Strategic Planning Stuff Keeping an Eye on Your World 2019 Why Are - - PowerPoint PPT Presentation
My Favorite Strategic Planning Stuff Keeping an Eye on Your World 2019 Why Are We Here? "Companies that are doing well tend to continue to do well, and companies that are doing poorly tend to continue to do poorly. -
2019 “Keeping an Eye on Your World”
My Favorite Strategic Planning Stuff…
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@armadacorpintel
2019
www.armada-intel.com
Why Are We Here?
"Companies that are doing well tend to continue to do well, …and companies that are doing poorly tend to continue to do poorly.“
1/8/19!
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@armadacorpintel
2019
www.armada-intel.com
Here’s what I hear…and what you know, right?
– Employment – Growth good – Detractors tame – Consumers strong – Investment still strong
– Tariffs – Brexit – Shutdown impact
10-1
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@armadacorpintel
2019
www.armada-intel.com
Strategy is Part Art, Part Science
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@armadacorpintel
2019
www.armada-intel.com
Most companies start with the “Basics”? The Situation Analysis.
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@armadacorpintel
2019
www.armada-intel.com
Harsh Reality. Take a simpler approach…
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@armadacorpintel
2019
www.armada-intel.com 7 Significant Changes within the Company
Negative ➢ ➢ ➢ ➢ ➢ Positive ➢ ➢ ➢
Important Changes in the Marketplace/Technology
➢ ➢ ➢ ➢ ➢ ➢ ➢
Noteworthy Changes in the Competitive Environment
➢ ➢ ➢ ➢
Summary (has our market position improved, decayed, stayed about the same? Why?)
➢ ➢ ➢ ➢ ➢ ➢
Industry Realities – Total Corporation 1
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@armadacorpintel
2019
www.armada-intel.com
But, Be Honest for a Second…
analysis each year?
strategic planning? Is it an annual cycle? Let me take you back…
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@armadacorpintel
2019
www.armada-intel.com
Flash back to 2H 2017…
July August September October November December January
Situation Analysis Planning Meetings Setting Budgets Roll-Out Tax Reform ELDs First Major Hints
Shapers of 2017 Environment
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@armadacorpintel
2019
www.armada-intel.com
What’s coming…look at just 4 things…
February March April May June July August
Brexit Decision Big change in the dollar? Tariff Wars intensify
Hard Brexit 2.9%+ 2%- No Brexit Soft Brexit No Decision
Asian Tiger Recovery.
Intensification New Deal – Open Trade Slightly Better Deal Global PMI Improves China Surges 4 tigers Worsen China Dives
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@armadacorpintel
2019
www.armada-intel.com
Dynamic Changes coming fast…
every sector) feeling the transition…an example
1939
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@armadacorpintel
2019
www.armada-intel.com
More examples...
Ama Amazon, , Kiva Kiva Sy Systems ms
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@armadacorpintel
2019
www.armada-intel.com
There’s a New Paradigm in Strategic Planning… “Develop the next strategy when conditions have
every year(s). However, developing strategy by the calendar ignores what is happening in the
domestic or international circumstances have changed enough that the existing strategy is no longer viable.”
To do this, you need a continuous situation analysis
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@armadacorpintel
2019
www.armada-intel.com
Corporate Operating Environment / Strategy Old Paradigm New/Future Paradigm
Annual Planning Cycle
Point-in-time Situation analysis Strategic Planning Process Objective Setting Identify big Initiatives Budget Setting Measurement
Dynamic Planning
Continuous Situation Reporting
Scenario analysis, future-view storytelling SWAT Team Planning On-Demand as market conditions change…and warrant
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@armadacorpintel
2019
www.armada-intel.com
You Need a FLEX STRAT!!!
Continuous Situation Analysis Clear Objectives and Beliefs Flexible Strategy Understanding Capabilities and Limitations
These things can an chan ange ge.. ..
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@armadacorpintel
2019
www.armada-intel.com
Keep it continuous and you’ll know when to flinch, blink, and change your strategy.
Today 6Months 18Months 12Months
Most Likely Future
Here’s what we want to know…when is the market shifting – and where is it shifting to?
Alternative Future Quickly Identify the False Positives Alternative Future
Feint Event Event Event Gray Event Gray Event Gray Event Gray Event Gray Event Gray Event Neg Event Neg Event Neg Event Pos. Event Pos. Event Pos. Event Feint Event
Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise Noise1. What are the likely future scenarios? 2. Eliminate the noise. 3. Help executive teams know where markets are headed with enough time and certainty that they can act and get ahead of it.
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@armadacorpintel
2019
www.armada-intel.com
You need real-time briefings – something that analyzes the strategic-impact of events.
