Strategy Development and Executive Responsibility Getting Things Done! Lecture 1

“A good strategic plan is a set of directions you want to take. It’s a roadmap, lightly filled in, so that it gives you plenty of room to maneuver ” Larry Bossidy Chairman and CEO Honeywell International

What is Management’s Role? First job is to think through, set and exemplify the firm’s objectives, values, and goals Management is about making people capable of joint performance Making employees strengths effective and weaknesses irrelevant Integration of people in a common venture Fostering learning and teaching Focus on performance and results

What is an Executive? Executives are those KWs, managers, and individual professionals who are expected to make decisions that impact performance and results of the firm as a whole Effective Executive focuses on contribution “Contribution is the key to effectiveness in one’s own work, in one’s relationship with others and the in the use of the tools of the executive”….Peter F. Drucker

What is a Leader? Trustworthy Cowardly Greedy Dominating Humble Introvert Analytical Deceitful Brave Generous Inspiring Arrogant Extrovert Intuitive

“What can I contribute that will significantly affect the performance and results of the institution that I serve.” Peter F. Drucker

Organizational Dynamics Organizations tend to evolve slowly through decisions with only small increments over time Organizational processes are a critical determinant of decision making and thus strategy Coalitions within the organization place severe limits on the general manager’s ability to exercise leadership-”zone of indifference”

Corporate Strategy Articulates the firm’s areas of focus and actions Fosters the exchange of ideas across the corporation Vehicle for allocating resources among all of the business units Identifies the added-valued from company- wide initiatives-six sigma,IT, HR development, etc. Defines the firm’s boundaries

Effective Strategy Process Emergent Evolutionary Intuitive Circular Fragmented

Key Questions What is the assessment of the external environment? How well do you understand the existing customers and markets? What is the best way to grow the business profitably? What are the obstacles to growth? Who is the competition?

Key Questions Can the business execute the strategy? Are the short and long term balanced? What are the important milestones for executing the plan? What the critical issues facing the business? How will the business make money on a sustainable basis?

Closing the Strategy- Performance Gap Keep it simple-Be clear about the strategy is and isn’t Debate assumptions, not forecasts Use a rigorous framework Surface resource deployments requirements Clearly identify priorities Continuously monitor performance metrics Reward and develop execution capabilities

Senior Leaders’ Challenge Picking other leaders Setting the strategic direction Conducting and reviewing operations Being passionately engaged and honest about the realities

“Leadership without the discipline of execution is incomplete and ineffective.” Larry Bossidy Former Chairman and CEO Honeywell International