Focus on the Big Picture, Not the Numbers Berkley Stell, Tiffany Jesko, Joshua Benjamin, Eric Baker

Strategy Canvas Produces strategies that unlock creativity, rather than look at numbers Helps to focus on the bigger picture, rather than the smaller details Shows strategic profile of an industry by depicting very clearly the factors that affect competition among industry players Shows the strategic profile of current and potential competitors, identifying which factors they invest in strategically Shows the company’s strategic profile or value curve- depicting how it invests in the factors of competition and how it might invest in them in the future

Step One- Visual Awakening Compare your business with your competitors’ by drawing your “as is” strategy canvas → What is your business’s current strategy? → How does it look compared to your competitors? See where your strategy needs to change → Where does your business need to improve? Tiffany: Example Story: when everyone was giving out ideas, only one guy on the team suggested instant confirmation on their transactions… when it ended up actually being what people want

Visual Awakening in Home Depot What’s Home Depot’s current strategy? -Centered around “frictionless shopping” making it easier for customers to purchase online ……. .through apps and then pick up at reserved parking- quick in and out process How does this compare to their competitors? -Lowe’s is currently focusing on making their strong stores stronger, and shutting down the …….. stores that aren’t doing as well. Focusing more on customer service and attracting a new ……. .customer segment- professional home improvers. Where does Home Depot need to change? - Appeal to a larger customer base by offering premium products at all locations with same ……...day delivery. Tiffany

Step Two: Visual Exploration “Sending the team into the field…” Michael Bloomberg - Former New York City mayor hailed as “a business visionary” Bloomberg believed that you must be face-to-face with both your purchasers as well as your users and analyse what they do and when they do it. Sending a team into the field requires attention in three different areas… Always focus on the customers Go after noncustomers and extend observations to users Lastly, notice how customers are satisfied and fulfilled (Communication & Observation) Berkley

Visual Exploration in Home Depot Home Depot - How are they involved? Questionnaires: allowing customers the opportunity to voice their concerns and project what they would like to see in the future. Premium Products Delivered within a short amount of time Open communication “Call with us” “Text with us” On site help Employees on site ready to assist when needed Berkley

Step Three: Visual Strategy Fair EFS’s Visual Strategy Fair: Gave strategic teams 10 minutes to present their value curves, and judges would vote on their favorite strategies. Discovered that buyers in all markets have a basic set of needs and expected services to accompany said needs. If these common needs were to be met, the customers would happily forgo everything else. The results were shocking and completely redefined their strategic plan and current value curves. EFS did things such as eliminate relationship management, and reduced investment in account executives Focused on “ease of use”, security, accuracy and speed Josh

Visual Strategy in Home Depot Home Depot mainly targets the low to middle class by offering sub-premium products. However, some customers desire premium products, and are willing to pay for such products. (Basic product expectation for home improvement stores). Home Depot has 100’s of distribution centers all over the United States, where premium products would be stored, making next day and same day delivery a possibility. (Basic service expectation for all stores with online services). This fits most consumers’ basic expectation for home improvement stores such as Home Depot, and creates tremendous value for Home Depot in ways that Lowes and ACE have not explored yet. Josh

Step Four: Visual Communication After the future strategy is set step four is to communicate the strategy so it can be understood by employees. → Effective implementation! Meetings with senior managers Clear game plans can motivate employees Ideas that don’t align with the overall goal should not be prioritized. Eric

Visual Communication within Home Depot Meet with top managers to align goals Ensure store managers know new strategy and how it will impact store sales Provide training to employees Use supervisors to monitor goals Track progress to keep up with demand or change plan. Eric

Visualizing Strategy at a Corporate Level Foster innovation through listening to your employees and unit heads. Example: Samsung created the Value Innovation Program (VIP) in 1998 Create a strategy canvas which innovates products or services that will launch you into a blue ocean. → Draw and share your strategy canvas! Eric

Using the Pioneer-Migrator-Settler (PMS) Map Helps managers predict and plan the company’s future growth and profit Pioneers: businesses that offer unprecedented value Blue oceans- offer the most powerful sources of profitable growth Settlers: businesses whose value curves conform to the basic shape of the industry’s “Me-too” businesses; red oceans- generally do not contribute much to company’s future growth Migrators: lies somewhere in between Give customers more for less, but don’t alter anything- offer improved value, but not innovative value Tiffany

Testing the Growth Potential of Home Depot Pioneers Migrators Settlers Tiffany Current Portfolio Planned Portfolio

Questions? Tiffany