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@armadacorpintel
2019
www.armada-intel.com
Get in front of it. July 2018: Odd Global Manufacturing Cycle
50.0
Mexico 52.1 Brazil 50.5 Germany 56.9 Eurozone 55.1 US 58.1
60.0 Trend end
Ac Acceler lerating ing De Deceler lerating ing
France 54.9 UK 54.0 Japan 52.3
48.3 Taiwan 53.0 Canada 56.9 China 50.8
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@armadacorpintel
2019
www.armada-intel.com
Customer Value and Competition
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@armadacorpintel
2019
www.armada-intel.com
Historical Positioning of _________________
96 97 98 99 100 101 102 103 104 105 106 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109
Quality Cost
2015 2016 2017 2014
Inferior Offering Premium Offering Economy Offering Superior Offering
2013 2012 2011
Premium Leader?
Fair Value Zone
Emerging Premium Leader? Market Share Winner? Low Cost Leader? Middle of the Pack? What’s your corporate vision?
** Historical market position is an estimate. Axis is based on latest research wave.
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@armadacorpintel
2019
www.armada-intel.com
Decision Matrix vs. [Competitor]
Industry Importance
Target vs. [Competitor] Performance Target Co. Disadvantage Little Perceptible Difference Target Co. Advantage Fix
Fix (Low Priority)
Promote/Fix
Promote/Fix (Low Emphasis)
Low Baseline Conscious / Latent
to Understand
Accuracy
Accuracy
Promote
Promote (Low Emphasis)
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@armadacorpintel
2019
www.armada-intel.com
Competition: You need a perspective.
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@armadacorpintel
2019
www.armada-intel.com
Kotler Competitive Positioning Map
Market Leader Market Challengers
Leader $56B Wannabe $42B
Market Followers
XZZX $7.5B
Our co. $11B Nichers
Them $8B PKB $1.8B Growth Oriented Small Manuf. Small Focused Manuf. 1234 $23B BHM $1.5B Megacorp $100B
< $1B < $8B > $40B
OLO $19B PLP $9B DTG $4.5B XXX $20B WQD $5B XX $21B APL $8B Mega II $90B
Gross Revenues
Inner Circle Aspirations
ADR $8.5B
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@armadacorpintel
2019
www.armada-intel.com
Wichita Primary Competitive Market Map
Market Leader(s) Market Challengers Market Followers Nichers
Small Large
Can Change by Market, Geography, etc.
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@armadacorpintel
2019
www.armada-intel.com
Tulsa Primary Competitive Market Map
Market Leader(s) Market Challengers Market Followers Nichers
Small Large
Gas Firms
Can Change by Market, Geography, etc.
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@armadacorpintel
2019
www.armada-intel.com
Market Challenger Market Leader (Defense)
Position Defense (make impenetrable) Mobile Defense (Open New Markets) Preemptive Defense (Best Defense – Good Offense) Counteroffensive Defense (Hard Counterstrike) Contraction Defense (Exit the market) Flanking Defense (Protect the Flanks, fortify)
Source: Kotler (1996-2003)Market Leaders are always on the defensive…and will take
Market Leader Defense Strategies
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@armadacorpintel
2019
www.armada-intel.com
Market Challenger Market Challenger Large Competitive Target Large Competitive Target
Guerilla Attack (Cumulative Intermittent Attacks) Frontal Attack (Go after Competitor’s Core) Encirclement Attack (Grand Offensive) Flank Attack (Strength against Weakness) Bypass Attack (Build stronger resource base by attacking indirect markets) Source: Kotler (1996-2003)
Market Challenger Attack Maps
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@armadacorpintel
2019
www.armada-intel.com
Learn from the Market Leader…
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@armadacorpintel
2019
www.armada-intel.com
Vision: Were are we headed?
Who would you consider to be “Best in Class” in this area? ➢ Estimate of their annual revenue/size? ➢ Where do we rank in the sector? (If we don’t have the ability to rank – think about one of these categories: Upper third, Middle third, Lower third) ➢ Are we a Market Leader, Market Challenger, Market Follower, or Nicher? ➢ What special capabilities do they have that make them BIC? ➢ Think big, is there a “huge”, single move we could make to become BIC? ➢ Where are the biggest gaps that prevent us from being considered BIC alongside this competitor? ➢ Are there values that are absolutely non-negotiable in pursuit of BIC? ➢
BIC: Best-in-Class
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@armadacorpintel
2019
www.armada-intel.com
2003 – The “Red Ball of Death”
acquisitions totaling $5 billion.
– Impacted 80,000 workers and their families directly.
winners and losers over time.
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@armadacorpintel
2019
www.armada-intel.com
The Red Ball of Death – Department Stores
Macy’s Kohl’s Sears Bon Ton JC Penney Nordstrom Dillard’s Amazon
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@armadacorpintel
2019
www.armada-intel.com
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@armadacorpintel
2019
www.armada-intel.com
Where will PROFIT come from?
