1. Strategy Development Tools

2. SCENARIOS GUIDING PRINCIPLES / POLICIES (Core Values of the Company) STRATEGIC GOALS (How we wish to relate to the environment) OPERATIONAL PLANS (Implementing Strategy; Identifying and organising all key activities) WORKLOAD / CAPACITY PLANNING (Improvement of efficiency and strategic placing of bottlenecks)

3. Scope of Options Considered Fun End of Today Now In assessing future options, we need to open-up our range of feasible options before we focus on what we believe is key

4. A Business Model is the Means by which a Business Achieves its Strategy Process Decision-making Value delivery systems People Talent Development Values and Priorities Infrastructure Information Metrics & Control Incentives Structure Authority Job Design Overlay Task forces Project Teams Strategy Performance The consistent application and integration of structure, processes, infrastructure, people and overlay

5. Concern for Others Concern for Self Issue Resolution

6. Concern for Others Concern for Self Issue Resolution Smooth (0/10) Compete (10/0) Avoid (0/0) Constructive (10/10) Compromise Only one outcome really resolves the issue

7. Strategies Tactics Policies What is a given? What could we do? How? We need to agree what freedom of action we have and - What we need to define first

8. Strategies Tactics Policies

9. Winning business themes: Create value for customers and capture that value with a sustainable advantage over other players in the game Align all activities within the organisation toward the common theme(s) that support a winning business strategy

10. Individual decision makers may have different objectives; hence, potential conflicts and tradeoff issues that need to be surfaced Fundamental objectives need to be separated from “means” objectives –e.g. profit is a fundamental while pricing is a means objective A hierarchy can be constructed with the fundamental objectives to show the “general” to “specific” relationship of each A network of means objectives is added below the hierarchy to illustrate many of the ideas for achieving the desired outcomes The dialog on objectives creates a sound basis for making a decision and establishes a clear direction on the entire project An Objectives Hierarchy is useful for structuring values, identifying conflicts and illustrating tradeoffs

11. High-quality decisions are often difficult to make because of...  Too much time spent on unimportant details  Lack of creative and significantly different alternatives  Competing values which are difficult to trade-off  Inappropriate scope of analysis  Scope changes at each step in the process

12. Next, we need to categorise the decisions using the decision hierarchy The decision hierarchy helps to identify the scope of the problem and to separate constraints and implementation decisions from the focus of the analysis IssuesDecision Hierarchy

13. Constructing a Strategy Table The Strategy Table is a displayed thinking device for major decision categories with a list of specific options in each category. Decision categories are used from the Strategy level of the Decision Hierarchy and creative options listed in each category. The Team selects a fundamental theme and builds a strategy with a coherent set of actions, usually one option from each decision category. The goal is to have a global optimisation over the whole strategy, instead of a piecemeal local activity set that results in misalignment

14. Strategy Table - List the Decision Categories and Options