Think to Win: Unleashing the Power of Strategic Thinkking

Think To Win
“Unleashing the Power of
Strategic Thinking ”
October 15, 2015
Paul Butler, President, Globaledg LLC
1 All Rights Reserved GlobalEdg LLC

Introductions …
Paul Butler
3 All Rights reserved GlobalEdg LLC

Session Outcomes
• Understand the need for high impact
HR contributions
• Identify a framework for Strategic
Thinking and Business Planning
• Learn to develop HR solutions that
are aligned with and support business
goals and strategy
• Build new HR connections

A Table Team Exercise
1. What business
challenges are we
facing in 2015 that are
dramatically different
from?
2. What are the implications
for HR – So What….?
3. What do you really care
about professionally?

Executive Education
Session
The STAR
Methodology

Strategic Thinking Methodology
Then Focus on the
Questions!
First The Principles

Without them … you
might be heading in the
wrong direction!

Principle #1 Challenge Assumptions
Willingly challenge all existing
assumptions and question
accepted beliefs
Why is this important?

Determine the appropriate
scale of analysis:
– Company
– Business unit
– Team
Principle #2: Scope the Issue

Principle #3: The Vital Few
Apply the 90-10 rule, i.e., focus
on the 10% of activities that will
deliver 90% of the results

Principle #4 Facts Inform Decisions
Employ fact-based decision
making, not conjecture or
opinions.

Principle #5 Linkage: Connect the
Dots
Think linkage to connect the
ideas – both upstream and
downstream

Think To Win Approach
9 All rights reserved. GlobalEdg LLC
Of the five – what do
you believe is the
most difficult?
First The Principles

Framing the Issue
• Where does the process begin?
• Determines scope of analysis
• Answers the question: what is keeping leaders
awake at night?
• Must be significant and compelling

A Table Team Exercise
1. In your organization --- company and/or
your consulting practice what is really
keeping you awake at night?
2. What, from a professional development
standpoint is keeping you awake at night

Strong Umbrella Statements/Questions --
Elements
• Do not have solutions / actions
• Includes External / Internal Elements
• Have big picture in mind – not sub issues
• Must be significant and compelling -- hooks the
audience!
• Captures tension

If I had one hour to save the world, I
would spend 55 minutes defining the
problem and only
five minutes
finding the solution.
– Albert Einstein

The Approach
Focus on the
Questions!
Converge
Diverge

Umbrella Statement
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Use Frameworks Effectively
Some Common frameworks Appropriate for:
• Functional Example“4Ps”: Product, Pricing, Promotion,
Placement
New product marketing
• “7Ss”: Strategy, Structure, Systems, Staff, Skills,
Style/Culture, Shared Values (Source: McKinsey)
Internal company evaluation,
M&As
• Porter’s Five Forces: Suppliers, Customers, Barriers to
Entry, Substitutes, Competitive rivalry
Industry analysis
• “Kanter Change Wheel”: Shared Visions, Symbols/Signals,
Structure/Processes, Training, Champions / Sponsors, Quick
Wins, Communicating Useful Approaches, Policies,
Procedures, System Alignment, Measures, Rewards and
Recognition
Change, Innovation and
Execution
• “7Cs”: Company, Colleagues, Category, Customers,
Consumers, Competitors, Community (GlobalEdg)
External/Internal Situation
assessment
Existing frameworks can be a useful starting point…
but recognize that they are a TOOL, not the solution

From 7Cs to SWOT
• Company
• Colleagues
• Strengths: Areas that provide competitive
advantage and enable execution of strategy
• Weaknesses: Areas where we are lacking
relative to what is needed to execute strategy
Internal
7C’s SWOT
• Category
• Competitors
• Customers
• Consumers
• Community
External
• Opportunities: External factors that are or
could offer attractive financial or strategic
potential
• Threats: External factors that are or could be
damaging to our interests

Value of SWOT
Use the list of Strengths in the context of Opportunities
to identify Potential Strategies
Internal External
Positives
• Strong household brand
associated with high
quality
• Loyal consumer base
• Best-in-class
manufacturing facilities
• Growing consumer trend
of health & wellness
• Consolidation of smaller
customers which simplifies
sales & distribution
OpportunitiesStrengths

Strategic Competitive Advantage
Strengths
Source(s) of Competitive Advantage:
What truly separates you from the pack;
this is the key(s) to your leverage and
margin in the marketplace
Sustainable Competitive Advantage?
• Temporary or built into the
organization
• Can be sustained for 3 or more years
• Increasingly difficult to create

SCA Questions
1. What must we do that no one else can do?
2. What do we want to be best in the world at?
3. What is the single best reason for our success?
4. Is our SCA anything that a competitor could say about
their organization?

