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© BMI-BRSCUSR 1
The BMI-BRSCUSTRATEGY REGENERATION PROCESS
Dr. Llewellyn B. LewisDr. Llewellyn B. LewisMay 2011May 2011
THE STRATEGIC FORUMTHE STRATEGIC FORUM A place of assembly
for strategic conversations
THE STRATEGIC FORUMwww.strategicforum.co.za
BMI
Studium Ad Prosperandum
Voluntas in Conveniendum
BUILDING RESEARCHSTRATEGY CONSULTINGUNIT cc
Reg. No. 2002/105109/23
•BMI
Studium Ad Prosperandum
Voluntas in Conveniendum
BUILDING RESEARCHSTRATEGY CONSULTINGUNIT cc
•BMI
•BMI
•BMI
•BMI
Studium Ad Prosperandum
Voluntas in Conveniendum
BUILDING RESEARCHSTRATEGY CONSULTINGUNIT cc
Reg. No. 2002/105109/23
•BMI
Studium Ad Prosperandum
Voluntas in Conveniendum
BUILDING RESEARCHSTRATEGY CONSULTINGUNIT cc
•BMI
•BMI
•BMI
•BMI
•BMI
•BMI
•
© BMI-BRSCUSR 2
COMPETING FOR THE FUTURECOMPETING FOR THE FUTURETHE QUEST FOR COMPETITIVENESSTHE QUEST FOR COMPETITIVENESS
RESTRUCTURINGRESTRUCTURINGTHE PORTFOLIOTHE PORTFOLIO
AND DOWNSIZING AND DOWNSIZING HEADCOUNTHEADCOUNT
REENGINEERING REENGINEERING PROCESSES ANDPROCESSES AND
CONTINUOUSCONTINUOUSIMPROVEMENTIMPROVEMENT
REGENERATING REGENERATING STRATEGIESSTRATEGIES
SMALLERSMALLER BETTERBETTER DIFFERENTDIFFERENT
POSSIBLE RESULTSPOSSIBLE RESULTS
© BMI-BRSCUSR 3
STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT
STRATEGYSTRATEGYTHE INDUSTRYENVIRONMENT
THE INDUSTRYENVIRONMENT
THE FIRMTHE FIRM
(Grant : 1991)
© BMI-BRSCUSR 4
STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT
STRATEGYSTRATEGYTHE INDUSTRYENVIRONMENT
THE INDUSTRYENVIRONMENT
THE FIRM
Resources andcapabilities
give rise to
strengths andweaknesses
THE FIRM
Resources andcapabilities
give rise to
strengths andweaknesses
(Grant : 1991)
© BMI-BRSCUSR 5
STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT
STRATEGYSTRATEGY
THE INDUSTRYENVIRONMENT
Conditions andtrends
give rise to
opportunitiesand threats
THE INDUSTRYENVIRONMENT
Conditions andtrends
give rise to
opportunitiesand threats
THE FIRM
Resources andcapabilities
give rise to
strengths andweaknesses
THE FIRM
Resources andcapabilities
give rise to
strengths andweaknesses
(Grant : 1991)
© BMI-BRSCUSR 6
UNDERSTANDING THEENVIRONMENT(SCENARIOS)
UNDERSTANDING THEENVIRONMENT(SCENARIOS)
UNDERSTANDING THEORGANISATION
(BUSINESS IDEA)
UNDERSTANDING THEORGANISATION
(BUSINESS IDEA)
IS THIS THE RIGHT COMPANY FORTHESE FUTURE ENVIRONMENTS ?
IS THIS THE RIGHT COMPANY FORTHESE FUTURE ENVIRONMENTS ?
