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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

14. Questions?
Tiffany