Increase Profits
Improve Productivity / Reduce Costs
Grow Revenue
Through Existing Assets Change Assets Cost Reduction / Automation Improve business mix (margin improvements) Raise prices or reduce discounts Improve current asset utilization / Automation Investment in technology / innovation Divest Assets – Redirect Focus New Markets New Services/Products Penetration of Current Markets Increase usage Take market share from competitors Sell to new customers or industry segments Convert non- users Sell new services to existing customers New services meeting needs of a completely new market
__% __% __% __% __%
Totals
__% __% __% __% __% __% __% __% __% __% __% __%
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@armadacorpintel
2019
www.armada-intel.com
Prioritization Chart
Ease of Implementation Strategic Label Simple Complex Evolutionary Revolutionary
Too easy to copy, probably a low priority but could become a table stake. Maybe expensive, but more difficult to follow. Some short term gains here. Expensive, but key to long term differentiation. Do these today.
Prioritization Chart – 2 Key Versions 8
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@armadacorpintel
2019
www.armada-intel.com
Prioritization Chart
Profit Potential Strategic Fit Low High Poor Strong
Prioritization Chart – 2 Key Versions 9
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@armadacorpintel
2019
www.armada-intel.com
Grow / Harvest / Shed
Invest and Grow
➢ ➢ ➢ ➢
Sustain (mild investment)
➢ ➢ ➢ ➢
Prove Viability (uncertain)
➢ ➢ ➢ ➢
Harvest (little or no investment)
➢ ➢ ➢ ➢ ➢
Withdraw/Spin-off/IPO/Divest
➢ ➢
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@armadacorpintel
2019
www.armada-intel.com
Getting to a Strategy…
quickly disappearing art.
best meat, freshest ingredients, providing the widest variety
fully personalize every burger.
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@armadacorpintel
2019
www.armada-intel.com To throw the perfect strike, you aim for pins 1 and 2,
World Class Customer Service / Recovery Good Partner / Easy to Do Business With Service Quality 1 2 3
Narrow your Focus: Throwing the Perfect Strike…
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@armadacorpintel
2019
www.armada-intel.com
Strategy and Destination
East Region 28% West Region 39% North Region 15% South Region 18%
2010 Forecast Revenue Mix 2013 Projected Revenue Mix
East Region 28% West Region 33% North Region 17% South Region 22%
Portfolio Diversification:
Introduce new products to reduce overall contribution of primary product line by 5% year-over-year.
Shift Regional Sales:
Utilize redistribution of sales personnel to shift product sales mix to regions with less competition.
Increase Brand Awareness:
Increase brand recognition and improve awareness through targeted advertising promotions and selected event management opportunities.
Revenue $x,xxxM Operating Income $xxxM EBITDA (%) $xxxM (xx.x%) Days Sales Outstanding xx $x,xxxM $xxxM $xxxM (xx.x%) xx xx% Increase $xxxM Increase $xxxM Increase – x Percentage Points Xx days improvement
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@armadacorpintel
2019
www.armada-intel.com
Drilling in to Initiatives
Initiative / Opportunity Ties to What Strategy? Who’s Going to Lead This Effort? What Quarter will we initiate it? Dependencies
Critical Success Factor
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@armadacorpintel
2019
www.armada-intel.com
Stop Doing List – To Free up resources
Activity Cost/Hours Responsible Person Other Areas Reliant upon this Activity Work-a-Round / Substitute Source / Automate? Likely Target Area for Redeploying Resources
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@armadacorpintel
2019
www.armada-intel.com
(Project Management Office) 14
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@armadacorpintel
2019
www.armada-intel.com
Accelerators…
Transformation Value Creation
Goal
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@armadacorpintel
2019
www.armada-intel.com
DUAL TRANSFORMATION – CONCEPT
Reposition today’s business to maximize its resilience Use unique skills and resources that give you an advantage Create tomorrow’s growth engine
Source: Innosight “Dual Transformation”(Transformation A) (Capabilities Link) (Transformation B) REPOSITION CREATE UTILIZE
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@armadacorpintel
2019
www.armada-intel.com
Strategic Punchlist:
what they value.
and be real about it. Be clear about what your view on competition is – Overmatch or Baryshnikov?
is OK.
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@armadacorpintel
2019
www.armada-intel.com
Leave you with a Harsh Reality: the Triad… Referee Dreamer Realist
CEO Pres., SVP, C-Suite CMO, CIO, CTO CFO, COO, CRO
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@armadacorpintel
2019
www.armada-intel.com
Questions?
Lo Love all e all Y’all !
Keith eith Pr Prath ther er kp kprath ther er#@ar #@armad madac aci. i.co com