IF NOT : ADDRESS COMPETENCIES
STRATEGY: THE LINK BETWEEN THE FIRM AND ITS ENVIRONMENT
IF SO : ADDRESS BUSINESS CHOICES
STRENGTHSSTRENGTHSand and
WEAKNESSESWEAKNESSES
STRENGTHSSTRENGTHSand and
WEAKNESSESWEAKNESSES
OPPORTUNITIESOPPORTUNITIESand and
THREATSTHREATS
OPPORTUNITIESOPPORTUNITIESand and
THREATSTHREATS
Organisational LearningOrganisational Learning
STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life
Organisational LearningOrganisational Learning
STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life
ENVIRONMENTALENVIRONMENTAL FORCESFORCES
ENVIRONMENTALENVIRONMENTAL FORCESFORCES
ORGANISATIONALORGANISATIONALRESOURCESRESOURCES
CAPABILITIESCAPABILITIES
ORGANISATIONALORGANISATIONALRESOURCESRESOURCES
CAPABILITIESCAPABILITIES
CURRENT REALITYCURRENT REALITY
STRATEGIC INTENT, VISION, MISSIONSTRATEGIC INTENT, VISION, MISSION
DRIVING FORCEDRIVING FORCE
PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES
INDUSTRY FORESIGHTINDUSTRY FORESIGHTUNDERSTANDING THE INDUSTRYUNDERSTANDING THE INDUSTRYSCENARIOSSCENARIOS
UNDERSTANDINGTHE ENVIRONMENT
SCENARIOSSCENARIOSUNDERSTANDING
THE ENVIRONMENT
BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION
BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION
THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation
THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation
(After Johnson : 1988)
STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMS
STRENGTHSSTRENGTHSand and
WEAKNESSESWEAKNESSES
STRENGTHSSTRENGTHSand and
WEAKNESSESWEAKNESSES
OPPORTUNITIESOPPORTUNITIESand and
THREATSTHREATS
OPPORTUNITIESOPPORTUNITIESand and
THREATSTHREATS
Organisational LearningOrganisational Learning
STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life
Organisational LearningOrganisational Learning
STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life
ENVIRONMENTALENVIRONMENTAL FORCESFORCES
ENVIRONMENTALENVIRONMENTAL FORCESFORCES
ORGANISATIONALORGANISATIONALRESOURCESRESOURCES
CAPABILITIESCAPABILITIES
ORGANISATIONALORGANISATIONALRESOURCESRESOURCES
CAPABILITIESCAPABILITIES
CURRENT REALITYCURRENT REALITY
STRATEGIC INTENT, VISION, MISSIONSTRATEGIC INTENT, VISION, MISSION
DRIVING FORCEDRIVING FORCE
PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES
INDUSTRY FORESIGHTINDUSTRY FORESIGHTUNDERSTANDING THE INDUSTRYUNDERSTANDING THE INDUSTRYSCENARIOSSCENARIOS
UNDERSTANDINGTHE ENVIRONMENT
SCENARIOSSCENARIOSUNDERSTANDING
THE ENVIRONMENT
BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION
BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION
THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation
THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation
(After Johnson : 1988)
STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMSIf you want to understand the World, commonly held ideas are absolutely blinding.
STRENGTHSSTRENGTHSand and
WEAKNESSESWEAKNESSES
STRENGTHSSTRENGTHSand and
WEAKNESSESWEAKNESSES
OPPORTUNITIESOPPORTUNITIESand and
THREATSTHREATS
OPPORTUNITIESOPPORTUNITIESand and
THREATSTHREATS
Organisational LearningOrganisational Learning
STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life
Organisational LearningOrganisational Learning
STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life
ENVIRONMENTALENVIRONMENTAL FORCESFORCES
ENVIRONMENTALENVIRONMENTAL FORCESFORCES
ORGANISATIONALORGANISATIONALRESOURCESRESOURCES
CAPABILITIESCAPABILITIES
ORGANISATIONALORGANISATIONALRESOURCESRESOURCES
CAPABILITIESCAPABILITIES
CURRENT REALITYCURRENT REALITY
STRATEGIC INTENT, VISION, MISSIONSTRATEGIC INTENT, VISION, MISSION
DRIVING FORCEDRIVING FORCE
PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES
INDUSTRY FORESIGHTINDUSTRY FORESIGHTUNDERSTANDING THE INDUSTRYUNDERSTANDING THE INDUSTRYSCENARIOSSCENARIOS
UNDERSTANDINGTHE ENVIRONMENT
SCENARIOSSCENARIOSUNDERSTANDING
THE ENVIRONMENT
BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION
BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION
THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation
THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation
(After Johnson : 1988)
STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMS
The only way to spot threats and opportunities is to break out of a narrow way of thinking.
