power of visual thinking
DESCRIPTION
TRANSCRIPT
Envisioning Strategy
Business Models Visualized(created for and by students)
© Sunil Mehrotra
What you will learn in this course:• Envisioning Strategy
– Definition– Framework– Visual Models
• External Analysis– PEST– PEST Impact Analysis
• Industry and Competitive Analysis– Industry Structure– Evolution of Industries– Industry Supply Chain– Potential Industry Earnings– Porter’s 5 Forces Analysis– Competitive Intensity– Strategies for minimizing competitive forces– Perceptual Map– Barriers to Entry/Incumbency advantages– DSIR effect
• Company Resources and Capabilities– ARC Analysis/HR– SWOT Analysis– Value Creating Processes/Core Competencies– Strategic Game Board– Balanced Scorecard– Change Management © Sunil Mehrotra
How you will do it
Visualize
Think Clearly
Understand Deeply
Communicate Effectively
Share the Vision
Act Coherently
www.idiagram.com
Envisioning Strategy: Visual Models
www.idiagram.com
1
23
4
5
Visualize Think Clearly
Thinking clearly stretches your mind
"A mind once stretched by new thoughts can never regain its original shape."-Albert Einstein
Why Visualization works:Factoid
Eyes 10,000,000 40Ears 100,000 30Skin 1,000,000 5Taste 1,000 1Smell 100,000 1
Total Bandwidth (bits/second)
Conscious Bandwidth (bits/second)
http://www.informaworld.com/smpp/section?content=a743900378&fulltext=713240928
Dan Roam on Visual Thinking
http://www.thebackofthenapkin.com/
Visualization helps to think clearly andcommunicate effectively: examples
http://awesome.goodmagazine.com/goodsheet/goodsheet004gas.htmlWhere does your money go when you buy a gallon of gas?
http://awesome.goodmagazine.com/goodsheet/goodsheet006economy.htmlIt's the Economy Stupid!
http://nytimes.com/interactive/2008/07/20/business/20debt-trap.htmlDebt trap.
http://blogs.wsj.com/health/files/2008/04/waystogo.jpgOdds of Dying
http://www.susannahertrich.com/img/RC_screen.jpgActual versus Perceived threats
http://awesome.goodmagazine.com/transparency/007/trans007studentdebt.htmlStudent debt
http://www.nytimes.com/interactive/2008/05/03/business/20080403_SPENDING_GRAPHIC.htmlAll of inflations little parts
The environmentThe environment
International lawInternational law
GovernmentsGovernments
Standards bodiesStandards bodies
StakeholdersStakeholders
SupplierSupplier’’s supplierss suppliers CustomerCustomer’’s customerss customers
New entrantsNew entrants
CustomersCustomersSuppliersSuppliers
CompetitorsCompetitors
SubstitutesSubstitutes
OrganisationOrganisation
A Visual ModelBusiness Ecosystem
New Paradigm Consulting
Business Ecosystem: A more granular view
Mbam619 framework models
Strategy: Whose responsibility is it?
• Ultimately the CEO/leader “owns” the company's strategy and is responsible for executing against the strategy.
• Leadership styles vary
• Commanding
• Logical
• Inspirational
• supportive
• Nature of strategic initiative may require a particular style for success
Leadership matters, why?
Leadershiprole
Make choices/decisions
Lead people toimplement
How?
Leadership style
http://www.nytimes.com/2008/12/06/business/06motors.html?_r=1&pagewanted=2&ref=business
● Uses reasoning ● Expects commitment ● Systems-oriented ● Looks for new directions ● Incremental improvements ● Structured problem solving
● Engenders trust ● Has charisma ● Creates future visions ● Envisions new opportunities ● Empowers others ● Very creative ● Heuristic solutions
● Is considerate ● Peer approbation ● Cooperative environment ● Relates well with others ● Tries for mutual agreement
● Intuitive ● Demands loyalty ● Expects results ● Takes charge ● Insists on compliance ● Finds workable solutions
Broad and fu
ture
oriented
Performance Transformational
Narrow and Short-
Ran
ge S
pecific
Logical Imaginative
Commander Supportive
http://gbr.pepperdine.edu/084/leadership.html
scope
Outcome
Lea
ders
hip
Styl
e
Leadership Patterns
• Pattern 1: Ideation. Ideation is a combination of the logical and imaginative basic styles. This pattern hinges on visualizing or imagining a future that is both achievable and practical and is helpful in planning an organization’s strategic future. Ideation is the hallmark of successful CEOs, top executives, and those who are determined to achieve a new vision for their organization. Leaders in this category use logic and detailed analysis as well as vision and imagery to direct the organization.
