GRAND STRATEGY

GRAND STRATEGY-S. ASHA

M.com., M.Phil,MBA, ICWAI(Inter)

What is it?????????????

• Maximize your opportunities, minimize your risks and achieve performance breakthroughs.

• "That would be great, how do I do it?" 

Achieving this level of performance requires

• A deliberate strategy - performance management

• Scan the business horizon• Focus time• Energy • Knowledge• Relationships • Resources• Execute courses of action that possess the

highest pay-off• Lowest costs• Easiest implementation trajectory

So…. Grand Strategy is……..• Step-by-step process for

developing a business strategy with a performance management and measurement system for your business

• Equates to a necessary precursor for all subordinate strategies and systems whether they be marketing, innovation or otherwise

• 12 steps - Grand Strategy process.  • First 11 steps - best developed as

living document with top management team - facilitator at an off-site meeting to avoid distractions

• Twelve - strong top management commitment, support and involvement

Step One.  Answer "What's your Theory of Business?" 

• Where are you going? • How will you get there? • How will you know you've arrived?

Step Two.  Create a clear expression of your intangible business resources • Values - family well being, charity and goodwill toward

others, honesty and integrity, and making a difference in the world.

• Beliefs - we provide excellent products and services that please our customers at a competitive price, we will be a profitable business

• Attitudes - most people tend to be fair if treated fairly

• Capabilities - sales force knowledge, knowledge about

competitors

Step Three. Write a "Mission Statement."

• Why are you in business? • What does your business do and how

does it do it? • Who does your business, who supports

it, who benefits from it and who, if anyone, suffers from it?

• How many different kinds of resources are involved in your business, how much do they costs and how much profit do you expect to make from them

Step Four. Perform an "Environmental Scan"

• What industry are you in?• What is the economic situation?• Who are your competitors and

potential competitors?  • Who are your customers?

Step Five. Perform a SWOT Analysis

• Strengths• Weaknesses• Opportunities• Threats

Step Six.  Determine "Strategic Focus."  "Hyper-Competition" 

• Customer Intimacy • Product Leadership • Operational Excellence

Step Seven.  Seek performance breakthroughs. 

• Administrative and Operations

• Crisis

• Breakthrough

Step Eight.  Understand and apply "Cause and Effect Relationships."

• Human Capital

• Structural Capital

• Customer Capital

• Financial Performance

Step Nine. Develop a "Strategy Map." 

"Be a compelling place to Work, Shop and Invest”

☻ Financial Performance Goals

☻ Customer Capital Goals

☻ Structural Capital Goals

☻ Human Capital Goals

Step Ten.  Translate your Strategy Map goals into "Key Performance Measures"

چ GOALS into MEASURABLE terms

Step Eleven.  Prepare a "Scorecard" to keep track and drive your Grand Strategy

Using the perspectives of scorecard

Step Twelve. Execute, Adjust, Execute • Don't confuse creating your

Grand Strategy with taking action

• Grand Strategy process demands real work and organizational change

QUERIES ????????????????????????