STRENGTHSSTRENGTHSand and
WEAKNESSESWEAKNESSES
STRENGTHSSTRENGTHSand and
WEAKNESSESWEAKNESSES
OPPORTUNITIESOPPORTUNITIESand and
THREATSTHREATS
OPPORTUNITIESOPPORTUNITIESand and
THREATSTHREATS
Organisational LearningOrganisational Learning
STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life
Organisational LearningOrganisational Learning
STRATEGIC LEADERSHIPSTRATEGIC LEADERSHIPAs a way of Business LifeAs a way of Business Life
ENVIRONMENTALENVIRONMENTAL FORCESFORCES
ENVIRONMENTALENVIRONMENTAL FORCESFORCES
ORGANISATIONALORGANISATIONALRESOURCESRESOURCES
CAPABILITIESCAPABILITIES
ORGANISATIONALORGANISATIONALRESOURCESRESOURCES
CAPABILITIESCAPABILITIES
CURRENT REALITYCURRENT REALITY
STRATEGIC INTENT, VISION, MISSIONSTRATEGIC INTENT, VISION, MISSION
DRIVING FORCEDRIVING FORCE
PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES
INDUSTRY FORESIGHTINDUSTRY FORESIGHTUNDERSTANDING THE INDUSTRYUNDERSTANDING THE INDUSTRYSCENARIOSSCENARIOS
UNDERSTANDINGTHE ENVIRONMENT
SCENARIOSSCENARIOSUNDERSTANDING
THE ENVIRONMENT
BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION
BUSINESS IDEABUSINESS IDEAUNDERSTANDINGTHE INSTITUTION
THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation
THE PARADIGM OR MENTAL MODELTHE PARADIGM OR MENTAL MODELBeliefs and assumptions held in common and taken for granted in an OrganisationBeliefs and assumptions held in common and taken for granted in an Organisation
(After Johnson : 1988)
STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMS
. . . If you’re trying to reach enlightenment, you must develop, in this order, “right view, right intention, right action.”
If you’re not seeing the world properly, you have no hope of any sort of breakthrough. (Ramo: 2009: 134)
DO
ING
Content Context
Shortsight Longsight Foresight Vision ContextFar Hindsight Near Hindsight
Blind spotsBlind spots
Bright sparksBright sparks
Blind spotsBlind spots
Bright sparksBright sparks
Data Facts, observations, data points
Information Data with meaning
Knowledge Information with insight
Wisdom Knowledge with context
(Source: Based on Dr. Kanes Rajah: 2005)
Partial knowledge
Incorrect knowledge
False knowledge
No knowledge
BE
ING
Process
STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMS
DO
ING
Content Context
Shortsight Longsight Foresight Vision ContextFar Hindsight Near Hindsight
Blind spotsBlind spots
Bright sparksBright sparks
Blind spotsBlind spots
Bright sparksBright sparks
Data Facts, observations, data points
Information Data with meaning
Knowledge Information with insight
Wisdom Knowledge with context
(Source: Based on Dr. Kanes Rajah: 2005)
Partial knowledge
Incorrect knowledge
False knowledge
No knowledge
BE
ING
Process
More than anything, what you want to know is when change is going to begin. This sense is known as mastery of incipience, and the skill is often praised as the highest form of wisdom. (Ramo: 2009: 161).
STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMS
DO
ING
Content Context
Shortsight Longsight Foresight Vision ContextFar Hindsight Near Hindsight
Blind spotsBlind spots
Bright sparksBright sparks
Blind spotsBlind spots
Bright sparksBright sparks
Data Facts, observations, data points
Information Data with meaning
Knowledge Information with insight
Wisdom Knowledge with context
(Source: Based on Dr. Kanes Rajah: 2005)
Partial knowledge
Incorrect knowledge
False knowledge
No knowledge
BE
ING
Process
. . . truth emerges through debate, study, reflection, meditation, and, at long last, insight delivered like lightning. (paraphrase of Ramo, 2009: 212).
STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMS
DO
ING
Content Context
Shortsight Longsight Foresight Vision ContextFar Hindsight Near Hindsight
Blind spotsBlind spots
Bright sparksBright sparks
Blind spotsBlind spots
Bright sparksBright sparks
Data Facts, observations, data points
Information Data with meaning
Knowledge Information with insight
Wisdom Knowledge with context
(Source: Based on Dr. Kanes Rajah: 2005)
Partial knowledge
Incorrect knowledge
False knowledge
No knowledge
BE
ING
Process
. . . The environment is far more powerful than any individual. It is never stable and in its sudden changes from one state to another, more important than the desires of any of us . . . Context is everything . . . (Ramo: 2009: 160).
STRATEGY AND PARADIGMSSTRATEGY AND PARADIGMS
© BMI-BRSCUSR 15
DEVELOPING STRATEGIC LEADERSHIP AS A WAY OF BUSINESS LIFE
PoliticalEconomic
Social
Technological
CURRENT REALITY
STRATEGIC INTENT
DRIVING FORCE
PERFORMANCE GUIDELINES
ENVIRONMENTAL SCANNING
PREDICTING THE FUTURE INDUSTRY FORESIGHT CREATING THE FUTURE
PARADIGM ENHANCEMENT PARADIGMS PARADIGM SHIFT
NATURE OF CHANGESCENARIOS
IMPACTS
VISION, MISSION, SLOGANCONTEXT
CORE VALUESRequired to intercept the future
CORE COMPETENCIESThe Idea of the Business
Resources, Skills, Key CapabilitiesSTRATEGIC ARCHITECTURE
STRUCTURERequired for the future
STRATEGIESA LOGIC, AND FIRST LEVEL OF DETAIL FOR HOW
THE VISION CAN BE ACCOMPLISHED
MA
NA
GE
ME
NT
LE
AD
ER
SH
IP
INTERNAL ORIENTATIONMANAGING
STRENGTHS and WEAKNESSES
INTERNAL STAKEHOLDERSSHAREHOLDERS
EMPLOYEESSUPPLIERSPARTNERS
CYCLICALREQUIRING TACTICAL
RESPONSE
STRUCTURALREQUIRING STRATEGIC
RESPONSE
PLANNINGBUDGETTINGORGANISING
CONTROLLINGSTAFFING
LEADINGDIRECTINGALIGNING
MOTIVATINGINSPIRING
MANAGING THEHERE AND NOW
TODAY FORWARD
EFFICIENCY
DOINGTHINGS RIGHT
MANAGING THETHERE AND THEN
FUTURE BACKWARD
EFFECTIVENESS
DOINGTHE RIGHT THINGS
EXTERNAL ORIENTATIONRESPONDING TO
OPPORTUNITIES and THREATS
EXTERNAL STAKEHOLDERSGOVERNMENTCOMPETITORS
FINANCIERSCUSTOMERS
(c)BMI-BRSCU
THE BMI-SCU STRATEGIC LEADERSHIP PROCESS
PROBING QUESTIONNAIRELEADERSHIP STYLEBusiness PhilosophyCulture and Values
Principal challenges
NATURE OF CHANGEStructural/Cyclical
SCENARIOSIMPACTS
DEVELOPINGINDUSTRY FORESIGHT
SENSITISATIONStrategic Reading
Calibrating the compass
PARADIGMSand
PARADIGM SHIFT
CURRENT REALITY
STRATEGIC INTENT
VISION/MISSION/SLOGANCONTEXT
FUTURE CORE VALUES
DRIVING FORCE
CORE COMPETENCIESCORE COMPETENCIESRequired for the futureRequired for the future
STRATEGIC ARCHITECTURESTRATEGIC ARCHITECTUREThe Idea of the BusinessThe Idea of the Business
Resources, Skills, Key CapabilitiesResources, Skills, Key CapabilitiesRequired for the futureRequired for the future
STRUCTURESTRUCTURE
PERFORMANCE GUIDELINES
CLEAR STATEMENT OF STRATEGY THAT CAN BE EASILY RETAINEDSHARED UNDERSTANDING AND COMMITMENTStrategic Leadership as a way of business life
CONSISTENCY IN RESOURCE ALLOCATION IN LONG TERMFOCAL POINT FOR RESOURCE ALLOCATION AND INTELLECTUAL ENERGY IN MEDIUM TERM
EXPLOITING COMPETITIVE OPENINGS WITH MINIMUM RESOURCES AND EXPOSURE IN SHORT TERMTAPPING THE COLLECTIVE WISDOM OF THE TOTAL ORGANISATION
CR
EA
TIV
E T
EN
SIO
N IS
FO
RM
ED
BY
TW
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AJO
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OM
PO
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SC
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ION
IS F
OR
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CO
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EN
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ST
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ISIO