• Pattern 2: Stewardship: A combination of the logical and the commander basic styles, it is necessary in areas of
financial or risk management within organizations. Leaders who utilize this style focus on resources—conserving them, allocating them wisely, and acquiring sufficient amounts to carry out the mission of the organization. Effective executives with this pattern are financial planners, managerial accounting analysts, and managers of detail and logistics.
• Pattern 3: Coordination. A combination of the logical, commander, and imaginative basic styles, this triangular
pattern is more common in smaller firms and in the second- and third-tier levels of larger organizations. The logical/commander components of this style tend to be almost equal, with an imaginative backup. In small entrepreneurial firms, the imaginative style may be the most dominant, with the commander style a strong second and the logical style a weak backup. This coordination leadership pattern represents the popular, "traditional" upper-management pattern from the study of 294 male managers that established the "norm" for Decision Systems Analysis (DSI) and has held constant for the LSI as well.
http://gbr.pepperdine.edu/084/leadership.html
Leadership Patterns
• Pattern 4: Exploration. This combination of imaginative and commander styles is typical of leaders in entrepreneurial start-ups, especially female entrepreneurs. The imaginative style tends to dominate and the "follow-the-star" method of reaching a desired goal trumps everything.
• Pattern 5: Customer-Centric. This pattern represents a combination of the supportive and commander basic styles and
is dominant in strong marketing- and sales-oriented organizations. Supportive behavior comes first because empathy for customer needs is more important than the drive to convince or persuade. Empathy means understanding and wanting what is best for the customer because satisfying the customer is also in the best interests of the firm. Nonetheless, leaders must also utilize the commander style to drive results.
• Pattern 6: Employee-Centric: A combination of the supportive and imaginative basic styles, this pattern is necessary
for understanding and supporting the needs of employees, associates, and customers, as well as having the imagination to inspire through external and internal public relations, advertising, promotion, and employee empowerment programs. It is essential for human resource leaders.
http://gbr.pepperdine.edu/084/leadership.html
Leadership traits
Pay for performance?
http://www.nytimes.com/imagepages/2006/04/09/business/09value.graphic.htmlPay for Performance of CEOs? Sometimes!
Nappies—Key Concepts
The power of visual thinking?
What is Strategic Management?-strategic planning framework
What is the role of the CEO/Leader?-Leadership styles
Mnemonic 1
Strategic Management
• Deals with
– How to grow the business
– How to satisfy customers
– How to compete with rivals
– How to respond to changing environment
– How to manage each functional piece of the business
– How to build organizational capabilities and align organization to achieve desired goals
– How to achieve strategic and financial objectives
Strategic Planning
• Planning is not about predicting the future
• Planning is not about writing a detailed road map into the future
• Planning is not about a few people writing a vision statement & then getting ‘buy-in’ from everyone else
Mbam619 framework models
Strategic Planning
• Planning is about learning
• Planning is about increasing the possibilities for the organisation
• Planning is about discovering how fit the organisation is for its environment
• Planning is about discovering and telling compelling stories about the future
Strategic Management in a nutshell !What is the vision?
Strategic Management
• Is the process by which an organization
–Establishes its goals and objectives both short and long-term
–Formulates plans and charts a course of action for meeting these goals and objectives in the desired time-frame.
–Implements the actions
–And analyzes progress and result
Behind every strategy should be solid financial reasoning
Mission, Vision and Values
• Vision articulates a view of a realistic, credible, attractive future for the organization…it is the all-important bridge from the present to the future of the organization.
• Mission describes the purpose of the organization. It represents the present.
• Values reflect the organization’s culture and norms of corporate behavior.
Goal, Scope and Objectives
• Goal articulates a desired outcome for the business over a specific time period
• Scope describes the focus of the business– geography, product lines and customer segments.
• Objectives are the measurable and tangible results to be achieved over a specified time period
Source: "Thinking Strategically", McKinsey Quarterly, 2000
Understanding Strategic Management is like pealing an onion
Strategic Planning Framework
External Factors Internal Factors
Analyzingthe
Environment
Analyzingthe
Industry
Analyzingthe
Competition
Analyzingthe firm’s
Strengths &Weaknesses
Analyzingthe firm’s
Architecture,Routines &
Culture
Market OpportunitiesFirm’s Resources &
Capabilities
Aligning Market Opportunitiesto firm’s resources and capabilities
•What strategic options does the firm realistically have?•What is the best strategy for maximizing Shareholder value? Shareholder
Returns
The right of any corporation to exist is not perpetual but has to be continuously earned.—Robert Simons