Strategy Implementation by Kurt Verweire - Book Launch

“TACKLING THE CHALLENGES OF STRATEGY IMPLEMENTATION”

Welcome!

#KurtBookLaunch

INTRODUCTION OF AUTHOR

PROF KURT VERWEIRE

ASSOCIATE PROFESSOR IN

STRATEGIC MANAGEMENT

PROF PHILIPPE HASPESLAGH

DEAN VLERICK BUSINESS SCHOOL

2 Strategy Implementation

STRATEGY IMPLEMENTATION

“Execution is not only the biggest issue facing business today; it is something nobody has explained satisfactorily.”

(Bossidy and Charan, 2002)

Strategy Implementation

DEFINING STRATEGY

DEFINING STRATEGY strategy occurs at different levels

DEFINING STRATEGY

DEFINING STRATEGY: EASYJET CASE

Whom do we serve?

How do we realize this?

What do we provide?

What is our value proposition?

People paying a ticket out of their own pocket; not the ‘fat cats’

Short-haul flights, no longer than 4h European destinations

Operational excellence: standardization, no-frills, the basics

Low price Convenience: fast and easy

REVENUES PASSENGERS

PROFIT MARGIN RETURN ON EQUITY

DEFINING YOUR COMPETITIVE ARENA

DEFINING STRATEGY

DEFINING A COMPETITIVE THEME

What is our operating model?

A WINNING VALUE PROPOSITION

Level Access Connectivity Price Product Service

Consumer seeks the company

Turn my hassle into a positive experience.

Establish intimacy with me by doing something no one else can.

Be my price agent; let me trust you to make my purchases.

Inspire me with an assortment of excellent products I didn’t know about.

Provide me with a solution, take my problems away.

Consumer prefers the company

Make the whole interaction reliable and convenient for me.

Care about my needs and me.

Be fair and consistent in your low pricing (this does not necessarily mean lowest price).

Offer continuously high-quality and well-performing products.

Educate me when I encounter a product or a situation I don’t understand.

Consumer accepts the company

Make it easy for me to find what I need.

Respect me, treat me like a human being.

Keep the prices honest; don’t jack them up or offer big savings when there are none.

Be credible in your product and service offerings.

Accommodate me; bend over backward some-times to show me you care.

Consumer underworld

Block my way, hassle me, keep me waiting, make it hard for me to get in and out.

Dehumanize me; disrespect me; ignore my needs.

Be inconsistent, unclear, or misleading in your pricing.

Offer me poor-quality merchandise and services that I can’t use.

Give me an experience I’d just as soon forget; give me a reason to tell my friends to stay away.

A WINNING VALUE PROPOSITION

Source: Crawford & Mathews (2001) A 5-4-3-3-3 profile is optimal.

A WINNING OPERATING MODEL

DEFINING A COMPETITIVE THEME

What is our operating model?

A MODEL FOR STRATEGY IMPLEMENTATION

Source: Vlerick Business School/Electrabel (GDF Suez) (2004, 2014)

ALIGNMENT

Operational Excellence Product Leadership Customer Intimacy

Orchestrating theme ‘Best price’ and/or

‘Best access’ (‘fast, easy,

painless’)

‘Best product’

‘Best service’ and/or

‘Best connectivity’

(‘relationship

orientation’)

Direction and goal setting

processes

Efficiency through

process thinking

Zero-defect service

Best product through

continuous product

innovation

Clear innovation strategy:

where to place the bets?

Understanding the

broader problem

Having expertise about

the customer’s business

Customers carefully

selected

Operational processes The operations

department drives the

company

Attention is paid to

process speed and quality

R&D is key: idea

management

Marketing is also key:

educate people with a

missionary zeal

Get engineers, designers,

and marketers

systematically together

Demonstrate expertise

and experience

Strengthen the

relationship

Build loyalty: focus on

customer retention

ALIGNMENT

Operational Excellence Product Leadership Customer Intimacy

Support processes Highly automated

processes

Information systems

increase control and

coordination and

streamline tasks

World-class supply chain

management

Clear innovation

governance process

Systematic process for

allocating resources to

innovation programs

Knowledge sharing and

networks

Systematic collection of

customer and market

information (through

Customer Relationship

Management)

