strategy basics for leaders
TRANSCRIPT
AGENDA
1. What is Strategy anyway?
2. Bad Strategy
3. Strategy, Plan and Goal
4. The Methodology
5. Best Practices
6. Q&A
“CULTURE EATS STRATEGY FOR BREAKFAST”
Peter Drucker
1. WHAT IS STRATEGY ANYWAY?
BATTLE OF TRAFALGAR
▸ In 1805, Napoléon had conquered big chunks of Europe and planned the invasion of England.
▸ Naval Battle between French-Spanish navies vs. British Royal Navy (lead by Admiral Nelson)
▸ French-Spanish Navies: 33 ships
▸ British Royal Navy: 27 ships
▸ A BIG PROBLEM FOR ENGLAND
1. WHAT IS STRATEGY ANYWAY?
BATTLE OF TRAFALGAR
▸ Diagnosis:
▸ Nelson’s challenge: outnumbered
▸ Nelson’s strength: much better skilled gunners
▸ Tactic changes:
▸ Broke B fleet into 2 columns
▸ Hitting their line perpendicularly.
▸ Put the risk on leading ships
▸ Result:
▸ F-P lost 2/3 of fleet (22 ships)
▸ B lost none
▸ Nelson’s death
1. WHAT IS STRATEGY ANYWAY?
THIS IS HOW A GOOD STRATEGY LOOKS LIKE▸ Identifying the one or two critical
issues in the situation—the pivot points that can multiply the effectiveness of effort—and then focuses and concentrates action and resources on them.
1. WHAT IS STRATEGY ANYWAY?
• A diagnosis – that defines the nature of the challenge • i.e., Framing
• A guiding policy – for dealing with the challenge • Vision/mission and strategic priorities
• A set of coherent actions – Designed to carry out the guiding policy • Tasks and actions
A STRATEGY COMPRISES:
Exercise: Analyze these with Battle of Trafalgar.
“IT IS HARD TO SHOW YOUR SKILL AS A SAILOR WHEN THERE IS NO WIND.”
Richard P. Rumelt
2. BAD STRATEGY
BAD STRATEGY
‣ To detect a bad strategy, look for one or more of its 4 major hallmarks:
1. Fluff.
2. Failure to face the challenge.
3. Mistaking goals for strategy.
4. Bad strategic objectives.
‣ Bad strategy is long on goals and short on policy or action.
‣ Leaders may create bad strategy by mistakenly treating strategy work as an exercise in goal setting rather than problem solving.
3. STRATEGY, PLAN AND GOAL
• A Plan – Simple Steps – No Contingencies – “Do A, then B, then C”
• A Strategy – A framing – A set of Goals – Enumeration of contingencies – A coherent set of actions
Increasing uncertainty, contingencies, scope
4. THE METHODOLOGY
HOW TO MAKE A GOOD STRATEGY
‣ Start with Why (the challenges)
‣ Golden Circles: Why, What, How
‣ Avoid Bad strategies
‣ Too Ambitious or Too Ambiguous
‣ Goal Settings: a leader can set goals and delegate to others the job of figuring out what to do.
‣ Leadership mindset
‣ Leaders vs. Managers: Do The Right Thing vs. Do The Thing Right!
4. THE METHODOLOGY
HOW TO MAKE A GOOD STRATEGY
MANAGER LEADER
YOURSELF YOUR S-LEADERS
HIMSELF HIS S-LEADERS
GOALSWHAT IS/ARE
CRITICAL PROBLEMS?
WHAT IS/ARE CRITICAL
PROBLEMS?
1. Challenges 2. Coherence through links
4. THE METHODOLOGY
HOW TO MAKE A GOOD STRATEGY
LEADER
YOURSELF YOUR S-LEADERS
HIMSELF HIS S-LEADERS
PROBLEM P1, P2, P3GOALS A, B, C ACTIONS X, Y, Z
GOAL A, C ACTIONS X1, Z11. Guiding policy:
prioritization and filtering out unessential goals
2. Set of coherent actions: merged set of (X + X1+ X2)
GOAL A ACTION X2
MEASURE M
5. BEST PRACTICES
THE MOST CRITICAL SUCCESS FACTORS
‣ Follow the Right Strategy (Challenges, Policy, Actions)
‣ Hold the events properly:
‣ Diagnosis: Situation Review —> Challenges
‣ Goals Gathering
‣ Goals Review and Actions Provided
‣ KPI/Measures Set and Consensus
‣ Weekly Progress Check-Ins with Closed-Loop Feedback
‣ Flexible when many more things come in unexpectedly (that can impact the execution plan)
‣ Lastly, encourage an innovative culture.
5. BEST PRACTICES
USEFUL TECHNIQUES/TOOLS
‣ Setting Tracking and Measurable Goals
‣ OKR, SMART
‣ Root Cause Analysis
‣ 5 Whys
‣ Setting Priorities
‣ Agile Theme Screening
