we remained ruthless on costs”—a team giving itself a pat on the back even though the whole market also grew profits
by 6 percent.
 Anchoring. “We forecast 8 percent growth next year, plus or minus 1 percentage point, depending on the demand environment. We
will achieve this by pushing even harder on our current projects”— so 8 percent is the starting point of the negotiation, whether or not it
should be.
 Confirmation bias. “We’ve put lots of work into analyzing the reasons why this will work” [but no work into the reasons why it
won’t]. “We’ve also heard that our top competitor is exploring this opportunity” [so it must be a good idea]. Good luck with trying to
stop the momentum for that project.
 Champion bias. “We have a great team behind us; we’ve succeeded on projects like this before. You should have the confidence in us
to do it again”—deflecting attention from the merits of the project alone.
 Loss aversion. “We don’t want to put our baseline at risk by chasing blue sky ideas. We really appreciate the hard work that’s gone
into alternative strategies and new business lines, but ultimately we think the risks outweigh the benefits”—even though the existing
baseline might be under threat.

[email protected] 39
 HOW TO IMPROVE STRATEGIC DECISION MAKING

Devil’s Advocacy, technique that can help to improve strategic

decision making; a key element is that of a separate team or individual
carefully scrutinizing a proposed course of action by questioning and
critiquing underlying assumptions and highlighting potential
downsides.
Dialectic Inquiry, technique that can help to improve strategic
decision making; key element is that two teams each generate a
detailed but alternate plan of action (thesis and anti-thesis). The goal, if
feasible, is to achieve a synthesis between the two plans.

[email protected] 40
 EIGHT SHIFTS THAT WILL TAKE YOUR STRATEGY INTO
HIGH GEAR

1. FROM ANNUAL PLANNING TO 5. FROM BUDGET INERTIA TO LIQUID

STRATEGY AS A JOURNEY RESOURCES
2. FROM GETTING TO ‘YES’ TO 6. FROM SANDBAGGING TO OPEN
DEBATING REAL ALTERNATIVES RISK PORTFOLIOS
3. FROM ‘PEANUT BUTTER’ TO ONE- 7. FROM ‘YOU ARE YOUR NUMBERS’ TO
IN-TEN WINS A HOLISTIC PERFORMANCE VIEW
4. FROM APPROVING BUDGETS TO 8. . FROM LONG-RANGE PLANNING
MAKING BIG MOVES TO FORCING THE FIRST STEP

[email protected] 41
 FIVE MOVES THAT, CAN GET YOU TO WHERE YOU WANT TO
GO—THEY WORK BEST IN COMBINATION
1. Programmatic M&A. This one surprises people because they have the idea that studies show that most M&A deals fail (factually wrong) and
resist (rightly) the idea of a bet-the-company deal. A key indicator of success is “programmatic M&A,” a steady stream of deals, each costing no
more than 30 percent of your market cap but adding up over 10 years to at least 30 percent of your market cap.
2. Dynamic allocation of resources. Research found that companies are more likely to succeed when they re-allocate capital expenditures at a
healthy clip—feeding the units that could break out and produce a major move up the Power Curve, while starving those that are unlikely to surge.
The threshold here is re-allocating at least 50 percent of capital expenditure among business units over a decade.
3. Strong capital expenditure. You meet the bar on this lever if you are in the top 20 percent in your industry in your ratio of capital spending to
sales.That typically means spending 1.7 times the industry median.That is a big number.
4. Strength of productivity program. Everybody is trying to reduce their costs—cutting overhead and improving labor productivity. The question
is whether you are improving productivity consistently faster than your competitors. Our research found that the bar is at an improvement rate
that’s at least in the top 30 percent of your industry.
5. Improvements in differentiation. To make business model innovation and pricing advantages improve your chances of moving up the Power
Curve, you need to make it into the top 30 percent in your industry in terms of gross margin. This measure captures whether a company has been
able to either develop a sustainable cost advantage or charge premium prices because of product differentiation and innovation.

