strategy 301 - beyond the basics - 16 steps
TRANSCRIPT
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Strategy 301
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Beyond the Basics
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I. SETTING THE STAGE
Introduction
State of strategic planning & execution
Case for strategic planning & strategic management
Reference planning model and process
Agenda
2. CHANGING THE STATUS QUO
Two secrets
16 problems and how to avoid or remedy them
Making better decisions
Closure
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Introduction
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Promote effective planning andimplementation.
Instill a strategic planning and strategic management culture.
Avoid or remedy many common planning and implementation problems.
Help your organization make better strategic decisions.
Objectives
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Tell us (in two sentences!):
Your name and role.
What you hope to gain from this workshop.
Who’s here?
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Lee Crumbaugh, SMP
President, Forrest Consulting, Glen Ellyn, IL, USA (Chicago)
President, Association for Strategic Planning (2014-2016)
www.forrestconsult.com
Presenter
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Author AHEAD: Strategy is the way to a better future
and Strategic Thinking & Strategic Action blog.
Have served organizations in 50 industries.
Have held senior roles in banking, publishing,
associations and non-profits
Presenter
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State of planning and execution today
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planningSTRATEGIC
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#1
Bain & Company Management Tools Survey, 2013
Strategic planning today
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58% of leaders
Forrest Consulting Strategic Leader Survey, 2013
Strategic planning today
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reality
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That means 42% of leaders
Strategic planning today
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and just 45%
Bain & Company Management Tools Survey, 2013
Strategic planning today
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BIG FAILMany leaders don’t get it.
Strategic planning today
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42% of leaders say
Forrest Consulting Strategic Leader Survey, 2013
Strategic planning today
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74% of leaders say
Forrest Consulting Strategic Leader Survey, 2012
Strategic planning today
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57% of leaders say
Forrest Consulting Strategic Leader Survey, 2012
Strategic planning today
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70% of organizations
Balanced Scorecard Collective
Strategic planning today
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60% of organizations
Balanced Scorecard Collective
Strategic planning today
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The case
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planningCASE FOR
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SURVIVAL
The case
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The case
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GROWTH
The case
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The case
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The case
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SUCCESS
The case
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The case
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The case
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The case
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The case
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The case
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The case
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The case
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Planning model and process
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Gap planning model
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“Fast Track” process
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“Fast Track” process
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“Fast Track” process
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“Fast Track” process
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“Fast Track” process
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“Fast Track” process
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Two secrets to success
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the first
secret
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leaders who credit
planning
Secrets
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say planning has greater
significance
Secrets
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Secrets
Forrest Consulting Strategic Leader Survey, 2013
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the first
secret
Secrets
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the second
secret
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When leaders rate
planning
Secrets
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The organization is
more likely
Secrets
Forrest Consulting Strategic Leader Survey, 2013
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Secrets
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Secrets
secretthe second
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16 problems and how to avoid them
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Only top management is involved
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Only top management is involved
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Only top management is involved
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only 44% of organizations
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2013
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34% of organizations
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2013
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only31% of organizations
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2013
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64% of leaderssay their process doesn’t ensure
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2012
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47% of leaders believe
include the most knowledgeable
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2012
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Only top management is involved
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Only top management is involved
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Only top management is involved
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Not looking externally
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Not looking externally
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Not looking externally
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only 51% of organizations
information on the external
Not looking externally
Forrest Consulting Strategic Leader Survey, 2013
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39% of leaders
Not looking externally
Forrest Consulting Strategic Leader Survey, 2012
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Share of organizations that conducta scan of the external environment
When leader says planning is unimportant in success
28%
48%When leader says planning is important in success
Not looking externally
Forrest Consulting Strategic Leader Survey, 2013
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Not looking externally
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Not looking externally
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Execution resources lacking
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Execution resources lacking
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Execution resources lacking
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42% of leaders
really supports the strategy.
