Career Executive
Strategic Officers
Presentation to the National Convention of
Career Executive Service Officers
November 11, 2011 • Heritage Hotel, Manila
The Strategy Pyramid
Goals
Strategy:
Internal
External
Corporate
Strategy
‘The pursuit of
long-term goals
by applying
valuable internal
resources and
capabilities to
the most
advantageous
external
opportunities’
A Planning View of Strategy
Objectives
Options
Choice
Allocation
Implementation
Alfred Chandler (1962):
“… the definition of the basic long-term goals and
objectives of an enterprise, and the adoption of courses of
action and the allocation of resources necessary for carrying
out these goals.”
An Emergent View of Strategy-Formation
Objectives Options
Choice
Allocation Implementation
Henry Mintzberg (1984):
‘Strategy in general, and realized strategy in particular,
will be defined as a pattern in a stream of decisions’
The Strategy Cycle
The Virtuous Circle of Complementarities
Strategies
Structures
Systems
Organisational Change Is Multi-Dimensional
and Synergistic
Spelling Out Your Strategy
• Objective (Ends)
• Scope (Domain)
• Advantage (Means) . . . in 35 words max
News Corporation
‘To build a leading and profitable presence in both old and new
media, drawing on competitive advantages in terms of the
scale, diversity and international range of our businesses’
Edward Jones
‘To grow to 17,000 financial advisers by 2012 by offering trusted
and convenient face-to-face financial advice to conservative
individual investors through a national network of
one-financial adviser offices’
Collis and Rukstad (2008), ‘Can You Say What your Strategy Is?’, Harvard Business Review
The Strategy Pyramid: Techniques
Goals
Three Horizons
Strategy Statements
Stakeholders
Vision/Mission
Strategizing Map
External
Internal
5 Forces
Profit pools
Value net
Scenarios
Core competence
Serious SWOT
Value Innovation
Activity Systems
Corporate Strategy
SWOT Analysis
From SWOT To Strategies
Start-Ups, Stars, Cows and Dogs
Shareholders and Stakeholders
Return
on
Capital
Community
Customers
Investors
Managers
Suppliers
Employees
Sales/
Capital
Profit/
Sales
Stakeholder view:
Shareholder view:
The goal is to satisfy all those with
The goal of the business is to
maximise return on investors’ capital legitimate stakes in the
business
Stakeholder Mapping
Interest
High
Low
High
Keep satisfied
High attention
Power
Low
Minimal attention
Keep informed
Styles for Radical Change
Programmatic/Technical Leadership
Navigation
Leadership
 full-time programme
management
 critical path networks
 operational and
financial
 micro-measures
 ‘infrastructure’
redesign
Enablement
Context
 planning and
monitoring
 detailed hands on
control
 hierarchical command
structure
 “need to know”
involvement
 following instructions
and procedures
 top-down messages
Ownership
 predictability
 urgency for radical improvement
 short-term targets
Transformational/Adaptive Leadership
Leadership
Navigation
 change as part of
normal responsibilities  scenarios, intent and
direction
 co-ordination through
 values and purpose
communication
 encouragement and
 balanced scorecards
coaching
 macro-measures
 facilitation and
knowledge
management
 extensive involvement
 breakthrough cultures
 self-initiated change
and learning
Enablement
Context  uncertainty and adaptive problems
 fast-changing industry
 long-term value and purpose
Ownership
The challenge of engaging in change
and the role of leadership
‘Technical Challenge’
‘Adaptive challenge’
•
•
•
•
•
•
•
•
•
•
Set goal and task
Tell why
Explain what and how
Give instruction
Motivate
Measure and monitor
Set the context
‘Get on the balcony’
Describe a view of the future
‘Give the work to the
people’
• Manage conflict
• Encourage, coach, challenge
Three Horizons: Thinking Strategically
Profit
Horizon 3 > create viable options
Horizon 2 > build emerging businesses
Horizon 1 > extend and defend core business
Time (years)
Note: ‘profit’ on the vertical axis can be replaced by non-profit objectives;
‘ business’ can refer to any set of activities;
‘time’ can refer to a varying number of years.
Source: M. Baghai, S. Coley and D. White, The Alchemy of Growth, 2000, Texere Publishers: Figure 1.1
The National Health Service Journey
2000
2002
2004
• key illnesses
• throughput
• capacity
Some key
outcomes
2006
2008
• health priorities
• waiting times
• financial stability
2010
2012
• health & well-being
• equity
• joined up care
• quality, safety
• patient experience
• 18 weeks
• credibility
Self-sustaining Health
Transforming care system
Reconfiguring
Service Delivery
‘SERVICE
’ Journey
Financial Stabilisation
Growth, Expansion & Delivering
the ‘Basics’
‘REFORM’
Journey
Targets &
Performance Management
Social Movements
Co-creation
Local Capability & Self-improvement
Breakthrough & Innovation
SHA/PCT/Trusts
Choice & Providers
Commissioning
Connecting for Health
Adaptive Leadership
Centre’s
‘LEADERSHIP’
Journey
Technical Leadership
Target setter +
Performance manager +
Delivery leader
Regulator +
National Standards +
System leader
A journey for the country?
