What leader should know about good strategy.

1. STRATEGY BASICS
PRESENTED BY POP (JAN-2017)
pop@leureka.com

2. AGENDA
1. What is Strategy anyway?
2. Bad Strategy
3. Strategy, Plan and Goal
4. The Methodology
5. Best Practices
6. Q&A

3. “CULTURE EATS STRATEGY FOR
BREAKFAST”
Peter Drucker

4. 1. WHAT IS STRATEGY ANYWAY?
BATTLE OF TRAFALGAR
▸ In 1805, Napoléon had conquered
big chunks of Europe and planned
the invasion of England.
▸ Naval Battle between French-Spanish
navies vs. British Royal Navy (lead by
Admiral Nelson)
▸ French-Spanish Navies: 33 ships
▸ British Royal Navy: 27 ships
▸ A BIG PROBLEM FOR ENGLAND

5. 1. WHAT IS STRATEGY ANYWAY?
BATTLE OF TRAFALGAR
▸ Diagnosis:
▸ Nelson’s challenge: outnumbered
▸ Nelson’s strength: much better skilled gunners
▸ Tactic changes:
▸ Broke B fleet into 2 columns
▸ Hitting their line perpendicularly.
▸ Put the risk on leading ships
▸ Result:
▸ F-P lost 2/3 of fleet (22 ships)
▸ B lost none
▸ Nelson’s death

6. 1. WHAT IS STRATEGY ANYWAY?
THIS IS HOW A GOOD STRATEGY LOOKS LIKE
▸ Identifying the one or two critical
issues in the situation—the pivot
points that can multiply the
effectiveness of effort—and then
focuses and concentrates action and
resources on them.

7. 1. WHAT IS STRATEGY ANYWAY?
• A diagnosis
– that defines the nature of the challenge
• i.e., Framing
• A guiding policy
– for dealing with the challenge
• Vision/mission and strategic priorities
• A set of coherent actions
– Designed to carry out the guiding policy
• Tasks and actions
A STRATEGY COMPRISES:
Exercise: Analyze these with Battle of Trafalgar.

8. “IT IS HARD TO
SHOW YOUR SKILL
AS A SAILOR WHEN
THERE IS NO WIND.”
Richard P. Rumelt

9. 2. BAD STRATEGY
BAD STRATEGY
‣ To detect a bad strategy, look for one or more of its 4 major hallmarks:
1. Fluff.
2. Failure to face the challenge.
3. Mistaking goals for strategy.
4. Bad strategic objectives.
‣ Bad strategy is long on goals and short on policy or action.
‣ Leaders may create bad strategy by mistakenly treating strategy work as an
exercise in goal setting rather than problem solving.
pop@leureka.com

10. 3. STRATEGY, PLAN AND GOAL
• A Plan
– Simple Steps
– No Contingencies
– “Do A, then B, then C”
• A Strategy
– A framing
– A set of Goals
– Enumeration of contingencies
– A coherent set of actions
Increasing uncertainty, contingencies, scope

11. 4. THE METHODOLOGY
HOW TO MAKE A GOOD STRATEGY
‣ Start with Why (the challenges)
‣ Golden Circles: Why, What, How
‣ Avoid Bad strategies
‣ Too Ambitious or Too Ambiguous
‣ Goal Settings: a leader can set goals and delegate to others the job of
figuring out what to do.
‣ Leadership mindset
‣ Leaders vs. Managers: Do The Right Thing vs. Do The Thing Right!
pop@leureka.com

12. 4. THE METHODOLOGY
HOW TO MAKE A GOOD STRATEGY
pop@leureka.com
MANAGER LEADER
YOURSELF YOUR S-LEADERS
HIMSELF HIS S-LEADERS
GOALS
WHAT IS/ARE
CRITICAL
PROBLEMS?
WHAT IS/ARE
CRITICAL
PROBLEMS?
1. Challenges
2. Coherence through links

13. 4. THE METHODOLOGY
HOW TO MAKE A GOOD STRATEGY
pop@leureka.com
LEADER
YOURSELF YOUR S-LEADERS
HIMSELF HIS S-LEADERS
PROBLEM P1, P2, P3
GOALS A, B, C
ACTIONS X, Y, Z
GOAL A, C
ACTIONS X1, Z11. Guiding policy:
prioritization and filtering
out unessential goals
2. Set of coherent actions:
merged set of (X + X1+ X2)
GOAL A
ACTION X2
MEASURE M

14. 5. BEST PRACTICES
THE MOST CRITICAL SUCCESS FACTORS
‣ Follow the Right Strategy (Challenges, Policy, Actions)
‣ Hold the events properly:
‣ Diagnosis: Situation Review —> Challenges
‣ Goals Gathering
‣ Goals Review and Actions Provided
‣ KPI/Measures Set and Consensus
‣ Weekly Progress Check-Ins with Closed-Loop Feedback
‣ Flexible when many more things come in unexpectedly (that can impact the execution plan)
‣ Lastly, encourage an innovative culture.
pop@leureka.com

15. 5. BEST PRACTICES
USEFUL TECHNIQUES/TOOLS
‣ Setting Tracking and Measurable Goals
‣ OKR, SMART
‣ Root Cause Analysis
‣ 5 Whys
‣ Setting Priorities
‣ Agile Theme Screening
pop@leureka.com

16. 6. Q&A
pop@leureka.com

17. pop@leureka.com