[email protected] 42
 STRATEGY AND
EXECUTION

After all, if the

strategy is clear and
you as the leader are
driving it, won’t the
team naturally engage
to achieve it? The
answer is NO.

[email protected] 43
 STRATEGIC
EXECUTION

 Resources

 Leadership

 Managing change

[email protected] 44
 RESOURCES, 4P

Profile People Policy Process

[email protected] 45
 Set the
Direction

LEADERSHIP, 6
Align the Engage the RESPONSIBILITIES
Organization Board

Mobilize Connect
through with
Leaders Stakeholders

Manage
Personal
Effectiveness

[email protected] 46
 MANAGING CHANGE
After all, if the strategy is clear and you as the leader are driving it, won’t the team naturally engage to
achieve it? The answer is NO.

[email protected] 47
 CHANGE - BCG’S RESEARCH

1. 85 percent of companies have pursued more than

one type, with the common being organizational,
operational, and rapid financial improvement.
2. Only 24 percent of companies that complete
transformations outperform competitors in their
industries.
3. Root cause of failure are [a] adopt short term, top
down approach to implementation; [b] fail to build
capabilities required to enable people to work in
new and different ways; and [c] treating each
initiative as an independent event.
“Everyone try to change the world, but no one try to change
himself” - Leo Tolstoy, Russian Novelist 1828 – 1910
[email protected] 48
 MANAGING CHANGE – ADKAR PROCESS

Desire Ability
Why wee Skill & Make change
need What is it behavior Capability to last & Move
for me needed execute forward
Awareness Knowledge Reinforce

[email protected] 49
 MANAGING CHANGE

• Awareness
Communication • Reinforcement

Human
• Awareness
Side
Sponsorship • Desire
Roadmap • Reinforcement

Training
• Knowledge
• Ability
Organization don’t change,
Technical people do. People is true
Side
Coaching
• Awareness;
Desire
• Knowledge;
unit of change.
Ability
• Reinforcement

Resistance • Desire
Management • Reinforcement

[email protected] 50
 SUCCESSFUL CHANGE

THE BIG IDEA: COMPANIES NEED TO MANAGE PERFORMANCE AND

HEALTH WITH EQUAL RIGOR TO ACHIEVE SUCCESSFUL CHANGE

[email protected] 51
 9 VITAL SIGNS OF ORGANIZATIONAL HEALTH

[email protected] 52
 MANAGING CHANGE – 5 FRAME OF MC KINSEY

Where do we
Assess What do we
Act • How do we
want to go How ready are need to do to How do we keep moving
we to go there get there manage the forward
journey
Aspire Architect Advance

[email protected] 53
 4DX

Focus on the Keep a Create a

Act on the
Wildly Compelling Cadence of
Lead Measures
Important Scoreboard Accountability

[email protected] 54
 STRATEGIC
REVIEW

Performance
Management

Resilience

Agility

[email protected] 55
This Photo by Unknown Author is licensed under CC BY-SA

YOUR STRATEGY NEED STRATEGY

[email protected] 56
 THE COMPREHENSIVE STRATEGIC MANAGEMENT

1. Strategic
Planning

Adapt Produce

3. Strategic 2. Strategic
Review Execution

Adopt

[email protected] 57
 THE STRATEGY TOOLKIT
Strategy is not the same thing as strategy tools or models.Yet it’s useful to know what they are so you
can deal effectively with corporate strategy.

[email protected] 58
 REFERENCE

[email protected] 59
 REFERENCE

[email protected] 60
 REFERENCE

[email protected] 61
 REFERENCE

[email protected] 62
 REFERENCE

[email protected] 63
 REFERENCE

[email protected] 64
 REFERENCE

[email protected] 65
This Photo by Unknown Author is licensed under CC BY-SA

THANK YOU!

[email protected]