CEO Task Increase Profit Scenario 1 CEO Task Increase Profit Efficiently, using existing resources Scenario 2 Activity ( Strategic Decision Making ) Teams of 4

R ESULT E XPECTED Upon completion of this presentation, you will have:  Understood why conventional approaches to strategy give way to “competing on the edge.”  Identified how a firm have a superior effective decision making process.

S TRATEGY AS S TRATEGIC D ECISION M AKING Bjorn Lapakko Jaemin Kim Mike Chowdhury Stephanie Reckard Taka Watari Yuming Pan

I NTRODUCTION Traditional Approach:  Where do you want to go?

T RADITIONAL A PPROACH : O VEREMPHASIZE / U NDEREMPHASIZE Executives ability to analyze and predict which industries, competencies or strategic positions will be viable and for how long? The challenge of actually creating effective strategies?

COMPETING ON THE EDGE!!!  Successful Corporation Formula: Where do you want to go? How do you want to get there? Effective Strategic Decision Making

 Continuous Flow  Levels: Unit/ Multi-Business/ Corporate  Assumption: “Bet The Company”  Fast, high quality and widely supported decisions COMPETING ON THE EDGE!!!

W HAT WE PROMISE TO TEACH !  Building Collective Intuition  Stimulating Quick Conflict  Maintain a Disciplined Pace  Defusing Political Behavior

B UILD C OLLECTIVE I NTUITION

 Using small, obsolete information  No time for formal meetings  Only rely on market analysis  Withholding information from others  Using accounting-based information B UILD C OLLECTIVE I NTUITION M YTH SHOULD AVOID

B UILD C OLLECTIVE I NTUITION F OCUS ON  Using as much as or more information  Holding regularly scheduled “don’t miss” meetings  Using update, real-time information  Organizing antipodal team members  Using internal and external information  Encouraging open and direct collaboration

 Willing to express diverse views  Decision process moves more quickly  Decisions based on high-quality information  Creating a “gut feeling”  A superior grasp of competitive dynamics B UILD C OLLECTIVE I NTUITION B ENEFITS

S TIMULATE Q UICK C ONFLICT

 Natural feature of high-stakes decision making  Opportunities can be missed  Use “frame-breaking” tactics  Executives try to accelerate conflict

M AINTAINING P ACE

The dilemma  Every decision is unique  Must decide quickly

M AINTAINING P ACE Methods  Specify timeframe  Prototyping  Skillfully cutoff debate (consensus with qualification) Benefits  Decision making is more efficient  Helps plan goals

D EFUSE P OLITICS

Common Goal

Balanced Power

Humor Gives You a job What would you say if a guy walked in for an interview without a shirt on? He must’ve had on some really nice pants.

T OWARD E FFECTIVE S TRATEGIC D ECISION M AKING Clear Future  SWOT Alternate Futures  Option valuation  Game Theory Range  Scenario Ambiguity  Intuition  Quick Conflict  Pace  Defuse Politics “Strategy under Uncertainty”, Harvard Business Review, Nov/Dec. 1997

Q&A

E SSAY Q UESTIONS  Describe why conventional approaches to strategy give way to “competing on the edge.”  Identify how a firm have a superior effective decision m aking process.