Structured sales process

Evaluation and control

processes

Rigid, centralized control

Detailed measures on

various aspects of the

process

Setting higher thresholds

Innovation performance

measures

Control, learning, and

experimentation

Detailed measures about

account penetration and

loyalty

Lifetime value of the

customer

Organizational behavior

processes

Centralized structure

Organization structured

around core processes

Culture of continuous

improvement

Fluid organization

structure

Stimulate diversity,

tolerate mavericks

Low levels of

formalization

Entrepreneurial culture

Decentralized

organization

Employee retention

Focus on quality, defined

from the customer’s point

of view

ALIGNMENT

the entrepreneurial organization

EEN STRATEGIEGERICHTE ORGANISATIE

the structured organization

COMMITMENT: INTRODUCING ‘MATURITY’

Implementing Winning Business Strategies

the connected organization

COMMITMENT: INTRODUCING ‘MATURITY’

Implementing Winning Business Strategies

the committed organization

COMMITMENT AT ING DIRECT USA

COMMITMENT AT CHÂTEAUFORM’

COMMITMENT AT CARGLASS®

ALIGNMENT AND COMMITMENT

PANEL DEBATE

Dirk Wouters CEO Bank Van Breda & C°

Ignace Van Doorselaere CEO Van de Velde

Stefaan Hermans COO Carglass

BANK J. VAN BREDA & C°

DEFINING STRATEGY

Financial services

What do we provide?

Whom do we serve?

What is our value proposition ?

2005: Is this enough to differentiate?

Refining our strategy: best in assisting self employed building up finanial assets in a structured and diversified way

How do we realize this?

- Personal approach: 1 Account manager for both professional & private needs

- Better understanding through focus on target group

Strategy Implementation 53

VAN DE VELDE

CARGLASS® BELUX

OUR VISION & STRATEGY

FROM BELIEF TO KNOWLEDGE FROM KNOWLEDGE TO IMPROVEMENT

Execute

In take

Exceed expectati

ALIGNMENT

1990 – 2000: Stop servicing other retail customers in order to create focus on entrepreuneurs and liberal professions

2005 – 2014: Stop servicing entrepreneurs and liberal professions that are not interested in a partnership to build up financial assets with Bank J.Van Breda & C° in order to create focus on our main value proposition

Structured Organisation:

Discipline, operational processes, control processes

Adapted remuneration

ALIGNMENT

VAN DE VELDE

CARGLASS® BELUX

EASY TO REMEMBER…

EVERY WEEK MORE THAN 1000 FEEDBACKS OF CUSTOMERS

Net Promotor Score YTD

Promotors - Score 9 or 10

% Promotors % Detractors minus

Net Promotor Score 10:

Detractors - Score < 7

Passives - Score 7 or 8

COMMITMENT

Corporate culture:

Top 3 values employees

Honesty

Enthusiasm

Sense of responsibility

right attitude to create a service and customer oriented business

COMMITMENT

Connected and Committed Organisation:

IT-tools that support strategy

IT provides answers on the needs (≠ questions)

Credit analyst:

Cash flow serves to pay back credit + to build up financial assets

Dividend pay out is diminishing solvency + opportunity to build up private financial assets

(*) Excluding ABK the net profit in 2011 amounted to Eur 21.407 million. The exceptional non-recurring impact on results (badwill) from the acquisition of ABK means that the ROE for 2011 provide a distorted picture of underlying profitability.

Bank J.Van Breda & C° (consolidated): Sustainable growth

2009 2010 2011 2012 2013

Staff 399 418 462 465 466

Net profit after taxes 23.317 25.664 54.880 (*) 27.739 31.546

Equity 243.667 258.620 394.969 427.267 447.907

Cost income ratio 60% 57% 61% 58% 59%

Return on average equity (ROE) 10% 10% (*) 7% 7%

Impairments on loans 0,09% 0,15% 0,06% 0,08% 0,04%

Core capital ratio (Tier 1) 11,80% 11,30% 14,70% 14,20% 13,70%(thousands of Euros)

VAN DE VELDE

CARGLASS® BELUX

FEEDBACK FROM EMPLOYEES

COMMUNICATION AND RECOGNITION IS KEY

PANEL DEBATE – QUESTIONS?

Dirk Wouters CEO Bank Van Breda & C°

Ignace Van Doorselaere CEO Van de Velde

Stefaan Hermans COO Carglass

SWIM TOGETHER, SUCCEED TOGETHER

KEEN FOR MORE?

UPCOMING PROGRAMMES

Successful Strategy Execution

24-26 November 2014

We invite you to enjoy the reception and walking dinner!

#KurtBookLaunch

Strategy Implementation by Kurt Verweire - Book Launch

Leadership & Management

Transcript of Strategy Implementation by Kurt Verweire - Book Launch

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