nas seminar - creating value - day 2
TRANSCRIPT
Thinking Strategically
Ideas that can help you make great choices
© 2013 National Arts Strategies.
Tools for Great Decisions
2© 2013 National Arts Strategies.
Strategic Thinking
Integrated Action
Planning & Communication
Collective Action
Community Value
Our Plan for Today
3© 2014 National Arts Strategies.
8:30 – 10:15 Using Strategy to Make Decisions
10:30 – 12:00 More Work on Using Ideas from Strategy
12:45 – 1:45 Making Sense of Your Outside Environment
2:00 – 3:00 More Work on Your Environment
3:00 – 3:30 Reflection on the Day
Will this action create value?
Using strategic thinking to make decisions
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What Strategy Is
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GamePlan
Pattern of Actions
Resource Choices
What Strategy Is NOT
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FormalDocuments
PublicStatements
FinancialGoals
Slogans
Strategy Touches All of an Institution
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Value Promise
AudienceEngagement
Operations
Financial Model
Strategy is about making choices
ChoicesChoices
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Choices are difficult to make…
Allocation+Uncertainty+Irreversibility
… but are necessary to create the most value.
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Strategic Thinking for Daily Choices
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Strategic Thinking Filter
On Goal
Right Target
Supports Logic
Builds Uniqueness
Right Time
Filter #1: On Goal
How well does this action support our
value promise?
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Filter #2: On Target
Does this action help us better serve the people
we have targeted to serve?
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ValuePromise
AudienceParticipation
Impact & Education
MinistryAllocation
“Participation Logic”
Filter #3: Supports Logic
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Participation Logic in a Museum
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Will this create value?
Continuing our look at using strategic thinking
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Strategic Thinking for Daily Decisions
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Strategic Thinking Filter
On Goal
Right Target
Supports Logic
Builds Uniqueness
Right Time
Filter #4: Builds Uniqueness
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Low Cost Strategy Differentiation Strategy
Typical Sources of Uniqueness
o Breadth of programs
o Customer Service
o Visitor friendliness
o Availability
o Price
Image
Novelty
Quality
Customization
Pre / post visit service
© 2014 National Arts Strategies.
American Visionary Art Museum
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King Abdulaziz Center for World Culture
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Filter #5: Right Time
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Growth inour Dreams
Growthin Real Life
Consider:1. Value Added?2. Urgency?3. Have Resources?4. Credible to Do?5. Creates Options?
Our Value Today
Staging in a Museum (Example)
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Create Digital Presence
Add Educational Programs
Increase Special
(Traveling) Exhibits
Create Dynamic Exhibit
Platform
Engages new audiences at
lowest cost for them to try
Expands opportunities for
discovery
Ensures variety and discovery,
leverages partner
resources
Allows rapid redesign of
physical experiences
Value Promise:
Why:
Why Now:
Urgent need to fit with audience
behaviors / preferences
Ensures promise is credible, uses
existing resources
Adds to credibility of
promise; long lead times to
book
Requires time for funding,
construction, design
“Your Place for Constant Discovery”
What:
Strategic Thinking for Daily Decisions
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Strategic Thinking Filter
On Goal
Right Target
Supports Logic
Builds Uniqueness
Right Time
Thinking About the Outside World
What matters and what doesn’t?
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The Outside World is a Mess
THE MUSEUM
Employees
Ministry Department
Competitors Audiences
The Media Special-Interest Groups
Su
pp
lier
s
Social Variables
Technological VariablesEconomic Variables
Political Variables
THE MUSEUM
Employees
Ministry Department
Competitors Audiences
The Media Special-Interest Groups
Su
pp
lier
s
Social Variables
Technological VariablesEconomic Variables
Political Variables
“Six Forces” Creates a Clear Lens
Level of Rivalry
Threat of New Entrants
Substitutes Complementors
Buyer PowerSupplier PowerDo Museums Compete with Each Other?
Are New Museums Entering the Field?
Do Audiences Have Substitute Options?
Can Others Complement Your
Work?
Can Audiences Set Critical Terms?
Do Suppliers Set Critical Terms?
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Do Museums Compete with Each Other?
Competition grows when there is:
Limited revenue
Slow growth
Equal institutions
No differentiation
High fixed costs
No one exits
Are New Museums Entering the Field?
The number of entrants increases & decreases with:
Government policy
Resource requirements
Access to locations
Efficiencies for big organizations
Do Suppliers Set Critical Terms?
Suppliers set the terms when:
Few suppliers
Hard to switch
Critical to your vision
Can Audiences Set Critical Terms?
Audiences set terms when:
One big customer
Can easily switch• seller’s industry
Thinking About the Outside World
Continuing our look at what matters and what doesn’t
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THE MUSEUM
Employees
Ministry Department
Competitors Audiences
The Media Special-Interest Groups
Su
pp
lier
s
Social Variables
Technological VariablesEconomic Variables
Political Variables
“Six Forces” Creates a Clear Lens
Do Museums Compete with Each Other?
Are New Museums Entering the Field?
Do Audiences Have Substitute Options?
Can Others Complement Your
Work?
Can Audiences Set Critical Terms?
Do Suppliers Set Critical Terms?
32© 2014 National Arts Strategies.
Do Audiences Have Substitute Options?
Substitutes are plentiful when:
Preferences vary
Switching is easy
Pricing varies
Can Others Complement Your Work?
Complements can:
Increase interest in participation
Increase attention
Enrich experiences
Share resources
34© 2014 National Arts Strategies.
THE MUSEUM
Employees
Ministry Department
Competitors Audiences
The Media Special-Interest Groups
Su
pp
lier
s
Social Variables
Technological VariablesEconomic Variables
Political Variables
“Six Forces” Creates a Clear Lens
Do Museums Compete with Each Other?
Are New Museums Entering the Field?
Do Audiences Have Substitute Options?
Can Others Complement Your
Work?
Can Audiences Set Critical Terms?
Do Suppliers Set Critical Terms?
35© 2014 National Arts Strategies.
A Look at Our Day
Brief reflection on the day and plans for tomorrow
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What We Covered
Ways to think about day-to-day choices
Strategic thinking about your internal environment
o Goal
o Target Audiences
o Participation Logic
o Competitive Advantage
o Staging
Strategic thinking about your external environment
o Six Forces framework
37© 2013 National Arts Strategies.
Key Ideas to Take With You
Strategy isn’t just “planning,” it is a way of thinking about your goals and the world around you
Strategic thinking helps you make day-t0-day choices that create the most value for your communities
A lens for analyzing the world you work in helps you see opportunities and challenges more clearly
Substitutes and complements are often overlooked in planning and decision-making
How we define our world makes a big difference – our audiences are here in Oman but also around the region and the world
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All the Technical Terms
We Talked About… The Strategy Literature Calls It…
On Goal Value Proposition
Right Target Segmentation and Targeting
Participation Logic Economic Logic
Right time Staging
Uniqueness DifferentiationCompetitive Advantage
Do museums compete with each other? Rivalry
Are new museums entering? New Entrant
Can audiences set critical terms? Buyer Power
Do suppliers set critical terms? Supplier Power
Do audiences have substitute options? Substitutes
Can others complement your work? Complementors
39© 2014 National Arts Strategies.
Thank you
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