the pursuit of growth: is your sales and operations planning (s&op) "glocal" enough?...
DESCRIPTION
Steelwedge Agility Webinar Series Featured Presenter - Chris Turner, Co-Founder of strategy and change management consulting firm, StrataBridge Picking up from his popular September Webinar: S&OP Strategy to Bridge the Agility Gap, Chris Turner advances the dialogue on S&OP and the shifting balance of control vs. growth—this time with a look at the prospects and pitfalls of balancing global, regional and local planning and decision making. This interactive session will explore the issues surrounding the globalization paradox and the complexities of the ever flattening (but still lumpy and uneven) world. He’ll take the discussion beyond just geography—to get to the issues that strategic business planning needs to address for enabling growth. This event will question some traditional S&OP/IBP beliefs that could be hampering your business’ success and will address 7 areas of focus to reset your global potential: • Strategy choices: Where to play? How to win? • Organizational shape: its impact on decision-making • Key decisions: critical touch points to drive coherent actions • Making better decisions with partial information: the implications • Leveraging technology: separating the signal from the noise • Trial, error and learning: faster results through heuristics • Overcoming the Laws of Change and Entropy To learn more about S&OP please visit: http://www.steelwedge.com/solutions/TRANSCRIPT
© StrataBridge 2013 © StrataBridge 2012
The Pursuit of Growth Is Your S&OP ‘Glocal’ Enough
Chris Turner StrataBridge
© StrataBridge 2013
Some Structure & Thought-Provokers
Going Global –"Everybody’s Doing It…
Cognitive Traps and Unintended Consequences…
Putting the Pieces Together –"Some Principles…
© StrataBridge 2013
Underneath it All"3 Fundamental Laws that have shaped the StrataBridge approach; all of which are compounded by ‘going global’/international expansion…
The Law of PERSPECTIVE
The Law of ENTROPY
The Law of CHANGE No matter how hard you resist or deny it, things are going to change, often unpredictably so
It all depends on ‘where you are coming from’
Unless energy is expended to counter it, things become random, break-down, over time
© StrataBridge 2013
© StrataBridge 2013
Some Structure & Thought-Provokers
Going Global –"Everybody’s Doing It…
Cognitive Traps and Unintended Consequences…
Putting the Pieces Together –"Some Principles…
© StrataBridge 2013 © StrataBridge 2012
Globalisation – How is it for you?
• Is your company pursuing a strategy of globalisation/international expansion?"
• If yes, what are the primary drivers of this strategy?"
• Access to new customers
• Pursuit of cost reduction
• A Result of outsourcing/off-shoring
• The result of Joint Ventures or Mergers & Acquisitions
Yes 93%
No 7%
74%
46%
20%
36%
© StrataBridge 2013 © StrataBridge 2012
Globalisation - Some of the BIG DRIVERS…
• Shifting Demographics
and Economic Dynamics
• Outsourcing & Off-shoring
• 1’s and 0’s
• Telecomms
• The Internet
The Pursuit of Growth
The Pursuit of"
Cost Reduction
© StrataBridge 2013 © StrataBridge 2012
‘04 ‘06 ‘10 ‘08 ‘12 ‘03 ‘05 ‘07 ‘09 ‘11
20.00
40.00
30.00
60.00
50.00
70.00
80.00
‘94 ‘96 ‘00 ‘98 ‘02 ‘95 ‘97 ‘99 ‘01
Share of "World
Imports %
Sources: World Trade Organisation, The Economist: The World in 2012
Trading Places…
‘93 ‘92 ‘91 ‘90
20.00
40.00
30.00
60.00
50.00
70.00
80.00
Developed Economies
Emerging Economies
Globalisation – There is no escape…
© StrataBridge 2013 © StrataBridge 2012 © StrataBridge 2012
Consistency"Standardisation"Proceduralisation
Change Innovation
Experimentation
Learning, Competitive Advantage & Results
fuelled by…
Efficiency Productivity
Agility Adaptability
Hierarchical and Centralised
Flat, Networked and Distributed
Performance Beliefs…
Organisational Construct and Location of Power…
Analytical Exercise Fixed Destination/Direct Route
Systemic Intervention Overarching Direction/
Course Correction
Mechanical Formulaic Wanting Answers
Organic "Dialogue-based
Asking Questions
Data-driven Numbers based
Insight-driven Assumptions based
? !1+2=3
Approach to Strategy…
Decision-making Routines…
Supporting Information Focus…
Process (People are there to ‘enact the process’)
People (Process provides ‘enough structure’)
Obedience Compliance Competence
Creativity Stretch
Passion
Automate the Processes
Enable the People
Results Driven Through…
Talent Hired For…
Technology used to…
C
o
n
t
r
o
l
G
r
o
w
t
h
More Volatile More Uncertain
New ‘Rules’
Volatile Uncertain Changing ‘Rules’
External Environment - Competitor, Customer, Consumer Landscape & Behaviour - & Macro Trends
Stable Predictable Consistent ‘Rules’
Volatile Uncertain
Changing ‘Rules’
External Environment - Competitor, Customer, Consumer Landscape & Behaviour - & Macro Trends
© StrataBridge 2013
WT…..?
‘glocalisation’
© StrataBridge 2013
What’s in a name?
