Post on 15-Feb-2017
Strategy 301
Beyond the Basics
I. SETTING THE STAGE
Introduction
State of strategic planning & execution
Case for strategic planning & strategic management
Reference planning model and process
Agenda
2. CHANGING THE STATUS QUO
Two secrets
16 problems and how to avoid or remedy them
Making better decisions
Closure
Introduction
Promote effective planning andimplementation.
Instill a strategic planning and strategic management culture.
Avoid or remedy many common planning and implementation problems.
Help your organization make better strategic decisions.
Objectives
Tell us (in two sentences!):
Your name and role.
What you hope to gain from this workshop.
Who’s here?
Lee Crumbaugh, SMP
President, Forrest Consulting, Glen Ellyn, IL, USA (Chicago)
President, Association for Strategic Planning (2014-2016)
leec@strategicbusinessleader.com
www.forrestconsult.com
Presenter
Author AHEAD: Strategy is the way to a better future
and Strategic Thinking & Strategic Action blog.
Have served organizations in 50 industries.
Have held senior roles in banking, publishing,
associations and non-profits
Presenter
State of planning and execution today
planningSTRATEGIC
#1
Bain & Company Management Tools Survey, 2013
Strategic planning today
58% of leaders
Forrest Consulting Strategic Leader Survey, 2013
Strategic planning today
reality
That means 42% of leaders
Strategic planning today
and just 45%
Bain & Company Management Tools Survey, 2013
Strategic planning today
BIG FAILMany leaders don’t get it.
Strategic planning today
42% of leaders say
Forrest Consulting Strategic Leader Survey, 2013
Strategic planning today
74% of leaders say
Forrest Consulting Strategic Leader Survey, 2012
Strategic planning today
57% of leaders say
Forrest Consulting Strategic Leader Survey, 2012
Strategic planning today
70% of organizations
Balanced Scorecard Collective
Strategic planning today
60% of organizations
Balanced Scorecard Collective
Strategic planning today
The case
planningCASE FOR
SURVIVAL
The case
The case
GROWTH
The case
The case
The case
SUCCESS
The case
The case
The case
The case
The case
The case
The case
The case
Planning model and process
Gap planning model
“Fast Track” process
“Fast Track” process
“Fast Track” process
“Fast Track” process
“Fast Track” process
“Fast Track” process
Two secrets to success
the first
secret
leaders who credit
planning
Secrets
say planning has greater
significance
Secrets
Secrets
Forrest Consulting Strategic Leader Survey, 2013
the first
secret
Secrets
the second
secret
When leaders rate
planning
Secrets
The organization is
more likely
Secrets
Forrest Consulting Strategic Leader Survey, 2013
Secrets
Secrets
secretthe second
16 problems and how to avoid them
Only top management is involved
Only top management is involved
Only top management is involved
only 44% of organizations
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2013
34% of organizations
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2013
only31% of organizations
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2013
64% of leaderssay their process doesn’t ensure
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2012
47% of leaders believe
include the most knowledgeable
Only top management is involved
Forrest Consulting Strategic Leader Survey, 2012
Only top management is involved
Only top management is involved
Only top management is involved
Not looking externally
Not looking externally
Not looking externally
only 51% of organizations
information on the external
Not looking externally
Forrest Consulting Strategic Leader Survey, 2013
39% of leaders
Not looking externally
Forrest Consulting Strategic Leader Survey, 2012
Share of organizations that conducta scan of the external environment
When leader says planning is unimportant in success
28%
48%When leader says planning is important in success
Not looking externally
Forrest Consulting Strategic Leader Survey, 2013
Not looking externally
Not looking externally
Execution resources lacking
Execution resources lacking
Execution resources lacking
42% of leaders
really supports the strategy.
Execution resources lacking
Forrest Consulting Strategic Leader Survey, 2012
Execution resources lacking
Execution starts, then fizzles
Execution starts, then fizzles
Execution starts, then fizzles
only 54% of organizations
Execution starts, then fizzles
Forrest Consulting Strategic Leader Survey, 2013
Execution starts, then fizzles
Execution starts, then fizzles
No bounds
No bounds
No bounds
No bounds
No bounds
No bounds
Grandiosity
Grandiosity
Grandiosity
Grandiosity
Grandiosity
Share of organizations that develop a shared vision of future success.When leader says planning is unimportant in success
33%
56%When leader says planning is important in success
Grandiosity
Forrest Consulting Strategic Leader Survey, 2013
Share of organizations that develop key strategies to move toward the vision.When leader says planning is unimportant in success
30%
70%When leader says planning is important in success
Grandiosity
Forrest Consulting Strategic Leader Survey, 2013
Grandiosity
Grandiosity
Grandiosity
No commitment
No commitment
No commitment
No commitment
No commitment
Complexity
Complexity
Complexity
64% of leaders
Complexity
Complexity
Complexity
Complexity
Complexity
Complexity
No coordination
No coordination
No coordination
No coordination
No coordination
No coordination
The leadership is clueless
The leadership is clueless
The leadership is clueless
64% of organizations
The leadership is clueless
only 47% of organizations
The leadership is clueless
Forrest Consulting Strategic Leader Survey, 2013
The leadership is clueless
The leadership is clueless
Plan to review and adjust plan.
54%
42%Actually review and adjust plan.
The leadership is clueless
Fewer organizations review andadjust their plan than say they will
Forrest Consulting Strategic Leader Survey, 2013
Share of orgs track plan performance against measurable objectives.
