DEVELOPING YOUR STRATEGY Cultivating Our Competitive Advantage

Application Analysis What is our competitive advantage?

Objectives Identify the components of the McKinsey 7S Framework of Excellence Develop and align a team strategy Distinguish how value is created Leadership Competencies Business acumen and sound decision making Leads and develops a high-performing, inclusive, and diverse workforce

Strategy: a plan of action to maintain competitive advantage Structure: who reports to whom Systems: measures the activities of daily activities

Style: how managers lead the organization Staff: capabilities of the employees Skills: core competencies of the company and staff Shared Values: culture and work ethic

Defining Strategy

What is Strategy? 1.Creating a unique and valuable position in the market 2.Creating fit among a company’s activities - Michael Porter Harvard Business School

What Strategy IS Insightful understanding of customers, competitors, and your own capabilities A unique position in the market A guide to action that establishes a coherent pattern of actions A high degree of fit between activities, resources, and the environment Identified trade-offs

What Strategy is NOT A document A once a year exercise The exclusive domain of consultants and executive retreats Formal planning driven by a calendar Operational effectiveness

Strategic Planning Executive Team Leadership Team Frontline Team The path we take from why we exist (mission) to what we want to become (vision).

Executive Team How the enterprise enhances value How business units fit together How do we structure the business so that all of its parts create more values together then they would individually?

Executive Team Vision Statement Mission Statement SWOT Assessment Strategic Objectives Where do we want to be? Why do we exist? What is our current state? How will we succeed?

Southwest Activity System Map Porter: 1996

Walmart Activity System

MGM Resorts Strategic Objectives Enhanced Shareholder Value Company-Wide Integration and Alignment Growth and Development Corporate Social Responsibility

MGM System Activity

Leadership Team How to compete in individual markets How to capitalize on core competencies to create added value What path do we take to win this market?

Leadership Team Key Initiatives Key Performance Indicators What path will we take? How will we measure success?

Value Creation

Frontline Team Tactics Who will do what?

Frontline Team Must lead to achievement of the business unit and corporate strategies Implement best practices to meet business unit objectives Where do we focus our time and energy to meet the Company’s strategic objectives?

Application Formulate an articulate response to each of these strategy questions: What is the current state of your business unit? What are your key initiatives? How do your key initiatives help create value? What are your Key Performance Indicators (KPIs)? Do your KPIs support the Executive Team’s strategic objectives? What are your critical challenges? What are your must-win battles?

APPLIED EXCELLENCE Presented by MGM RESORTS UNIVERSITY