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AMD Commercial Strategy and the Prometheus Process

March, 2006

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Table of Contents

• AMD Commercial Strategy• Prometheus process• AMD Commercial Future Picture• Systems’ characteristics• Centers of Gravity• Desired effects• Impact plans• Action plans

Building the future of

AMD Commercial

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The Essence Of Strategy

Where do you want to be in the future?

What do you need to change to make that Future Picture a reality?

How are you going to apply your resources?

Strategy involves answering key questions

Where

What

How

ExitHow do you decide it’s time to exit a

business or strategy?

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AMD Commercial and the Prometheus Process• The Prometheus Process is a

systematic approach to strategy development

• The process is also designed to translate strategy into actionable steps with measurable results

• The AMD Commercial Leadership team used the Prometheus Process to develop concrete action steps enabling us to execute on the strategy

• Glossary of Prometheus terminology

Winning in FastTime: Harness the Competitive Advantage of Prometheus in Business and Life

by John A., III Warden, Leland Russell

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AMD Commercial strategy processbased on Prometheus Process from Venturist

The Prometheus process enables AMD Commercial to translatelong term strategy into action by followingthesesteps

Good

str

ate

gy p

rocess

lead

s t

o g

reat

ou

tcom

e

Step 4: Assemble campaign teams, develop action plans, execute in parallel

Execute

Step 3: Create an impact plan that includes a desired effect, timeframe and measure for each selected COG

How

Step 2: Identify External and Internal Centers of Gravity (COGs) & select target COGs for each phase

What

Step 1: Create a Future Picture for end of period (5 years); define phases of milestones to achieve Future Picture

Where

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AMD Commercial Future Picture

•Preeminent in market 1•#1 in market 2•A player in market 3• >XX% revenue & unit share • Expanded technology 1 capabilities• Significantly expanded ability 2• XXXXXXXXX• Expanded XXXXX capabilities• Fast, innovative commercial culture

2009-2010: AMD XXXXXXXX

Step

1

Step 1: Create a Future Picture for end of period (5 years); define phases of milestones to achieve Future PictureWhere

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AMD Commercial Future Plan Phase milestones“Work back from the future – not forward from the present”

Future Picture: • XXXXXX based on merit

and momentum• XXXX expands without

XXXXXXX• XXXXX expands

profitably• XXXXX launched with

partners and embraced by customers

• XXXXXXX accepted by XXXXX XXXXX

• Technology 1 appear

• Commercial organization focuses on XXXXXXXXXXX

Plan: • XXXXXXX• XXXXXXXX• XXXXXXX• Define new XXXXX &

XXXXXXX• Define new XXXXXXX

XXXXXX• Invest in XXXXXXXXX

XXXXXXX• Create acceptance for

XXXXXXXX• Take control of XXXXXXX

• Commercial organization aligned to opportunity

Future Picture: • Preeminent in the

market 1• #1 in market 2• A player in market 3• >XX% revenue & unit share• Expanded technology 1

capabilities• Significantly expanded ability 2• XXXXXXX• Expanded XXXXX capabilities

• Fast, innovative commercial culture

2009-2010Phase 3 name

2007-2008Phase 2 name

2006Phase 1 name

Step

1E

xte

rnal

Inte

rnal

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Best Use of Resources

Future Picture Defines Strategy:

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Future Picture Defines Strategy:

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Future Picture Defines Strategy:

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In order to decide what you need to change to achieve your stated Future Picture it is important to first understand some characteristics of a system

• All actions take place within a system

• There are internal systems and external systems

• Organizations are systems, as are the environments in which they operate

• The system is greater than the sum of its parts

• The performance of the whole and the parts are interdependent

• Systems vigorously resist change, strive for equilibrium, and quickly return to status quo if change efforts do not stretch a system beyond its limits

Systems’ CharacteristicsStep

2

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COGs: Centers of Gravity

• COGS are leverage points within the system

• Hubs of power and influence

• Example: In a city, potential COGs are the government, electrical grid, highway infrastructure, citizens, or schools