When leader says planning is unimportant in success
40%
65%When leader says planning is important in success
The leadership is clueless
Forrest Consulting Strategic Leader Survey, 2013
Share of orgs that regularly report on plan performance to executive team.
When leader says planning is unimportant in success
41%
61%When leader says planning is unimportant in success
The leadership is clueless
Forrest Consulting Strategic Leader Survey, 2013
Share of orgs that review and adjust plan implementation at preset points.
When leader says planning is unimportant in success
25%
45%When leader says planning is important in success
The leadership is clueless
Forrest Consulting Strategic Leader Survey, 2013
Habit
Habit
Habit
53% of organizations
Habit
Forrest Consulting Strategic Leader Survey, 2013
only 39% of organizations
Habit
Forrest Consulting Strategic Leader Survey, 2013
62% of organizations
Habit
Forrest Consulting Strategic Leader Survey, 2013
Habit
Habit
Habit
Habit
Pretending
Pretending
Pretending
Pretending
Pretending
Resisting new activities and roles
Resisting new activities and roles
Resisting new activities and roles
Resisting new activities and roles
Resisting new activities and roles
Resisting new activities and roles
No marching orders
No marching orders
No marching orders
only 54% of organizations
No marching orders
72% of organizations
No marching orders
No marching orders
No marching orders
53%
39%Follow a pre-set implementation time line.
No marching orders
Establish a pre-set implementation time line.
Fewer follow an implementationtime line than say they will
Share of organization that set measurable objectives
When leader says planning is unimportant in success
36%
66%When leader says planning is important in success
No marching orders
Forrest Consulting Strategic Leader Survey, 2013
Share of orgs that assign responsibility for implementing to individuals.
When leader says planning is unimportant in success
50%
71%When leader says planning is important in success
No marching orders
Forrest Consulting Strategic Leader Survey, 2013
The unexpected
The unexpected
The unexpected
58% of leaders
The unexpected
The unexpected
The unexpected
The unexpected
The unexpected
One and done
One and done
One and done
only 41% of organizations
One and done
One and done
One and done
When leader says planning is unimportant in success
23%
44%When leader says planning is important in success
Share of orgs that include plan for next update in current plan.
One and done
Forrest Consulting Strategic Leader Survey, 2013
Other problems
Other problems
Better strategy decisions
Rational Decision Making
Decision making process
"Satisficing" Decision Making
Area of bounded rationality
Decision making process
Epistemic arroganceDecision making process
Limits to our knowledge
Undecidability
Leap of faith needed because
we never can know enough
Decision making process
Undecidability
“Strategic decisions are always about action undercontingency and uncertainty” Andreas Rasche
UnknowabilityDecision making process
Unknowability
?
? ?
“Not only must the person taking the decision not know everything… the decision must advance towards a future which is not known,
which cannot be anticipated” Jacques Derrida
Problems seeing the futureDecision making process
Problems seeing the future
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureDecision making traps
Problems seeing the futureBad decision
Problems seeing the futureBad decision
“We see little
reason to
anticipate a
catastrophic well
explosion”
Problems seeing the futureBad decision
“We know
what we are doing
and won’t do
anything to put
the company
at risk”
Problems seeing the futureBad decision
“We know
what we need
to know about
the situation and
can make good
decisions”
Problems seeing the futureBad decision
“We know
what is going
on and the
risks involved”
Problems seeing the futureBad decision
Problems seeing the futureBad decision
“The situation
is unchanged. We
still don’t see why
we should spend
billions for
Google.”
Problems seeing the futureBad decision
“This price
is way higher
than it was the last
time we had the
chance to buy
the company”
Problems seeing the futureBad decision
“Things are
going well for us.
If we buy Google,
we’ll have more
risk and work
to do.”
Problems seeing the futureBad decision
“It’s good here
at Yahoo. Let’s
protect what we
have rather than
risk our money
on Google”
Problems seeing the futureBad decision
Problems seeing the futureBad decision
“Indians are
not our equals,
including on the
battlefield”
Problems seeing the futureBad decision
“We are
predestined
to defeat the
indians”
Problems seeing the futureBad decision
“There is
no way that
we could
lose this
battle”
Problems seeing the futureBad decision
“No one
here believes
we could lose
this battle”
Problems seeing the futureBad decision
Problems seeing the futureBad decision
“Let’s not
bother the bosses
with the problem.
We can probably
remedy it
ourselves.”
Problems seeing the futureBad decision
“Jim says it’s
not a big deal,
and Sally agrees,
so I’m in on
discounting
it, too”
Problems seeing the futureBad decision
“Who would have
thought to look for
a mix up of metric
and Imperial
measurements?”
Problems seeing the futureBad decision
“We were just
going by the book –
that was supposed
to cover every
situation.”
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
Problems seeing the futureDecision making tools
1. Too many organizations don’t plan or implement,or plan and implement poorly.
2. Strategic planning contributes to organizational success.3. Commitment to planning and use of “best practices”
are important in organizational success.4. With foresight, problems impeding successful planning
and implementation can be avoided or mitigated.5. Many decision-making traps cause bad strategic decisions.6. Decision-making tools can help leaders and
organizations make better strategic decisions.
Closure
“THIS IS THE
may be converted
Robert Penn Warren
processStrategic planning
Lee Crumbaugh, SMP
President, Forrest Consulting, Glen Ellyn, IL, USA (Chicago)
President, Association for Strategic Planning (2014-2016)
leec@strategicbusinessleader.com
www.forrestconsult.com
Thank you!