Strategy 301 - Beyond the Basics - 16 Steps

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)

[email protected]

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


reality

That means 42% of leaders


and just 45%

Bain & Company Management Tools Survey, 2013


BIG FAILMany leaders don’t get it.


42% of leaders say



74% of leaders say



57% of leaders say



70% of organizations

Balanced Scorecard Collective



Balanced Scorecard Collective


The case

planningCASE FOR

SURVIVAL

The case

The case

GROWTH

The case

The case

SUCCESS

The case

The case

Planning model and process

Gap planning model

“Fast Track” process

Two secrets to success

the first

secret

leaders who credit

planning

Secrets

say planning has greater

significance

Secrets

Secrets


the first

secret

Secrets

the second

secret

When leaders rate

planning

Secrets

The organization is

more likely

Secrets


Secrets

Secrets

secretthe second

16 problems and how to avoid them

Only top management is involved

only 44% of organizations



only31% of organizations



64% of leaderssay their process doesn’t ensure



47% of leaders believe

include the most knowledgeable



Not looking externally


information on the external



39% of leaders



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



Execution resources lacking

42% of leaders

really supports the strategy.



Execution starts, then fizzles

No bounds

Grandiosity

Share of organizations that develop a shared vision of future success.When leader says planning is unimportant in success

33%


Grandiosity


Share of organizations that develop key strategies to move toward the vision.When leader says planning is unimportant in success

30%


Grandiosity


Grandiosity

No commitment

Complexity

64% of leaders

Complexity

Complexity

No coordination

The leadership is clueless

Plan to review and adjust plan.

54%

42%Actually review and adjust plan.


Fewer organizations review andadjust their plan than say they will


Share of orgs track plan performance against measurable objectives.


40%




Share of orgs that regularly report on plan performance to executive team.


41%

61%When leader says planning is unimportant in success



Share of orgs that review and adjust plan implementation at preset points.


25%





Habit


Pretending

Resisting new activities and roles

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


36%


No marching orders


Share of orgs that assign responsibility for implementing to individuals.


50%


No marching orders


The unexpected

58% of leaders

The unexpected

The unexpected

One and done


23%


Share of orgs that include plan for next update in current plan.

One and done


Other problems

Better strategy decisions

Rational Decision Making

Decision making process

"Satisficing" Decision Making

Area of bounded rationality


Epistemic arroganceDecision making process

Limits to our knowledge

Undecidability

Leap of faith needed because

we never can know enough


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 futureBad decision


“We see little

reason to

anticipate a

catastrophic well

explosion”


“We know

what we are doing

and won’t do

anything to put

the company

at risk”


“We know

what we need

to know about

the situation and

can make good

decisions”


“We know

what is going

on and the

risks involved”


“The situation

is unchanged. We

still don’t see why

we should spend

billions for

Google.”


“This price

is way higher

than it was the last

time we had the

chance to buy

the company”


“Things are

going well for us.

If we buy Google,

we’ll have more

risk and work

to do.”


“It’s good here

at Yahoo. Let’s

protect what we

have rather than

risk our money

on Google”


“Indians are

not our equals,

including on the

battlefield”


“We are

predestined

to defeat the

indians”


“There is

no way that

we could

lose this

battle”


“No one

here believes

we could lose

this battle”


“Let’s not

bother the bosses

with the problem.

We can probably

remedy it

ourselves.”


“Jim says it’s

not a big deal,

and Sally agrees,

so I’m in on

discounting

it, too”


“Who would have

thought to look for

a mix up of metric

and Imperial

measurements?”


“We were just

going by the book –

that was supposed

to cover every

situation.”

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)

[email protected]

www.forrestconsult.com

Thank you!

Strategy 301 - Beyond the Basics - 16 Steps

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