Execution resources lacking
Forrest Consulting Strategic Leader Survey, 2012
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Execution resources lacking
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Execution starts, then fizzles
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Execution starts, then fizzles
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Execution starts, then fizzles
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only 54% of organizations
Execution starts, then fizzles
Forrest Consulting Strategic Leader Survey, 2013
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Execution starts, then fizzles
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Execution starts, then fizzles
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No bounds
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No bounds
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No bounds
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No bounds
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No bounds
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No bounds
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Grandiosity
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Grandiosity
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Grandiosity
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Grandiosity
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Grandiosity
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Share of organizations that develop a shared vision of future success.When leader says planning is unimportant in success
33%
56%When leader says planning is important in success
Grandiosity
Forrest Consulting Strategic Leader Survey, 2013
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Share of organizations that develop key strategies to move toward the vision.When leader says planning is unimportant in success
30%
70%When leader says planning is important in success
Grandiosity
Forrest Consulting Strategic Leader Survey, 2013
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Grandiosity
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Grandiosity
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Grandiosity
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No commitment
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No commitment
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No commitment
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No commitment
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No commitment
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Complexity
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Complexity
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Complexity
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64% of leaders
Complexity
![Page 112: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/112.jpg)
Complexity
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Complexity
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Complexity
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Complexity
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Complexity
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No coordination
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No coordination
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No coordination
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No coordination
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No coordination
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No coordination
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The leadership is clueless
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The leadership is clueless
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The leadership is clueless
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64% of organizations
The leadership is clueless
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only 47% of organizations
The leadership is clueless
Forrest Consulting Strategic Leader Survey, 2013
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The leadership is clueless
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The leadership is clueless
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Plan to review and adjust plan.
54%
42%Actually review and adjust plan.
The leadership is clueless
Fewer organizations review andadjust their plan than say they will
Forrest Consulting Strategic Leader Survey, 2013
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Share of orgs track plan performance against measurable objectives.
When leader says planning is unimportant in success
40%
65%When leader says planning is important in success
The leadership is clueless
Forrest Consulting Strategic Leader Survey, 2013
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Share of orgs that regularly report on plan performance to executive team.
When leader says planning is unimportant in success
41%
61%When leader says planning is unimportant in success
The leadership is clueless
Forrest Consulting Strategic Leader Survey, 2013
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Share of orgs that review and adjust plan implementation at preset points.
When leader says planning is unimportant in success
25%
45%When leader says planning is important in success
The leadership is clueless
Forrest Consulting Strategic Leader Survey, 2013
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Habit
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Habit
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Habit
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53% of organizations
Habit
Forrest Consulting Strategic Leader Survey, 2013
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only 39% of organizations
Habit
Forrest Consulting Strategic Leader Survey, 2013
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62% of organizations
Habit
Forrest Consulting Strategic Leader Survey, 2013
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Habit
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Habit
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Habit
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Habit
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Pretending
![Page 145: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/145.jpg)
Pretending
![Page 146: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/146.jpg)
Pretending
![Page 147: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/147.jpg)
Pretending
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Pretending
![Page 149: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/149.jpg)
Resisting new activities and roles
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Resisting new activities and roles
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Resisting new activities and roles
![Page 152: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/152.jpg)
Resisting new activities and roles
![Page 153: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/153.jpg)
Resisting new activities and roles
![Page 154: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/154.jpg)
Resisting new activities and roles
![Page 155: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/155.jpg)
No marching orders
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No marching orders
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No marching orders
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only 54% of organizations
No marching orders
![Page 159: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/159.jpg)
72% of organizations
No marching orders
![Page 160: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/160.jpg)
No marching orders
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No marching orders
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53%
39%Follow a pre-set implementation time line.
No marching orders
Establish a pre-set implementation time line.
Fewer follow an implementationtime line than say they will
![Page 163: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/163.jpg)
Share of organization that set measurable objectives
When leader says planning is unimportant in success
36%
66%When leader says planning is important in success
No marching orders
Forrest Consulting Strategic Leader Survey, 2013
![Page 164: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/164.jpg)
Share of orgs that assign responsibility for implementing to individuals.
When leader says planning is unimportant in success
50%
71%When leader says planning is important in success
No marching orders
Forrest Consulting Strategic Leader Survey, 2013
![Page 165: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/165.jpg)
The unexpected
![Page 166: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/166.jpg)
The unexpected
![Page 167: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/167.jpg)
The unexpected
![Page 168: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/168.jpg)
58% of leaders
The unexpected
![Page 169: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/169.jpg)
The unexpected
![Page 170: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/170.jpg)
The unexpected
![Page 171: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/171.jpg)
The unexpected
![Page 172: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/172.jpg)
The unexpected
![Page 173: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/173.jpg)
One and done
![Page 174: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/174.jpg)
One and done
![Page 175: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/175.jpg)
One and done
![Page 176: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/176.jpg)
only 41% of organizations
One and done
![Page 177: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/177.jpg)
One and done
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One and done
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When leader says planning is unimportant in success
23%
44%When leader says planning is important in success
Share of orgs that include plan for next update in current plan.
