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Prepared by : Raju Nair (Consultant -Information Management)
 rajunair@consultant.com / rajunair@ramsonandramson.com




                                       www.ramsonandramson.com
                                                             1
   Logics of value creation  Change

   Unpredictable world       Action Plan

   Agile organization        Conclusion

   Active inertia



                                             2
   Value through superior position

   Value through superior resources

   Value by seizing fleeting opportunities



                                              3
   Identify an attractive market

   Establish a secure position

   Erect defenses to prevent competitors



                                            4
   Specialized factories or prime real estate

   Brand

   Technology

   Knowledge possessed by an organization

                                                 5
   Identifying a gap in the market

   Inherently uncertain

   Novel combination of resources that
    satisfies an unmet market need

   New resources combinations are also
    fleeting
                                          6
   Competitive environments

   Rapid and unforeseen changes in multiple
    factors
     Global integration
     Technological change

   Managers must act with low visibility into
    the future
                                                 7
Fleeting
              Unpredictability
                                     opportunities




Competition
                                                     Size
                           Organization




                                                            8
   Surfacing organization’s mental map

   Know assumptions
     Can be tested
     Debated
     Adjusted
     Help simply tear up the map

                                          9
Change House


Contentment     Enlightenment
   room              room




                  Confusion
Denial room
                    room




                                10
   Executives cling to strategic formulas that
    brought success in the past

   Past strategic frames become blinders

   Processes harden into routines

   Relationships become shackles

   Values turn into dogmas
                                                  11
Make revisions         Make sense
• Compare initial
                       • Develop a shared
  estimates with
                         mental map of a
  actual ,make mid
                         turbulent situation
  course corrections




Make it happen         Make choices
                       • Agree on clear
• Ensure people
                         priorities, resource
  make good on their
                         allocation and
  commitments
                         action




                                                12
   Routinely introduce new revenue streams

   Introduce a new service in response to a
    competitor in three months or less

   Plan for strategically cannibalizing existing
    revenues with new offerings

   Core team learn where to create disruption
                                                    13
   Use disruption for competitive advantage

   Leaders lead with organizational kinetic
    energy

   Use organization structure as a flexible
    device to adjust to and drive new strategies

                                                   14
   Organizations do not have a lifecycle

   Opportunities have a lifecycle

   Organization
     Takes on a lifecycle when they tie their future to a
      single set of opportunities
     Avoids the lifecycle by being willing to use their core
      competencies to handle multiple opportunities
                                                                15
   Luck and the right circumstances have a
    greater impact on company success than the
    well-laid plans of executives or their foresight
   Companies that are prepared are the ones
    who can take advantage of their luck
   Recognize the limitations of linear planning
    and move into iterative management
   Key is never to lose hope as a leader
                                                       16
17

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Succeed In A Turbulent Business Environment

  • 1. Prepared by : Raju Nair (Consultant -Information Management) rajunair@consultant.com / rajunair@ramsonandramson.com www.ramsonandramson.com 1
  • 2. Logics of value creation  Change  Unpredictable world  Action Plan  Agile organization  Conclusion  Active inertia 2
  • 3. Value through superior position  Value through superior resources  Value by seizing fleeting opportunities 3
  • 4. Identify an attractive market  Establish a secure position  Erect defenses to prevent competitors 4
  • 5. Specialized factories or prime real estate  Brand  Technology  Knowledge possessed by an organization 5
  • 6. Identifying a gap in the market  Inherently uncertain  Novel combination of resources that satisfies an unmet market need  New resources combinations are also fleeting 6
  • 7. Competitive environments  Rapid and unforeseen changes in multiple factors  Global integration  Technological change  Managers must act with low visibility into the future 7
  • 8. Fleeting Unpredictability opportunities Competition Size Organization 8
  • 9. Surfacing organization’s mental map  Know assumptions  Can be tested  Debated  Adjusted  Help simply tear up the map 9
  • 10. Change House Contentment Enlightenment room room Confusion Denial room room 10
  • 11. Executives cling to strategic formulas that brought success in the past  Past strategic frames become blinders  Processes harden into routines  Relationships become shackles  Values turn into dogmas 11
  • 12. Make revisions Make sense • Compare initial • Develop a shared estimates with mental map of a actual ,make mid turbulent situation course corrections Make it happen Make choices • Agree on clear • Ensure people priorities, resource make good on their allocation and commitments action 12
  • 13. Routinely introduce new revenue streams  Introduce a new service in response to a competitor in three months or less  Plan for strategically cannibalizing existing revenues with new offerings  Core team learn where to create disruption 13
  • 14. Use disruption for competitive advantage  Leaders lead with organizational kinetic energy  Use organization structure as a flexible device to adjust to and drive new strategies 14
  • 15. Organizations do not have a lifecycle  Opportunities have a lifecycle  Organization  Takes on a lifecycle when they tie their future to a single set of opportunities  Avoids the lifecycle by being willing to use their core competencies to handle multiple opportunities 15
  • 16. Luck and the right circumstances have a greater impact on company success than the well-laid plans of executives or their foresight  Companies that are prepared are the ones who can take advantage of their luck  Recognize the limitations of linear planning and move into iterative management  Key is never to lose hope as a leader 16
  • 17. 17