Post on 21-Apr-2017
“TACKLING THE CHALLENGES OF STRATEGY IMPLEMENTATION”
Welcome!
#KurtBookLaunch
© Vlerick Business School
INTRODUCTION OF AUTHOR
PROF KURT VERWEIRE
ASSOCIATE PROFESSOR IN
STRATEGIC MANAGEMENT
PROF PHILIPPE HASPESLAGH
DEAN VLERICK BUSINESS SCHOOL
2 Strategy Implementation
© Vlerick Business School
STRATEGY IMPLEMENTATION
3
“Execution is not only the biggest issue facing business today; it is something nobody has explained satisfactorily.”
(Bossidy and Charan, 2002)
Strategy Implementation
© Vlerick Business School
STRATEGY IMPLEMENTATION
4
Strategy Implementation
© Vlerick Business School
STRATEGY IMPLEMENTATION
5
Strategy Implementation
© Vlerick Business School Strategy Implementation 6
© Vlerick Business School 7 7 Strategy Implementation
© Vlerick Business School
DEFINING STRATEGY
8
Strategy Implementation
© Vlerick Business School
DEFINING STRATEGY strategy occurs at different levels
9 Strategy Implementation
© Vlerick Business School
DEFINING STRATEGY
10
Strategy Implementation
© Vlerick Business School 11 Strategy Implementation
DEFINING STRATEGY: EASYJET CASE
Whom do we serve?
How do we realize this?
What do we provide?
What is our value proposition?
People paying a ticket out of their own pocket; not the ‘fat cats’
Short-haul flights, no longer than 4h European destinations
Operational excellence: standardization, no-frills, the basics
Low price Convenience: fast and easy
© Vlerick Business School 12
REVENUES PASSENGERS
PROFIT MARGIN RETURN ON EQUITY
Strategy Implementation
© Vlerick Business School
DEFINING YOUR COMPETITIVE ARENA
13 Strategy Implementation
© Vlerick Business School
DEFINING YOUR COMPETITIVE ARENA
14 Strategy Implementation
© Vlerick Business School
DEFINING STRATEGY
15
Strategy Implementation
© Vlerick Business School
DEFINING A COMPETITIVE THEME
16
What is our value proposition?
What is our operating model?
Strategy Implementation
© Vlerick Business School
A WINNING VALUE PROPOSITION
17
Level Access Connectivity Price Product Service
Consumer seeks the company
Turn my hassle into a positive experience.
Establish intimacy with me by doing something no one else can.
Be my price agent; let me trust you to make my purchases.
Inspire me with an assortment of excellent products I didn’t know about.
Provide me with a solution, take my problems away.
Consumer prefers the company
Make the whole interaction reliable and convenient for me.
Care about my needs and me.
Be fair and consistent in your low pricing (this does not necessarily mean lowest price).
Offer continuously high-quality and well-performing products.
Educate me when I encounter a product or a situation I don’t understand.
Consumer accepts the company
Make it easy for me to find what I need.
Respect me, treat me like a human being.
Keep the prices honest; don’t jack them up or offer big savings when there are none.
Be credible in your product and service offerings.
Accommodate me; bend over backward some-times to show me you care.
Consumer underworld
Block my way, hassle me, keep me waiting, make it hard for me to get in and out.
Dehumanize me; disrespect me; ignore my needs.
Be inconsistent, unclear, or misleading in your pricing.
Offer me poor-quality merchandise and services that I can’t use.
Give me an experience I’d just as soon forget; give me a reason to tell my friends to stay away.
Strategy Implementation
© Vlerick Business School
A WINNING VALUE PROPOSITION
18
Source: Crawford & Mathews (2001) A 5-4-3-3-3 profile is optimal.
Strategy Implementation
© Vlerick Business School
A WINNING OPERATING MODEL
19
Strategy Implementation
© Vlerick Business School
DEFINING A COMPETITIVE THEME
20
What is our value proposition?
What is our operating model?