One and done
Forrest Consulting Strategic Leader Survey, 2013
![Page 180: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/180.jpg)
Other problems
![Page 181: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/181.jpg)
Other problems
![Page 182: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/182.jpg)
Better strategy decisions
![Page 183: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/183.jpg)
Rational Decision Making
Decision making process
![Page 184: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/184.jpg)
"Satisficing" Decision Making
Area of bounded rationality
Decision making process
![Page 185: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/185.jpg)
Epistemic arroganceDecision making process
Limits to our knowledge
![Page 186: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/186.jpg)
Undecidability
Leap of faith needed because
we never can know enough
Decision making process
Undecidability
“Strategic decisions are always about action undercontingency and uncertainty” Andreas Rasche
![Page 187: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/187.jpg)
UnknowabilityDecision making process
Unknowability
?
? ?
“Not only must the person taking the decision not know everything… the decision must advance towards a future which is not known,
which cannot be anticipated” Jacques Derrida
![Page 188: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/188.jpg)
Problems seeing the futureDecision making process
Problems seeing the future
![Page 189: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/189.jpg)
Problems seeing the futureDecision making traps
![Page 190: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/190.jpg)
Problems seeing the futureDecision making traps
![Page 191: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/191.jpg)
Problems seeing the futureDecision making traps
![Page 192: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/192.jpg)
Problems seeing the futureDecision making traps
![Page 193: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/193.jpg)
Problems seeing the futureDecision making traps
![Page 194: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/194.jpg)
Problems seeing the futureDecision making traps
![Page 195: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/195.jpg)
Problems seeing the futureDecision making traps
![Page 196: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/196.jpg)
Problems seeing the futureDecision making traps
![Page 197: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/197.jpg)
Problems seeing the futureDecision making traps
![Page 198: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/198.jpg)
Problems seeing the futureDecision making traps
![Page 199: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/199.jpg)
Problems seeing the futureDecision making traps
![Page 200: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/200.jpg)
Problems seeing the futureDecision making traps
![Page 201: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/201.jpg)
Problems seeing the futureDecision making traps
![Page 202: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/202.jpg)
Problems seeing the futureBad decision
![Page 203: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/203.jpg)
Problems seeing the futureBad decision
“We see little
reason to
anticipate a
catastrophic well
explosion”
![Page 204: Strategy 301 - Beyond the Basics - 16 Steps](https://reader031.vdocuments.us/reader031/viewer/2022030123/58a44d4b1a28ab55068b4aef/html5/thumbnails/204.jpg)
Problems seeing the futureBad decision
“We know
what we are doing
and won’t do
anything to put
the company
at risk”
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Problems seeing the futureBad decision
“We know
what we need
to know about
the situation and
can make good
decisions”
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Problems seeing the futureBad decision
“We know
what is going
on and the
risks involved”
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Problems seeing the futureBad decision
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Problems seeing the futureBad decision
“The situation
is unchanged. We
still don’t see why
we should spend
billions for
Google.”
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Problems seeing the futureBad decision
“This price
is way higher
than it was the last
time we had the
chance to buy
the company”
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Problems seeing the futureBad decision
“Things are
going well for us.
If we buy Google,
we’ll have more
risk and work
to do.”
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Problems seeing the futureBad decision
“It’s good here
at Yahoo. Let’s
protect what we
have rather than
risk our money
on Google”
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Problems seeing the futureBad decision
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Problems seeing the futureBad decision
“Indians are
not our equals,
including on the
battlefield”
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Problems seeing the futureBad decision
“We are
predestined
to defeat the
indians”
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Problems seeing the futureBad decision
“There is
no way that
we could
lose this
battle”
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Problems seeing the futureBad decision
“No one
here believes
we could lose
this battle”
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Problems seeing the futureBad decision
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Problems seeing the futureBad decision
“Let’s not
bother the bosses
with the problem.
We can probably
remedy it
ourselves.”
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Problems seeing the futureBad decision
“Jim says it’s
not a big deal,
and Sally agrees,
so I’m in on
discounting
it, too”
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Problems seeing the futureBad decision
“Who would have
thought to look for
a mix up of metric
and Imperial
measurements?”
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Problems seeing the futureBad decision
“We were just
going by the book –
that was supposed
to cover every
situation.”
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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Problems seeing the futureDecision making tools
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1. Too many organizations don’t plan or implement,or plan and implement poorly.
2. Strategic planning contributes to organizational success.3. Commitment to planning and use of “best practices”
are important in organizational success.4. With foresight, problems impeding successful planning
and implementation can be avoided or mitigated.5. Many decision-making traps cause bad strategic decisions.6. Decision-making tools can help leaders and
organizations make better strategic decisions.
Closure
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“THIS IS THE
may be converted
Robert Penn Warren
processStrategic planning
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Lee Crumbaugh, SMP
President, Forrest Consulting, Glen Ellyn, IL, USA (Chicago)
President, Association for Strategic Planning (2014-2016)
www.forrestconsult.com
Thank you!