1. Strategic Thinking Prof. Abhishek Nirjar Strategic Management Group
Indian Institute of Management, Lucknow

2. Content for the session
Strategy
Strategic Mindset
Tools for developing Strategic Thoughts

3. Strategy
The aim of strategy is to choose a unique strategic position for the Organisation
2. Generate Options
Strategic choice/s
Combine to create a reinforcing assortment
The assortment must achieve fit with the firm’s environment without sacrificing flexibility
4. The assortment of activities is the firm’s strategy. It needs organizational support to function properly

4. Who should I target as my customers?
Unique Position
Who should I target as my customers?
What products and services should I be offering?
How should I do all this in an efficient manner?
Customer group
Customer function
Alternate Technologies

5. In our context….. Where is the school now?
Where does the school want to be in 3, 5, 10, 20 years?
How are we going to get there?

6. A Reinforcing Assortment
After the choice resources are allocated and activities identified
Fit and Flexibility has to be balanced: With pros and cons
an Example
Activities
Pros
Cons
Flat Structure
Open Communication
No perceived Progress
Cross-utilization of people
Helps see the big picture
No specialists
High Quality Staff
Productive
Recruitment difficulties
High Utilization
Efficient
Wear and Tear
Team work
Motivating/holistic perspective
No development of leaders
Fast Growth
Profits
Attracts competitors

7. Creating Internal and External Fits
Internal Organisational
Environment
The Firm’s Strategy
Choice of
Customers
Manufacturing
Products
Distribution
Inventory
Culture
Structure
Incentives
The Firm’s
Environment
People

8. No Strategy Remains Unique For Ever
Playing the Game Better
Playing the Game Differently
Operational Excellence:
Focus on existing Position
Restructuring
Refocusing
Process Re-engineering
Quality Programmes
Empowering Employees
Strategic Innovation:
New or unexpected customer segments
to focus on
New Customer Needs
New ways of producing, delivering
Selling and distributing your products/
Services

9. What is the purpose of a business firm?
The strategic purpose of a firm is to create value that meets the need of its stakeholders.
Who are the stakeholders?
All parties that have an interest (or a stake) in the success or performance of the firm are its stakeholders.
All the parties that stand to benefit from a firm’s successful operation, including owners, suppliers, customers, employees, local communities, trade associations, and society at large.

10. Focal Point Of Strategy :Competitive Advantage
Competitive Advantage can be defined as the
ability of a firm to outperform its industry
to earn higher rates of profits than the industry norm.
Create more value for the customer than the competitor does
Customers want goods and services which are
better, (Differentiation)
cheaper (Cost Leadership)
faster (Quick response)

11. Forms Of Strategy Deliberate Strategy Intended Strategy
Realized Strategy
Unrealized Strategy
Emergent Strategy

12. Sustaining Competitive Advantage
Creating superior customer value
Creating superior value for the shareholders
Disciplined and passionate execution of strategy
The ability to innovate strategically.

13. Managerial Mindset
Reactive, goals arise out of necessity not dreams
See themselves as conservators and regulators of existing order
Involved in situational and contextual characteristics of day-to day activities
Engage in and support short term least cost behaviour to enhance financial performance figures

14. Strategic Focus adopts
Takes a long term focus
Requires coordination of complex, multi-pronged initiatives
Aims at order-of magnitude benefits, rather than incremental gains
Assumes that risk is inherent, and is (usually) willing to spend money to manage risk

15. Strategic Mindset Combine both strategic and operating matters
Formulate and implement strategies for both immediate and long term goals that ensure long-term survival
Use linear and non-linear thinking
Believe in strategic choice

16. Strategic Planning Strategic Thinking
Purpose is to operationalise the strategies developed through strategic thinking and to support the strategic thinking process
Analytical, Convergent and Conventional
Strategic Thinking
Purpose is to discover novel, imaginative strategies which can re-write the rules of the competitive game.
Envision potential futures significantly different from the present
Creative, synthetic and divergent

17. Effective Strategic Thinking contributes to….
Determining strategic direction
Exploiting and maintaining competencies
Developing human capital
Sustaining an effective organizational culture
Emphasizing ethical practices
Establishing balanced organizational control

18. Model of Strategic Thinking (Liedtka, ’98) Elements of strategic thinking
Systems perspective
Intelligent opportunism
Intent Focused
Thinking in time
Hypothesis driven

19. Systems Perspective:
A strategic mindset has a mental model of the complete end to end system of value creation and the interdependencies within.
New insights conflict with deeply held internal images of ‘how the world works’
Clear understanding of internal and external factors- business ecosystem essential

20. Intent Focused
Long term market or competitive position a firm hopes to build over a decade or so.
conveys a sense of direction

21. Intelligent opportunism
Adaptability
Thinking in Time
the past has predictive value
present is the departure from the past
Continuous comparison, thoughtful of prospective change
Use both an intuition memory and its broad historical context to think well about creating the future
Hypothesis driven
Strategic thinking has to be creative and critical in nature
Use scientific methods
What ifs… and the …if… then....

22. How can we build a Strategic Mindset?
Realize the importance of future based thinking
How to improve the value of your company by thinking in time
Understanding the forces driving change
How can future based thinking benefit my organization
Initiate a thought process among all

23. Do companies have life cycles? Are all companies fated to die?
Understanding the cycle time of Organizations
Do companies have life cycles?
Are all companies fated to die?
How can companies beat the odds?
What mental models do managers have? Can we change them?

24. Thank you