Strategic Execution Framework
- By keeping projects alive, to what degree are you subtracting things from the possiblity of your future.
- Hyperaction Vs Nonaction
- Project:How does “Done” look like.
- How flexible and adaptable is portfolio to the strategy to the relevance in the external market.
- Environment with a fast moving market, Portfolio strategy to match half that frequency.
- Portfolio is always ON. Vector Sum total of all projects is Strategy
- Culture and Structure important for strategic success.
- Where are we going in the long-term? What are the goals of our goals.
- Strategy naturally or cognitively flows to Portfolio
- epiphany-experience of sudden and striking realization
- Strategy <-> Commoditization
- Ideation – Nature – Visions – Engagement – Synthesis – Transition
- Benefits realization/planning is critical.
- Strategy is about adding value through a mix of resources, capabilities and activities different from those used by competitors in your industry.
- Porter’s five forces
- Industry dynamics
- 2. Threat of new entrants- entry and exit barriers
- 1. Rivalry between existing firms.
- 3. Threat of substitute products/services
- Supply chain power
- 4. Bargaining power of suppliers- owns a critical component of your product will take value off your supply chain
- 5. Bargaining power of buyers- as products commoditize; more comparison; more choices
- Choose the right industry to compete in. Change industry when the industry becomes hyper competitive.
- Four kinds of product leadership zone (a) Disruptive innovation (b) Application Innovation (c) Product innovation (d) Platform innovation
- Industry Maturation – Technologies and categories mature rapidly. Buying decisions begin to emphasize low cost and vendor responsiveness. Result- productions and supply get outsourced, major product innovation become increasingly difficult.
- Customer intimacy zone- Line extension, enhancement innovation, marketing innovation, experiental innovation
- Operation excellence zone- value engineering innovation, integration innov, process innovation , value migration innovation.
- Category renewal zone-Organic, Acquire, Harvest and Exit
Strategy and Culture
The four Strategic Value Disciplines (SVDs)
- Operational excellence (CONTROL)
- Differentiate through superior execution as measured by productivity and, ultimately, lower price
- Customer intimacy (COLLBORATION)
- Differentiate through superior matching of customer expectation with offer fulfillment—demanding higher price
- Product leadership (COMPETENCE)
- Differentiate through superior design and engineering yielding higher performance—demanding higher price
- Disruptive innovation (CULTIVATION)
- Thinking outside the box, imagineering, new paradigms
Culture Egg -perfect sphere culture mix might not serve well
- Cost Containment (Governance) Vs. Cost Competitiveness (Strategy)
- IDEO-Highly differentiated Disruptive innovation. Best supported by cultures of cultivation. Aligned to preach to practice.
- Governance in terms of process that helps move forward. Focusing effort.
- Execution of process- not holding back and restricting creativity.
- Competitive advantage grid- Geoffrey Moore
Culture and Structure
- Structure must be aligned with strategy and culture
- Formal Structure- flow of information, authority and decision making across the organizationHow