Strategy comprises…
• 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
From “Good Strategy, Bad Strategy”, R.P.Rumelt,2011
Roku-dan meta-framework
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•
•
•
•
Strategic
Thinking
Strategic
Analysis
(Differentiation,
value proposition)
(validation,
selection)
Domain knowledge
Intuition
Framing
Context switching
Sense making
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•
•
•
•
•
RBV
•
TCE
•
Porter
•
M&A theory
•
Game Theory
Diversification
Generic strategies
Network externalities
Operationalization
(Translate to
execute,
Align actions)
Communicate
Budgets
Pre-mortems
Process design
Strategic
Management &
Execution
•
•
•
•
•
Deliberate
Emergent
Measurement
Adapting
Learning
The Four Components
• Strategic Thinking
• Strategic Analysis
• Operationalization
(Where the rubber hits the road)
• Execution & Management
Strategic Thinking
Defining the problem / opportunity
• Framing the problem
—What really matters, what doesn’t?
• Context switching
—What other problems have similar features?
• What do different frames / contexts imply
—Projecting out
• Translating (fitting) the new frame or context to the
situation at hand
Framing
On the Labor Party's defeat in the 2015 general election:
“The party took a huge bet that this was an
economic change election; in fact it was
an economic security election.”
Ed Miliband on Fareed Zakaria GPS, May 24 2015
Different context switches
From one…
• Industry
British Airways / Hertz
• Country
Starbucks: US / Italian cafes
• Time
… to another
IBM / American Express
IBM RCS / the cloud
Terminal  PCs  Thin clients
Asking the right questions
• Questions should ultimately be:
—Tractable
• “How can we grow revenues”? is too big – break down
into smaller questions
• It’s also imprecise
—Directly actionable
• “Why is the competition gaining ground”? isn’t
• But these are:
– “What do customers want”? (market research)
– “What do we offer”?
– “What are they offering” (competitive intelligence)
Asking the right questions
• Look at Small as well as Large issues – Small items
compound
• Use many different perspectives – Team Diversity
• Leverage team heterogeneity to challenge
assumptions and avoid group-think
• Focus on Day-to-Day – Where is the action?
• Do not over simplify interpretations – nothing is that
simple
• You do not have all the answers – Learn
• Develop domain specific knowledge – the devil is in
the detail
Framing
• Mental models (or ‘schemas’)
— We all use mental models to represent a complex world
— Models must include how things work (cause and effect)
— Must be challenged and updated with new information or
changes
• How you frame a situation shapes the solution
— Activates different schemas
— Logic of appropriateness
— E.g. Opportunity (offense) or Threat (defense)
• Adopt multiple frames – multiple perspectives
• Leaders must be careful not to impose personal frames
Intuition
• Look for Cues or Clues
—Focus on Higher Impact
• Pattern recognition & matching
• Pattern matching produces scripts to follow
• Strategic Imagination
—project into the future
Sensemaking
• Most things are not Linear
—Sensemaking is an iterative process
• Trial and small errors
—Sensemaking = understanding cause & effect
• Sensemaking relies on intuition
Strategic Thinking
• Gain insight…
Asking the Right
Questions
1.
Framing the
Information
Strategic
Strategic
Thinking
Thinking
(Differentiation,
value proposition)
Sense
Making
Intuition
and
Strategic
Imagination
Internal Insight
External Insight
Strategic Analysis
Customer
Analysis
Financial
Financial
Metrics
Metrics
Customer
Metrics
Financial
Operating
Metrics
Metrics
Competitor
Analysis
Strategic
Analysis
(validation,
selection)
Market
Analysis
Capability
Analysis
Financial
Development
Metrics
Metrics
Environmental
Analysis
Internal Analysis
External Analysis
Miller / Okumoto, Inc.
Operationalization
• Creating Alignment
Financial
Metrics
Strategic
Themes /
Priorities
Strategic
Financial
Programs
Metrics
Operationalization
(Translate to
execute,
Align actions)
Strategic
Financial
Projects
Metrics
Strategy
Mapping
Financial
Metrics
McKinsey 7S
Internal Alignment
Miller / Okumoto, Inc.
Management & Execution
• Execute
• Measure
Continuous
Learning…
• Compare / assess
• Correct…
– Actions (SLL)
– Goals (DLL)
• Repeat
Strategic
Management &
Execution