Key Issues / Goals Framework
Key issues and Goals should be
… … Balanced, i.e., considers
implications and impact on:
• People
• Organization
• Marketplace
• Financial
2.
Organization
1.
People
4.
Financial
3.
Marketplace

Key Issues & Implications
Key Issues are: Implications are:
• The most important
“takeaways” from the
Situation Assessment
• A synthesis across
different components
• A shortlist of items the
business must address in
the near future
• The “so what” of the Key
Issues
• Combines potential/risk
and action language
• Not quantified at this stage
– leave that for the Goals
section

Objectives
• A Governing / Objective Statement is:
A statement of purpose that helps the
organization focus and provides a point of
view and guardrails for the business. It sets
the context for addressing the most critical
strategic issues for the business.

Key Issues / Goals Framework
Key issues and Goals should be
… … Balanced, i.e., considers
implications and impact on:
• People
• Organization
• Marketplace
• Financial
2.
Organization
1.
People
4.
Financial
3.
Marketplace

Examples of Goals
Financial
Goals
Marketplace
Goals
• Grow revenue by 10% a year to $500M by 2015
• Achieve 15% contribution margin by 2013
• Reduce costs by 5% a year
Organizational
Goals
• Increase market share from 25% to 30% in 2012
• Grow our international business by 2x by 2014
• Maintain zero overhead growth (ZOG) on SG&A on an
annual basis
• Build Away From Home sales organization to double our
distribution reach by July 2012
People
Goals
• Improve Gallup score by 10% by Dec 2012
• Reduce employee turnover rate to 2% by 2013

Goals vs. Strategies
Goals Strategies
• Are the WHAT – measurable
ends that we want to achieve
• Are at the highest level of the
STAR hierarchy
• Are MECE (mutually exclusive
collectively exhaustive) – goals
generally should not overlap with
one another
• Are the HOW – description of the
actions that we will take in order
to achieve our goals
• Are at a lower level of the STAR
hierarchy
• Are usually not MECE – one goal
can have multiple supporting
strategies and some strategies
can support multiple goals

Strategies
• This is the HOW
• Be Bold !
• Be Innovative!
• Include enough detail to assist understanding;
don’t create a plan of action
• It is about Choices

Strategies as choices – What
needs to be true?
Identified
Duracell
Strengths
Screening Criteria
What needs to be true?
Screening Criteria
X
X
X
X
X
Strategic Options
1. xxxx
2. xxxx
3. xxxx
4. xxxx
5. xxxx
6. xxxx
7. xxxx
8. xxxx
9. xxxx
10. xxxx
Final Choices
1. xxxx
2. xxxx
3. xxxx
4. xxxx
5. xxxx

Examples: Goals & Strategies
Goal Strategies
Grow revenue by 10%
a year in the Fresh
category over the next
3 years
Increase Marketing Spend to drive HH penetration
from 4% to 4.5%
Increase Investment in product innovation to increase
frequency of loyal users from 3x to 4x per year
Increase price on specialty SKUs by 3%
Maintain Zero
Overhead Growth over
next 3 years
Eliminate 50% of non-critical path activities
Introduce Strategic Sourcing Initiative to each
Business Unit
Expand Lean capability to SG&A areas

Strategy & Execution
Fact-based
Analysis
Objectives / Goals Strategic Priorities Key Initiatives &
Programs/Projects
Financial Objectives
’09 ‘10 ‘11 ‘12
2.1
2.3
2.2
2
3.1
3.2
3.3
3
1.1
1.2
1
1.3
• Internal Scan
• External Scan
• SWOT Summary
• Competitive
Advantage
• Key Issues
• Business
Implications
Plan Execute
Non-financial, e.g.,
Organization
People
Business Process
Customer/Consumer
Source: PK Associates

“Strategies most often
fail because they aren’t
executed well. Things
that are supposed to
happen don’t happen.”
Larry Bossidy - Execution: The Discipline of Getting Things Done

“Great! now, how do
we make this happen?”
Dennis Von Ende - Planning Committee Member

Who we need
Team
Support
Function
Results

All rights reserved. GlobalEdg LLC .
Working Group: Competitive Advantage
Membership:
Sponsor: Names
• Leader:
• Facilitator:
• Team members:
Assumptions:
• Leveraging work underway – not beginning from scratch
• xxxx
• xxxxx
• Need to look broader at “competition” and define
Timing / Communication:
• Launch 12/1 and is completed by 10/1
• Update Leadership Team Monthly
• Progress presented at Q1 and Q3 Town Hall
• xxxxxxx
Interdependencies:
(Name the people)
• XXXX in Corporate
• XXX Leader of Competitive Advantage Team
• Functional Leaders2
Significance / Objectives:
• Scope is XXXX
• Deliver xxxx while xxxx
• XXX in Place
• Volume up in market A by
• Cost savings of identified
SAMPLE CHARTER

Did We Win?

Thank you!
Paul Butler
President
GlobalEdg LLC
pbutler@globaledg.com
(203) 405-6810
www.GlobalEdg.com

Think to Win: Unleashing the Power of Strategic Thinkking

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