Got Growth: How to position your organization for Strategic Growth and Business Model Renewal?
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The document outlines a framework for developing and implementing a growth strategy, including assessments of past strategies and identifying new growth opportunities. It emphasizes the importance of aligning the organization with the growth process and outlines key aspects to consider, such as market assumptions and financial forecasting. Additionally, it suggests various ways to reinvent business models and strategies to capture new markets.
Got Growth: How to position your organization for Strategic Growth and Business Model Renewal?
- 1. Got growth? How to develop and implement your new growth strategy workbook
- 3. 1 Got growth? 2 Where’s the beef? 3 Show me the money. Copyright © iStile / Sniukas 2013 3
- 4. 1 Got growth? Is your company ready for growth? Where to grow? Copyright © iStile / Sniukas 2013 4
- 5. 1 Got growth? Is your company ready for growth? Where to grow? Copyright © iStile / Sniukas 2013 5
- 6. Past Strategy Assessment Checklist. Strategy Was the past growth strategy feasible? Was the strategy built on the organizational SCA? Was the strategy granular about where to compete? Did the strategy put the enterprise ahead of trends and discontinuities? Did the strategy took into account privileged insight and foresight? Had the organization allowed enough flexibility in the strategy for it to absorb sudden and unavoidable internal and external changes? Were strategic growth alternatives evaluated without bias or false inference? Did the strategy balance high-commitment choices with flexibility and learning and clearly outlined “go” / “no go” decision making posts? Copyright © iStile / Sniukas 2013 6
- 7. Past Strategy Assessment Checklist. Systems & Tools Implementation Had the organization dedicated Was there true conviction to act? the necessary resources and What percentage of the past time to properly execute it? business growth plan had been put Had the organization utilized the in action? proper mix and balance of Were the organizational / tactics? professionals’ strengths and What is the ROI on the various weaknesses aligned with the initiatives and at what level selected strategy delivery tactics? should the organization continue To what is the “the knowing – doing to invest in them, if at all? gap” attributable? Does the organization have the proper measuring mechanisms in place to help executives evaluate the effectiveness of the business growth strategy? Copyright © iStile / Sniukas 2013 7
- 8. 1 Got growth? Is your company ready for growth? Where to grow? Copyright © iStile / Sniukas 2013 8
- 9. New Products Services New Existing Business Models Existing Markets Customer Segments Copyright © iStile / Sniukas 2013 9 Source: Sniukas (2012).
- 10. 2 Where’s the beef? Finding opportunities for new growth. Developing ideas for seizing these opportunities. Copyright © iStile / Sniukas 2013 10
- 11. 2 Where’s the beef? Finding opportunities for new growth. Developing ideas for seizing these opportunities. Copyright © iStile / Sniukas 2013 11
- 12. Where to look for opportunities? Financial Performance Internally Sales & Market Share Profitability Strengths and Weaknesses Economic Value Performance Service Quality Strategic determinants Cost Structure New Service Activity Human Capital Past and Current Strategies Strategic Problems Organizational Capabilities Financial Capabilities …. Copyright © iStile / Sniukas 2013 12
- 13. Where to look for opportunities? Externally IDENTIFICATION Opportunities and Threats EXTERNAL Trends / Future events ANALYSIS Threats / Opportunities Clients Strategic uncertainties Markets Competitors Environment STRATEGIC DECISIONS ANALYSIS Where to compete Information–need areas How to compete Scenario analysis Basis of competition Copyright © iStile / Sniukas 2013 13
- 14. Where else to look for opportunities? Externally Non-Customers Jobs to Be Done Barriers to Consumption Unarticulated Needs Copyright © iStile / Sniukas 2013 14
- 15. Where and how to look for opportunities? Internally Externally Strengths and Weaknesses Opportunities and Threats Copyright © iStile / Sniukas 2013 15
- 16. 2 Where’s the beef? Finding opportunities for new growth. Developing ideas for seizing these opportunities. Copyright © iStile / Sniukas 2013 16
- 17. Structuring Strategic Decisions including Innovation. Competitors Strengths & Weaknesses Market Needs, Organizational Attractiveness, & Strengths & Key Success Weaknesses Factors Strategic Decisions Functional Area Functional Area Strategies Strategies Innovation Sustainable Sustainable Strategic Strategic Competitive Competitive Investment Investment Advantage Advantage Copyright © iStile / Sniukas 2013 17
- 18. 25 ways to reinvent your business model. WORKS ACROSS THE BUSINESS VALUE PROPOSITION #10 Offer complementary products and services #1 Challenge industry assumptions #11 Offer solutions and experiences #2 Look at completely different industries #12 Offer bundles #13 Switch your appeal: functional versus emotional #14 Focus on the job to be done CUSTOMERS #14 Selectively eliminate, reduce, raise and create #3 Target non-customers #15 Look at subsitutes #4 Target less profitable customers #16 Expand the use of your assets and capabilities #5 Target the least satisfied customers #18 Look at the customer experience #6 Target the chain of buyers HOW YOU DO BUSINESS #7 Segment according to commonalities #19 Reinvent the customer interface (channels) #8 Segment according to circumstances #20 Reinvent your customer relationships #9 Desegment the customer based #21 Invent new revenue streams #22 Price differently #23 Reinvent you cost base #24 Re-assess your key activities #25 Collaborate with suppliers, partners, the network and ecosystem Copyright © iStile / Sniukas 2013 18 Source: Sniukas (2010).
