1. Systems Thinking Applied to Strategic Management
Presented to the Albuquerque Quality Network
Presented by Marlena Taylor
March 17, 2016

2. Desired Results Engage you in a learning session
Provide tools to apply systems thinking principles in strategic planning and execution
Share best practices
11/23/2018

3. Kodak’s Key Strategic Decisions and Results
2000
1996
1992
1984
1980
1976
1988
2012
2008
2004
Kodak’s Key Strategic Decisions and Results
Developed the
Digital Camera and
Pocketed it
40 Years
1976
90% market share on film and 85% on cameras
Said no to
Sponsor the
Olympics
Fuji said yes
1980
Fuji emerges as a
serious competitor
1986
10% workforce reduction
Culture
An organization’s prosperity was not necessarily due it its technological advancements, but more to its workers’ goodwill and loyalty.
Agressive
Patent
Litigation
1997
74% market share on film
Price of stock is $92.87
Shift Strategies
to Digital
2007
27,000 jobs lost and
80 buildings demolished
2004
Stop selling film cameras
Filed for
Bankruptcy
2011
Price of stock is $0.54
2013
Emerged from bankruptcy
as an imaging business
2012
Exit digital image
capture business
Failed to act on external threats from competition and technological advances and internal weaknesses from its culture
11/23/2018

4. The Word’s Biggest Problems
Armed Violence
Terrorism
Climate Change
Global Economic System
Global Trade
Poverty and Health
Data Source: CFR.org
11/23/2018

5. Thinking in Systems
“The problems we have created in the world today will not be solved by the level of thinking that created them”
~Albert Einstein
11/23/2018 5

6. Habits of a Systems Thinker
11/23/2018

7. Why Strategic Planning?
Move the organization from reacting to problems to alignment and integration. A strategic planning and execution system is the foundation of creating a sustainable future.
11/23/2018

8. Systems Thinking and Strategic Planning
E. Future Environment
TODAY
C. Inputs
THE SYSTEM
D. Throughputs
FUTURE
A. Outputs
FEEDBACK LOOP
B. Feedback
11/23/2018

9. Future Environmental Scan What is changing in our future environment that will affect us?
11/23/2018

10. Lemonade Stand Input Data for the Future Environment
The mayor plans to deploy small business development incentives over the next 5 years
Market survey data indicates:
More diversity in lemonade flavors
More favorable attitudes towards organic and environmentally friendly products
A new shopping center with restaurants is planned to be located one block away in 18 months
Sales are down in colder months
Investors are interested in investing more if revenues continue to grow
Key Strategic Considerations
What are risks to your future success?
What suppliers will you use?
How much will you charge?
What are your future workforce competency and capacity needs?
11/23/2018

11. Mission and Vision Where do we want to be?
Mission - the fundamental reason your organization exists
Vision - the perceived future or desired state of your organization
Assess your Vision
Inspire action
Represent what matters
Compelling
Promulgate from personal values
Create a visual representation of your vision
11/23/2018

12. Strategic Measures How do we know when we get there?
3-5 strategic indicators to demonstrate the organization is on the right path to achieving the vision
11/23/2018

13. SWOT Analysis Where are we now?
Strengths
Weaknesses
Opportunity
Threat
INTERNAL
Know what system you are operating in today
EXTERNAL
11/23/2018

14. Operational Business Model
Objectives How do we close the gap from where we are to where we want to be?
Operational Business Model
People
Process
Tools
Customers
Suppliers
11/23/2018

15. SMART Goals How do we close the gap from where we are to where we want to be?
Key questions
Specific
What will the goal accomplish? How and why will it be accomplished?
Measureable
How will you measure whether or not the goal has been reached (list at least two indicators)?
Attainable
Do you have the necessary knowledge, skills, abilities, and resources to accomplish the goal? Will meeting the goal challenge you without defeating you?
Results Focused
What is the reason, purpose, or benefit of accomplishing the goal? What is the result (not activities leading up to the result) of the goal?
Time-bound
What is the established completion date and does that completion date create a practical sense of urgency?
11/23/2018

16. Throughput/Actions How do we close the gap from where we are to where we want to be?
Strategic Objectives and goals
Annual Plan
Employee Performance Goals
90 Day Plan
Annually
Review your strategy
Use your strategic indicators
Tie goals to employee performance goals and year-end evaluations
Change your strategy based on data
11/23/2018

17. Engaging Employees
32% of employees doubt their organization has a plan
Only 15% of employees know their company’s top priorities
I strongly agree, agree, strongly disagree, or disagree with the following: My organization…
can change the world.
has a focused mission.
is facing a major threat.
is living in the past.
stands on the threshold of opportunity.
is alive and growing.
11/23/2018

18. Questions?
11/23/2018