STRATEGIC LEADERSHIP

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Who am I?

Prof. Dr. Bob de Wit

What do I do?

- Director, Strategy Works / Strategy Academy

- Professor, Nyenrode Business University

- Member, Rotterdam Economic Council

- Author, Strategy: An International Perspective

How to reach me?

- +31 (0)6 5377 8151

- B.dewit@Nyenrode.nl

What concerns me?

- How to best lead a firm

- How to design the strategy process

- How to best govern a country

- How to adapt business models

How extraordinary companies behave

Develop best practice theory & recommend on the basis of excellence

How companies behave

Recommend on the basis of inductive reasoning

what to do

How to become an extraordinary strategist

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I N T R O D U C T I O N

Best-PracticePractice

Theory or conceptual models

Recommend on the basis of deductive reasoning

what to do

Theory

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MISSIONING & VISIONING

The basic strategy lingo explained

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M I S S I O N I N G & V I S I O N I N G

20172016 2019 20202018

Current situation

StrategyTarget Objective Vision

The Vision Map

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M I S S I O N I N G & V I S I O N I N G

Vis

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20172016 2019 20202018

Current situation

Strategy VisionTarget Objective

Pride

Disappointments

Opportunities

Threats

Dreams

Nightmares

The Vision Map & The Action Map

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M I S S I O N I N G & V I S I O N I N G

Vis

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Current situation VisionObjective

Pride Opportunities Dreams

Disappointments Threats Nightmares

How to enhance pride How to exploit opportunities How to realize dreams

How to beat disappointments How to prevent threats How to fight nightmares

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A strategists perspect ive on current developments

Trends are not static, but compose a series of waves

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A S T R A T E G I S T S P E R S P E C T I V E O N C U R R E N T D E V E L O P M E N T S

SUBSISTENCE

TRADE

INDUSTRY

DIGITAL

AI

TODAY

Examples of the five waves

9SUBSISTENCE

TRADE

INDUSTRY

DIGITAL

AI

Internal efficiency is boosted drastically

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A S T R A T E G I S T S P E R S P E C T I V E O N C U R R E N T D E V E L O P M E N T S

YOUR SUPPLIERS YOUR CUSTOMERSYOUR COMPANY

RARE GOODS BECOME

COMMODITIES

TRANSACTIONAL

RELATIONSHIP

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

YOUR SUPPLIERS

Keep your friends close, but your suppliers closer

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A S T R A T E G I S T S P E R S P E C T I V E O N C U R R E N T D E V E L O P M E N T S

YOUR CUSTOMERSYOUR COMPANY

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

YOUR CUSTOMERSYOUR SUPPLIERS

Understanding customer needs becomes priority #1

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A S T R A T E G I S T S P E R S P E C T I V E O N C U R R E N T D E V E L O P M E N T S

YOUR COMPANY

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

The most successful companies facilitate others to create value

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A S T R A T E G I S T S P E R S P E C T I V E O N C U R R E N T D E V E L O P M E N T S

YOUR COMPANY

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

YOUR CUSTOMERSYOUR SUPPLIERS

Organizing supply and demand through value networks

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A S T R A T E G I S T S P E R S P E C T I V E O N C U R R E N T D E V E L O P M E N T S

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

VALUE NETWORK

Companies successfully riding the 4 th wave

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A S T R A T E G I S T S P E R S P E C T I V E O N C U R R E N T D E V E L O P M E N T S

LARGEST ACCOMMODATION

PROVIDER OWNS NO REAL ESTATEAirbnb

WORLDS MOST VALUABLE

RETAILER HAS NO INVENTORYAlibaba

FASTEST GROWING BANKS

HAVE NO ACTUAL MONEYSocietyOne

LARGEST SOFTWARE

VENDORS DON’T WRITE APPSApple / Google

LARGEST PHONE

COMPANIES OWN NO

TELECOM INFRA

Skype / WeChat

MOST POPULAR MEDIA

OWNER CREATES NO

CONTENT

Facebook

LARGEST MOVIE HOUSE

OWNS NO CINEMA’SNetflix

WORLDS LARGEST TAXI

COMPANY OWNS NO TAXI’SUber

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VALUE NETWORKS DON’T CREATE VALUE THROUGH PRODUCTS OR

SERVICES, BUT THROUGH COMBINING SUPPLY AND DEMAND

TRADITIONAL MARKETS ARE BECOMING

COMMODITIZED AND CREATE LESS ADDED VALUE

WHAT DOES THIS MEAN FOR YOUR BUSINESS?

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The paradoxal nature of strategic problems

The tension of successful visioning: Building and Shaping

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T H E P A R A D O X A L N A T U R E O F S T R A T E G I C P R O B L E M S

Current situation

StrategyTarget Objective Vision

Building the future

The agility and flexibility to face the urgent short term challenges.

Shapingthe future

The focus on the important long term challenges, even when there seems no urgent need.

Key advantages & disadvantages of Building and Shaping

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T H E P A R A D O X A L N A T U R E O F S T R A T E G I C P R O B L E M S

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• Managing the short term

• Urgent issues first

• Maintaining the heritage

• Feedback thinking

• Not managing the short term

• Urgent issues neglected

• Loosing heritage

• Dreaming

• Focus on the long term

• Important issues first

• Innovative

• Feedforward thinking

• Lack of long term focus

• Important issues neglected

• Standstill

• Thinking backward

Building the future Shaping the future

Great strategic leadership: building and shaping at once

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T H E P A R A D O X A L N A T U R E O F S T R A T E G I C P R O B L E M S

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Building the future Shaping the future

CREATE STABILITY ENABLE CHANGE

AND

The tension of missioning: Profitability and Responsibility

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T H E P A R A D O X A L N A T U R E O F S T R A T E G I C P R O B L E M S

Economic profitability

Social responsibility

Shareholder value perspective

To be an attractive investment, a firm must earn a higher return on the shareholders´ equity than could be realized at a bank

Stakeholder values perspective

Acting in the interest of others, even when there is no legal imperative

Either / OrDilemma

The tension of missioning: Profitability and Responsibility

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T H E P A R A D O X A L N A T U R E O F S T R A T E G I C P R O B L E M S

Shareholder value perspective

To be an attractive investment, a firm must earn a higher return on the shareholders´ equity than could be realized at a bank

Stakeholder values perspective

Acting in the interest of others, even when there is no legal imperative

Socialresponsibility

Economicprofitability

Both / AndParadox

The strategy field explained in 12 paradoxes

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T H E P A R A D O X A L N A T U R E O F S T R A T E G I C P R O B L E M S

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The dual nature of leadership

Why duo’s work: Combining change and stability

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T H E D U A L N A T U R E O F L E A D E S H I P

LEADER MANAGER

CHANGE

STABILITY

Entrepreneurial leadership

Executive leadership

Strategic effectiveness

Operational efficiency

Medium and long term

Short and medium term

Managing uncertainty

Managing risk

Two leadership archetypes

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T H E D U A L N A T U R E O F L E A D E S H I P

CEO

(Chief Entrepreneurial Officer)

COO

(Chief organizing Officer)

OUTSIDE-IN

Entrepreneurial profile and focusing on external communication

INSIDE-OUT

Organizational profile and focusing on internal communication

EXPLORATION

Changing the company by introducing innovations and ideas

EXPLOITATION

Organizing the company to bring stability while implementing innovations and new ideas

SHAPING THE FUTURE

Feedforward thinking based on a future vision

BUILDING THE FUTURE

Feedback thinking by combining former learnings with a changing context

What constitutes a golden duo

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T H E D U A L N A T U R E O F L E A D E S H I P