What is Strategy? Strategy Day at EO Accelerator

astonishdesign.comtim@astonishdesign.com
@Astonish_Desig
n
Ft. Worth Accelerator
Strategy Day
Grab digital copy of today’s material:
http://bit.ly/1GHtyKJ

@Astonish_Desig
n

@Astonish_Desig
n
Tim Hamilton
Introduction
Company:
Agile product & platform
development
Founded in 2000

Oﬃces in Austin, TX

Tradition: Formal Fridays
Background:
Born in South Africa

Wife: Christy + 1 on the
way

Cat person

Studied Econ & MIS at
UT

@Astonish_Desig
n
Ground Rules
One conversation.
Conﬁdentiality.
Trust & respect.
Peers.
Gestalt.

@Astonish_Desig
n
Sources

@Astonish_Desig
n
Three ingredients to success:
"Disciplined People. Disciplined
Thought. Disciplined Action.”
– Jim Collins

@Astonish_Desig
n
Value Proposition
Hair on Fire Issue
Words You Own
Central Idea
Core Purpose
3 Brand Questions
Brand Promises
BHAG
Value Discipline
Empirical Creativity
Productive Paranoia
SMaC Recipe
Catalytic Mechanism
Disciplined
Action
Hedgehog Concept
Reverse Engineer
Disciplined Thought
Meeting Rhythm
Maybe
Plan for the Day

@Astonish_Desig
n
What is strategy?
How are we going to grow top line
revenue?

@Astonish_Desig
n
”The job of the CEO is not to run the
company. The job is to grow the
company.”
– Jack Daly

@Astonish_Desig
n
"Strategy is the art of exclusion."
– Unknown

@Astonish_Desig
n
“If you have any issues with happiness in your business,
then you must start with people. If you have revenue or
growth issues, then strategy is the thing to focus on. If
proﬁt or time is a key issue, then you have execution
issues.”
– Verne Harnish

@Astonish_Desig
n
The most important
person in strategy is…
the customer.
Value Proposition Hair on Fire Issue Words You Own Central Idea Value Discipline

@Astonish_Desig
n
“I can’t tell you the key to success, but
the key to failure is trying to please
everyone”
- Ed Sheeran

@Astonish_Desig
n
Purchase decisions
are made emotionally,
not intellectually.
The ﬁrst step to strategy is empathy.

@Astonish_Desig
n
From your perspective…
what’s missing, wrong or
insane about your industry?

@Astonish_Desig
n
68%

@Astonish_Desig
n
Now, we’re going to
choose what uncommon
oﬀer we want to be
known for.

@Astonish_Desig
n
“Software that’s for sure.”

@Astonish_Desig
n
Next up, the central
strategic idea.

@Astonish_Desig
n
“Strategy is not a lengthy action plan. It is
the evolution of a central idea through
continually changing circumstances.”
Jack Welch

@Astonish_Desig
n
#1 or #2 or exit.

@Astonish_Desig
n
Be proﬁtable and democratize the skies.

@Astonish_Desig
n
Inbound marketing is in. Outbound is out.

@Astonish_Desig
n
Become the safest choice for
outsourced software development.

@Astonish_Desig
n

@Astonish_Desig
n
Build & manage systems
and facilities
for high volume
repetitive
tasks.
ID, attract and build
relationships with
customers.
Conceive of attractive
new products &
services and
commercialize
them.
Product
Innovation
Operational
Excellence
Customer
Intimacy
Three
Generic
Strategies

@Astonish_Desig
n
A focus on the core processes of invention,
product development, and market
exploitation.
Product Leadership
Innovation
Knowledge-
Management 
Collaboration
• Providing products / services that
continually redeﬁne the state of the art.
• Kill their babies.
• Key core competencies are innovation
and quality control.
• Strive to be the best.
• R&D & talent management.

