The Future of Strategy Singapore, May 14, 2015 Dr. Martin Fabel - - PowerPoint PPT Presentation

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The Future of Strategy Singapore, May 14, 2015 Dr. Martin Fabel - - PowerPoint PPT Presentation

Nov 26, 2022 276 likes •491 views

A Transformative Approach to Strategy for a World that Wont Stand Still The Future of Strategy Singapore, May 14, 2015 Dr. Martin Fabel Today strategy has mostly disappeared absorbed in the frantic efforts to pursue or fix

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  • Dr. Martin Fabel

Singapore, May 14, 2015

The Future of Strategy

A Transformative Approach to Strategy for a World that Won’t Stand Still

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A.T. Kearney xx/00000/Unique Identifier

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Today strategy has mostly “disappeared” – absorbed in the frantic efforts to pursue or fix competitive advantage

Scientific Management

Doing 1968 ~ 1995

Strategy Heydays

Change Management

Source: A.T. Kearney FutureProof

Strategy = doing

Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management Competitive Strategy Making it Happen Change Management

?

Strategies for Everything

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A.T. Kearney xx/00000/Unique Identifier

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How do you perceive strategy formulation today compared to the level of difficulty ten years ago?

Level of difficulty in formulating strategy over the last decade

  • C. More challenging

16.4% 9.8% 73.8%

  • A. Easier
  • B. Stayed the same

Source: CARI ABC Forum in Singapore, May 2015, n=61

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A.T. Kearney xx/00000/Unique Identifier

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How much time do you spend for strategy formulation today relative to time consumption ten years ago?

Time spent formulating strategy

  • C. More than before

10.7% 21.4% 67.9%

  • A. Less than before
  • B. Stayed the same

Source: CARI ABC Forum in Singapore, May 2015, n=56

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A.T. Kearney xx/00000/Unique Identifier

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Across the board, companies feel that strategy formulation has become more challenging and time consuming

N=2,010

62%

More challenging

21%

Stayed the same

17%

Easier

Level of difficulty

in formulating strategy over the last decade 74%

More than before

22%

Stayed the same

4%

Less than before

Time spent

formulating strategy

Source: A.T. Kearney 2013/2014 strategy study, n=2,010

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A.T. Kearney xx/00000/Unique Identifier

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How long is the strategy cycle of your company?

Length of strategy cycles

  • B. <2 years

25.9% 38.9%

  • C. 3-5 years
  • A. Ad-hoc

31.5%

  • D. >5 years

3.7%

Source: CARI ABC Forum in Singapore, May 2015, n=54

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A.T. Kearney xx/00000/Unique Identifier

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How has the strategy cycle of your company changed over the last ten years?

Evolvement of strategy cycles in the last decade

  • B. Stayed the same

4.4% 24.4%

  • C. Lengthened
  • A. Shortened

71.1%

Source: CARI ABC Forum in Singapore, May 2015, n=45

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A.T. Kearney xx/00000/Unique Identifier

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Despite these efforts, strategy cycles have shortened and typically now span less than two years

N=2,010

Strategy cycles are short… …and they are becoming even shorter 6% 25% 63% 6%

>5 years 3-5 years <2 years Ad-hoc

13% 45%

Shortened Lengthened

42%

Stayed the same

Length of strategy cycles Evolvement of strategy cycles in the last decade

Source: A.T. Kearney 2013/2014 strategy study, n=2,010

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A.T. Kearney xx/00000/Unique Identifier

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How satisfied are you with your company strategy overall?

Satisfaction rates of strategies

  • B. “Exceed expectations
  • n some fronts”

10.5%

  • A. “Exceed

expectations” 21.1%

  • D. "Don't deliver
  • n some fronts"
  • C. "Meet all

expectations" 60.5% 2.6% 5.3%

  • E. "Fail broadly"

Source: CARI ABC Forum in Singapore, May 2015, n=38

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A.T. Kearney xx/00000/Unique Identifier

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Despite these efforts, strategy increasingly fails to win where it matters most: in the organization

Exceeds all Exceeds some Meets all Don't deliver on some Fail broadly

Satisfaction rates of strategies C-Suite Management

1% 19% 30% 33% 18% 1% 47% 22% 26% 4% C-Suite satisfaction 81% Organizational doubt 48%

N=2,010

Source: A.T. Kearney 2013/2014 strategy study, n=2,010

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A.T. Kearney xx/00000/Unique Identifier

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Many smart “ersatz” strategies promise relief – but none of them provides a true substitute for strategy

Leadership and Values Autarkic Approaches Slicing the strategic cake The next best thing to strategy

Source: A.T. Kearney FutureProof

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A.T. Kearney xx/00000/Unique Identifier

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From outside-in and inside-out analyses to From cascading strategies down to From single linear strategy to managing

FutureProof methodology centers on three principles, building

  • n our experience and the latest strategy trends

FutureProof Strategy “Future-in strategic inspiration”

+

“Organizationally inclusive” “Life-cycles of competitive advantages”

+

Source: A.T. Kearney FutureProof

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A.T. Kearney xx/00000/Unique Identifier

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High (exponential) Low (linear) High Low Potentially disruptive competitive impact Unavoidable competitive impact Competitive disruption watch list

E-governance / e-documents

Tighter Delivery SLA demands

Speed of Change Competitive importance

Lower productivity

  • f brick and mortar

enterprises Growth in Africa International trade growth Decline of traditional post Advancement of IT capabilities

Park

Strategic Input Leadership Decision

M-payment, e-banking growth E-commerce growth Sophisticated value added services

Source: A.T. Kearney FutureProof

Cost pressures / price wars Consolidation

  • f logistics

providers – M&A

security

Future focused approaches such as Scenario Planning and Foresighting provide the starting point for strategy formulation

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A.T. Kearney xx/00000/Unique Identifier

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Technology-enabled inclusion allows for new levels of

  • rganizational and even customer engagement

Interaction One to one executive interviews Executive alignment meetings Technology enabled Co-creation sessions Empowered Working Groups Use of Social Media (Yammer) Voice of the Customer / Vendor Executive team (~25) “Engaged Coalition” (~55) All Client employees (~1,000) Key customers Key vendors

Organizational inclusion

Source: A.T. Kearney FutureProof

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A.T. Kearney xx/00000/Unique Identifier

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Which FutureProof Pillar is most relevant for your organization?

  • B. Organizationally

Inclusive 29.0%

  • A. Future-in Inspiration

29.0%

  • C. Portfolio of

Competitive Advantages 41.9%

Source: CARI ABC Forum in Singapore, May 2015, n=31

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A.T. Kearney xx/00000/Unique Identifier

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Writing a new chapter in the history of strategy

Exclusivity & Monopolies Scientific Management Strategy Heydays Strategic Proliferation

1900 1968 1995

Today

The history of business strategy

Future Proof

What are your thoughts on FutureProof?

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A.T. Kearney xx/00000/Unique Identifier

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For further information on FutureProof, please do not hesitate to contact Martin

  • Dr. Martin Fabel

E-Mail: martin.fabel@atkearney.com Mobile: +971 55 412 0007 LinkedIn: Martin’s LinkedIn profile Web: https://www.atkearney.com/strategy/futureproof-strategy

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A.T. Kearney xx/00000/Unique Identifier

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