1. Charlottesville Venture Group May 18, 2004 A Framework For Strategic Thinking Planning Doing Learning Strategic Management Thinking
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4. A Framework for Strategic Thinking The Art of Business Seeking new strategic opportunities Collection of hard data (the scientific skills) Collection of soft data (the perceptual skills) Accumulation of facts and evaluation of probabilities Accumulation of uncertainties and ambiguities Use of analytical models to define the opportunities Use of intuition to define the opportunities Unique interpretation of the strategic opportunity The Rational The Intuitive Making choices about the future on inadequate information
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7. A Framework for Strategic Thinking The Role of Strategy Strategy Effective Ineffective Execution Excellent Poor Long Term Success Maybe successful For a while Success Unlikely Failure A combination of effective strategies and excellent execution
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9. A Framework for Strategic Thinking The Role of Strategy Industry Dominant Traditional Strategic Competitor Competitor Innovator US Airlines American Delta, United, Northwest Southwest Car Rental Hertz Avis, Europcar, National Enterprise TV Networks NBC CBS, ABC CNN Earth Moving Caterpillar John Deere, Case Komatsu Steel US Steel Bethlehem, Inland Nucor Coffee Maxwell House Folger’s, Nescafe Starbucks Photocopier Xerox IBM, Kodak Canon Computer IBM DEC, NCR Microsoft Sloan Mgmt Review Spring 1999
10. A Framework for Strategic Thinking The Role of Strategy ROI % Market Share Rank
11. A Framework for Strategic Thinking What are you deeply passionate about? What can you be the best in the world at? What drives your economic engine? From Good to Great, By Jim Collins BHAG The Hedgehog Concept
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13. A Framework for Strategic Thinking Pick a Good Business 2001 BizStats.com 101.5% -12.9% 14.3% Total Average 20.2% -2.2% 8.8% 7.9% Finance, Ins. & Real Est. 16.3% -0.3% 4.1% 8.7% Mining 14.7% 6.5% 10.6% 10.1% Agriculture, Forestry 29.0% 0.7% 10.7% 12.7% Transportation & Utilities 20.9% 4.1% 14.9% 14.0% Retail Trade 28.1% 4.5% 14.5% 15.2% Wholesale Trade 33.7% -8.4% 15.4% 16.0% Manufacturing 101.5% -12.9% 11.0% 24.1% Services 29.0% 11.1% 23.1% 24.9% Construction High Low Median Mean Industry
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18. A Framework for Strategic Thinking H ow do you apply these steps to your situation? In The Box Of Mediocrity Poor trying to become good Soaring Faltering Where are you?
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