roger martin. playing to win - how to make strategy work
TRANSCRIPT
Playing to win How to make strategy work
Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
on strategic initiatives
33% success rate
how to make
Changing Strategy?
7% of employees fully understand their company’s
business strategies and what’s expected of them
The main barrier for execution success mentioned by executives is:
“Creating meaningfulness to frontend employees”
58% does strategy top-down with limited
involvement of employees
59% believe that there is an imaginary line in
the organizational chart above which strategy is
made
30% of employees receive no
information on how to execute
the strategy
14% FULLY
ENGAGED
70% of “not successful” transformations were planned by 10
or fewer people
Strategy is making choices
Don’t separate Strategy & Execution
Frontload design of options
“What needs to be true?” is THE question!
Engage for real …search for true insight
Leaders & strategizers of the future are…
Social architects of meaning
…not heroic decision makers
18 HBR articles
4 bestseller business books
Roger Martin is one of the top
management thinkers in the world
Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
PLAYING TO WIN Implement Consulting Group
Copenhagen, Denmark
April 1, 2014
Twitter: @rogerlmartin
To win, a company must choose
to do some things and not others
STRATEGY IS ABOUT CHOICES
What’s our Winning Aspiration?
Where will we play?
How will we win?
What capabilities must we have?
What management system are required?
STRATEGY IS THE ANSWER TO 5 QUESTIONS
WHAT IS OUR WINNING ASPIRATION?
General Motors 2013
WHERE WILL WE PLAY?
Image courtesy of Intuit
STRATEGICALLY DISTINCT SYSTEMS
Image courtesy of Intuit
Individual Customers
“The Industry”
Segments
Develop Competitive Strategy Based on an Understanding of Individual Customers?
or...
Develop Competitive Strategy Based on Generalizations about “The Industry”?
or...
Develop Competitive Strategy Around Clusters of Customers About Which We Can Make Generalizations?
HOW WILL WE WIN?
A Starbucks storefront at night. Starbucks Coffee Company
TWO FUNDAMENTAL WAYS TO WIN
Low Cost
Differentiation
Sustainable Competitive Advantage
WHAT CAPABILITIES MUST WE HAVE?
Burberry Flagship Store, London
P&G ACTIVITY SYSTEM
Globally
Distributed
R&D
Agency
Relation-
ships
Global
Business
Services
Connect
+
Develop
Design
Global
Purchasing
Customer
Teams
GBU/MDO
Structure Shopper
Marketing
Leadership
Culture
Brand-
building
framework
Consumer
Research
Consumer-
driven
measurement
systems Consumer Understanding
Scale
Go-to-Market Capabilities
Innovation
Brand Building
WHAT MANAGEMENT SYSTEMS ARE REQUIRED?
Four Seasons Hotel, Silicon Valley
What do you find most intriguing about the
approach?
What would be the most difficult in adopting the approach?
Blue card
Green card
Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
on
Novozymes A new way
strategizing of
Strategizing in Novozymes Rasmus von Gottberg Corporate Development & Business Creation
April 1st 2014
Microorganisms
Enzymes
Other proteins
We find the microorganisms in nature
We grow them in big fermenters. From one microorganism to trilions in only 24 hours
Global leader in industrial biotech
BASIC LAYOUT
Use: This is the basic slide with no extra Novozymes graphics added. Edit Layout: Click Layout in the top menu Home. And choose between +30 different layouts. Edit Header and footer: In the top left corner you find Slide no., Date and Header. Change settings in the menu: > Insert > Header and Footer
guide 32
Our journey…
Guiding strategy principles
Strategizing is for
everyone
Choices Common language
Dialogue
Choices
Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
The quality of the process
The quality of the outcome
Your level of involvement
Your view on challenges within strategy in general
We asked you some questions about your latest strategy process…
An
aly
sis
1 out of 10 point to analysis as a key
challenge
En
ga
gem
ent
Twice as many state engagement as a key challenge
Ownership and empowerment
Engaging the organization
Not having the right data
Basing choices on facts
Ch
oic
e
3 out of 10 point to making choices as
a key challenge
Ex
ecu
tio
n
Twice as many state execution as a key challenge
Ability to execute
Linking strategy to actions
Decide what not to do
Making the tough choices
1 2 3 4
high
high
low
low
Quality of process
Quality of outcome
Your view of the process correlates with your view of the outcome
1
2
3
4
1 2 3 4
Your own level of involvement clearly impacts how you perceive
the quality of the strategy process …
Own level of involvement
Perceived quality of process
Engaging
Effective
Fun
1
2
3
4
1 2 3 4
… and the same is true for your perception of the strategy outcome
Own level of involvement
Perceived quality of strategy
Right
choices
Good execution
Key take- aways
Engagement and Execution are typically bigger hurdles than analyses and choice
A good process correlates with a good outcome
Level of involvement correlates with both a good process and good outcome…
Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
Reverse engineering
applied
Management dialogue
Bridging to execution
Role of Strategy office
Strategy as on-going or one-off
MAKING STRATEGY
WORK
Frame the choice Convert issues into at least two mutually independent options that might resolve the problem
Generate strategic possibilities Broaden the list to ensure consideration of an inclusive list of possibilities
Specify conditions For each possibility, specify which conditions must hold true for it to be strategically sound
Identify barriers to choice Determine which conditions you feel least confident are true
Design valid tests For each key barrier, design a valid test sufficient for generating commitment
Conduct tests Conduct hypothesis-driven analysis, testing the conditions with the lowest confidence first
Choose Compare test results to key conditions and make informed choices
MAKING CHOICES IN ORGANIZATIONS
What is true?
What would have to be true?
MAKING CHOICES IN ORGANIZATIONS
What’s our Winning Aspiration?
Where will we play?
How will we win?
What capabilities must we have?
What management system are required?
STRATEGY IS THE ANSWER TO 5 QUESTIONS
The brain makes the choices
The arms and legs execute the choices of the brain
THE VIEW OF THE HUMAN BODY
IMPLICIT METAPHOR OF THE CORPORATION
Senior Leaders
•The brains of the organization
•Formulate the decisions
•Create control procedures
• Sell to get “buy-in”
The Rank and File
•The arms and legs of the organization
• Implement the decisions
•Controlled by procedures
•Get “bought-in”
Corporate Level
Cascade
Strategic Group
Cascade
Individual Business Cascade
A MORE USEFUL CONCEPTION OF THE CORPORATION
Winning aspiration
Where to play
How to win
Capabilities
Man. systems Winning
aspiration Where to
play How to win
Capabilities
Man. systems Winning
aspiration Where to
play How to win
Capabilities
Man. systems
1. Explain the choice that has been made and the reasoning behind it
2. Explicitly identify the next downstream choice
3. Assist in making the downstream choice, as needed
4. Commit to revisit and modify the choice based on downstream feedback
SYSTEMS TO SUPPORT STRATEGY – CHOICE FRAMING
Agenda
10:00 Welcome & Introduction
10:30 Roger Martin
12:00 Lunch
13:00 Novozymes – a new way of strategizing
14:30 Survey results
16:30 Outtro & Buffet
15:00 Roger Martin – Strategy & Execution
2. Scandinavian network
“Playing To Win” knowledge sharing
1. USA study tour w/Roger Martin (Winter 2014)
Enjoy the Buffet
Playing to win How to make strategy work
No more slides now, go eat
Change with Impact.
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