What is strategy?

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The Economist
“Nobody really knows
what strategy is.”
Version 3.2 March 20111 © Marc Sniukas

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What is Strategy?
A (very) brief introduction.

Why do we need a strategy?
§  Without a strategy, we fill our time with…
… what we want, or
… what we think the boss want...

Five Definitions
Strategy as…
§  a consciously and purposefully developed plan;
§  a ploy to outmaneuver a competitor;
§...

Mintzberg‘s 10 Schools
§  Being unsatisfied with the strategy discussion, Henry Mintzberg, professor
at McGill University...

Mintzberg‘s 10 Schools
Prescriptive
§  Design
§  Planning
§  Positioning
Descriptive
§  Configuration
§  Cognitive
§...

Mintzberg‘s 10 Schools : The 3 Prescriptive ones
Design School
§  Strategy as a process of conception
§  Goal = Achievin...

Mintzberg‘s 10 Schools : The 3 Prescriptive ones
Planning School
§  Strategy as a formal process
§  Takes on most of the...

Mintzberg‘s 10 Schools : The 3 Prescriptive ones
PositioningSchool
§  Strategy as an analytical process
§  Generic posit...

Mintzberg‘s 10 Schools : The 7 Descriptives ones
Configuration School
§  Strategy as a process of transformation
§  Proc...

Mintzberg‘s 10 Schools : The 7 Descriptives ones
Cognitive School
§  Strategy as a mental process and creative interpreta...

Mintzberg‘s 10 Schools : The 7 Descriptives ones
Cultural School
§  Strategy as a social process rooted in the company‘s ...

Mintzberg‘s 10 Schools : The 7 Descriptives ones
Entrepreneurial School
§  Strategy as a visionary process
§  Intuition
...

Mintzberg‘s 10 Schools : The 7 Descriptives ones
Environmental School
§  Strategy as a reactive process
§  Influenced by...

Mintzberg‘s 10 Schools : The 7 Descriptives ones
Learning School
§  Strategy as an emergent process
§  Organisational Le...

Mintzberg‘s 10 Schools : The 7 Descriptives ones
Power School
§  Strategy as a process of negotiation
§  Micro vs Macro,...

Dimensions of Strategy
Process, Content, Context
Version 3.2 March 201118 © Marc Sniukas
“Strategy: Process, Content, Cont...

Strategy Process
Version 3.2 March 201119 © Marc Sniukas
“Strategy: Process, Content, Context” 3rd edition De Wit & Meyer ...

Strategy Formation
Version 3.2 March 201120 © Marc Sniukas
“Strategy: Process, Content, Context” 3rd edition De Wit & Meye...

Realized Strategy
Strategy Formation Activities
Version 3.2 March 201121 © Marc Sniukas
“Strategy: Process, Content, Conte...

Strategy Content
Version 3.2 March 201122 © Marc Sniukas
“Strategy: Process, Content, Context” 3rd edition De Wit & Meyer ...

Strategy Context
Version 3.2 March 201123 © Marc Sniukas
“Strategy: Process, Content, Context” 3rd edition De Wit & Meyer ...

Strategic Tensions
Version 3.2 March 201124 © Marc Sniukas
Dimension Topic Tension
“Strategy: Process, Content, Context” 3...

Setting Strategy
A great strategy has pieces,
…but they form a coherent
whole!
Version 3.2 March 201125 © Marc Sniukas

“Are you sure you have a strategy?” Donald C. Hambrick and James W. Frederickson Academy of Management Executive 2001 Vol....

The five major elements of strategy
Arenas
Staging
Differentiators
VehiclesEconomic Logic
Version 3.2 March 201127 © Marc ...

The five major elements of strategy
Economic Logic
Arenas
Staging
Differentiators
Vehicles
Where will we be active?
How wi...

The five major elements of strategy
Strategy is an integrated set of choices.
§  Arenas Where will we be active?
§  Vehi...

The five major elements of strategy
Arenas: Where will we be active?
§  With how much emphasis ?
§  Which product catego...

The five major elements of strategy
Vehicles: How will we get there?
§  The means for attaining the needed presence in th...

The five major elements of strategy
Differentiators: How will we win?
§  The reasons that customers will choose us
§  Im...

The five major elements of strategy
Staging: What will be our speed & sequence of moves?
§  Driven by availability of res...

The five major elements of strategy
Economic Logic: How will we obtain our returns?
§  How profits will be generated, abo...

The five major elements of strategy
Economic Logic: How will we obtain our returns?
§  What generates cash ?
§  What dec...

