career executive strategic officers presentation to the national convention of career executive...
TRANSCRIPT
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Career ExecutiveStrategic Officers
Presentation to the National Convention ofCareer Executive Service OfficersNovember 11, 2011 • Heritage Hotel, Manila
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InternalExternal
Corporate Strategy
Strategy:
‘The pursuit of long-term goals
by applying valuable internal resources and capabilities to
the mostadvantageous
external opportunities’
Goals
The Strategy Pyramid
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Alfred Chandler (1962):
“… the definition of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”
Objectives Choice Allocation ImplementationOptions
A Planning View of Strategy
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ImplementationChoiceOptions AllocationObjectives
An Emergent View of Strategy-Formation
Henry Mintzberg (1984):
‘Strategy in general, and realized strategy in particular, will be defined as a pattern in a stream of decisions’
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The Strategy Cycle
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Organisational Change Is Multi-Dimensionaland Synergistic
Strategies
Systems
Structures
The Virtuous Circle of Complementarities
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Spelling Out Your Strategy• Objective (Ends)• Scope (Domain)• Advantage (Means) . . . in 35 words max
News Corporation‘To build a leading and profitable presence in both old and new
media, drawing on competitive advantages in terms of the scale, diversity and international range of our businesses’
Edward Jones‘To grow to 17,000 financial advisers by 2012 by offering trusted
and convenient face-to-face financial advice to conservative individual investors through a national network of
one-financial adviser offices’
Collis and Rukstad (2008), ‘Can You Say What your Strategy Is?’, Harvard Business Review
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Internal Core competence Serious SWOT Value Innovation Activity Systems
External 5 Forces Profit pools Value net Scenarios
Corporate Strategy
Goals Three Horizons Strategy Statements Stakeholders Vision/Mission Strategizing Map
The Strategy Pyramid: Techniques
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SWOT Analysis
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From SWOT To Strategies
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Start-Ups, Stars, Cows and Dogs
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Shareholders and Stakeholders
Return on
Capital
Sales/Capital
Profit/Sales
Investors
Employees
Suppliers
Community
Customers
Shareholder view:The goal of the business is to maximise return on investors’ capital
Stakeholder view:The goal is to satisfy all those with legitimate stakes in the business
Managers
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Stakeholder Mapping
Interest
Power
High
Low
Low High
Keep satisfied
Minimal attention
High attention
Keep informed
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Styles for Radical Change
predictability urgency for radical improvement short-term targets
uncertainty and adaptive problems fast-changing industry long-term value and purpose
planning andmonitoring
detailed hands on control
hierarchical commandstructure
scenarios, intent and direction
values and purpose encouragement and
coaching
full-time programme management
critical path networks operational and
financial micro-measures
change as part of normal responsibilities
co-ordination through communication
balanced scorecards macro-measures
“need to know” involvement
following instructionsand procedures
top-down messages
extensive involvement breakthrough cultures self-initiated change
and learning
‘infrastructure’ redesign
facilitation and knowledge management
NavigationNavigation Leadership Leadership
Enablement OwnershipEnablement Ownership
Programmatic/Technical Leadership Transformational/Adaptive Leadership
Context Context
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The challenge of engaging in change and the role of leadership
‘Technical Challenge’
• Set goal and task• Tell why• Explain what and how• Give instruction• Motivate• Measure and monitor
‘Adaptive challenge’
• Set the context• ‘Get on the balcony’• Describe a view of the future• ‘Give the work to the
people’• Manage conflict• Encourage, coach, challenge
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Three Horizons: Thinking Strategically
Time (years)
Profit
Horizon 1 > extend and defend core business
Horizon 2 > build emerging businesses
Horizon 3 > create viable options
Source: M. Baghai, S. Coley and D. White, The Alchemy of Growth, 2000, Texere Publishers: Figure 1.1
Note: ‘profit’ on the vertical axis can be replaced by non-profit objectives; ‘ business’ can refer to any set of activities; ‘time’ can refer to a varying number of years.
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The National Health Service Journey2000 2002 2004 2006 2008 2010 2012
Some keyoutcomes
• key illnesses• throughput• capacity
• health priorities• waiting times• financial stability
• quality, safety• patient experience• 18 weeks• credibility
• health & well-being• equity• joined up care
Self-sustaining Health
Transforming care system
ReconfiguringService Delivery
Financial Stabilisation
Growth, Expansion & Delivering the ‘Basics’
Targets &Performance Management
SHA/PCT/TrustsChoice & ProvidersCommissioningConnecting for Health‘REFORM’
Journey
Local Capability & Self-improvementBreakthrough & Innovation
Social MovementsCo-creation
Centre’s‘LEADERSHIP’ Journey
Technical LeadershipAdaptive Leadership
Target setter +Performance manager +Delivery leader
Regulator +National Standards +System leader
‘SERVICE’ Journey
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A journey for the country?