Strategy Implementation
© Vlerick Business School 30
30 Strategy Implementation
© Vlerick Business School
A MODEL FOR STRATEGY IMPLEMENTATION
31
Source: Vlerick Business School/Electrabel (GDF Suez) (2004, 2014)
Strategy Implementation
© Vlerick Business School
ALIGNMENT
32
Operational Excellence Product Leadership Customer Intimacy
Orchestrating theme ‘Best price’ and/or
‘Best access’ (‘fast, easy,
painless’)
‘Best product’
‘Best service’ and/or
‘Best connectivity’
(‘relationship
orientation’)
Direction and goal setting
processes
Efficiency through
process thinking
Zero-defect service
Best product through
continuous product
innovation
Clear innovation strategy:
where to place the bets?
Understanding the
broader problem
Having expertise about
the customer’s business
Customers carefully
selected
Operational processes The operations
department drives the
company
Attention is paid to
process speed and quality
R&D is key: idea
management
Marketing is also key:
educate people with a
missionary zeal
Get engineers, designers,
and marketers
systematically together
Demonstrate expertise
and experience
Strengthen the
relationship
Build loyalty: focus on
customer retention
Strategy Implementation
© Vlerick Business School
ALIGNMENT
33
Operational Excellence Product Leadership Customer Intimacy
Support processes Highly automated
processes
Information systems
increase control and
coordination and
streamline tasks
World-class supply chain
management
Clear innovation
governance process
Systematic process for
allocating resources to
innovation programs
Knowledge sharing and
networks
Systematic collection of
customer and market
information (through
Customer Relationship
Management)
Structured sales process
Evaluation and control
processes
Rigid, centralized control
Detailed measures on
various aspects of the
process
Setting higher thresholds
Innovation performance
measures
Control, learning, and
experimentation
Detailed measures about
account penetration and
loyalty
Lifetime value of the
customer
Organizational behavior
processes
Centralized structure
Organization structured
around core processes
Culture of continuous
improvement
Fluid organization
structure
Stimulate diversity,
tolerate mavericks
Low levels of
formalization
Entrepreneurial culture
Decentralized
organization
Employee retention
Focus on quality, defined
from the customer’s point
of view
Strategy Implementation
© Vlerick Business School
ALIGNMENT
34
Strategy Implementation
© Vlerick Business School
ALIGNMENT
35
Strategy Implementation
© Vlerick Business School 36
36 Strategy Implementation
© Vlerick Business School
A MODEL FOR STRATEGY IMPLEMENTATION
37
Strategy Implementation
© Vlerick Business School 38 Strategy Implementation
the entrepreneurial organization
© Vlerick Business School
A MODEL FOR STRATEGY IMPLEMENTATION
39
Strategy Implementation
© Vlerick Business School
EEN STRATEGIEGERICHTE ORGANISATIE
40 Strategy Implementation
the structured organization
© Vlerick Business School
COMMITMENT: INTRODUCING ‘MATURITY’
Implementing Winning Business Strategies
© Vlerick Business School 42 Op Weg naar een Strategiegerichte Organisatie
the connected organization
© Vlerick Business School
COMMITMENT: INTRODUCING ‘MATURITY’
Implementing Winning Business Strategies
© Vlerick Business School 44 Op Weg naar een Strategiegerichte Organisatie
the committed organization
© Vlerick Business School
COMMITMENT AT ING DIRECT USA
45
Strategy Implementation
© Vlerick Business School
COMMITMENT AT CHÂTEAUFORM’
46 Strategy Implementation
© Vlerick Business School
COMMITMENT AT CARGLASS®
47
Strategy Implementation
© Vlerick Business School
ALIGNMENT AND COMMITMENT
48
Strategy Implementation
© Vlerick Business School 49
49 Strategy Implementation
© Vlerick Business School
PANEL DEBATE
Dirk Wouters CEO Bank Van Breda & C°
Ignace Van Doorselaere CEO Van de Velde
Stefaan Hermans COO Carglass
50 Strategy Implementation
© Vlerick Business School 52 Strategy Implementation
BANK J. VAN BREDA & C°
© Vlerick Business School
DEFINING STRATEGY
Financial services
What do we provide?
1989:
Whom do we serve?
What is our value proposition ?
2005: Is this enough to differentiate?
Refining our strategy: best in assisting self employed building up finanial assets in a structured and diversified way
How do we realize this?
