Practical and Actionable Strategy Board Builder Conference March 2014

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Today’s challenge

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My aspiration

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Roughly West

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Simon Sinek – ‘The WHY’

© 2010 Deloitte Touche Tohmatsu -

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1.2 1.1

1.2.2 1.2.1 1.1.1

1.2.2 A

1.2.1 A

1.1.1 B

1.1.1 A

Strategic Imperative / Objective • Things the organisation “must do” to realise its vision • Example: Develop and preserve the organisation’s core health

business, Diversify services offered

Strategic Goals & Measures • Specific measurable target • Example: Increase membership by 10% by FY 2009 • Annual Objectives & Metrics will also be identified

to provide focus on annual targets as well

Strategic Initiatives • Structured effort directed toward achieving Strategic

Goal • Example: Improve CDH capability to increase

national account membership

Strategic Projects • Series of tasks to enable a specific initiative • Example:

1. Expand CDH product portfolio 2. Invest in CDH platform and capabilities

Vision Statement • Short statement that summarises strategic direction • Example: Become the leader in the region

Mission & Values • Mission and values define “who” you are and “why” you exist

Strategic Pyramid

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'Strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value'

- Michael Porter

'Strategy is a set of key choices about customers, value-added, differentiation and performance defining the shape and identity of the enterprise' - Michael Hammer

'Strategy is simply the management of change - the intelligent adaptation to external circumstances and the conscious creation of a desired future' - Strategy & Leadership

'Strategy is visioning what the future market will look like and then stretching the firm’s skills in order to position it to take advantage of that future' - Gary Hamel

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Strategy is a PROCESS to ask a series of QUESTIONS that help inform organisational CHOICES

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Applying a framework is helpful

simplifying the world around us providing guidance as to the prioritization of choices

and adding consistency to decision-making

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NOW

THEN

HOW

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The purpose of the enterprise:

• What is our guiding purpose?

• What are our measurable objectives?

The unique right to success:

• With what value proposition?

• With what competitive advantage?

• With what configuration of activities?

The right playing field:

• Where will we operate? Which geographies, categories, segments, channels?

• Will we be narrow or broad?

The core supporting activities:

• What specific capabilities must be in place?

• In what configuration?

The management systems:

• What systems, skills and structures are required to support the capabilities?

How will we be

successful?

What management systems are

required?

What are our aspirations and goals?

What capabilities must be in

place to win?

Where will we play?

A Series of Crucial Questions

Roger Martin – Cascade of Choices

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It’s a process of asking the right NOW questions

NOW

What makes us great?

What stops us from being great?

What is our focus?

Do we do what we say we will do?

Do we pass the ‘hand on heart’ test?

What are our ‘competitors’ doing?

Are we relevant?

Why do our customers/clients/members choose us?

Is what we are currently doing enough to support our sustainability in 5 years?

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It’s a process of asking the right THEN questions

THEN

Where do we want to be?

Where do we need to be?

What changes are coming?

What will our clients / customers / members / stakeholders want and need?

How will we stay relevant?

We know we will be successful if……

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Future “A”

Future “B”

Future “C”

Present Reality

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It’s a process of asking the right HOW questions

HOW

How will we stay relevant?

What do we need to start doing?

What do we need to stop doing?

What will our clients / customers / members / stakeholders want and need?

What are the skills, staff, systems, style and structures we need?

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McKinsey’s 7S model

HOW

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Some Tips

Don’t do it alone – Engage, Consult, Discuss, Debate

Don’t develop a 50 page document

Make sure the WHY is clearly articulated

Don’t get bogged down in the semantic

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© 2013 Deloitte Private Pty Ltd

General information only

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