- 19. 3 Show me the money. Is there really a market for our idea? Let’s launch! Copyright © iStile / Sniukas 2013 19
- 20. 3 Show me the money. Is there really a market for our idea? Let’s launch! Copyright © iStile / Sniukas 2013 20
- 21. What are your assumptions checklist? About the business model About developing the Cost, assets, revenue streams, product/offering timing Development time and cost Major obstacles and feasibility of Functional characteristics related to overcoming them the market About the market About competition Who will buy and why: quantity, Advantage compared to competitive continuity, frequency products/services/business models How the customer segments will Duration of advantages behave Type of competition that will be faced Market growth rate Likely competitive response Cost and time to achieve target About manufacturing/production volume or market share Ability to control cost and quality Distribution channels and access to Service requirements and cost them Ability to produce at required scale Price, product, functionality, service, Availability of people with required marketing knowledge and skills Copyright © iStile / Sniukas 2013 21
- 22. What are your assumptions checklist? About the financials Development time and cost Cash required to reach cash break even Daily, weekly, monthly break evens Breakdown of the numbers into actionable pieces Investment required for profit and loss break even, to reach profit objectives Gross and net margins Time required to achieve above Cost, profit and loss at varying volume levels Copyright © iStile / Sniukas 2013 22
- 23. 3 Show me the money. Is there really a market for our idea? Let’s launch! Copyright © iStile / Sniukas 2013 23
- 24. Align the organization with the growth process to create a Business Growth Engine. AWARENESS EDUCATION SALE LOYALTY SUPPORT TOOLS GROWTH STRATEGY SYSTEMS SKILLS Copyright © iStile / Sniukas 2013 24
- 25. The Business Growth Engine has multiple and constantly evolving parts. AWARENESS EDUCATION SALE LOYALTY SUPPORT Markcom Thought Sales Loyalty TOOLS Platforms Leadership Processes Programs GROWTH STRATEGY ERP Sales Incentives Intelligence Systems Pipelines Schemes SYSTEMS SKILLS Strategy Advisory Business Client Skills Skills Growth Service Copyright © iStile / Sniukas 2013 25
- 26. How to implement your strategy? Copyright © iStile / Sniukas 2013 26 Gary L. Neilson, Karla L. Martin, Elizabeth Power: The Secrets to Successful Strategy Execution, Harvard Business Review, June 2008
- 27. Get in touch! mira@istile.com marc@doujak.eu Copyright © iStile / Sniukas 2013 27
- 28. Recommended Reading Kim and Mauborgne “Blue Ocean Strategy”, Harvard Business School Press, 2005 “The Innovator's Solution: Creating and Sustaining Successful Growth”, Harvard Business School Press, 2003 Gary L. Neilson, Karla L. Martin, Elizabeth Power: The Secrets to Successful Strategy Execution, Harvard Business Review, June 2008 Deniz Caglar, Jaya Pandrangi, and John Plansky, Is Your Company Fit for Growth?, Strategy + Business, Summer, 2012 http://www.istile.com/ http://www.sniukas.com/ Copyright © iStile / Sniukas 2013 28