21st century strategy

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1. 21st Century Strategy 2. Dene Digital Understand Digital Problems What makes a high-quality strategy Putting strategy into everything 2 Understanding digital strategy 3. Cost performance improvement Productivity improvement and computerization Connectivity and complexity 3 Defining digital 4. $0 $1 $1,000,000 $1,000,000,000,000 1961 1981 1997 2000 2001 2003 2007 2011 2013 4 C O S T P E R G I G A F L O P Top 500 & Wikipedia 5. 0.0 1.0 2.0 3.0 1949 1969 1989 2009 5 P R O D U C T I V I T Y W A G E S A P P L E I I R E L E A S E D F I R S T P L C C R E A T E D Baker 6. 6 Likely to be computerized Frey & Osborne 7. 0% 33% 67% 100% 1995 1999 2003 2007 2011 2015e 7 N O I N T E R N E T N O S M A R T P H O N E G L O B A L A D U L T P O P U L A T I O N W I T H . . . Evans 8. 8 9. Digital is cost performance improvement of critical technologies making really hard things easier and cheaper than ever before Computing created massive productivity improvements relative to wages for workers, and is likely to eliminate many jobs, allowing companies to operate effectively with less prot. Practically speaking, everyone is connected perfectly with each other, increasing the complexity of our world. 9 Review: Defining digital 10. Pace of change, rate of growth, topple rate Changing expectations and smarter everyone Platforming of everything Everyone becomes an user 10 Understanding digital problems 11. 11 Dediu 12. 12 0 8 16 24 Average Fortune 500 $GOOG $FB $TSLA Uber Snapchat Oculus Rift Y E A R S T O $ 1 B V A L U A T I O N / C A P I T A L I Z A T I O N Malone 13. 0 23 47 70 1958 1982 2006 2030 13 A V E R A G E L I F E S P A N , C O M P A N Y O N S & P 5 0 0 Foster & Kaplan 14. 14 0% 50% 100% 1880 1940 2000 S H A R E O F W O R L D W I T H A B A S I C E D U C A T I O N Roser 15. 15 Amazon 16. Employees = Customers = Employees Pay and be paid with time and money 16 Everyones a user 17. Pace of change, rate of growth, topple rate these are all increasing as computing gets more distributed (particularly with the deployment of mobile). 55 people can reach 1 billion WhatsApp!? Were more educated than ever, and our expectations are higher. Theres no reason to accept a shitty experience from a legacy player go start your own thing. There is an all-out race to be the lone platform-owning monopoly in every sector. This is why companies that get it are investing all prots back into growth and user experience. There is no longer an useful distinction between employees and customers value exchanges just happen in different ways, but were all users, all the time. 17 Review: Understanding digital problems 18. Historical basis: long-term projections of demand and changes necessary to meet it The framework problem A faster option: sense-making 18 What is strategy 19. 19 20. Strategy: The plan for the allocation of resources to anticipated demand. Structure: The design for putting the enterprises existing resources against current demand. Tactics: The efcient and steady use of current resources whose allocation had already been decided. 20 Strategy and Structure: Chandler, 1962 21. 21 Arauz 22. 22 Rigorous diagnoses Powerful insights Coherent, connected action plans 23. Fluff: Fluff is a form of gibberish masquerading as strategic concepts and arguments. Failure to face the challenge: When you cannot dene the challenge, you cannot evaluate a strategy or improve it. Mistaking goals for strategy: Many bad strategies are just statements of desire rather than plans for overcoming obstacles. Bad strategic objectives: Strategic objectives are bad when they fail to address critical issues or when they are impracticable. 23 Classic Fails: Rumelt 24. 24 Good: A framework for decision-making. Add data, receive decision 25. 25 Better: A way of making sense of the world 26. 26 Complex Cause & effect is clear in retrospect Probe, Sense, Respond Chaotic No cause & effect system relationship Act, Sense, Respond Complicated Cause & effect is clear to experts Sense, Analyze, Respond Simple Cause & effect is obvious to everyone Sense, Categorize, Respond Disorder Snowden 27. Good strategies are long-term projections of demand and changes necessary to meet it. But what utility is a long-term projection of demand if new competitors scale to billions in a matter of months? Frameworks are easy, fast solutions to strategic problems, but apply pre-existing thinking to new data from new conditions. A faster option: use sense-making tools all the time to bring strategic methods into all decisions. Also: be wary of bullshit for bullshits sake, and mindful that repeated production of future- casting PowerPoints is a waste of everyones time. 27 Review: What is strategy 28. 28 Everyones a strategist 29. 29 If strategies are hard to make, we will make them seldomly. 30. 30 If strategies are hard to make, we will make them seldomly. If strategies are hard to remember, we will use them rarely. 31. 31 If strategies are hard to make, we will make them seldomly. If strategies are hard to remember, we will use them rarely. If we cant remember our strategies, and update them infrequently, were fucked. 32. User stories/Jobs to be done Polarizing strategy statements 32 Always-on Strategy Practice 33. 33 As a user I want to take an action So I achieve an outcome 34. 34 When something happens I want to take an action So I achieve an outcome 35. Independent Can be built in any order Negotiable Flexible; the team can choose how to implement Valuable Outcome is actually worth something to the user Estimable Actually useful for planning work Small Easier to estimate, plan, implement and iterate Testable Have built-in, or at least prescribed, success and failure criteria 35 INVEST: Rally Software 36. 36 37. 37 38. 38 Strategy is prioritization 39. 39 Good thing even over Other Good Thing 40. 40 Growth even over Profit 41. 41 Individuals and Interactions even over Processes and Tools 42. 42 Emerging even over Proven 43. Retrospective Open discussion Capture key problems Generate strategy statements Cull/Select Leader proposes Consent Commit 43 Strategy Process 44. Were all users, and were all hiring products, apps, services, companies, colleagues, and feeds to do jobs for us. Use a Jobs To Be Done framework continually to understand why things are being hired, and to eliminate as much bias and assumption as possible. Strategy is about choice, and creating short, memorable mnemonics for those critical choices is essential. Choices must be between two desirable outcomes else, theyre not really choices. Develop and consent to these strategy statements as a team, and do it frequently. 44 Review: Always-on Strategy Practice 45. 21st Century Strategy @clayparkerjones clayparkerjones.com


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