Group Level Strategy a three day course for line managers and functional specialists at group and division levels (November) Group Level Strategy Companies with multiple operating units create a special set of management challenges. First there are decisions about what businesses and markets to invest in (portfolio strategy). How focused should the portfolio of businesses be? When does diversification go too far? How to find new growth areas when the core activities mature? How much to invest in each operating business? Second there are decisions about how to organise and manage the company (management strategy). Should the operating businesses be grouped into divisions? What functions should be centralised at divisional or corporate levels? Are there benefits from a matrix structure? How to get the operating units to work together? How much power should corporate functions have? How much autonomy should operating units have? What activities need to be set up as shared services? Group Level Strategy addresses both portfolio strategy and management strategy. It also ensures that each participant explores his or her own contribution as part of the management strategy. The course is about fundamental choices that determine corporate-wide performance. Who should attend? You currently have a job (or are about to get a job) at corporate or division level in your organisation. Reporting to your level are some operating units or business units. You may be the line manager to whom these units report or you may be part of a centralised function, such as Strategy, Finance, Marketing, M&A, HR, Technology or Supply Chain. You want to understand both how to make portfolio strategy decisions, which units to grow and which to reduce, and also how to make management strategy decisions, what activities to centralise, how to organise and how to add value. You also want to know how other companies make these decisions. Skills and resources of group-levels Rival groups Fit? Attractiveness of and issues facing businesses/markets Value propositions How to design the group-level functions and activities Fit Capital market conditions Which businesses/markets to invest in or exit “Excellent eye opener Enlightening and enjoyable.” “Good working tool. Will use extensively. ” Nick Brownrigg, Managing Director Interleasing, General Motors Acceptance Corporation John Pattison, Regional Director, Somerfield Stores Ltd “Provided a most useful construct for applications in relevant business scenarios.” “This is a real-time issue for us and therefore the course was very opportune.” Steve Burke, General Manager, Absa Bank SA Group Head of Strategy & Planning, Consumer Products Timetable Preparation and Follow Up Day 1 How to choose markets and businesses Participants will be expected to read articles and prepare cases before the course. Afterwards, participants are entitled to a half day of personal coaching from any member of the programme faculty. www.ashridge.org.uk/gls 09.00 09.30 10.15 11.30 14.00 15.00 17.00 Introduction Overview of concepts Identifying attractive businesses Portfolio analysis using business logic How group levels create value Portfolio analysis exercise, using the value added logic Creating value – live case Benefits and Content Participants will develop a new perspective about their companies and their personal role in the organisation. They will also learn new skills to improve their effectiveness. • the difference between successful and less Day 2 Growth, new businesses and capital markets 09.00 Identifying the group’s added value 09.30 Added value exercise 11.00 Growing into new businesses 11.30 Traffic Lights exercise 14.00 Case study to illustrate business logic and added value logic 14.45 Understanding capital markets 15.15 Capital markets exercise 17.00 External speaker: Comparing corporate and private equity Day 3 Designing the management strategy 08.30 Designing the divisional structure and group levels 09.00 Organisation design exercise 10.30 Designing group functions – Fujitsu Case 14.00 Creating synergy among business units 14.30 Synergy exercise 15.30 External speaker: Lessons learnt from GE and other roles 17.15 End of course successful groups • the three logics for resource allocation – business logic, added value logic and investment logic • the main sources of group-wide value destruction and how to avoid them • how to assess acquisitions and group options • how to develop and assess the strategy for a group of businesses • how to design an organisation structure that supports the strategy • how to encourage synergy amongst business units • how to design the relationships and processes between the group and the operating units • how to develop and assess strategy for a group function “I will put to good use, the principles I have learned and I have recommended the same course to my Chairman.” Roy Murray Bruce, President, Silverbird Communications Ltd Faculty Andrew Campbell is a joint author of the classic text “Corporate Level Strategy” and acknowledged world-wide as a leading thinker on the management of groups of businesses. He is also a co-author of “Synergy: Why links between business units often fail and how to make them work” and “Designing Effective Organisations”. Jo Whitehead co-authored the book “Think Again - Why Good Leaders Make Bad Decisions and How to Keep it From Happening to You” with Andrew Campbell and Sydney Finkelstein. His most recent book is “What you need to know about Strategy”. Andrew Campbell Jo Whitehead Andrew Campbell is programme director. Prior to joining Ashridge, he was a Fellow in the Centre for Business Strategy at the London Business School. Before that he was a consultant for six years with McKinsey & Co, working on strategy and organisation problems in London and Los Angeles. Andrew Campbell holds an MBA from the Harvard Business School where he was a Harkness Fellow and Baker Scholar. Before joining Ashridge, Jo was a Vice President and Director of the Boston Consulting Group (BCG). He worked in the London, Los Angeles and Atlanta offices and acted as BCG’s Director of Energy Research and Marketing. Jo is also a Fellow of the Centre for Management Development at London Business School, where he teaches primarily on Executive Education programmes. Jo holds an MA from Cambridge University, an MBA with High Distinction from Harvard Business School and a PhD in Strategy and Organisation from London Business School. “The case studies and the preparatory material has been carefully developed to cover all key strategic decisions and traditions. The teaching effort is extremely sincere and enlightening.” Pradeep Bandivadeker, Deputy General Manager, Tata Engineering Ltd - Tata & Sons Booking information The programme is residential at Ashridge Business School, near Berkhamsted, Hertfordshire HP4 1NS; one hour from London airports. Dates: 5 – 7 November 2012 4 – 6 November 2013 3 – 5 November 2014 Fee for 2012: £3,950 (+VAT) Fee for 2013: £4,250 (+VAT) Enquiries concerning bookings: Tel: +44 (0)20 7404 0032 Email: melinda.pooley@ashridge.org.uk www.ashridge.org.uk/gls Selected other programmes at Ashridge Advanced Organisation Design is a four day course for experienced managers on designing organisations that fit the strategy and the people. It focuses on practical tools that provide a rigorous framework for making design choices. Strategic Decisions is a five day practical and highly interactive course to help senior executives improve the quality of strategic decision-making. This course gives participants a good grasp of modern concepts of strategy analysis. Making Strategy Happen is an advanced four day course for managers involved in turning plans into action. Building on research into business and military methods for implementing strategy, this course shows managers how to bridge the three gaps of planning, implementation and adaptation. Strategic Human Resource Management for senior human resource professionals or line managers responsible for strategy implementation through HR management. This popular course will focus on the overall business strategy so that, in HR terms, more value can be created in areas that actually matter. Making Successful Acquisitions is a three day course that introduces the 10 steps to successful acquisitions, giving managers the experience they need to lead an acquisition or to participate at any stage. “ Good rounded, challenging and always interesting.” Sarah Crowhurst, Strategy Manager, Strategy Implementation, National Grid For more information Visit www.ashridge.org.uk/gls or contact Melinda Pooley, Ashridge Strategic Management Centre. Tel: +44 (0)20 7404 0032 Fax: +44 (0)20 7831 3746 Email: melinda.pooley@ashridge.org.uk Courses are residential at Ashridge Business School, near Berkhamsted, Hertfordshire HP4 1NS. Ashridge Strategic Management Centre is a widely recognised authority on strategic management issues within large companies. Directors of the Centre were previously all senior consultants from top strategy consultancies, such as McKinsey or The Boston Consulting Group. The Centre carries out research projects and publishes reports and articles, as well as providing short courses and seminars for senior management.