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TR
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, OR
VIS
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(T
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SU
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AN
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AN
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LIT
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RE
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(W
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TH
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EN
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RE
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AC
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HIS
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SE
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AN
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ES
UL
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IN A
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TH
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em
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HA
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DS
ST
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TO
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TH
ER
TH
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TO
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TH
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THE STRATEGIC PLANNING PROCESS
© BMI-BRSCUSR 16
CREATIVE TENSION
SEEKS RESOLUTION
RESULTS IN ACTION
THE GLUE
THATHOLDS
STRATEGYTOGETHER
Regenerating Strategy : Strategic Leadership as a way of Business Life
PARADIGMSand
PARADIGM SHIFT
PARADIGMSand
PARADIGM SHIFT
LEADERSHIP STYLECULTURE, VALUES
SCENARIOS
LEADERSHIP STYLECULTURE, VALUES
SCENARIOS
CORPORATE CHALLENGES, COMPETITIVE INNOVATION, STRATEGIC ACTION PLANSSHARED UNDERSTANDING AND COMMITMENT
TAPPING THE COLLECTIVE WISDOM OF THE TOTAL ORGANISATION
PERFORMANCE MILESTONESMeasuring Success
PERFORMANCE MILESTONESMeasuring Success
STRUCTURERequired for the future
STRATEGIESCORE COMPETENCIES
FUTURE BUSINESS IDEA STRATEGIC ARCHITECTURE
RESOURCES, SKILLS, KEY CAPABILITIES
FUTURE DRIVING FORCE
SWOTCHANGING GAME RULES
REDEFINING BOUNDARIES
STRATEGIC INTENTVISION, MISSION, SLOGAN
VALUES, CONTEXT
CURRENT REALITYRULES OF THE GAME
BUSINESS IDEA
© BMI-BRSCUSR 17
THE RELATIONSHIP OF VISION, STRATEGIES,THE RELATIONSHIP OF VISION, STRATEGIES,PLANS AND BUDGETS : A TRADITIONAL VIEWPLANS AND BUDGETS : A TRADITIONAL VIEWTHE RELATIONSHIP OF VISION, STRATEGIES,THE RELATIONSHIP OF VISION, STRATEGIES,PLANS AND BUDGETS : A TRADITIONAL VIEWPLANS AND BUDGETS : A TRADITIONAL VIEW
Specific action steps and Specific action steps and timetables to implement timetables to implement the strategiesthe strategies
Plans converted into Plans converted into financial projections and financial projections and goalsgoals
A sensible and A sensible and appealing picture of appealing picture of the futurethe future
A logic, and first level A logic, and first level of detail, for how the of detail, for how the vision can be vision can be achievedachieved
BUDGETSBUDGETSBUDGETSBUDGETS
MANAGEMENT MANAGEMENT DOESDOESMANAGEMENT MANAGEMENT DOESDOES
LEADERSHIP LEADERSHIP DEVELOPSDEVELOPSLEADERSHIP LEADERSHIP DEVELOPSDEVELOPS
STRATEGIC STRATEGIC ACTIONACTIONPLANSPLANS
STRATEGIC STRATEGIC ACTIONACTIONPLANSPLANS
STRATEGIESSTRATEGIESSTRATEGIESSTRATEGIES
VISIONVISIONVISIONVISION
© BMI-BRSCUSR 18
ENVIRONMENTAL CHANGE
WHAT RESPONSES RESULT ?WHAT RESPONSES RESULT ?