@Astonish_Desig
n
• Total solution, not just a product or service.
• Focus on what the customer wants, not what
the market wants.
• Cultivate relationships, not one time
transactions.
• Specialize in satisfying unique needs.
• Customer needs trump operating systems and
processes.
• Go the extra mile.
Customer Intimacy
An obsession with core processes of solution
development, results management and
relationship management.
Relationship
Management
Knowledge
Management

@Astonish_Desig
n
• Low cost offer (blend of high convenience
and low price).
• Broad market focus.
• Not product / service innovator; instead
delivery innovators.
• Do not cultivate 1:1 customer relationships.
• Execute extraordinarily well.
Operational Excellence
Quality
Cost
Speed
Processes for end-to-end product supply and
basic service that are optimized and streamlined
to minimize cost and provide hassle-free service.

@Astonish_Desig
n
Why is this
important?

@Astonish_Desig
n
“No company can succeed today by
trying to be all things to all people. We
must instead ﬁnd an uncommon
value to deliver to a chosen market.”
– The Discipline of Market Leaders

@Astonish_Desig
n
Have you chosen
your market? Or is
your market
choosing it for you?

@Astonish_Desig
n
“Selection of a value discipline shapes every
subsequent plan and decision a company
makes, coloring the entire organization from its
core competencies to its culture.”
– The Discipline of Market Leaders

@Astonish_Desig
n
Does your strategy
inform every decision
you make today?

@Astonish_Desig
n
How do the founders spend their time?
What key messages did you pick up on?
What value
Video Case Studies

@Astonish_Desig
n
Decision making at the lab.
Product Leadership: Pixar
Culture & Competencies
Employee centered.
Coddling the creative stars.

@Astonish_Desig
n
Goals & Objectives
While productivity is a goal…
…quality & originality are the goal.

@Astonish_Desig
n
" ... [Steve Jobs] wanted there to be
mixing. He knew that the human
friction makes the sparks, and that
when you're talking about a creative
endeavor that requires people from
different cultures to come together,
you have to force them to mix; that our
natural tendency is to stay isolated, to
talk to people who are just like us, who
speak our private languages, who
understand our problems. But that's a
big mistake. And so his design was to
force people to come together even if
it was just going to be in the
bathroom.”
- Imagine, Jonah Lehrer

@Astonish_Desig
n
Product Leadership: Toyota
Environments that promote collaboration
W. Edwards Deming

@Astonish_Desig
n
Customer Intimacy: IBM
Best price? Hardly.
Best products? Nope.
Latest technology? Negative.

@Astonish_Desig
n
It’s about the total solution.
Methods for planning new business applications.
Training management.
Providing explanations of increasing costs.
Aided with diagnosis and resolution of problems.
Upgrading & maintaining systems.
Providing the best overal result for client.

@Astonish_Desig
n
De-centralized decision making.
All activities are aligned to customer needs.
Deep customer knowledge.
Not cheapest offers or most innovative.
Eco-system of partners for production & delivery.
Tailored / personalized service / products to ﬁt needs.

@Astonish_Desig
n
Operational Excellence Example: Ikea
Luxurious show-room? No.
Best in class quality? Nope.
Helpful sales staff? Negative.

@Astonish_Desig
n
Operational Excellence Example: Ikea
Cost focused.
Stresses standardization.
Predictability and efﬁciency are key.
Centralized decision making.
Rules based operations.

@Astonish_Desig
n
But aren’t these
all really big
companies?

@Astonish_Desig
n
Customer Intimacy: Trunk Club

@Astonish_Desig
n
Review & Break
Value Proposition
Hair on Fire Issue
Words You Own
Central Idea
Core Purpose
Brand Value Pyramid
Brand Promise
BHAG
Value Discipline
Hedgehog Concept
Disciplined Thought

@Astonish_Desig
n
Could be
best at
Passionate
about
Economic
engine
Core Purpose BHAG Brand Value Pyramid Brand PromiseHedgehog Concept

@Astonish_Desig
n
What could you be the
best in the world at?
Hint: You might already doing it… but you can’t tell.