Testing the Quality of Your
Strategy
Version 3.2 March 201136 © Marc Sniukas

Some key evaluation criteria
Does your strategy fit within what’s going on in the environment?
Does your strategy exploit ...

Some key evaluation criteria
§  Does your strategy exploit your key resources & capabilities?
With your particular mix of...

Putting strategy in its place
Strategic Analysis
§ Industry Analysis
§ Customer/marketplace trends
§ Customer activity ...

What drives competition in the industry?
Porter’s Five Forces
Suppliers
Potential Entrants
Buyers
Substitutes
The Industry...

What drives competition in the industry?
Porter’s Five Forces
Version 3.2 March 201141 © Marc Sniukas
“Strategy: Process, ...

Anything else?
Version 3.2 March 201142 © Marc Sniukas
“Strategy: Process, Content, Context” 3rd edition De Wit & Meyer Th...

Let’s move from the industry to the business!
Suppliers
Potential Entrants
Buyers
Substitutes
The Industry
Version 3.2 Mar...

Industries, Markets and Businesses
Version 3.2 March 201144 © Marc Sniukas
“Strategy: Process, Content, Context” 3rd editi...

Business System, Model & the value chain
§  A business system is the chain of activities through which a product is
devel...

What’s your business model?
Version 3.2 March 201146 © Marc Sniukas

The Business Model: 9 Building Blocks
§  What‘s your value proposition?
§  Who are your customers? Which customer segmen...

Analyzing your company’s
value chain
Version 3.2 March 201148 © Marc Sniukas

The Activity System
Value Chain
§  An activity system is an integrated set of value creation processes leading
to the sup...

The Activity System
Primary and Support Activities
Primary
Activities
Inbound Logistics
Operations
Outbound Logistics
Mark...

Implementing Strategies
What matters most to Strategy Execution
Building a Strategy-Focused-Organization
The Balanced Scor...

Putting strategy in its place
Strategic Analysis
§ Industry Analysis
§ Customer/marketplace trends
§ Customer activity ...

What matters most to Strategy Execution?
Information Decision
Rights
Motivators Structure
Version 3.2 March 2011© Marc ...

What matters most to Strategy Execution? Ranking
1.  Everyone has a good idea of the decisions and actions for which he or...

Aligning & Focusing Resources on Strategy
Business Units Executive Team
Information
Technology
Balanced
Scorecard
Human
Re...

The Principles of a Strategy-Focused-Organization
Balanced
Scorecard
Strategy
Mobilize Change through
Executive Leadership...

Learning &
Growth
Perspective
Internal
Perspective
Customer
Perspective
Financial
Perspective
Organizational Capital
Infor...

Financial Perspective
Long Term
Shareholder Value
Productivity Strategy
Improve Cost
Structure
Increase Asset
Utilization
...

Internal Perspective
The strategic priorities for various business processes, which create customer and shareholder satisf...

Strategic Internal Processes
Internal Process
Strategy
Operations
Management
Processes
Customer
Management
Processes
Innov...

Operations Management
Strategies for Achieving Operational Excellence
Supply Production Distribution Risk Mgmt
§  Develop...

Customer Management
Strategies for Increasing Customer Value
Selection Acquisition Retention Growth
§  Understand segment...

Customer Management
Strategies for Increasing Customer Value
§  Empower front-line employees with
information they need
§...

Innovation Management
Strategies for Building the Franchise
Identify
Opportunities
R&D portfolio
mgmt
Design &
Development...

Regulatory & Social
Strategies for Being a Good Corporate Citizen
Environment Safety & Health Employment Community
§  Ene...

Learning & Growth Perspective
The priorities to create a climate that supports
organizational change, innovation, and grow...

The Balanced Scorecard
Vision
&
Strategy
Financials
Processes
Learning,
Innovation
& Growth
Customers
Long term
Internal
S...

Strategy Map Balanced Scorecard Action Plan
Perspective Objectives Measurement Target Initiative Budget
Financial Profitab...

Want more?
Version 3.2 March 2011© Marc Sniukas73

www.sniukas.com
Version 3.2 March 2011© Marc Sniukas74

Download this presentation
as PowerPoint file.
Visit:
www.e-junkie.com/sniukas
Version 3.2 March 2011© Marc Sniukas75
€ 2....

A presentation by Marc Sniukas
www.sniukas.com
Version 3.2 March 2011© Marc Sniukas76
Marc is a partner at Doujak Corporat...

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