Management Frameworks e-learning resource
Introduction to the slides
The slides found on this website are intended as a comprehensive teaching aid for
lecturers using management frameworks in their courses and modules, typically covering
subjects such as strategy, organization and general management. The slides follow the
logical progression of the book, beginning with an introduction and background, a
description of the six drivers and key sub-drivers and then leading to a conclusion. The
aim here is to show students how frameworks can be used as a very practical tool to assist
leaders and improve strategic thinking, decision-making and execution.
Lecturers may also find it useful to consult some of these other specific works on
frameworks:
Schotter, Andreas, Beamish, Paul W. and White, Rod (2009) Jacques Kemp: Towards
Performance Excellence, London, Ont.: Richard Ivey School of Business, University of
Western Ontario.
Kaplan, R. & Norton, D. (1996) The Balanced Scorecard: Translating Strategy into
Action. Boston, MA: Harvard Business School Press.
Pryor, M. G., Anderson, D., Toombs, L. A., Humphreys, J. H. (2007) ‘Strategic
Implementation as a Core Competency: The 5P's model’, Journal of Management
Research, 7(1), 3-17.
We very much welcome any feedback on these slides and will take all suggestions on
board.
Step 1 – background, mission and vision
1a
describe the market environment, macro/micro market situation and trends,
competitive analysis and SWOT.
1b
establish the mission: for example, to become customer’s preferred choice in our
key markets.
1c
define the vision: for instance, ‘there are great opportunities to capture a
profitable market share in Asia in sector XYZ and to become a leader in that market’.
Step 2 - strategy
This step determines the strategic direction the company will follow, where the company
is today and it wants to go, using the five strategic dimensions. This step involves
answering a set of five questions:
2a
Line of business: which line of business are we operating in?
2b
Products: what are our main products or services?
© 2013 Jacques Kemp, Andreas Schotter and Morgen Witzel
2c
Distribution channels: through which channels do we sell our products?
2d
Customers: which segments do we focus on (i.e. wholesale or retail)?
2e
Reach: which cities, states or countries will we market into, either with a physical
marketing presence or virtually?
Step 3 – strategic priorities
After answering the five questions, the company then needs to establish its key strategic
priorities which are required to help it meet its goals. These can be described in short
phrases, such as ‘increase management development’ or ‘improve MIS’. Each of these
will then be grouped under one of the six drivers:
1.
2.
3.
4.
5.
6.
Portfolio Excellence,
Marketing Excellence,
Organizational Excellence,
Operational Excellence,
Reputation Excellence,
Financial Excellence,
All drivers will be the cascaded down into sub-drivers until the entire strategic picture is
Consistent, Comprehensive and Complete (3Cs). This should be done with full
involvement from all layers in the company (head office to business department level) as
well as with full engagement of business units and staff departments. The end result
should be a complete picture of what management wants and needs to do.
1. Portfolio driver
Following the company’s mission, vision, strategic direction and priorities, the portfolio
driver describes how the growth and main objectives will be achieved. Options might
include:





Investments in existing BUs (organic growth),
Mergers and acquisitions,
Partnerships (add, change, expand),
Restructuring existing BUs,
Disinvestments and outsourcing.
2. Marketing driver
Here we delve in more detail into some of the key strategic priorities, namely products,
distribution and customers.
© 2013 Jacques Kemp, Andreas Schotter and Morgen Witzel
Customers: given our competences, market position and other factors are we focused on
the right customer base?






Can we add new customer segments?
How many customers do we have in each existing segment? How many do we
want to add or reduce?
Which percentage of our customer base is profitable; what to do about the rest?
Customer satisfaction,
Customer services,
CRM and cross-selling.
Products: which products do we have today? Which do we want to renew and/or add?




Do we have the right product range?
Are our products/services optimally priced?
Do we have acceptable levels of risk with proper transparency?
Are we innovating?
Distribution: do we have the appropriate distribution channels mix: click, call and face?



Do we need our own sales force? Add details.
Do we need a third-party sales force? Add details.
Do we need direct marketing? Call/click, through telemarketing with partners?
3. Organizational driver
Is the company’s organization fit for purpose? What is needed to help deliver on the
agreed strategy?








Is the organizational structure clear, consistent, well known and understood to all?
Is there synergy with and between other units?
How many people do we need, which specialists, which departments?
What are our development ad training needs, for whom, and when?
What tools do we need: performance management; succession planning, e-HR
systems; surveys; exit interviews;
Do we have the right culture/atmosphere?
Do we have the necessary tools for compliance?
Compensation: fixed, variable, benefit programs, etc.?
4. Operational driver
What operational processes are needed to ensure the strategy is carried out successfully?
What improvements are wanted, where and when? Issues to consider include:

Process optimization,
© 2013 Jacques Kemp, Andreas Schotter and Morgen Witzel






Outsourcing,
Procurement,
Communications technology – web-based; IT infrastructure, etc.
IT applications and common standards,
New technologies,
IT and operational security,
5. Reputation driver
Everything the company does affects its reputation, either explicitly or implicitly. Key
factors to be considered include:







6
Branding,
Name recognition,
Advertising,
Sponsoring,
Free publicity,
Communication: internal and external, to employees, shareholders, other
stakeholders,
Compliance and Legal,
Financial driver
Finally we come to the bottom line impact of the strategy and the issues that need to be
considered and measured.






Performance measurement: various ratios, P&L, analyses, Value Based
Management,
Managing balance sheet: capital, liquidity, solvency, mismatch, debtor risk,
reserves adequacy, re-insurance,
Revenue: ratios, trends, benchmarking,
Cost management: ratios, trends, benchmarking,
Tax policy,
Sarbanes Oxley and other reporting requirements,
Step 4 - Continuous improvement
In order to have an adaptable learning process, four feedback elements are necessary:




Knowledge management: sharing actual data, information and best practices,
Audits: auditors and controllers produce lists of items which need improvement,
Adaptation and innovation: necessary in order to remain competitive,
Planning and KPIs: the planning process should support and report the entire
process.
© 2013 Jacques Kemp, Andreas Schotter and Morgen Witzel
Step 5 - Performance
After these questions have been answered in a manner than is clear, comprehensive and
consistent, the strategy is executed. Top management continues to use the templates
shown in the slides to monitor progress in all six areas across all business units. If
execution is similarly clear, comprehensive and consistent, the result ought to be
‘performance excellence’, i.e. the organization meets or exceeds its goals in an efficient
and effective manner.
© 2013 Jacques Kemp, Andreas Schotter and Morgen Witzel