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3. Platform 4 Growth eBriefing Session 13th November 2014 Nicola O’Neill Platform 4 Growth Programme Lead Platform 4 Growth Strategy 13 th of January, 2015 Enterprise Ireland challenges you to grow Dr Brian Harney brian.harney@dcu.ie

4. The Session 60 minutes Following by Q&A Interactive Polls Chat Raise your hand! Questions & Answers

5. Agenda Rationale a) Orientation challenge b) Relevance challenge c) Trade-off challenge d)Execution and change challenge Resources and preparation for workshop Rationale a) Orientation challenge b) Relevance challenge c) Trade-off challenge d)Execution and change challenge Resources and preparation for workshop

6. Rationale Characteristics of Strategic Decisions Ambiguous/uncertain Complex Organisation-wide Fundamental Long-term Implications Strategic Decisions ARE NOT Routine Operationally Specific Short Term Ambiguous/uncertain Complex Organisation-wide Fundamental Long-term Implications Strategic Decisions ARE NOT Routine Operationally Specific Short Term

7. Rationale Key words that you associate with strategy?

8. Military origins Porter (1980) Porter (1985) Barney (1991) Stalk et al (1992) Grant (1996) Teece (2007) Stacey (1995) Chesbrough and Appleyard (2007 ) Strategy future(s)? Industrial era Knowledge- based era 1960s Planning 1970s–80s Positioning Chandler (1962) Ansoff (1965) Andrews (1971) 1990s Capabilities 2000s Networked innovation Figure Strategy timeline Rationale: Meaning(s) of Strategy

9. Rationale Strategy as challenge By strategy, I mean a cohesive response to a challenge. A real strategy is neither a document nor a forecast but rather an overall approach based on a diagnosis of a challenge. The most important element of a strategy is a coherent viewpoint about the forces at work, not a plan (Rumelt, 2009: 35)

10. Rationale Strategic management challenges

11. Agenda a) Orientation challenge Give me a stock clerk with a goal and I will give you a man who will make history. Give me a man with no goals and I will give you a stock clerk (JC Penny).

12. a) Orientation challenge Key direction and scope of strategy? Launch Boot camp revisited a) Protect and build- existing markets with existing products/services b) Market development- existing products /services in new markets c) Product development- new products services in existing markets d) Diversification- new products and services and new markets

13. a) Orientation challenge  Vision Indicates the long-term course management has charted for the organization:  Future orientated  Source of inspiration  The kind of company to become  Mission What we do now to deliver value  Company specific  The real mission is always — “What do we do to make a profit?”

14. Irish Chocolate Company Chinese low-cost airline first company that is fully end- to-end digital a) Orientation challenge: Examples

15. Orientation Self-assessment a) Orientation challenge: Strategy Matters

16. Agenda b) Relevance challenge We cannot direct the wind, but we can adjust the sails St Patrick's Missionary Society

17. b) Relevance challenge Assess key macro-level factors PEST (political, economic, social, technological) What are the megatrends likely to impact your business? Keep an eye on the periphery What are the key features of international markets we need to consider? CAGE What do customers value/ how do we deliver value? Scenario planning Key sources of information

18. b) Relevance challenge CAGE- assessing new international markets

19. b) Relevance challenge: Working case study a highly successful company, CEO on the verge of a momentous decision Innovation on tap History of creativity, risk taking and using capabilities in new ways Move Into Furniture? Highly fragmented, tight margins, static, low brand recognition. No strong leader a highly successful company, CEO on the verge of a momentous decision Innovation on tap History of creativity, risk taking and using capabilities in new ways Move Into Furniture? Highly fragmented, tight margins, static, low brand recognition. No strong leader

20. b) Relevance challenge: Working case study -What are the key factors informing the decision? -What would you advise? Take the plunge into furniture or not? -What are the key factors informing the decision? -What would you advise? Take the plunge into furniture or not?

21. b) Relevance challenge: Assessing industry attractiveness Figure: 5 forces of industry attractiveness (Porter, 2008) Porter, M. 2008. The competitive forces that shape strategy. Harvard Business Review, January: 78-93.

22. b) Relevance challenge: What do customers value? http://corporate.aerlingus.com/companypr ofile/ourstrategy

23. Agenda c) Trade-off challenge Strategy is about being different, deliberately choosing a different set of activities to deliver a unique mix of value (Porter 1996) c) Trade-off challenge Strategy is about being different, deliberately choosing a different set of activities to deliver a unique mix of value (Porter 1996)

24. Outbound Logistics Operations Inbound Logistics Sales and Marketing Service Profit Margin Product R&D, Technology, Systems Development Human Resources Management General Administration Primary Activities and Costs Support Activities and Costs c) Trade off challenge: Value chain

25. c) Trade-off challenge: Activity System Map for Ikea

26. c) Trade-off challenge: Where do you excel?

27. Does your company have a clearly stated set of capabilities (core competencies), i.e., things you do better than anyone else, that customers value and competitors can’t beat? Do these capabilities support your strategy, the way you create value in the market?

28. Agenda d) Execution challenge Without action, the world would still be an idea General Georges Doriot Excellence is not an act but a habit Aristotle d) Execution challenge Without action, the world would still be an idea General Georges Doriot Excellence is not an act but a habit Aristotle

29. d) Execution challenge: No easy task

30. d) Execution challenge

31. d) Your execution challenge: To what degree is the strategy converted into specific operational objectives, priorities, investments, and measures? What are the key barriers you confront in executing strategy?

32. © Brian Harney DCU Cunningham and Harney 2012: 14 Strategic Management Challenge Key QuestionKey Dimensions Orientation challenge Purpose: Who we are and where do we compete? - Clear strategic posture - Coherency in actions/communication - Leadership Relevance challenge (add value) Difference that adds value: What is our value proposition? And for whom? - Understanding the external environment - Customer offering/appeal - Communication of message - Stakeholder management Trade-off challenge Clear choices: How do we compete? Tailored systems of value creation - What activities to conduct, not to conduct - Nature of Capabilities - Consistency Execution and continuous change challenge How do we execute and adapt? How do we measure Success? - Continuously challenge assumptions - Experiment and innovate - Execution activities Summary: Strategic Management Challenges

33. Preparation for the strategy workshop Look back: Draw your company life curve (what are the key inflection points? What explains key changes) Look forward: Assess the CAGE factors associated with a market you are planning to enter/ market you are in? What are the implications for your strategy? Look back: Draw your company life curve (what are the key inflection points? What explains key changes) Look forward: Assess the CAGE factors associated with a market you are planning to enter/ market you are in? What are the implications for your strategy?

34. What do you hope to get from the strategy workshop

35. Feedback on this session Short poll : How useful was this session for you?

36. Questions and Answers