@Astonish_Desig
n
Economic Engine: What’s
your proﬁt per X?

@Astonish_Desig
n
“What’s the one thing I
can do such that by doing
it everything else will be
easier or unnecessary?”

@Astonish_Desig
n
Wheels Up.

@Astonish_Desig
n
What are you deeply
passionate about?
Core Purpose up next… in the meantime,
let’s take a 10 minute break.

@Astonish_Desig
n
Core Purpose:
Simon Sinek

@Astonish_Desig
n
Apple’s Why

@Astonish_Desig
n
Big Hairy Audacious
Goal (BHAG)

@Astonish_Desig
n
A grand call to inspire
action to greatness.
Your emotional mission
statement.

@Astonish_Desig
n
"A true BHAG is clear and compelling,
serves as unifying focal point of effort, and
acts as a clear catalyst for team spirit. It has
a clear ﬁnish line, so the organization can
know when it has achieved the goal; people
like to shoot for ﬁnish lines."
– Jim Collins

@Astonish_Desig
n
“A computer on every desk and
in every home running
Windows.”
– Bill Gates, 1980

@Astonish_Desig
n
More from Jim
Collins…
http://www.jimcollins.com/media_topics/building-
greatness.html#audio=97
http://www.jimcollins.com/media_topics/
ﬂywheel.html#audio=93

@Astonish_Desig
n
Four Types: Target Oriented
Become a $125 billion company by year
2000. (Wal-Mart, 1990)
Become the dominant player in commercial
aircraft and bring the world into the jet age.
(Boeing, 1950)

@Astonish_Desig
n
Four Types: Competitive
Crush Adidas. (Nike, 1960s)
Yamaha wo tsubusu! We will destroyYamaha!
(Honda, 1970s)

@Astonish_Desig
n
Four Types: Role Model
Become the Nike of the cycling industry. (Giro
Sport Design, 1986)
Become as respected in 20 years as Hewlett-
Packard is today. (Watkins-Johnson, 1996)

@Astonish_Desig
n
Four Types: Internal
Transformation
Transform this company from a defense contractor
into the best diversiﬁed high-technology company in
the world. (Rockwell, 1995)
Transform this company from a chemical
manufacturer into one of the preeminent drug-
making companies in the world. (Merck, 1930s)

@Astonish_Desig
n
Brand Value Pyramid

@Astonish_Desig
n
Meets desires.
Emotional beneﬁts.Meets unrecognized needs.
Values & beliefs.
Evangelism
Commitment
Satisfaction
Meets customers’ expectations.
Functional beneﬁts & attributes.

@Astonish_Desig
n
• Product design
• Technology
• Engineering expertise
• Agile Scrum
• Web & mobile architectures
• Digital strategy & facilitation
• ClickModel prototyping
• On-budget / on-time delivery
• The safe choice
• No surprises
• 68% failure no more
• In control
• Security
• Trust
• Dependability
• Confidence
• Transparent
• Accountable
• Clarity
• Indispensable
• Your unfair technology advantage.
• You deserve to discover your unfair advantage.
• You are capable of so much more than you think.
• Your vision is your legacy - bring it to life.
Functional benefits
& attributes.
Emotional benefits.
Values & beliefs.

@Astonish_Desig
n
“My project is
completed on
time and
budget.”
Meets
Expectations “There weren’t
any surprises in
the course of my
project.”
“I can experience
the solution
before I cut the
big check to
build it.”
“The process is
free from risk
and I completely
trust my
partner.”
“They understand
and care about my
business more
than I thought
possible.”
“The were
eﬃcient,
accountable and
transparent.”
Meets
Desires
“I see new
possibilities for
my organization
as a result of our
work together.”
“Astonish is like
my unfair
advantage. What
can we work on
next?”
“What I thought I
needed was a web
app, but what I got
was more valuable:
a partner.”
“Yep, that’s
pretty much
what I
expected.”
Meets Unrecognized
Needs

@Astonish_Desig
n
Three Brand Value
Questions:
What does it say about your
customer that they work
with your company?

@Astonish_Desig
n
Three Brand Value Questions:
What is the singular thing that a customer
can get from their relationship with you that
they can’t get anywhere else?

@Astonish_Desig
n
Three Brand Value Questions:
How do you make the customer a
hero in his or her story?

@Astonish_Desig
n
Brand Promise
The different, unique, uncommon way you
solve customer’s greatest need.

@Astonish_Desig
n
Pizza delivered in 30 minutes or less or it’s free.

@Astonish_Desig
n
RackSpace manages hosting solutions and when client’s
systems go down, it’s never a good thing. So it promises
to get hardware ﬁxed in one hour or it’s free.
It also realizes that its customers hate to wait on hold so it
promises to answer the phone in 3 rings or less, and to
make sure that the customer can get their problem
ﬁxed within one transfer.

@Astonish_Desig
n
If your beverage is not made to your full
enjoyment, we’ll replace it with one that does.

@Astonish_Desig
n
Style at a low cost.

@Astonish_Desig
n
3LFs: Low fares, lots of ﬂights, lots of fun.

@Astonish_Desig
n
Peace of mind.

@Astonish_Desig
n
The Smart Way to Prototype
Envision your custom software idea or website before

committing the resources to build it out in full.
& cost effective
V
ClickModel℠
User Experience Prototyping

@Astonish_Desig
n
More important that you start than
it is that you get it perfect.
Iterate

@Astonish_Desig
n
“Vision is just about picking which
problems you want to work on.
Success means your problems get
better.”
– Ari Weinzweig

@Astonish_Desig
n
How to work on strategy?

@Astonish_Desig
n
"As leaders. you don’t need to have any
answers. Your job is to nail the question and
then ﬁgure out who to involve to correctly answer
the question.”
– Verne Harnish

@Astonish_Desig
n
"Whether you want to live a certain thing
should be the only criteria with which you
decide whether to give it attention or not."
–Unknown

@Astonish_Desig
n
Abundance & scarcity vs. belief in
oneself to adapt and survive.

@Astonish_Desig
n
Productive Paranoia
SMaC Recipe
Catalytic Mechanism
Disciplined
Action
Reverse Engineer
Meeting Rhythm
Maybe

@Astonish_Desig
n
Reverse Engineering

@Astonish_Desig
n
Meeting Rhythm

@Astonish_Desig
n

@Astonish_Desig
n
Productive Paranoia

@Astonish_Desig
n
“Speciﬁc, Methodical and Consistent."
SMaC Recipe
In 1979, then CEO of Southwest Airlines, Howard
Putnam was facing a massive shift in the competitive
landscape: the de-regulation of the airline industry.
Faced a tough question: “Does radical change in our
environment call for inﬂicting radical change upon
ourselves?

@Astonish_Desig
n
- Remain a short-haul carrier, under two-hour segments.
- Utilize the 737 as our primary aircraft for ten to twelve years.
- Continued high aircraft utilization and quick turns, ten minutes in
most cases.
-The passenger is our #1 product. Do not carry air freight or mail,
only small packages which have high proﬁtability and low handling
costs.
- Continued low fares and high frequency of service.
Stay out of food services.
- No interlining….costs in ticketing, tariffs and computers and our
unique airports do not lend themselves to interlining.
RetainTexas as our #1 priority and only go interstate if high-density
short-haul markets are available to us
etc.

@Astonish_Desig
n
Catalytic Mechanism

What is Strategy? Strategy Day at EO Accelerator

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie What is Strategy? Strategy Day at EO Accelerator

Ähnlich wie What is Strategy? Strategy Day at EO Accelerator (20)

Mehr von Tim Hamilton

Mehr von Tim Hamilton (9)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

What is Strategy? Strategy Day at EO Accelerator