6 reasons why must we change the way we strategize. Contact us to: - overcome the common pattern of "few think – many execute" when doing strategy work - use design thinking to capture intuition in exploring all and real strategic option - manage your strategy process in a more dynamic and agile way

1. STOP SAYING
STRATEGY EXECUTION
ZÜRICH, JUNI 2017

2. Why must we change
the way we strategize?
Reason #1:
it’s a faster world

3. «Competitive advantage
lasts shorter and shorter.
Fast and roughly right
decision-making will
replace deliberations that
are precise but slow.»
Rita Gunther McGrath

4. A review of the last decades…
0
10
20
30
40
50
60
70
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
Year
Average age
Note: Each data point represents a rolling 7-year average of average lifespan. Projections based on current data
Source: Richard N. Foster/Standard & Poor’s
Average company lifespan on S&P 500 Index (in years)

5. Why must we change
the way we strategize?
Reason #2:
corporate theater

6. It’s time to call the bluff on Corporate Theatre…
BU managers study lots of
things, develop options that are
saleable and get consensus of
key managers.
Then they polish the slide deck
and sell hard to senior
management, hoping for a
minimum of input.
Afterwards the organization is
asked to execute.
It is typically designed
exclusively to match the
expectations of the market and
avoid disappointing investors.
Financial items are manipulated
using the same logic.
The guidance is polished to
reveal as little as possible and
avoid uncomfortable questions.
BU managers make up a realistic
plan and then ask senior
management for 120% of the
resources required to meet the
plan…
… knowing from experience that
they never get the resources
they ask for.
Strategy
process
Budget
process
Market
guidance

7. Why must we change
the way we strategize?
Reason #3:
reality dilutes strategy

8. Typically a strategy period gets kicked off with a lot of direction and
ambition, but soon the execution projects lose traction as daily
operations and budgeting process “take over”
Time
# Strategic projects
Strategy period (years)

9. Why must we change
the way we strategize?
Reason #4:
more focus on New
Business needed

10. Companies often work in few growth areas and close to the
core – so they struggle to create substantial New Business
Core
business
New
geographies
New steps in the
value chains
New products /
services
New business models
1 steps
2 steps
3 steps
New customer
segments
New channels
Company ACME which is very
good at geographical expansion:
If asked to grow, they usually
boost geographic expansion ever
more (e.g. through M&A or taking
so far unkown market risks),
instead of searching for other
opportunities closer to the core

11. Why must we change
the way we strategize?
Reason #5:
complicated organizations

12. Many companies cram their project portfolio with large
numbers of projects – focus and traction get lost!
4'000
15-20
85 200
95
Large multinational bank
(~45’000 employees)
Medium-sized company
(~300 employees)
Large company
(~1’000 employees)
Medium-sized company
(~200 employees)
Ideal number of strategic
projects

13. Strategic initiatives are typically cross-functional and large,
often poorly steered by the traditional line organization
Management
Sales Marketing Production R&D Finance
Admin./Staff

14. Why must we change
the way we strategize?
Reason #6:
extensive data analysis ≠
great answers

15. «For every one of our
failures, we had
spreadsheets that looked
awesome.»
Scott Cook, CEO, Intuit

16. In strategy projects, broad analytical work takes place at
the start, when uncertainty is high – with little to no focus
on analytical data later in the process, when familiarity has
been gained
Analysis
& setup
Options
Conse-
quences
Imple-
mentation
planning
Imple-
mentation
50% 20% 20% 10% 0%
Share of analytical work
Illustrative phases

17. 1 it's a faster world
2 corporate theater
4 more focus on New Business needed
5 complicated organizations
3 reality dilutes strategy
6 extensive data analysis ≠ great answers
Why must we change the way we strategize?