DENOMINATOR (NET ASSETS)DENOMINATOR (NET ASSETS) NUMERATOR (NET INCOME)NUMERATOR (NET INCOME)
• RESTRUCTURINGRESTRUCTURING• B P RE-ENGINEERINGB P RE-ENGINEERING• COST CUTTINGCOST CUTTING• BENCHMARKINGBENCHMARKING• TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT
• INTELLECTUAL CAPITAL FOCUSINTELLECTUAL CAPITAL FOCUS• REGENERATING STRATEGYREGENERATING STRATEGY• REINVENTING THE LEADERSHIPREINVENTING THE LEADERSHIP• REINVENTING THE ORGANISATIONREINVENTING THE ORGANISATION• REINVENTING THE INDUSTRYREINVENTING THE INDUSTRY
AS : * Competition hots up
* Growth slows, stagnates* Margins decline
* Market share falls* Substitution occurs
(Based on Hamel and Prahalad : 1994)(Based on Hamel and Prahalad : 1994)
© BMI-BRSCUSR 19
ENVIRONMENTAL CHANGE
WHAT RESPONSES RESULT ?WHAT RESPONSES RESULT ?
DENOMINATOR (NET ASSETS)DENOMINATOR (NET ASSETS) NUMERATOR (NET INCOME)NUMERATOR (NET INCOME)
• RESTRUCTURINGRESTRUCTURING• B P RE-ENGINEERINGB P RE-ENGINEERING• COST CUTTINGCOST CUTTING• BENCHMARKINGBENCHMARKING• TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT
• INTELLECTUAL CAPITAL FOCUSINTELLECTUAL CAPITAL FOCUS• REGENERATING STRATEGYREGENERATING STRATEGY• REINVENTING THE LEADERSHIPREINVENTING THE LEADERSHIP• REINVENTING THE ORGANISATIONREINVENTING THE ORGANISATION• REINVENTING THE INDUSTRYREINVENTING THE INDUSTRY
AS : * Competition hots up
* Growth slows, stagnates* Margins decline
* Market share falls* Substitution occurs
(Based on Hamel and Prahalad : 1994)(Based on Hamel and Prahalad : 1994)
It is not enough for a company to get It is not enough for a company to get SMALLER and BETTER and FASTER. SMALLER and BETTER and FASTER. A company must also be capable of A company must also be capable of
fundamentally RECONCEIVING itself, fundamentally RECONCEIVING itself, of REGENERATING core strategies, and of REGENERATING core strategies, and
of REINVENTING ITS INDUSTRYof REINVENTING ITS INDUSTRY
© BMI-BRSCUSR 20
CREATING THE FUTURECREATING THE FUTURETHE QUEST FOR COMPETITIVENESSTHE QUEST FOR COMPETITIVENESS
RESTRUCTURINGRESTRUCTURINGTHE PORTFOLIOTHE PORTFOLIO
AND DOWNSIZING AND DOWNSIZING HEADCOUNTHEADCOUNT
REENGINEERING REENGINEERING PROCESSES ANDPROCESSES AND
CONTINUOUSCONTINUOUSIMPROVEMENTIMPROVEMENT
REGENERATING REGENERATING STRATEGIESSTRATEGIES
SMALLERSMALLER BETTERBETTER DIFFERENTDIFFERENT
REINVENTING REINVENTING THE LEADERSHIP,THE LEADERSHIP,
THE ORGANISATION,THE ORGANISATION,THE INDUSTRYTHE INDUSTRY
REINVENTING REINVENTING THE LEADERSHIP,THE LEADERSHIP,
THE ORGANISATION,THE ORGANISATION,THE INDUSTRYTHE INDUSTRY
TRANSFORMEDTRANSFORMEDTRANSFORMEDTRANSFORMEDPOSSIBLE RESULTSPOSSIBLE RESULTS IMPOSSIBLE RESULTSIMPOSSIBLE RESULTSIMPOSSIBLE RESULTSIMPOSSIBLE RESULTS
© BMI-BRSCUSR 21
CREATING THE FUTURE
CREATIVECREATIVE TENSIONTENSION
CREATIVECREATIVE TENSIONTENSION SEEKS RESOLUTION : RESULTS IN ACTIONSEEKS RESOLUTION : RESULTS IN ACTION
STRATEGIC ACTION PLANSSTRATEGIC ACTION PLANS PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES
BUDGETSBUDGETS
DONE DONE BY MANAGEMENT BY MANAGEMENT
