Senior Managers Program
Strategy Formation &
Strategy Execution
Hamish Scott
27-29 November, 2022
Triple Accredited – Benchmarks of the Quality and
Standards in Education we provide
Agenda
Your needs, your starting point
The imperatives:
1. Address the three components of strategy
2. Run a strategy development process, with purpose & posture
3. Plan for the level of uncertainty
4. Define the basic question
5. Build strategy architecture
6. Develop the full set of ‘how’
7. Put structure into innovation
A strategy…
a method
for achieving
success
Objectives
The How Strategy Objectives
Strategy Objectives
Strategy Objectives
Strategy
Superordinate
objective
Strategic objectives
Strategic objectives
Strategic objectives
action
A strategy is a system of interlinking objectives
Superordinate
objective
Higher level objectives
Strategic objectives
Strategic objectives
Lower level objectives
Strategic objectives
Action
Good managers can work out a system that translates the big goals:
How higher goals generate smaller goals, the necessary order, the cause + effect relationship,
where there are missing links, how this all translates down to action
Superordinate
objective
Higher level objectives
Strategic objectives
cause + effect
Strategic objectives
cause + effect Lower level objectives
Strategic objectives
cause + effect
Action
Through the Sector Champions Programme for inward
By attracting high-value foreign direct investment
investment
By maintaining a
Through the Overseas Market Introduction Service for
flexible global
information
network
By helping UK businesses to grow Through the High Growth Market Programme for
internationally SMEs
That support the British By increasing the quantity of business-led Through the R&D Programme to targeting overseas
economy (UKTI) R&D R&D-intensive firms
Through the Global Entrepreneurs programme
By improving the UK’s reputation as an Through GB, Richard Branson et al visiting India and
international business partner China in January
By providing
That support British
essential
nationals abroad Through By sending a delegation of
services
supporting orgs British Muslims to Sudan
that operate
overseas By supporting Radical
We can achieve Middle Way
a Better World That support managed
and Better migration for Britain
Through direct By supporting Morocco
Britain
projects in Women’s Empowerment
priority
By preventing people becoming terrorists or countries
To counter terrorism (CT) supporting them (CT)
and weapons
proliferation (WP) By pursuing terrorists and those that
sponsor them (CT)
Through making effective use of the 2010 Nuclear
Proliferation Treaty Review Conference
By protecting the public, key national
services and UK interests overseas (CT)
To prevent and resolve
conflict On fissile material from civil
By preparing for the consequences of terrorist acts programmes with Nuclear
(CT) Suppliers Group
By pursuing To promote a low carbon,
foreign policy high growth economy By directly addressing Iranian an North
goals Korean programmes (WP) Through
On chemical and biological
working to
By supporting international conventions and weapons with the Australia
To develop effective control exports
treaties (WP) Group
international institutions with main
regimes
By ensuring export controls are maintained On missiles with the Missile
in line with international obligations (WP) Tech Control Regime
Example of translation of the big goal to actionable
steps
We ask ‘How?’ at each step down to derive strategies which take us closer to action
We ask ‘Why?’ at each step up to check that the strategy is contributing to the goal
= one route on the
Big goal Lead the market on innovation translation tree
How?
so what do we need to do Why?
Build an npd Become the fastest Position our brand Focus the portfolio
to achieve that?
capability to market around ‘newness’ on ‘I’ products
How?
so what do we need to do Why?
to achieve that? Develop people with Invest in customer Make investment
creative skills intelligence decisions faster
How?
so what do we need to do Why?
to achieve that? Recruit people with Training courses on Encourage people to Try a lot more at
npd skills innovation ‘act’ creatively prototype stage
How?
so what do we need to do Why?
to achieve that? Use new criteria at Set up bonus Establish an easy Encourage a
recruit panels schemes on npd process for ideas tolerance of failure
How?
so what do we need to do Why?
to achieve that? Launch to all staff Appoint a ‘Director Re-purpose the CEO to talk about
the new ‘iprocess’ for Innovation’ product meetings failure & learning
How?
so what do we need to do Why?
to achieve that? New reporting line Budget new role Launch new remit New editorial style
for product mgrs start H22008 for product teams in weekly emails
Examples
© Hult EF Corporate Education 2022
Challenge:
Please build a translation tree for a goal that
is important to one or more of you.
Then prepare to present it.
Input here
Input here Input here
Input here Input here Input here
Input here Input here Input here
Language Tips
“We aim to [achieve this] 1. Use VERBS!
2. Start with what there is and ask
“How will we [do this]? How, Why, How else
3. Be creative…create the idea that
connect the layers
“In order for us to [achieve this],
4. Beware ‘lag outcomes’, we want lead
we must [do this], and [do this]
initiatives…what we will DO
and [do this]
5. Package up the end product, with
names for the layers and a taxonomy
6. Do this with people, to identify best
ideas and potential obstacles, and
promote a sense of ownership
How to achieve productive collaboration
Follow through. Build a reputation for results that count. Pay
attention to what happens and how it is received. Pay attention
to what has been before.
