The difference between what we want and what we have got Strategic gaps: The difference between what we want and what we have got Lecture 10

A route-map for market-led strategic change Part I Customer value imperatives Part II Developing a value-based marketing strategy Part III Processes for managing strategic transformation The strategic pathway Change strategy Market sensing and learning strategy The Customer is always right-handed Strategic gaps Strategic market choices and targets Strategic thinking and thinking strategically New marketing meets old marketing Organization and processes for change Customer value strategy and positioning Implementation process and internal marketing Value-based marketing strategy Strategic relationships and networks

Agenda Auditing the strategic pathway Market(ing) intentions versus market(ing) realities strategic gap analysis

Auditing the strategic pathway “It’s a dirty little secret: Most executives cannot articulate the objective, scope and advantage of their business in a simple statement. If they can’t, neither can anyone else.” Collis and Rukstad, 2008

Auditing the strategic pathway Evaluating: Strategic thinking Market sensing and learning strategy Strategic market choices and targets Customer value strategy and positioning Strategic relationships and networks The strategy

Market(ing) intentions versus market(ing) realities Systematically identifying the differences (gaps) between what we want and what we have got (or expect to get) Explaining those gaps and taking remedial action

Strategic gap analysis intent Strategic reality Comparison Strategic gaps

Organization and processes for change: Building the infrastructure to make it happen

A route-map for market-led strategic change Part III Processes for managing strategic transformation Part I Customer value imperatives Part II Developing a value-based marketing strategy The strategic pathway Change strategy Market sensing and learning strategy The Customer is always right-handed Strategic gaps Strategic market choices and targets Strategic thinking and thinking strategically New marketing meets old marketing Organization and processes for change Customer value strategy and positioning Implementation process and internal marketing Value-based marketing strategy Strategic relationships and networks

Agenda Organizing for marketing Total integrated marketing New types of organization Process-based marketing

Total integrated marketing The overwhelming priority of integration Inter-functional partnership Routes to totally integrated marketing pan-company marketing for real leadership and vision communicating out of the silo

Total integrated marketing collaborative partnerships inside the company formal mechanisms for integration process focus cross-functional teams organizational structure internal marketing a strategic approach to total integration

Total integrated marketing Accounting & finance Production & operations Supply chain Sales Partner organizations Processes that define value Alliances Processes that create value Networks Processes that deliver value Human resource management Purchasing & supply Research & development Customer service

New types of organization The new organization traditional structures create barriers organizational design shifts are common innovation is key force the knowledge-based worker managing culture collaborative working informal networks organizational diversity and external relationships

New types of organization Organizational agility and flexibility traditional organizations are too slow and cumbersome new emphasis on speed and responsiveness Employee motivation e.g., the Millennials

Process-based marketing Managing organizational marketing processes Structures are moving towards horizontal business processes

Changing organizational themes Hybrid structures Functional overlay Traditional vertical organizational hierarchy Horizontal organizational structure Functional structure Process structure Process overlay Hybrid structures

Process-based marketing Hybrid organizational forms are replacing traditional vertical organizations

Process-based organization for marketing Processes that define value e.g. knowledge management, CRM Processes that create value e.g. new product development, innovation Process leadership Processes that deliver value e.g. logistics, customer service, value chain relationships Coordination mechanisms to link process and resource leadership Specialist resource groups support process managers e.g. functional departments, business units, external collaborators Resource group leadership

Process-based marketing Decision making processes – planning and budgeting conventional views of planning and budgeting emphasise techniques and systems

Conventional marketing planning Corporate goals Corporate mission Corporate constraints Corporate/strategic planning Market analysis and choices Market segmentation Competitive comparisons Internal analysis SWOT: Strengths, Weaknesses, Opportunties and Threats Strategic marketing Planning Market strategy Marketing programmes Tactics and actions Evaluation and control Marketing plan Implementation strategy Sales management Alliance management Internal marketing Implementation

Process-based marketing How managers see planning and budgeting – managers want: a good plan teams and ownership continuous process identify real information needs build understanding of strategy shake company dogma

Process-based marketing What managers get from planning: analysis instead of planning information search instead of decisions incrementalism vested interests organizational 'mind-set’ resistance to change no resourcing or implementation Diminishing effort and interest

Process-based marketing Marketing budgeting becomes dominated by: power strategic contingencies control disputes political influence bargaining and advocacy corporate culture

Process-based marketing Managing planning and budgeting as process Multidimensional processes with analytical, behavioural and organizational dimensions

A multi-dimensional model of marketing planning Techniques Procedures Systems Planning models Analytical dimension Managerial perceptions Participation Strategic assumptions Motivation Commitment Ownership of output Planning process Behavioural dimension Structure Information Culture Management signals Organizational dimension

Process-based marketing Actively managing process to shape outcomes involves: training and development change agents participation design effective planning teams ownership the top priority