Strategy as Strategic Decision Making Brian, Glen, Kevin, Thomas, Yunhwan

What is Strategy? From the Economist, strategy answers: From the Economist, strategy answers: 1. Where do you want to go? 2. How do you want to get there? Combine to create a continuing flow of competitive advantages Combine to create a continuing flow of competitive advantages “Bet the company” decisions “Bet the company” decisions Make fast, widely supported, and high quality strategic decisions frequently Make fast, widely supported, and high quality strategic decisions frequently

Tonight’s Agenda Build Collective Intuition Build Collective Intuition Stimulate Quick Conflict Stimulate Quick Conflict Maintain The Pace Maintain The Pace Defuse Politics Defuse Politics

Build Collective Intuition

Things to Avoid Using past, obsolete information Using past, obsolete information Top management missing group meetings Top management missing group meetings Communicating vertically, not horizontally Communicating vertically, not horizontally Withholding information from one another Withholding information from one another Only rely on market analysis Only rely on market analysis

Things to Focus On Hold regularly scheduled “don’t miss” meetings Hold regularly scheduled “don’t miss” meetings Organize antipodal team members Organize antipodal team members Use updated, real-time information Use updated, real-time information Use informality to encourage open and direct collaboration Use informality to encourage open and direct collaboration Use outside information Use outside information

Benefits of Collective Intuition Decisions based on better information Decisions based on better information Knowledge of competitor’s activities Knowledge of competitor’s activities Collective strategy Collective strategy Keeping each other in check Keeping each other in check Creates a “gut feeling” Creates a “gut feeling” Better grasp on competitive dynamics Better grasp on competitive dynamics

“Two minds are better than one. Groups working in tandem always provide faster and better results than individuals working alone.” -GMAT Essay Topic

Stimulate Quick Conflict Executives often think conflict slows down decisions Executives often think conflict slows down decisions Want few alternatives, analyze the top few and decide Want few alternatives, analyze the top few and decide Real life doesn’t work this way Real life doesn’t work this way

Conflict Stimulates creative thinking and understanding of the options Stimulates creative thinking and understanding of the options Without it you can miss opportunities Without it you can miss opportunities Encourage it, don’t avoid it Encourage it, don’t avoid it

Executive teams Diverse demographics and experience Diverse demographics and experience The variety of backgrounds means a variety of ideas The variety of backgrounds means a variety of ideas Must be able to voice the ideas with the group Must be able to voice the ideas with the group Arguing is ok as long as it is constructive Arguing is ok as long as it is constructive

Frame-breaking Creating alternatives to the obvious Creating alternatives to the obvious Scenario planning Scenario planning Devils advocate Devils advocate Role play as competitors Role play as competitors Details of these don’t matter Details of these don’t matter Be sure to mix them up to help avoid group think Be sure to mix them up to help avoid group think Teach people, constructive conflict is ok Teach people, constructive conflict is ok

Backcasting Envision the future you want Envision the future you want Ex: Your company controls the whole market Ex: Your company controls the whole market Work backward from there Work backward from there

Creating multiple alternatives Create as many ideas as quickly as possible Create as many ideas as quickly as possible “There should be three or four solutions to everything” Ensures you didn’t miss anything Ensures you didn’t miss anything Helps you to understand what you wanted in the first place Helps you to understand what you wanted in the first place

Avoid the dilemma Maintaining decision pace, not pushing decision speed Action required: Launch the decision making process promptly Maintaining the disciplined pace

Avoid the dilemma Maintaining decision pace, not pushing decision speed Action required: Use rules of thumb for how long a major decision should take Maintaining the disciplined pace Set a rhythm & Tempo around Follow the natural rhythm of strategic choice Follow the natural rhythm of strategic choice

Avoid the dilemma Maintaining decision pace, not pushing decision speed Set a rhythm & Tempo around Follow the natural rhythm of strategic choice Follow the natural rhythm of strategic choice Gauge the scale of a decision Recognize similarities among strategic decisions Action required: Adjust the scope of a decision to fit the allotted time frame Maintaining the disciplined pace

Avoid the dilemma Maintaining decision pace, not pushing decision speed Set a rhythm & Tempo around Follow the natural rhythm of strategic choice Follow the natural rhythm of strategic choice Gauge the scale of a decision Recognize similarities among strategic decisions Match tempo to change to market Action required: Establish milestones and adjust the decision scope Maintaining the disciplined pace Learn from the market about brand trend, technology

Avoid the dilemma Maintaining decision pace, not pushing decision speed Set a rhythm & Tempo around Follow the natural rhythm of strategic choice Follow the natural rhythm of strategic choice Gauge the scale of a decision Recognize similarities among strategic decisions Match tempo to change to market Learn from the market about brand trend, technology Action required: Test the prototypes instead of analyzing options in the abstract Prototype decisions Take concrete actions that remove unpredictability Maintaining the disciplined pace

Avoid the dilemma Maintaining decision pace, not pushing decision speed Set a rhythm & Tempo around Follow the natural rhythm of strategic choice Follow the natural rhythm of strategic choice Gauge the scale of a decision Recognize similarities among strategic decisions Match tempo to change to market Learn from the market about brand trend, technology Action required: Conduct the decision making process with the goal of consensus in mind Prototype decisions Take concrete actions that remove unpredictability Maintaining the disciplined pace Consensus with qualification Reach consensus or Break the deadlock i.e. voting, the largest staker make a decision Reach consensus or Break the deadlock i.e. voting, the largest staker make a decision COMPETING ON THE EDGE Unanimous video

Defuse Politics Problems with Politics: 1.Fosters harmful competition amongst both managers and employees 2.Distorts information base  Poor strategic decision-making process 3.Wastes valuable time

Defuse Politics Create common goals: Develop a shared vision Where you want to be Who your external competitors are Example: Neptune

Defuse Politics Create a clear turf: Balanced power structure Each key decision maker has clear area of responsibility Leader is the most powerful decision maker Avoid a dominant centralized control structure Broaden the power structure across the company Hire great people and let them run their own show Example: Venus Too much control often equates to poor strategic choices Example: Targhee

Defuse Politics Create a “fun” culture: Promote humor and laughter in the workplace Helps create a positive mood Facilitates optimism and creativity Emphasize the “rush” and excitement of fast-paced markets & competition

Conclusion Competing on the edge Competing on the edge Build Collective Intuition Build Collective Intuition Stimulate Quick Conflict Stimulate Quick Conflict Maintain The Pace Maintain The Pace Defuse Politics Defuse Politics