1960 1970 1980 1990 2000 2010
Forming & awakening
Visioning & connecting
Unleashing and transforming
Adaptive leadership
Technical leadership
Building & reforming
Self-sustaining
Independence & identityControl over conflictStabilitySecurityStrong leadership
Good governanceEconomic reformInfrastructureRegulation & TrustFinancial systems Fight disease and povertyetc
Engaging everyoneCreating a visionRegional cooperationReputation buildingInward investmentImporting skills & knowledge
Competitive advantageExport led growthGlobal partnersInnovationPublic service transformationCommunity & citizen-led changeGovernment as enabler
2011
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Complexity and Uncertainty
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Purposes
Qualitativescenarios
Decisionscenarios
Scenariotracking
Sense making,and/or norming
Strategyformation
Continuous sense-makingof strategic environment
Publicscenarios
Engagement
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Scenario Planning
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Complexity: complex causes can have simple effects – emergence of order
Chaos: small causes can have large effects – unpredictability
Chaos and Complexity
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Conventional Strategy View
Actions and resources are linear/curvilinear
Performance in vertical axis
Combinations of actions/resources in the horizontalaxes
- a world of smooth, single-peaked landscapes
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Chaos Strategy ViewActions and resources form complementary, interdependent systems,with non-linear effects
- a world of rugged landscapes
Performance in vertical axis
Combinations of actions/resources in the horizontalaxes
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High
Importance
Low
UncertaintyLow High
?
Scenario Drivers
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WEF on Global Financial Systems
High
Importance
Low
UncertaintyLow High
Globalgrowth
Energy prices
Globalsavings
Demo-graphics
Info.security
Globaltrade
Financeliteracy
Corruption
Extrem-ism
NB: original has 30 factors
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Change Strategies
Your teams are 5-6 strong, in a dense fog, with phones and altimeters, but no GPS, maps etc. Starting from a westerly position, design a strategy
to find the highest peak first in:
a smooth landscape world a rugged landscape world
Think about: decision-rules, team organisation, objective setting, competitor reactions, decision rights, planning, expectations management, incentives…
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Complexity: complex causes can have simple effects – emergence of order
Chaos: small causes can have large effects – unpredictability
Metaphors of Chaos and Complexity
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Today’s Agenda
• Creating a framework for strategic change– The what?– The how?
• Understanding and navigating the journey
• The challenge of complexity
• Some personal reflections and conclusions
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How high is the bar…or is it a different sport?
TechnicalIncremental productivity,
efficiency, process streamlining, transactions
Known knowledge
Standardisation and consistency
Teach solution and motivate
AdaptiveRadical service or business innovation, new propositions,
transforming culture
Unknown and many solutions
Innovation, diversity and deviancy
Set purpose, challenge and coach
Type of change
Answers?
Focus of change
Leaders role
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A Journey for the Country - UK past 100 years
‘Privatiser & regulator’?
‘Moderniser & transformer’??
A changing role for Government
‘Provider’?
Owner?
The view of the citizen
I belong I need I want I can
1900s 2000s
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A Journey for the Country
‘Privatiser & regulator’?
‘Moderniser & transformer’??
A changing role for Government
Imperialism
Fiefdoms
Conflict
Independence
Identity
Survival
Democracy
Isolationism
Economic growthSafe and secure
Global partner
Leading the way
Health & wellbeing
‘Provider’?
Owner?
Financial stability
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Leading change – horses for courses
‘Technical’ or ‘Programmatic’ Leadership
• Top down• Traditional• Tight programmes • Task prescription• Terrifying targets
‘Adaptive’ or ‘Transformational’ Leadership
• Enterprise or system wide• Entrepreneurial• Energising• Engaging everyone• Empowering
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Where are you on your journey?Context and history?
Clarity on the ‘strategic intent’ and outcome/customer proposition?
Distinctive capabilities, culture, processes and infrastructure?
Stages of the journey – technical and adaptive challenges?
Approach and style of change – navigation, leadership, ownership, enablement?
Your collective and personal role?