SEEKS RESOLUTION : RESULTS IN ACTIONSEEKS RESOLUTION : RESULTS IN ACTION STRATEGIC ACTION PLANSSTRATEGIC ACTION PLANS
PERFORMANCE GUIDELINESPERFORMANCE GUIDELINES BUDGETSBUDGETS
DONE DONE BY MANAGEMENT BY MANAGEMENT
STRATEGIES STRATEGIES A LOGIC AND FIRST A LOGIC AND FIRST
LEVEL OF DETAIL, LEVEL OF DETAIL, FOR HOW THE FOR HOW THE
VISION CAN BE ACHIEVEDVISION CAN BE ACHIEVED
DEVELOPED DEVELOPED BY BY
LEADERSHIP LEADERSHIP CONTEMPORARY ANALYSTCONTEMPORARY ANALYST
20202011
CURRENT REALITYCURRENT REALITY INFORMED BY INFORMED BY
MEMORIES OF MEMORIES OF THE PAST THE PAST(HISTORY)(HISTORY)HISTORIANHISTORIAN
VISION INFORMED
BY MEMORIES
OF THE FUTURE
(SCENARIOS)PROPHET
CONTEXT : A COMPELLING PICTURE CONTEXT : A COMPELLING PICTURE OF THE FUTURE WE WANT TO OF THE FUTURE WE WANT TO
CREATE.CREATE.
CREATED BY CREATED BY LEADERSHIPLEADERSHIP
CONTEXT : A COMPELLING PICTURE CONTEXT : A COMPELLING PICTURE OF THE FUTURE WE WANT TO OF THE FUTURE WE WANT TO
CREATE.CREATE.
CREATED BY CREATED BY LEADERSHIPLEADERSHIP
© BMI-BRSCUSR 22
BEYOND VISION, STRATEGIES, PLANS AND BUDGETS : A NON-TRADITIONAL VIEW
BEYOND VISION, STRATEGIES, PLANS AND BUDGETS : A NON-TRADITIONAL VIEW
Specific steps and Specific steps and timetables to implement timetables to implement the strategiesthe strategies
Plans converted into Plans converted into financial projections and financial projections and goalsgoals
A sensible and A sensible and appealing picture of appealing picture of the futurethe future
A logic, and first level A logic, and first level of detail, for how the of detail, for how the vision can be vision can be achievedachieved
BUDGETSBUDGETSBUDGETSBUDGETS
MANAGEMENT MANAGEMENT DOESDOESMANAGEMENT MANAGEMENT DOESDOES
VISIONARYVISIONARYLEADERSHIP LEADERSHIP DEVELOPSDEVELOPS
VISIONARYVISIONARYLEADERSHIP LEADERSHIP DEVELOPSDEVELOPS
PLANSPLANSPLANSPLANS
STRATEGIESSTRATEGIESSTRATEGIESSTRATEGIES
VISIONVISIONVISIONVISION
CONTEXTCONTEXTCONTEXTCONTEXTTRANS-TRANS-FORMATIONALFORMATIONALLEADERSHIP LEADERSHIP CREATESCREATES
TRANS-TRANS-FORMATIONALFORMATIONALLEADERSHIP LEADERSHIP CREATESCREATES
Way of being. Inventing an Way of being. Inventing an impossible game. impossible game. Reinventing, transforming Reinventing, transforming the organisation, the industrythe organisation, the industry
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STRATEGY REGENERATION PROCESSProprietor and Principal Consultant Dr. Llewellyn B. LewisProprietor and Principal Consultant Dr. Llewellyn B. Lewis
Developing competitive industry foresightDeveloping competitive industry foresightandand
strategic leadership as a way of business life.strategic leadership as a way of business life.
www.strategicforum.co.zaresearch@bmi-brscu.co.zastrategy@bmi-brscu.co.za
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Studium Ad Prosperandum
Voluntas in Conveniendum
BUILDING RESEARCHSTRATEGY CONSULTINGUNIT cc
Reg. No. 2002/105109/23
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Studium Ad Prosperandum
Voluntas in Conveniendum
BUILDING RESEARCHSTRATEGY CONSULTINGUNIT cc
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