How to make strategy work in a complex and unpredictable world. In its essence, strategy is simple. It is about answering two fundamental and interrelated questions: where to play and how to win.
Almost 200 Scandinavian top managers, managers and strategists participated in an intensive day at Implement Consulting Group focusing on how to develop a winning strategy in a world that is increasingly unpredictable.
Strategist and author of the bestseller Playing to Win, Roger Martin was challeging the typical strategy processes where we try to control the risk and uncertainty through elaborate and detailed planning. In his opinion these processes often seem to end up being long-winded, abstract and complex. Sometimes even without any clear choices being made.
2. Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
5. 7% of employees
fully understand their company’s
business strategies and what’s
expected of them
The main barrier for execution
success mentioned by executives is:
“Creating meaningfulness to
frontend employees”
58% does strategy
top-down with limited
involvement of
employees
59% believe that there
is an imaginary line in
the organizational chart
above which strategy is
made
30% of employees
receive no
information
on how to execute
the strategy
14%
FULLY
ENGAGED
70% of “not successful”
transformations were planned by 10
or fewer people
12. 18 HBR articles
4 bestseller business books
Roger Martin is one of the top
management thinkers in the world
13. Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
15. To win, a company must choose
to do some things and not others
STRATEGY IS ABOUT CHOICES
16. What’s our
Winning Aspiration?
Where will we play?
How will we win?
What capabilities
must we have?
What management
system are required?
STRATEGY IS THE ANSWER TO 5 QUESTIONS
17. WHAT IS OUR WINNING ASPIRATION?
General Motors 2013
19. STRATEGICALLY DISTINCT SYSTEMS
Image courtesy of Intuit
Individual Customers
“The Industry”
Segments
Develop Competitive Strategy
Based on an Understanding of
Individual Customers?
or...
Develop Competitive Strategy
Based on Generalizations about
“The Industry”?
or...
Develop Competitive Strategy
Around Clusters of Customers
About Which We Can Make
Generalizations?
20. HOW WILL WE WIN?
A Starbucks storefront at night. Starbucks Coffee Company
21. TWO FUNDAMENTAL WAYS TO WIN
Low Cost
Differentiation
Sustainable Competitive Advantage
25. What do you find most
intriguing about the
approach?
What would be the
most difficult in
adopting the approach?
Blue card
Green card
26. Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
27. Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
30. Microorganisms
Enzymes
Other proteins
We find the
microorganisms
in nature
We grow them in
big fermenters.
From one
microorganism
to trilions in only
24 hours
Global leader in industrial biotech
38. Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
39. The quality of the process
The quality of the outcome
Your level of involvement
Your view on challenges
within strategy in general
We asked you some questions about your latest strategy process…
40. Analysis
1 out of 10 point to
analysis as a key
challenge
Engagement
Twice as many state
engagement as a
key challenge
Ownership and
empowerment
Engaging the
organization
Not having the
right data
Basing choices
on facts
41. Choice
3 out of 10 point to
making choices as
a key challenge
Execution
Twice as many state
execution as a
key challenge
Ability to
execute
Linking strategy
to actions
Decide what
not to do
Making the
tough choices
42. 1 2 3 4
high
high
low
low
Quality of
process
Quality of
outcome
Your view of
the process
correlates with
your view of
the outcome
43. 1
2
3
4
1 2 3 4
Your own level of involvement
clearly impacts how you perceive
the quality of the strategy process …
Own level of
involvement
Perceived quality
of process
Engaging
Effective
Fun
44. 1
2
3
4
1 2 3 4
… and the same is true for your
perception of the strategy outcome
Own level of
involvement
Perceived quality
of strategy
Right
choices
Good
execution
45. Key
take-
aways
Engagement and Execution are typically
bigger hurdles than analyses and choice
A good process correlates with a good
outcome
Level of involvement correlates with
both a good process and good outcome…
46. Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
48. Frame the choice
Convert issues into at least two mutually
independent options that might resolve the problem
Generate strategic possibilities
Broaden the list to ensure consideration of an
inclusive list of possibilities
Specify conditions
For each possibility, specify which conditions must
hold true for it to be strategically sound
Identify barriers to choice
Determine which conditions you feel least confident
are true
Design valid tests
For each key barrier, design a valid test sufficient for
generating commitment
Conduct tests
Conduct hypothesis-driven analysis, testing the
conditions with the lowest confidence first
Choose
Compare test results to key conditions and make
informed choices
MAKING CHOICES IN ORGANIZATIONS
49. What is true?
What would
have to be true?
MAKING CHOICES IN ORGANIZATIONS
50. What’s our
Winning Aspiration?
Where will we play?
How will we win?
What capabilities
must we have?
What management
system are required?
STRATEGY IS THE ANSWER TO 5 QUESTIONS
51. The brain
makes the choices
The arms and legs
execute the choices of the brain
THE VIEW OF THE HUMAN BODY
52. IMPLICIT METAPHOR OF THE CORPORATION
Senior Leaders
• The brains of the organization
• Formulate the decisions
• Create control procedures
• Sell to get “buy-in”
The Rank and File
• The arms and legs of the organization
• Implement the decisions
• Controlled by procedures
• Get “bought-in”
54. 1. Explain the choice that has been made and the
reasoning behind it
2.Explicitly identify the next downstream choice
3.Assist in making the downstream choice,
as needed
4.Commit to revisit and modify the choice based on
downstream feedback
SYSTEMS TO SUPPORT STRATEGY – CHOICE FRAMING
55. Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution