introduction to the bmi brscu strategy regeneration process

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The BMI-BRSCUSTRATEGY REGENERATION PROCESS

Dr. Llewellyn B. LewisDr. Llewellyn B. LewisMay 2011May 2011

THE STRATEGIC FORUMTHE STRATEGIC FORUM A place of assembly

for strategic conversations

THE STRATEGIC FORUMwww.strategicforum.co.za

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Studium Ad Prosperandum

Voluntas in Conveniendum

BUILDING RESEARCHSTRATEGY CONSULTINGUNIT cc

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COMPETING FOR THE FUTURECOMPETING FOR THE FUTURETHE QUEST FOR COMPETITIVENESSTHE QUEST FOR COMPETITIVENESS

RESTRUCTURINGRESTRUCTURINGTHE PORTFOLIOTHE PORTFOLIO

AND DOWNSIZING AND DOWNSIZING HEADCOUNTHEADCOUNT

REENGINEERING REENGINEERING PROCESSES ANDPROCESSES AND

CONTINUOUSCONTINUOUSIMPROVEMENTIMPROVEMENT

REGENERATING REGENERATING STRATEGIESSTRATEGIES

SMALLERSMALLER BETTERBETTER DIFFERENTDIFFERENT

POSSIBLE RESULTSPOSSIBLE RESULTS

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STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT

STRATEGYSTRATEGYTHE INDUSTRYENVIRONMENT

THE INDUSTRYENVIRONMENT

THE FIRMTHE FIRM

(Grant : 1991)

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STRATEGYSTRATEGYTHE INDUSTRYENVIRONMENT


THE FIRM

Resources andcapabilities

give rise to

strengths andweaknesses

THE FIRM


give rise to


(Grant : 1991)

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STRATEGYSTRATEGY


Conditions andtrends

give rise to

opportunitiesand threats


Conditions andtrends

give rise to

opportunitiesand threats

THE FIRM


give rise to


THE FIRM


give rise to


(Grant : 1991)

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UNDERSTANDING THEENVIRONMENT(SCENARIOS)

UNDERSTANDING THEENVIRONMENT(SCENARIOS)

UNDERSTANDING THEORGANISATION

(BUSINESS IDEA)

UNDERSTANDING THEORGANISATION

(BUSINESS IDEA)

IS THIS THE RIGHT COMPANY FORTHESE FUTURE ENVIRONMENTS ?

IS THIS THE RIGHT COMPANY FORTHESE FUTURE ENVIRONMENTS ?

IF NOT : ADDRESS COMPETENCIES


IF SO : ADDRESS BUSINESS CHOICES

STRENGTHSSTRENGTHSand and

WEAKNESSESWEAKNESSES



OPPORTUNITIESOPPORTUNITIESand and

THREATSTHREATS


THREATSTHREATS

Organisational LearningOrganisational Learning

STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life



ENVIRONMENTALENVIRONMENTAL FORCESFORCES


ORGANISATIONALORGANISATIONALRESOURCESRESOURCES

CAPABILITIESCAPABILITIES



CURRENT REALITYCURRENT REALITY

STRATEGIC INTENT, VISION, MISSIONSTRATEGIC INTENT, VISION, MISSION

DRIVING FORCEDRIVING FORCE

PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES

INDUSTRY FORESIGHTINDUSTRY FORESIGHTUNDERSTANDING THE INDUSTRYUNDERSTANDING THE INDUSTRYSCENARIOSSCENARIOS

UNDERSTANDINGTHE ENVIRONMENT

SCENARIOSSCENARIOSUNDERSTANDING

THE ENVIRONMENT

BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION


THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation


(After Johnson : 1988)

STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMS






THREATSTHREATS


THREATSTHREATS


















THE ENVIRONMENT






STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMSIf you want to understand the World, commonly held ideas are absolutely blinding.






THREATSTHREATS


THREATSTHREATS


















THE ENVIRONMENT







The only way to spot threats and opportunities is to break out of a narrow way of thinking.






THREATSTHREATS


THREATSTHREATS


















THE ENVIRONMENT







. . . If you’re trying to reach enlightenment, you must develop, in this order, “right view, right intention, right action.”

If you’re not seeing the world properly, you have no hope of any sort of breakthrough. (Ramo: 2009: 134)

DO

ING

Content Context

Shortsight Longsight Foresight Vision ContextFar Hindsight Near Hindsight

Blind spotsBlind spots

Bright sparksBright sparks



Data Facts, observations, data points

Information Data with meaning

Knowledge Information with insight

Wisdom Knowledge with context

(Source: Based on Dr. Kanes Rajah: 2005)

Partial knowledge

Incorrect knowledge

False knowledge

No knowledge

BE

ING

Process


DO

ING

Content Context











Partial knowledge

Incorrect knowledge

False knowledge

No knowledge

BE

ING

Process

More than anything, what you want to know is when change is going to begin. This sense is known as mastery of incipience, and the skill is often praised as the highest form of wisdom. (Ramo: 2009: 161).


DO

ING

Content Context











Partial knowledge

Incorrect knowledge

False knowledge

No knowledge

BE

ING

Process

. . . truth emerges through debate, study, reflection, meditation, and, at long last, insight delivered like lightning. (paraphrase of Ramo, 2009: 212).


DO

ING

Content Context











Partial knowledge

Incorrect knowledge

False knowledge

No knowledge

BE

ING

Process

. . . The environment is far more powerful than any individual. It is never stable and in its sudden changes from one state to another, more important than the desires of any of us . . . Context is everything . . . (Ramo: 2009: 160).


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DEVELOPING STRATEGIC LEADERSHIP AS A WAY OF BUSINESS LIFE

PoliticalEconomic

Social

Technological

CURRENT REALITY

STRATEGIC INTENT

DRIVING FORCE

PERFORMANCE GUIDELINES

ENVIRONMENTAL SCANNING

PREDICTING THE FUTURE INDUSTRY FORESIGHT CREATING THE FUTURE

PARADIGM ENHANCEMENT PARADIGMS PARADIGM SHIFT

NATURE OF CHANGESCENARIOS

IMPACTS

VISION, MISSION, SLOGANCONTEXT

CORE VALUESRequired to intercept the future

CORE COMPETENCIESThe Idea of the Business

Resources, Skills, Key CapabilitiesSTRATEGIC ARCHITECTURE

STRUCTURERequired for the future

STRATEGIESA LOGIC, AND FIRST LEVEL OF DETAIL FOR HOW

THE VISION CAN BE ACCOMPLISHED

MA

NA

GE

ME

NT

LE

AD

ER

SH

IP

INTERNAL ORIENTATIONMANAGING

STRENGTHS and WEAKNESSES

INTERNAL STAKEHOLDERSSHAREHOLDERS

EMPLOYEESSUPPLIERSPARTNERS

CYCLICALREQUIRING TACTICAL

RESPONSE

STRUCTURALREQUIRING STRATEGIC

RESPONSE

PLANNINGBUDGETTINGORGANISING

CONTROLLINGSTAFFING

LEADINGDIRECTINGALIGNING

MOTIVATINGINSPIRING

MANAGING THEHERE AND NOW

TODAY FORWARD

EFFICIENCY

DOINGTHINGS RIGHT

MANAGING THETHERE AND THEN

FUTURE BACKWARD

EFFECTIVENESS

DOINGTHE RIGHT THINGS

EXTERNAL ORIENTATIONRESPONDING TO

OPPORTUNITIES and THREATS

EXTERNAL STAKEHOLDERSGOVERNMENTCOMPETITORS

FINANCIERSCUSTOMERS

(c)BMI-BRSCU

THE BMI-SCU STRATEGIC LEADERSHIP PROCESS

PROBING QUESTIONNAIRELEADERSHIP STYLEBusiness PhilosophyCulture and Values

Principal challenges

NATURE OF CHANGEStructural/Cyclical

SCENARIOSIMPACTS

DEVELOPINGINDUSTRY FORESIGHT

SENSITISATIONStrategic Reading

Calibrating the compass

PARADIGMSand

PARADIGM SHIFT

CURRENT REALITY

STRATEGIC INTENT

VISION/MISSION/SLOGANCONTEXT

FUTURE CORE VALUES

DRIVING FORCE

CORE COMPETENCIESCORE COMPETENCIESRequired for the futureRequired for the future

STRATEGIC ARCHITECTURESTRATEGIC ARCHITECTUREThe Idea of the BusinessThe Idea of the Business

Resources, Skills, Key CapabilitiesResources, Skills, Key CapabilitiesRequired for the futureRequired for the future

STRUCTURESTRUCTURE

PERFORMANCE GUIDELINES

CLEAR STATEMENT OF STRATEGY THAT CAN BE EASILY RETAINEDSHARED UNDERSTANDING AND COMMITMENTStrategic Leadership as a way of business life

CONSISTENCY IN RESOURCE ALLOCATION IN LONG TERMFOCAL POINT FOR RESOURCE ALLOCATION AND INTELLECTUAL ENERGY IN MEDIUM TERM

EXPLOITING COMPETITIVE OPENINGS WITH MINIMUM RESOURCES AND EXPOSURE IN SHORT TERMTAPPING THE COLLECTIVE WISDOM OF THE TOTAL ORGANISATION

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THE STRATEGIC PLANNING PROCESS

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CREATIVE TENSION

SEEKS RESOLUTION

RESULTS IN ACTION

THE GLUE

THATHOLDS

STRATEGYTOGETHER

Regenerating Strategy : Strategic Leadership as a way of Business Life

PARADIGMSand

PARADIGM SHIFT

PARADIGMSand

PARADIGM SHIFT

LEADERSHIP STYLECULTURE, VALUES

SCENARIOS

LEADERSHIP STYLECULTURE, VALUES

SCENARIOS

CORPORATE CHALLENGES, COMPETITIVE INNOVATION, STRATEGIC ACTION PLANSSHARED UNDERSTANDING AND COMMITMENT

TAPPING THE COLLECTIVE WISDOM OF THE TOTAL ORGANISATION

PERFORMANCE MILESTONESMeasuring Success

PERFORMANCE MILESTONESMeasuring Success

STRUCTURERequired for the future

STRATEGIESCORE COMPETENCIES

FUTURE BUSINESS IDEA STRATEGIC ARCHITECTURE

RESOURCES, SKILLS, KEY CAPABILITIES

FUTURE DRIVING FORCE

SWOTCHANGING GAME RULES

REDEFINING BOUNDARIES

STRATEGIC INTENTVISION, MISSION, SLOGAN

VALUES, CONTEXT

CURRENT REALITYRULES OF THE GAME

BUSINESS IDEA

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THE RELATIONSHIP OF VISION, STRATEGIES,THE RELATIONSHIP OF VISION, STRATEGIES,PLANS AND BUDGETS : A TRADITIONAL VIEWPLANS AND BUDGETS : A TRADITIONAL VIEWTHE RELATIONSHIP OF VISION, STRATEGIES,THE RELATIONSHIP OF VISION, STRATEGIES,PLANS AND BUDGETS : A TRADITIONAL VIEWPLANS AND BUDGETS : A TRADITIONAL VIEW

Specific action steps and Specific action steps and timetables to implement timetables to implement the strategiesthe strategies

Plans converted into Plans converted into financial projections and financial projections and goalsgoals

A sensible and A sensible and appealing picture of appealing picture of the futurethe future

A logic, and first level A logic, and first level of detail, for how the of detail, for how the vision can be vision can be achievedachieved

BUDGETSBUDGETSBUDGETSBUDGETS

MANAGEMENT MANAGEMENT DOESDOESMANAGEMENT MANAGEMENT DOESDOES

LEADERSHIP LEADERSHIP DEVELOPSDEVELOPSLEADERSHIP LEADERSHIP DEVELOPSDEVELOPS

STRATEGIC STRATEGIC ACTIONACTIONPLANSPLANS

STRATEGIC STRATEGIC ACTIONACTIONPLANSPLANS

STRATEGIESSTRATEGIESSTRATEGIESSTRATEGIES

VISIONVISIONVISIONVISION

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ENVIRONMENTAL CHANGE

WHAT RESPONSES RESULT ?WHAT RESPONSES RESULT ?

DENOMINATOR (NET ASSETS)DENOMINATOR (NET ASSETS) NUMERATOR (NET INCOME)NUMERATOR (NET INCOME)

• RESTRUCTURINGRESTRUCTURING• B P RE-ENGINEERINGB P RE-ENGINEERING• COST CUTTINGCOST CUTTING• BENCHMARKINGBENCHMARKING• TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT

• INTELLECTUAL CAPITAL FOCUSINTELLECTUAL CAPITAL FOCUS• REGENERATING STRATEGYREGENERATING STRATEGY• REINVENTING THE LEADERSHIPREINVENTING THE LEADERSHIP• REINVENTING THE ORGANISATIONREINVENTING THE ORGANISATION• REINVENTING THE INDUSTRYREINVENTING THE INDUSTRY

AS : * Competition hots up

* Growth slows, stagnates* Margins decline

* Market share falls* Substitution occurs

(Based on Hamel and Prahalad : 1994)(Based on Hamel and Prahalad : 1994)

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ENVIRONMENTAL CHANGE

WHAT RESPONSES RESULT ?WHAT RESPONSES RESULT ?

DENOMINATOR (NET ASSETS)DENOMINATOR (NET ASSETS) NUMERATOR (NET INCOME)NUMERATOR (NET INCOME)

• RESTRUCTURINGRESTRUCTURING• B P RE-ENGINEERINGB P RE-ENGINEERING• COST CUTTINGCOST CUTTING• BENCHMARKINGBENCHMARKING• TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT

• INTELLECTUAL CAPITAL FOCUSINTELLECTUAL CAPITAL FOCUS• REGENERATING STRATEGYREGENERATING STRATEGY• REINVENTING THE LEADERSHIPREINVENTING THE LEADERSHIP• REINVENTING THE ORGANISATIONREINVENTING THE ORGANISATION• REINVENTING THE INDUSTRYREINVENTING THE INDUSTRY

AS : * Competition hots up

* Growth slows, stagnates* Margins decline

* Market share falls* Substitution occurs

(Based on Hamel and Prahalad : 1994)(Based on Hamel and Prahalad : 1994)

It is not enough for a company to get It is not enough for a company to get SMALLER and BETTER and FASTER. SMALLER and BETTER and FASTER. A company must also be capable of A company must also be capable of

fundamentally RECONCEIVING itself, fundamentally RECONCEIVING itself, of REGENERATING core strategies, and of REGENERATING core strategies, and

of REINVENTING ITS INDUSTRYof REINVENTING ITS INDUSTRY

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CREATING THE FUTURECREATING THE FUTURETHE QUEST FOR COMPETITIVENESSTHE QUEST FOR COMPETITIVENESS

RESTRUCTURINGRESTRUCTURINGTHE PORTFOLIOTHE PORTFOLIO

AND DOWNSIZING AND DOWNSIZING HEADCOUNTHEADCOUNT

REENGINEERING REENGINEERING PROCESSES ANDPROCESSES AND

CONTINUOUSCONTINUOUSIMPROVEMENTIMPROVEMENT

REGENERATING REGENERATING STRATEGIESSTRATEGIES

SMALLERSMALLER BETTERBETTER DIFFERENTDIFFERENT

REINVENTING REINVENTING THE LEADERSHIP,THE LEADERSHIP,

THE ORGANISATION,THE ORGANISATION,THE INDUSTRYTHE INDUSTRY

REINVENTING REINVENTING THE LEADERSHIP,THE LEADERSHIP,

THE ORGANISATION,THE ORGANISATION,THE INDUSTRYTHE INDUSTRY

TRANSFORMEDTRANSFORMEDTRANSFORMEDTRANSFORMEDPOSSIBLE RESULTSPOSSIBLE RESULTS IMPOSSIBLE RESULTSIMPOSSIBLE RESULTSIMPOSSIBLE RESULTSIMPOSSIBLE RESULTS

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CREATING THE FUTURE

CREATIVECREATIVE TENSIONTENSION

CREATIVECREATIVE TENSIONTENSION SEEKS RESOLUTION : RESULTS IN ACTIONSEEKS RESOLUTION : RESULTS IN ACTION

STRATEGIC ACTION PLANSSTRATEGIC ACTION PLANS PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES

BUDGETSBUDGETS

DONE DONE BY MANAGEMENT BY MANAGEMENT

SEEKS RESOLUTION : RESULTS IN ACTIONSEEKS RESOLUTION : RESULTS IN ACTION STRATEGIC ACTION PLANSSTRATEGIC ACTION PLANS

PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES BUDGETSBUDGETS

DONE DONE BY MANAGEMENT BY MANAGEMENT

STRATEGIES STRATEGIES A LOGIC AND FIRST A LOGIC AND FIRST

LEVEL OF DETAIL, LEVEL OF DETAIL, FOR HOW THE FOR HOW THE

VISION CAN BE ACHIEVEDVISION CAN BE ACHIEVED

DEVELOPED DEVELOPED BY BY

LEADERSHIP LEADERSHIP CONTEMPORARY ANALYSTCONTEMPORARY ANALYST

20202011

CURRENT REALITYCURRENT REALITY INFORMED BY INFORMED BY

MEMORIES OF MEMORIES OF THE PAST THE PAST(HISTORY)(HISTORY)HISTORIANHISTORIAN

VISION INFORMED

BY MEMORIES

OF THE FUTURE

(SCENARIOS)PROPHET

CONTEXT : A COMPELLING PICTURE CONTEXT : A COMPELLING PICTURE OF THE FUTURE WE WANT TO OF THE FUTURE WE WANT TO

CREATE.CREATE.

CREATED BY CREATED BY LEADERSHIPLEADERSHIP

CONTEXT : A COMPELLING PICTURE CONTEXT : A COMPELLING PICTURE OF THE FUTURE WE WANT TO OF THE FUTURE WE WANT TO

CREATE.CREATE.

CREATED BY CREATED BY LEADERSHIPLEADERSHIP

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BEYOND VISION, STRATEGIES, PLANS AND BUDGETS : A NON-TRADITIONAL VIEW

BEYOND VISION, STRATEGIES, PLANS AND BUDGETS : A NON-TRADITIONAL VIEW

Specific steps and Specific steps and timetables to implement timetables to implement the strategiesthe strategies

Plans converted into Plans converted into financial projections and financial projections and goalsgoals

A sensible and A sensible and appealing picture of appealing picture of the futurethe future

A logic, and first level A logic, and first level of detail, for how the of detail, for how the vision can be vision can be achievedachieved

BUDGETSBUDGETSBUDGETSBUDGETS

MANAGEMENT MANAGEMENT DOESDOESMANAGEMENT MANAGEMENT DOESDOES

VISIONARYVISIONARYLEADERSHIP LEADERSHIP DEVELOPSDEVELOPS

VISIONARYVISIONARYLEADERSHIP LEADERSHIP DEVELOPSDEVELOPS

PLANSPLANSPLANSPLANS

STRATEGIESSTRATEGIESSTRATEGIESSTRATEGIES

VISIONVISIONVISIONVISION

CONTEXTCONTEXTCONTEXTCONTEXTTRANS-TRANS-FORMATIONALFORMATIONALLEADERSHIP LEADERSHIP CREATESCREATES

TRANS-TRANS-FORMATIONALFORMATIONALLEADERSHIP LEADERSHIP CREATESCREATES

Way of being. Inventing an Way of being. Inventing an impossible game. impossible game. Reinventing, transforming Reinventing, transforming the organisation, the industrythe organisation, the industry

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STRATEGY REGENERATION PROCESSProprietor and Principal Consultant Dr. Llewellyn B. LewisProprietor and Principal Consultant Dr. Llewellyn B. Lewis

Developing competitive industry foresightDeveloping competitive industry foresightandand

strategic leadership as a way of business life.strategic leadership as a way of business life.

[email protected]@bmi-brscu.co.za

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CENTRE FOR STRATEGY, LEADERSHIP AND ORGANISATIONAL REINVENTION