- Personal approach: 1 Account manager for both professional & private needs
- Better understanding through focus on target group
Strategy Implementation 53
© Vlerick Business School 54 Strategy Implementation
VAN DE VELDE
© Vlerick Business School
CARGLASS® BELUX
Strategy Implementation 55
OUR VISION & STRATEGY
© Vlerick Business School
FROM BELIEF TO KNOWLEDGE FROM KNOWLEDGE TO IMPROVEMENT
57
Execute
In take
Exceed expectati
on
Strategy Implementation
© Vlerick Business School 59 Strategy Implementation
BANK J. VAN BREDA & C°
© Vlerick Business School
ALIGNMENT
1990 – 2000: Stop servicing other retail customers in order to create focus on entrepreuneurs and liberal professions
2005 – 2014: Stop servicing entrepreneurs and liberal professions that are not interested in a partnership to build up financial assets with Bank J.Van Breda & C° in order to create focus on our main value proposition
Strategy Implementation 60
© Vlerick Business School
Structured Organisation:
Discipline, operational processes, control processes
CRM
Adapted remuneration
Focus
ALIGNMENT
Strategy Implementation 61
© Vlerick Business School 62 Strategy Implementation
VAN DE VELDE
© Vlerick Business School
CARGLASS® BELUX
Strategy Implementation 63
© Vlerick Business School
EASY TO REMEMBER…
64 Strategy Implementation
© Vlerick Business School
EVERY WEEK MORE THAN 1000 FEEDBACKS OF CUSTOMERS
Net Promotor Score YTD
2014
Promotors - Score 9 or 10
84 %
% Promotors % Detractors minus
Net Promotor Score 10:
Detractors - Score < 7
2 %
Passives - Score 7 or 8
14 %
82 %
© Vlerick Business School 67 Strategy Implementation
BANK J. VAN BREDA & C°
© Vlerick Business School
COMMITMENT
Corporate culture:
Top 3 values employees
Honesty
Enthusiasm
Sense of responsibility
right attitude to create a service and customer oriented business
Strategy Implementation 68
© Vlerick Business School
COMMITMENT
Connected and Committed Organisation:
IT-tools that support strategy
IT provides answers on the needs (≠ questions)
Credit analyst:
Cash flow serves to pay back credit + to build up financial assets
Dividend pay out is diminishing solvency + opportunity to build up private financial assets
Strategy Implementation 69
© Vlerick Business School
70
(*) Excluding ABK the net profit in 2011 amounted to Eur 21.407 million. The exceptional non-recurring impact on results (badwill) from the acquisition of ABK means that the ROE for 2011 provide a distorted picture of underlying profitability.
Bank J.Van Breda & C° (consolidated): Sustainable growth
2009 2010 2011 2012 2013
Staff 399 418 462 465 466
Net profit after taxes 23.317 25.664 54.880 (*) 27.739 31.546
Equity 243.667 258.620 394.969 427.267 447.907
Cost income ratio 60% 57% 61% 58% 59%
Return on average equity (ROE) 10% 10% (*) 7% 7%
Impairments on loans 0,09% 0,15% 0,06% 0,08% 0,04%
Core capital ratio (Tier 1) 11,80% 11,30% 14,70% 14,20% 13,70%(thousands of Euros)
Strategy Implementation
© Vlerick Business School 71 Strategy Implementation
VAN DE VELDE
© Vlerick Business School
CARGLASS® BELUX
Strategy Implementation 72
© Vlerick Business School
FEEDBACK FROM EMPLOYEES
73 Strategy Implementation
© Vlerick Business School
COMMUNICATION AND RECOGNITION IS KEY
74 Strategy Implementation
© Vlerick Business School
PANEL DEBATE – QUESTIONS?
Dirk Wouters CEO Bank Van Breda & C°
Ignace Van Doorselaere CEO Van de Velde
Stefaan Hermans COO Carglass
75 Strategy Implementation
Strategy Implementation 77
© Vlerick Business School
SWIM TOGETHER, SUCCEED TOGETHER
KEEN FOR MORE?
UPCOMING PROGRAMMES
Successful Strategy Execution
24-26 November 2014
We invite you to enjoy the reception and walking dinner!
#KurtBookLaunch
78
Strategy Implementation