© StrataBridge 2013
Some Structure & Thought-Provokers
Going Global –"Everybody’s Doing It…
Cognitive Traps and Unintended Consequences…
Putting the Pieces Together –"Some Principles…
© StrataBridge 2013
Some of the biggest Cognitive Traps and Biases in ‘Going Global’…
• A reluctance to admit complexity
© StrataBridge 2013
Decision-Making Domains, Leadership Responses –"No One Size Fits All
Simple Complicated Complex
Cause = Effect Cause Effect Cause Effect
• Lack of common understanding of the distinctions between these domains, the available responses and the implications for our planning and decision-making routines
• Blindness to the limits of prevailing mindsets, processes, techniques and tools, as we move along this spectrum
• Increased susceptibility to an range of traps, distortions and deceptions in the face of complexity
© StrataBridge 2013
Some of the biggest Cognitive Traps and Biases in ‘Going Global’…
• The desire to ‘jump to ‘Algorithm’’ • A reluctance to admit complexity
© StrataBridge 2013
Mystery
Hunches/ Questions/Paradox
Algorithm
Repeatable/ Reliable/ Formulaic
Heuristic
Principles/Rules ofThumb
Different Challenges; Different Modes of Thinking and Acting Choosing where to focus and how to drive Learning-Action-Results
Adapted from Roger Martin
© StrataBridge 2013
Some of the biggest Cognitive Traps and Biases in ‘Going Global’…
• Mechanistic approach
• A reluctance to admit complexity • The desire to ‘jump to ‘Algorithm’’
© StrataBridge 2013
“The terms ‘hard facts’ and ‘the soft stuff’ used in
business imply that data are somehow real and
strong while emotions and relationships are weak and
less important.”
—George Kohlrieser, Hostage at the Table"(Kohlrieser is a hostage negotiator and professor of management)
© StrataBridge 2013
Some of the biggest Cognitive Traps and Biases in ‘Going Global’…
• A reluctance to admit complexity • The desire to ‘jump to ‘Algorithm’’ • Mechanistic approach • The ‘Duplication’ Trap
© StrataBridge 2013
Some Structure & Thought-Provokers
Going Global –"Everybody’s Doing It…
Cognitive Traps and Unintended Consequences…
Putting the Pieces Together –"Some Principles…
© StrataBridge 2013
Putting the Pieces Together – Some Principles…
• Clarity of Strategic Choices is Critical
• Strategy – Decisions – Accountability
© StrataBridge 2013
Putting the Pieces Together – Some Principles… Strategy Execution – Top 5
1. Everyone has a good idea of the decisions and actions for which he or she is responsible
2. Important information about the competitive environment gets to headquarters quickly
3. Once made, decisions are rarely second-guessed 4. Information flows freely across organisational boundaries 5. Employees have the information they need to
understand the bottom-line impact of their day-to-day choices
Source: Booz & Company Research – June 2008 17 Fundamental Traits of Successful Strategy Execu9on
Information Flow Decision Rights & Accountabilities Key:
© StrataBridge 2013
Putting the Pieces Together – Some Principles…
• Clarity of Strategic Choices is Critical
• Strategy – Decisions – Accountability
• Design the Process to Support Decision Making – Decision Scope, Decision Rights and Information Flow
© StrataBridge 2013
GLO
BA
L C
LUST
ER
SUPP
LY
POIN
T/3R
D
PAR
TY
SUPP
LIER
Design the Process to Support Decision-Making – Ensure Coherence with Organisational Design and Accountabilities, Decision Scope and Decision Rights…
CO
UN
TRY
Optimisation
Finance
Direction Optimisation
Finance
Direction
Supply
Optimisation
Finance
Direction
Supply
Optimisation
Finance
Direction Demand
Demand Demand
Demand
Portfolio"Management Portfolio"
Management
Innovation Optimisation
Finance
Direction
Optimisation
Finance
Direction
© StrataBridge 2013
Putting the Pieces Together – Some Principles…
• Clarity of Strategic Choices is Critical
• Strategy – Decisions – Accountability
• Design the Process to Support Decision Making – Decision Scope, Decision Rights and Information Flow
• Take an ‘Organic’ Approach – Balance People and Process…
• Leverage Technology – Enable the People, Accelerate the process (don’t just ‘aggregate’ it)
© StrataBridge 2013
A Brief Introduction… …StrataBridge StrataBridge is a boutique consulting firm that specialises in advising fast-moving, brand led organisations on strategy, innovation and operations. StrataBridge help create and develop the relevant thinking, processes, capabilities and behaviours to allow organisations to bridge the gap between where they are and where they want to be. In short, we connect the dots between hard and soft organisational issues to create the bridge between a client’s real world and their ideal world. …Chris Turner Co-founder of StrataBridge, Chris works with a range of clients worldwide, across industry sectors, on strategy development, innovation and joined-up decision-making. A highly respected facilitator, Chris has a unique ability to understand and simplify complex business issues and opportunities and translate these into action. He has worked with leadership teams around the world, helping them to create, articulate and realise their strategies through insightful diagnosis, joined-up decision-making and capability building. Chris’s long-term client relationships are built on his ability to balance the delivery of fast results with sustainability, and Chris’s clients include Anheuser-Busch, Bakehouse, Coca-Cola, Compass Minerals, Mars, Mass Mart SA, PZ Cussons, SC Johnson, Shell. Chris can be reached at: e | [email protected] m | +44 7802 252 003 o | +44 1277 633 433 w | www.stratabridge.com
© StrataBridge 2013
Chris Turner mobile: +44 7802 252 003 e-mail: [email protected] web: www.stratabridge.com