Adaptive leadership
Technical leadership
Selfsustaining
Unleashing and transforming
Visioning & connecting
Building &
reforming
Forming & awakening
Independence & identity
Control over conflict
Stability
Security
Strong leadership
1960
1970
Good governance
Economic reform
Infrastructure
Regulation & Trust
Financial systems
Fight disease and poverty
etc
1980
1990
Engaging everyone
Creating a vision
Regional cooperation
Reputation building
Inward investment
Importing skills & knowledge
2000
Competitive advantage
Export led growth
Global partners
Innovation
Public service transformation
Community & citizen-led change
Government as enabler
2010
2011
Complexity and Uncertainty
Purposes
Public
scenarios
Sense making,
and/or norming
Qualitative
scenarios
Engagement
Decision
scenarios
Strategy
formation
Scenario
tracking
Continuous sense-making
of strategic environment
Scenario Planning
Chaos and Complexity
Chaos: small causes can have
large effects – unpredictability
Complexity: complex causes can have
simple effects – emergence of order
Conventional Strategy View
Actions and resources are
linear/curvilinear
- a world of smooth,
single-peaked landscapes
Performance in vertical axis
Combinations of actions/
resources in the horizontal
axes
Chaos Strategy View
Actions and resources form complementary, interdependent systems,
with non-linear effects
- a world of rugged
landscapes
Performance in vertical axis
Combinations of actions/
resources in the horizontal
axes
Scenario Drivers
High
?
Importance
Low
High
Low
Uncertainty
WEF on Global Financial Systems
High
Demographics
Info.
security
Importance
Global
growth
Global
trade
Energy
prices
Extremism
Global
savings
Corruption
Finance
literacy
Low
High
Low
NB: original has 30 factors
Uncertainty
Change Strategies
Your teams are 5-6 strong, in a dense fog, with phones and altimeters,
but no GPS, maps etc. Starting from a westerly position, design a strategy
to find the highest peak first in:
a smooth landscape world
a rugged landscape world
Think about: decision-rules, team organisation, objective setting, competitor reactions,
decision rights, planning, expectations management, incentives…
Metaphors of Chaos
and Complexity
Chaos: small causes can have large
effects – unpredictability
Complexity: complex causes can have
simple effects – emergence of order
Today’s Agenda
• Creating a framework for strategic change
– The what?
– The how?
• Understanding and navigating the journey
• The challenge of complexity
• Some personal reflections and conclusions
How high is the bar…or is it a different
sport?
Technical
Incremental productivity,
efficiency, process streamlining,
transactions
Known knowledge
Standardisation and consistency
Teach solution and motivate
Type of
change
Answers
?
Focus of
change
Leaders
role
Adaptive
Radical service or business
innovation, new propositions,
transforming culture
Unknown and many solutions
Innovation, diversity and
deviancy
Set purpose, challenge and
coach
A Journey for the Country - UK past 100 years
1900s
2000s
e view of the citizen
I belong
I need
I want
I can
changing role for Government
Owner?
‘Provider’
?
‘Privatiser
&
regulator’?
‘Moderniser &
transformer’??
A Journey for the Country
Fiefdoms
Survival
Independenc
Imperialism
e
Conflict
Identity
Isolationism
Health & wellbeing
Democracy
Leading the way
Economic growth
Safe and secure
Global partner
Financial
stability
anging role for Government
Owner?
‘Provider’
?
‘Privatiser
&
regulator’?
‘Moderniser &
transformer’??
Leading change – horses for courses
‘Adaptive’ or
‘Transformational’
Leadership
‘Technical’ or
‘Programmatic’
Leadership
•
•
•
•
•
Top down
Traditional
Tight programmes
Task prescription
Terrifying targets
•
•
•
•
•
Enterprise or system wide
Entrepreneurial
Energising
Engaging everyone
Empowering
Where are you on your journey?
Context and history?
Clarity on the ‘strategic intent’ and outcome/customer proposition?
Distinctive capabilities, culture, processes and infrastructure?
Stages of the journey – technical and adaptive challenges?
Approach and style of change – navigation, leadership, ownership,
enablement?
Your collective and personal role?