• Every system (internal and external) has multiple COGs

• Success requires movement of many COGs in the desired direction, the more that are moved in the shortest amount of time, the higher the likelihood of success

• Attacking multiple COGs in parallel results in faster change and prevents single point failures from becoming showstoppers

Step

2

Step 2: Identify Internal and External Centers of Gravity (COGs) & select target COGs for each phase

What

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Once a system is viewed using the 5 Rings model, it becomes relatively easy to

prioritize and categorize COGs within each ring

Leadership

Processes

Infrastructure

Population

Action Units

The Five Rings model of systems

All systems have similar components that can be classified according to the 5 Rings model

Step

2

Step 2: Identify Internal and External Centers of Gravity (COGs) & select target COGs for each phase

What

COGs closer to the center of the rings usually have greater systemic impact

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Leadership Processes Infrastructure Population Action Units

Example: Internal and External Centers of Gravity

What Step 2: Identify External and Internal Centers of Gravity (COGs) & select target COGs for each phase

Step

2Exte

rnal

Inte

rnal

Note that not all COGs are directly under the control of the Commercial group, however they are critical in making the Commercial strategy a success. People from all parts of AMD will be asked to help the Commercial team shift COGs in desired directions.

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Moving from strategy to action

Step 1: Create a Future PictureWhere

Step 2: Identify COGsWhat

Step 4: Assemble campaign teams develop action plans, execute in parallel

Execute

Step 3: Create an impact planHow

Impact plans are developed for each identified COG. Impact

plans contain the specific desired effects you want to have on the

COG, a timeframe for success, and a

measurable outcome

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Leadership Processes Infrastructure Population Action UnitsLeadership Processes Infrastructure Population Action Units

Desired Effect Name

Desired Effect

Timeframe

Strategic Measurement

Step 2: Identify External (Market) and Internal (AMD) Centers of Gravity (COGs) & select target COGs for each phase

Step

2 Sample COG Impact Plan: dlxfjgdfl.jg.xkd

Step 3: Create a desired effect, timeframe and measure for each selected COG

How

COG Impact PlanDesired Effect Lzkgmr.g,ze.rgkmzag

Measures (example)

Jzsgn,rjgz,jgr.kgzZkrgjnrkgnzrk.gZ,sjg,sgjz,s.jg.,

Timeframe zergregtrez

Future Picture Assessment

zfgzdfgzergz

Step

3

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Moving from strategy to action

Step 1: Create a Future PictureWhere

Step 2: Identify COGsWhat

Step 4: Assemble campaign teams, develop action plans, execute in parallel

Execute

Step 3: Create an impact planHow

The creation of campaign teams and

action plans is where the

rubber meets the road –

where strategy is turned into

concrete steps and specific

tactics

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Campaign Teams and Action Plans

• Campaigns:– Are the vehicle for plan execution– Orchestrate resources for parallel action– Are strategically aligning– Change systems in the direction desired

• Campaign team activities– Develop and execute action plans– Escalate issues

Sample Action Plan• K,sjgzas,jkg• Azkrhrkgjerzg• Zskdhgsk,gjz,gr• Zskjghz,msrg• Zskdgj,sJG• szklghskrjg

Strategic Measurement

Action Plan

Timeframe

Desired Effect

Desired Effect Name

COG Impact Plan

Step

4 Sample COG: Key OS CompaniesSample Impact Plan: fdsgszrjhgtsre,kghzels

Step 4: Assemble campaign teams, develop action plans, execute in parallel

Execute

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Next steps and 2006 priorities

• Broadly communicate AMD Commercial strategy– VP Forum (April)– Division Communication Meetings– Go-To-Market Organization

• Execute Phase 1 COG impact plans • Begin identifying Phase 2 COGs and create impact plans

• Continue to expand participation in Campaign Teams

confidential

The Prometheus Process© Winning in FastTime: Harness the Competitive Advantage of Prometheus in Business and Life

by John A., III Warden, Leland Russell

If you are part of the commercial business and would like a copy of

Winning in FastTime, please contact gxhgfht.

Questions? Comments?fctyjytcduu6y