Design processes that facilitate collaboration. Work out how
people will work together, and advance together. Manage the
practicalities. Work on the power differences.
Get attention to the cause. Get people excited and curious.
Manage expectations about what is in play, what is at stake. Appeal
to the emotional as well as the rational.
Balance Inquiry with Assertiveness. Take a risk, and ask, and
listen, and advocate, and listen. Show you value
collaboration in your deeds.
Believe that collaboration gets better results.
Check your genuine intent.
X
X
X
Improve sales & distribution
X
X
Upgrade products
X
X
X
X
Drive efficiency
X
Improve engagement
L2 Imperatives
Reequip labs
L1 Big Goals
L3 Initiatives
Relaunch XXX 2.0
Sign new partners
Launch Lean program
Reorganise Operations
X Begin weekly staff calls
Drive EBIT margin to 15%
Grow market share to 20%
Measures
Build Account Management
X
75% teams in 3m, 100% in 6m
X
X X
Design by May, In place by EOY
X
3 by May, 10 by EOY
X
Hired/trained by July
X
X X X
75% clients visited by May
X
X
New kit by May, trained by June
X
X
# calls/year - target 45
C
Allan
C
C C
R C
Bob
R C
Chris
R C
R
Diane
Responsibilities
C
C R
Erica
C
Fred
R C
C C
Gary
Agenda
Your needs, your starting point
The imperatives:
1. Address the three components of strategy
2. Run a strategy development process, with purpose & posture
3. Plan for the level of uncertainty
4. Define the basic question
5. Build strategy architecture
6. Develop the full set of ‘how’
7. Put structure into innovation
Process for generating options: MECE
Mutually Elements do not
Think of an
organisation chart
overlap
Exclusive
Collectively Elements add back up
to the whole
Exhaustive
MECE Trees
Diagnostic method
like damage to
contact cause Check head
due to the head
some other
external non-contact like air pressure
other Check barometer
cause
that has a like ‘flu Run lab tests
physical infection
other
cause such as a
due to tumour Order x-ray
I can such as
some brain problem Check clinical texts for
address the water on the
internal diagnostic method
acute pain brain
in my other cause other
patient’s
of stress Ask diagnostic questions
head that has a
mental of hypochondria Check medical records
cause
of other
Adapted from Andersen Consulting training
How to use MECE
1. Identify the ‘basic question’
2. Start the MECE tree assuming that you can solve the basic question
3. Build the MECE tree by asking “what are all the ways it could be done?”
4. Do not evaluate – create all the possibilities first
5. Then test for feasiblity
MECE tree for increasing school attendance
Stakeholders can be
added to all the ‘leaves’ Some options
for students
using new parents
rewards for non- Cash incentive to parents
through students church
incentives other
with education as Increase awareness – celebrity campaign on
building its own reward ‘school is cool.’
on current
with rewards additional to
Increase current attendance awards e.g.,
respect to purely education
iPods for full attendance
‘chosen’ rewards
attendance using new Parental ‘letters of council action’
through ‘sticks’
punishment with ‘lack of Bring in poorly educated adults to tell their
education’ as its own story
• We can building on stick
increase current
school ‘sticks’ additional to ‘lack
of education’ Increase current punishments
attendance
sticks
related to
education
that is legal
not related to
with education
respect to related to Increase health provision in schools so sick
‘forced’ that is not health students can attend
attendance legal not related
to health
Agenda
Your needs, your starting point
The imperatives:
1. Address the three components of strategy
2. Run a strategy development process, with purpose & posture
3. Plan for the level of uncertainty
4. Define the basic question
5. Build strategy architecture
6. Develop the full set of ‘how’
7. Put structure into innovation
Where do good strategies come from?
The Ashridge Model
Clever research of a Inventive and ‘stand out’
winning formula responses
Analysis Creativity
Venturing &
Learning
Acting and adapting
© Hult EF Corporate Education 2022 to what you find
We need a portfolio of initiatives
© Hult EF Corporate Education 2022
Value Innovating: Four Basic Questions
Reduce
What factors should be reduced well below the industry standard?
Eliminate Create
What factors should be What factors should be
Value
eliminated that the industry created that the
Innovation industry has never offered?
has taken for granted?
What factors should be raised well beyond the industry standard?
Raise
© Hult EF Corporate Education 2022
Value Curves: easyJet vs. Flag Carriers
Meals
Ability to buy from distribution channel of choice
New airlines
Business class
Seat Space
World-wide network
Frequent flyer miles
Cleanliness
Punctuality
Flexibility to change flights
Seat selection (advance)
Refunds for missed flights easyjet
Low price one way fares
Flag Carriers
LOW HIGH
Value to customer
© Hult EF Corporate Education 2022
