Make_Strategy_Work
- 1. Make/Strategy/Work Confidential information 1 Make/Strategy/Work Adriaan Zijlstra adriaanzijlstra@bergtc.nl 06-51071131
- 2. Make/Strategy/Work Confidential information 2 Introduction : Day-to-day operations and activities absorb so much time that only few take (enough) time to review and plan for future succes : It pays to spend (more) time on formulating a crisp and authentic vision and mission statement : The speed at which our business environment changes brings the cycle times of Strategy Development and Strategy Execution closer together. There is a value in integrating these processes (to a certain level) : For a succesfull strategy, do your homework first : The importance of thought-through tactics is enormous, yet often overseen when executing a strategy. : Nothing can beat a team in charge of a mission it truly believes in How can we help you to do better?
- 3. Make/Strategy/Work Confidential information 3 Delivery to a vision Opportunity to do even better “Only few companies have a mission statement in line with what employees believe and customers see” “Too many companies have a mission statement lacking goals and strategic planning” “Any company can improve it's (commercial) bottom line within 4 months” MAKE / STRATEGY / WORK
- 4. Make/Strategy/Work Confidential information 4 propose (or review) mission; set goals formulate strategy and tactics examine int. and external issues summarize findings and make SWOT Input from strategy or review results execute analyse (org.) gap develop operational plan, set targets 3-5 years cycle: Strategic planning cycle: 1 year cycle Execution cycle: Is your strategy crisp and clear and future proof? Do you have an operational plan with clear measurable targets? Does your operational plan deliver to your strategy? Is your execution cycle aligned with your strategic planning cycle ? 2 critical processes for any organisation.... Strategic planning and execution
- 5. Make/Strategy/Work Confidential information 5 ..but terminology is often confusing Understand┴aim┴release Vision Mission Strategy Tactics Strategic planning Execution 1. UNDERSTAND 3. RELEASE 2. AIM The basic principle to plan for success: 1. You need to understand where you want to go and why (UNDERSTAND) 2. You need to plan how you can get there and what is needed to get it done (AIM) 3. You need to act to your plan: execute and monitor (RELEASE) So how does this relate to commonly used terminology? Leading to:
- 6. Make/Strategy/Work Confidential information 6 Make/Strategy/Work A pragmatic, sustainable way to improve the performance of your organisation Make/Strategy/Work performance improvement process: What is on your mind? How and what are you doing today? Create your strategy Prepare for delivery Understand Aim & Release identify clarify develop strategy develop tactics Execute implement 1. mission 2. int &ext. analysis 3. strategic choices + lt targets & actions : Execution integrated with strategy (update) to assure delivery to the mission : thorough preparation of the organisation for succesful execution Increasing cycle time
- 7. Make/Strategy/Work Confidential information 7 Why and where do we (need to) break in? Identify and clarify What is on your mind: -(better) performance? -(more) growth? -(unclear) future? -(more) fun? -............... How you are doing today: - Where do you want to go? what is your vision - How do you get there? what is your strategy? - What defines success? what goals and targets have your set? - How did you do? what did you learn so far? Before addressing a new strategy, we need to understand your business first: tool: business model canvas
- 8. Make/Strategy/Work Confidential information 8 Thinking through what you want and know Develop your strategy What is your mission? Does it fulfill a market need? Is it in line with your ‘why’ and recognized by the organization? Do you have the capabilities to deliver to that mission? 1. Start with Why: (re)define your mission 2. Do your internal and external analysis: what you know, but not always think through? 3. Make your strategic choices and define your actions to deliver to the strategy; define ambition level and goals - every year - inform and involve the whole organization ............. ... How does our Porter analysis look like? What is our market leaders hip model? What opportu nities do we see to accelera te growth Who are our strategi c partners ? ............. ... What is the maturity of our product portfoli o What is our pricing structur e? How do we set prices? Who sets prices? How do we allocate costs? Does our strategy change if we change this? What is our brandin g strategy ? Do we need (to protect) IP Who are our competi tors, what is their VP? What is their cost level .... What is our commu nication strategy ? What could be disrupti ve technol ogies? What will be the future needs of our custom ers? How does our product portolio look like? Where do we need to innovat e? PESTEL and SWOT What is our purchas ing strategy ? What are the dynami cs in the value chain? Who is value chain captain ? Where do we want to be? Who are our strategi c custom ers? How profitab le are they? How do we segmen t them? How do we we perform financia lly? How does our financia l waterfal l look like? How do we do today? What works well, what are challengesand what changes do we see in our environment What will be the effect on our business in the future: what will be our strategic challenges? Seeappendix1Seeappendix2 Product x Deliver to promise Focus on key winning customers Capturing new markets Responsive and cost effective organization Build & empower regions Customer first program Innovation speed Application y EBIT Innovation sales culture change (Avoid) price erosion Program & Portfolio management New-product portfolio & know why Quality Market Intelligence IA Price elasticity Sustain global market leadership = key project Costs ....... Joint developme nt SHE&S M&S excellence Emerging economies …….. Low cost Seeappendix3
- 9. Make/Strategy/Work Confidential information 9 Setting up for succesfull execution Develop your tactics • Before you go to a customer ACCOUNT PLANNING How do you assure a succesfull deal with this customer? Who am I competing with and what is his price point at this specific customer? What is my share of wallet, where do I want it to be by the end of this year? Who are my key stakeholders, what is their position and what makes them choose for us? ..... • Before you start a project PROJECT PLANNING What is the scope of the project? When does it needs to be ready? Where is the risk and what can I do upfront to mitigate this risks? How do I assure flawless passing from design and engineering to implementation? Who do I want to have in the team, who not? ....... • Before you start manufacturing PRODUCT PLANNING What are the key resources I need and how do I secure them? What flexibility do I need and what will I do in situations of over or under capacity? How do I deal with break downs or a sudden change in produict portfolio?....... • .................... Now you have an overarching strategy, sit down and make it case- specific before getting into action. Improve everytime you cycle!
- 10. Make/Strategy/Work Confidential information 10 No excuse to loose Execution • Commit to the commitment Nothing goes as planned. Have a culture that sees this as an opportunity instead of an excuse • Beat the good is good enough barrier; keep your head in the game Nothing goes as planned and the business environment is evolving also. Continuously aim for more than planned • Be happy there is competition (and keep an eye on them) Without (adequate) competiton, customers are much more reluctant to buy, so be happy they are there and be respectful. • Monitor, learn and adjust where necessary Monitor performance and output on a regular basis and compare with your original plan. Make sure you use the right metrics. Adjust when needed / when possible. • Keep all stakeholders in the loop There is no value in being secretive about what everybody is going to know anyway Rigorlously execute what you have planned!
- 11. Make/Strategy/Work Confidential information 11 Adriaan Zijlstra adriaanzijlstra@bergtc.nl 06-51071131 Do what you love, love what you do End v