Roku-dan meta-framework Strategic Thinking (Differentiation, value proposition) Strategic Analysis (validation, selection) Operation- alization (Translate to execute, Align actions) Strategic Management & Execution Domain knowledge Intuition Framing Context switching Sense making RBV TCE Porter M&A theory Game Theory Diversification Generic strategies Network externalities Communicate Budgets Pre-mortems Process design Deliberate Emergent Measurement Adapting Learning

(Where the rubber hits the road) The Four Components Strategic Thinking Strategic Analysis Operationalization (Where the rubber hits the road) Execution & Management

Defining the problem / opportunity Strategic Thinking Defining the problem / opportunity Framing the problem What really matters, what doesn’t? Context switching What other problems have similar features? What do different frames / context imply Projecting out Translating (fitting) the new frame or context to the situation at hand

Asking the right questions Questions should be Tractable “How can we double revenues”? is too big – break down into smaller questions Actionable “Why is the competition gaining ground”? isn’t But these are: “What do customers want”? (market research) “What do we offer”? “What are they offering” (competitive intelligence)

Asking the right questions Look at Small as well as Large issues – Small items compound Use many different perspectives – Team Diversity Focus on Day-to-Day – Where is the action Do not over simplify Interpretations – nothing is that simple You do not have all the answers –Learn Having Specific Domain Knowledge – the devil is in the detail

Framing Mental models (or ‘schemas’) How you Frame shapes the solution We all use mental models to represent a complex world Models must include how things work (cause and effect) Must be challenged and updated with mew information or changes How you Frame shapes the solution Activates different schemas Logic of appropriateness E.g. Opportunity (offense) or Threat (defense) Adopt multiple Frames – multiple perspectives Leaders must be careful not to impose personal frames

Intuition Look for Cues or Clues Pattern recognition & matching Focus on Higher Impact Pattern recognition & matching Pattern matching produces scripts to follow Strategic Imagination project into the future

Most things are not Linear Trial and small errors Sensemaking Most things are not Linear Sensemaking is an iterative process Trial and small errors Sensemaking = understanding cause & effect Sensemaking relies on intuition

(Differentiation, value proposition) Strategic Thinking Gain insight… Asking the Right Questions Framing the Information 1. Strategic Thinking (Differentiation, value proposition) Strategic Thinking Sense Making Intuition and Strategic Imagination Domain Experts to ask the Right Questions: Typical Thought Leader Team should include the following – (This is typically your Senior Staff + Fellows) Customer Expert – they know the customer’s business better than the customer Business Expert (Typically your Strategist: working knowledge of all areas – often the CEO or CFO) – they know the short-term & long-term options to optimize a market situation Development or Product/Service Expert – They know current products, competitive products, and future product trends Environmental Experts – They know the “Gotcha’s” and the “Openings” to come from Technology, Government, Macro Economics, Internal Insight External Insight

(validation, selection) Strategic Analysis Financial Metrics Financial Metrics Customer Analysis Customer Metrics Strategic Analysis (validation, selection) Competitor Analysis Financial Metrics Operating Metrics Market Analysis Environmental Analysis Strategy is formed from Insight & Analysis (typically weighted more on insight – validated with analysis) Analysis Group = Researchers (staff positions) & Number crunchers – they have a good working knowledge of each respective operating area Development Metrics Financial Metrics Internal Analysis External Analysis Miller / Okumoto, Inc.

Operationalizatin Creating Alignment Internal Alignment Operation- Financial Metrics Strategic Themes Priorities Financial Metrics Operation- alization (Translate to execute, Align actions) Strategic Programs Financial Metrics Strategic Projects Financial Metrics Strategy Mapping Internal Alignment Miller / Okumoto, Inc.

Management & Execution Execute Measure Compare / assess Correct… Actions (SLL) Goals (DLL) Repeat Strategic Management & Execution